Online Poker Law Proposed by U.S. Senator

New Jersey Senator Robert Menendez has introduced a bill called Internet Poker and Games of Skill Regulation, Protection and Enforcement Act that will try to establish a framework for online poker gambling and similar games. The bill introduces thorough reviewing and approval processes for online poker and gambling providers.

Robert Menendez's attempt to overturn a law from 2006 that banned any kind of online gambling is the latest effort in this lobbying campaign that started three years ago with Congressman Barney Frank from Massachusetts.

According to the proposed bill, any online poker and gambling business would have to go through a review process by the Treasury Department, which will examine all applicants for business records, proprietor background checks, financial status and previous owned businesses. Persons or companies that have been indicted for any kind of gambling and/or financial related violations will be automatically rejected.

This bill will also introduce parental and security control features that will have to be incorporated by online gambling websites cleared by the Treasury Department's approval process. Gambling business owners will have to enforce an age limit policy, residence verification, online payment fraud protection and money laundering financial prevention.

Websites would also be forced to monitor compulsive gambling habits in order to keep their license. The bill, if approved, has a clause that states that any Indian tribes or U.S. states can opt out of the agreement and ban online gambling in their jurisdiction.

Robert Menendez said, "The safety benefits of the bill are particularly crucial. [...] Parents are worried about their children falling prey to illegitimate gaming sites and thousands of Americans have been fleeced of millions of dollars by these sites. With proper regulation, we can prevent minors from playing poker online, crackdown on predatory operations, and sanction the legitimate ones."

Regarding this issue, the European Union has already issued a similar law and is pressing the U.S. to change its gambling policy so EU-based companies could operate inside the U.S. as well.