by James McDougal
Sunday ,4 Jan 2009
PPA chairman Alfonse D'Amato says that the UltimateBet and AbsolutePoker cheating highlights the need for legislation of online poker to protect consumers.
A program by “60 Minutes” on the online poker cheating scandal has set the cat amongst the pigeons. Kahnawake Gaming Commission has come out fighting, saying that it has overseen reimbursement of players who have been affected by the cheating. It has also instituted criminal proceedings against the leading culprit, Russ Hamilton and it is ensuring that steps are put in place to prevent any fraud in the future. KGC said although these facts were given to "60 Minutes" they were omitted during the program.
The Poker Players Association sees this program as another opportunity to plead for online poker to be legislated. It says that online poker is here to stay and government should accept this instead of fighting against it. While it recognizes that even regulated industries are open to abuse and fraud, at least consumers will have the assurance that they have recourse.
Prohibition of online poker merely serves to drive it underground, whereas proper legislation could bring in revenue from this multi dollar industry. The PPA further said that the enforcement of an all out ban on online poker is an infringement upon the rights of American citizens who wish to participate in online poker. Continuing to ban online poker allows "bad apples" like AbsolutePoker and UltimateBet to prey upon the unsuspecting public and large amounts of revenue which is needed especially now during the economic crisis to flow into foreign coffers.
Another company that fell victim to the ban on internet gambling is Neteller. In 2006 legislation was passed which effectively put an end to Neteller's US market. According to charges, Neteller processed funds from illegal online poker sites and other internet gambling sites. Subsequently its assets were seized and the company closed down. However, US poker players merely moved their transactions to other processing companies, all this in a matter of minutes. Players can also pay for their bets by using electronic transfers, prepaid debit cards and bank wires. This begs the question, how will government be able to enforce the ban? By spending valuable tax dollars on enforcement?