Legislative Issues & Policies - Skill Game Protection Act

Introduction

The Unlawful Internet Gambling Enforcement Act was passed in the last Congress and signed into law by President Bush. While the new law does not directly prohibit Internet wagering, it does bar banks and credit card companies from processing payments for such illegal wagering by prohibiting the use of credit in connection with unlawful Internet wagering. Opponents of the ban, particulalry online poker players, have been pushing for a repeal or clarification of that prohibition.

Skill Game Protection Act

On June 7, 2007, Congressman Bob Wexler (D-FL) introduced the Skill Game Protection Act (H.R. 2610). The bill would exempt “games of skill,” described as poker, Mah-jong, chess and bridge, from the Unlawful Internet Gambling Enforcement Act (UIGEA) passed last year. The legislation would allow individuals to compete against each other online in games against each other, but not in games against the “house.” The bill also exempts these games from the prohibitions of the federal Wire Statute (18 USC 1084).

It is possible that the definition of “games of skill” could include pari-mutuel racing.

The bill creates safeguards to prevent minors from participating in Internet gambling, excludes players located in states that forbid Internet wagering, includes provisions to protect those with gambling problems and protects individuals’ privacy and security.

House Action

The bill has been referred to the Committee on Financial Services, the Committee on the Judiciary, and the Committee on Energy and Commerce.

On November 14, 2007, the House Judiciary Committee held a hearing on “Establishing Consistent Enforcement Policies in the Context of Online Wagers.” That Committee is chaired by Congressman John Conyers (D-MI). Witnesses and Members of Congress testified on this legislation during this hearing.