The US Senate is hard at work … as we speak/type/read, they’re fixin’ to vote on their version of the Bush-Obama-McCain-endorsed $700 billion Wall Street bailout bill (currently at 450 pages) … hope that works out the way it should.

Meanwhile, Sen. Robert Menendez (D-NJ) has introduced S. 3616, the Internet Skill Game Licensing and Control Act. Hmm, interesting timing … and more good work from the PPA (and good poker citizens) to make this happen. Poker big-wigs were told of a Senate bill in the making during Alfonse D’Amato’s visit to the WSOP this summer … so this wasn’t any hastily concocted measure.

Major provisions of this bill:

• Thorough vetting of potential licensees;
• Mandatory implementation of technologies to protect against underage gambling and to monitor and detect individuals with excessive gaming habits;
• High standards to thwart fraud and abuse of customers;
• Regulation to prevent money laundering; and,
• Processes to prevent tax avoidance.

Kinda fascinating to see the (potential) future of online poker (potentially) taking shape, no? It’s taken nine bills to get to this point. Combine this one with the recent bipartisan pushing of HR 6870 from the House Financial Services Committee to the House floor — requiring clarification of the vague definition of “unlawful Internet gambling” contained in the 2006 Unlawful Internet Gambling Enforcement Act after industry officials and regulators, including the Federal Reserve and Department of Treasury, testified to the UIGEA’s unworkable nature and the burden it places on the already troubled banking industry — and, well, you do the math.

The nation may or may not be on the verge of economic crumble, but as far as poker’s concerned, I think we’re looking at positive EV.

More from the PPA and the actual text of the S. 3616 here.

OK, overstatement, I know … a potential collapse of the entire US economy (which George Bush is warning us about, upon request for a $700 billion semi-blank check to his buds in the banking industry) is far more important than poker.

But I gotta say, it was kinda interesting just now to see none other than Barney Frank (Chairman of the House Financial Services Committee, D-MA) step out with Spencer Bachus (Frank’s enemy in recent poker fights, R-AL), letting the public know that they are working with the hastily constructed bailout bill to massage it into good working must-passable shape. Frank is talking about provisions Congress will add to the bill, and Bachus is there by his side, assuring taxpayers whatever happens, they won’t get screwed.

(Fingers crossed!)

Seeing these guys working together toward compromise (as John McCain and Barack Obama huddle with President G-Dub) made me think a little more about how poker might fit in to America’s 21st Century economy … and why shouldn’t the poker sites have to/get to pay a fee to American banks for processing their electronic transactions? Not anything to do with actual bets across the table, of course … but paying the banks to secure the transfer of money for players making deposits and cashouts … that certainly seems fair enough to me.

Maybe a drop in the bucket toward helping out such a huge industry … but a push in the right direction for the banks’ bottom line.

The PPA responds:

PPA Statement on Kentucky Seizure of Poker Websites

WASHINGTON, DC. (September 23, 2008) – John Pappas, executive director of the Poker Players Alliance (PPA), the leading poker grassroots advocacy group with more than one million members nation-wide and more than 13,000 members in the Commonwealth of Kentucky, today issued the following statement in regards to legal action taken by the Commonwealth to seize the domain names of Internet gambling websites.

“The Poker Players Alliance is outraged at the actions taken by Kentucky Governor Steve Beshear and the Franklin County Circuit Court to seize the domain names of Internet gambling websites.  We believe this action not only unduly restricts the freedom of Kentucky residents to play games of skill, such as poker, online, but sets a precedent for censorship of the Internet by force.

“Many of Governor Beshear’s arguments – that online poker is illegal, unregulated and without a mechanism to capture tax revenue – are false. Online poker is not illegal under Kentucky law, is regulated in its home jurisdiction and the Commonwealth of Kentucky chose not to license and regulate poker websites.

“If the Governor truly wants to implement tighter regulations, taxation mechanisms and consumer protections on Internet gambling, the PPA suggests he publicly support federal legislation by U.S. House of Representatives Financial Services Chairman Barney Frank, H.R. 2460, which would achieve those goals

“Poker is a game of skill, a true American pastime and has a proud heritage in Kentucky. Simply because the game has evolved into the 21st Century, it should not be treated as suspect activity.  Forcefully and secretly seizing control of websites that offer online poker games is not a sound public policy or a sound legal solution.”

Barney Frank (image: PokerOnAMac.com)

We’ve all learned, through poker, quite a bit about the American legislative process … not just how cutthroat and pernicious it can be, but also about the long road of baby steps it takes for a (good) special interest — like poker — to get the theoretical majority of a state or nation to see things our way.

Not to over-celebrate a bill’s passing through committee (especially when it was originally expected to pass through that gate in June), but concerned poker citizens and the Poker Players Alliance deserve some big kudos for the progress, as the squeaky wheels are finally being heard, for better or for worse:

House Financial Services Committee Chairman Barney Frank (D-Mass.) is once again bringing up a bill this Tuesday to overturn the Unlawful Internet Gambling Enforcement Act (UIGEA). That makes eight bills that seek to dismantle the UIGEA, and countless hearings. No other issue, except perhaps the war, has garnered so much attention from the Democratic leadership. To find the reason for this sudden regret over the bipartisan bill Congress enacted, one simply needs to “follow the money.”

And that comes from people opposed to any poker measures — the United Conservatives of Virginia. Of course they know not what of they speak — that the UIGEA was not a bipartisan bill, but a skillful display of Republican dirty tricks. (There’s video evidence to prove this, too, so I can’t imagine the Go-UIGEA side really wanting to bring this up.)

And lest we think HR 6870, the Payment Systems Protection Act, isn’t bipartisan — it’s certainly Dem-friendly — there are plenty of Republicans out there who are getting tired of Focus on the Family politics … and in part because of them, now efforts to undo the UIGEA are being embraced by those who understand this entire area of legislation — money and the internet — is about way more than just poker …

From DCRepublican:

Very rarely will I say this, but I have to give Chairman Frank a great deal of credit for fighting this battle. In my opinion, the UIGEA is a piece of legislation that should have never been passed in the first place. But courtesy of a very Grasslean maneuver by Bill Frist, who inserted the bill in the dead of night just before recess packaging it as part of the SAFE Port Act, Congress now finds itself with an extremely important bill that nobody seems to understand (sound like Grassley and the Housing Bill?).

Dick Armey

Perhaps the best thing to come out of this expansion of discourse … two non-poker groups are now on board, encouraging their members to petition Congress for this bill’s passage. One such .org is FreedomWorks, led by Former House Majority Leader Dick Armey (R-TX). He sees the UIGEA as an infringement on internet freedom and privacy, and HR 6870 as the way to right the course.

NetFreedomForever (apparently bankrolled by FreedomWorks) also deserves credit for helping convert some of the previous naysayers on HR 5767 into yaysayers on the compromise bill, HR 6870.

I can only suspect that congresspeople, upon hearing support from non-poker people, began to really think about what we’ve been saying all along. And in the eyes of the non-poker people, this issue is time-critical … because if we don’t pass it now — like in the next 10 days — then Congress will go into recess and before returning to session next year, the enforcement provisions of the UIGEA will actually be put into effect, further mucking up all sorts of online payment systems … not just poker.

Below’s the breakdown of who voted how on HR 6870.

30 for
19 against
21 did not vote

Rather encouraging, too, when you see how many DNVs previously voted FOR … (even Ron Paul, the sponsor of this bill’s predeccessor, didn’t weigh in this time) … and realize that while some NAY’s were persuaded to change their vote, no decisions were reversed the other way. Nice job by Barney Frank, the PPA, and others working on poker’s sound fiscal policy’s behalf, especially with something that relieves at least a little bit of undue pressure on the beleaguered American banking system.

Serious question — don’t claim to have a clue — but am curious to see whether or not overcoming an American political hurdle (but still not near the finish line) moves the market needle overseas.

I wonder if we’ll see an impact on Party Gaming’s stock price. Trading in London closed today at 186.75 … down 1.19 percent, before this vote had gone down, of course.

My microbial knowledge of international securities gut says it would be a good time to buy. But does this accomplishment in Washington DC mean much more than a flop to the businesses heavily vested in HR 6870’s movement through the system?

We’ll see, I suppose.

Word from the PPA about Barney Frank’s second attempt to pass a bill through his own committee:

(Sports betting looks to be out … but this could also be a pretty simple way to get poker back in …)

Statement by PPA Chairman D’Amato on Passage of H.R. 6870

Washington, D.C. (September 16, 2008) – Former Senator Alfonse D’Amato, chairman of the Poker Players Alliance (PPA), the leading poker grassroots advocacy group with more than one million members nationwide, today issued the following statement upon passage of H.R. 6870, the “Payment System Protection Act,” by the House Financial Services Committee.

“The PPA is pleased that the House Financial Services Committee today recognized the need to provide necessary clarification to what constitutes ‘unlawful Internet gambling’ under the Unlawful Internet Gambling Enforcement Act (UIGEA) by passing H.R. 6870.

“This bipartisan compromise bill will rightfully advance the UIGEA to become immediately effective for such internet gambling that is clearly unlawful, namely sports betting.  The legislation also appropriately requires a formal rulemaking, overseen by an administrative law judge, to provide the clarification requested by the Department of Treasury and the Federal Reserve, among others, as to the definition of ‘unlawful Internet gambling.’

“Even those who oppose internet gambling should applaud the passage of this legislation as it provides the most realistic opportunity to block truly unlawful internet gambling transactions.

“The PPA congratulates the Republicans and Democrats on the House Financial Services Committee on reaching this strong compromise bill, and we look forward to enactment of this sound public policy during this legislative session.

“We thank Chairman Frank for his continued leadership on this important issue of protecting individual rights and personal responsibility.”

Once specific thing from the Bloomberg article Jen references below that caught my eye … it was the first time I had ever seen a numerical breakdown of the PPA’s money. (I know these are mostly public figures, because of the nature of political finance … but as far as I know, none of us had bothered to look.)

The poker alliance, headed by former New York Republican Senator Alfonse D’Amato, spent $729,750 on lobbying during the first half of 2008, after spending $900,000 in all of 2007. Its political action committee, PokerPAC, began April 11 and raised $43,226 through Aug. 12.

Cool. Rough math … $50 here, $20 there, $5k from Howard Lederer … yep, it all seems to add up to me.

When it comes to charitable causes these days, paralyzed vets are better than kids with cancer … especially when trying to make a political statement with your fundraising. The politics of poker have gotten funky of late as the election season kicks into higher gear — so what better way to warm some electoral hearts than with a good-ole-fashioned charity tourney?

It’s gonna be a late-night event at Coors Field on Tuesday, Aug. 26. $500 a seat, with proceeds going to the Paralyzed Veterans of America. Hosted by the PPA, with Andy Bloch, Barry Greenstein, and Ben Affleck serving as poker ambassadors. Sponsored tables available for businesses looking for a meaningful way to spend their charitable dollars.

Perhaps inspired by the amount of money police forces take in from poker raids, police in Port Arthur, Texas, raided an internet cafe that was allowing patrons to gamble online — the first bust of its kind in our nation’s history. In a way this would be awesome if it forced the UIGEA into court — but we know the routine … plea down to an irrelevant if not disappearable criminal charge … shut down the operation and make the purveyors sign over any confiscated cash.

All I can say is wow. Can’t believe I didn’t think of opening such a joint I guess you can’t really have multiaccounting problems with online slots Wonder if federal authorities realize the UIGEA caused this, and if Texas officials see the clear citizen demand to expand gambling options in the Lone Star State. Interestingly enough, police say the problem wasn’t internet gambling per se — they don’t have much problem with it done in private — but with the public nature of a business set up to help senior citizens circumvent the banking nuisances created by the UIGEA.

Tomatoes/Tomahtoes, really … because you can arguably say police simply saw it as an opportunity to claim moral righteousness while adding to its asset forfeiture stacks.

From the LVRJ (via HoldemRadio):

“Let me get back to you on it,” he said. “I haven’t thought about the issue.”

He did say he had concerns about Internet gaming originating in foreign countries. Of course, this happens because of U.S. policy and restrictions, but never mind.

McCain also spoke about oversight and making sure the kiddies don’t have access.

“I’ll call you back,” he added.

HR 5767, the poker legislation providing the quickest route to undoing the UIGEA, failed to make it out of committee today. This means anti-UIGEA efforts will likely have to rely on more hard work to rally support behind an unpopular issue than slick process maneuvers for now.

The bill was bare-bones from the start, and the plan was to attach an amendment — the King Amendment (Rep. Peter King - R, NY) — which basically said, “Yo, the banks have to cut off some legal businesses (horse racing) because of this UIGEA thingy and it’s not very effective against the bad guys anyway, so let’s do our banking pals a fave and suspend the whole damn thing while we figure it all out. Cool?”

Sounds like sensible government to me … but apparently some members of the House Financial Services committee were suspicious that sumpin’ was up … and the amendment fell one vote short, 32-32. (It’s a 70-member committee — not sure how it broke down, by party or otherwise, nor who the abstainers/no-shows were.) Without the King Amendment passing by a WIDE margin, the whole strategy behind sneaking pushing a quick bank-fix vote through Congress proper kinda fell apart, so committee chair Rep. Barney Frank decided not to put HR 5767 to a role call vote.

I am pretty sure this effectively kills 5767 … little to no chance it will be resurrected. And I have to say, the results of today’s committee hearing are pretty discouraging. More TK on why, but click below to read the statement from PPA Chairman Alfonse D’Amato, which just came over the transom:

More…

Just a reminder … big Congressional committee vote this week in Washington DC. If you haven’t already, express your support for HR 5767 by sending your representative a pre-templated PPA email.

Especially if your congressperson is on the House Financial Services Committee. (Damn, they’ve really got a lot on their plate. Scroll down and you’ll get a sense of what a big step getting this bill to a vote really will be.)

Click below for a complete list of the pols who really matter to poker at this moment:

More…

Poker Players Alliance Executive Director John Pappas did another one of his WSOP fly-ins for a couple days — manning the hallway booth and meeting with pros — but much of his time was spent away from the Amazon and in his room at the Rio, on the phone/computer/Blackberry with Rep. Barney Frank (D-MA) et al. about HR 5767 — which is scheduled to be voted on in committee Wednesday or Thursday. While getting this bill on the agenda brings the notion of pre-UIGEA poker one step closer to reality, the measure also faces the threat of being voted down and derailed ’til next year or never.

It’s supposedly an all-in push that should hold up … and if HR 5767 — co-sponsored by Rep. Ron Paul (R-TX) and 17 19 others — passes muster in House Financial Services, of which Frank is the chair, then it moves to the floor of Congress for a vote — preferably having shown strong bipartisan support in committee.

So what does this mean for you, the non-political poker types who are fine-and-dandy with playing unofficial WSOP satellites on Full Tilt and PokerStars? More fish, basically … and poker industry people would in some way or another have a say in what may or may not constitute Unlawful Internet Gambling that the Treasury Dept. could look into/stop. (You know, like online site owners who peek at hole cards … that should be unlawful, right?)

More…

Venerable journalist Tim Russert has died at age 58 of a heart attack. Russert, of course, was the Washington bureau chief of NBC News and the host of Meet the Press … and he liked, played, and respected poker. It was during the 2004 presidential campaign where he addressed the Democratic strategy of trying to win the Rust Belt states by saying that going after Ohio was “like drawing to an inside straight.”

Too true …

Back in the day, Russert played in a home game with Johnny Carson.

Oops, while rambling on in the previous post, i forgot to share with you the email Alfonse D’Amato sent out today that made me start writing it. He makes some good points while, of course, also trying to give away a seat to the WSOP. My one question for the for-sale figurehead retired senator is: When are you going to start blogging Why age 25? That seems weird.

Dear Dan,

On behalf of the Poker Players Alliance, thank you for being part of our landmark drive to sign up more than one million members nationwide. Speaking with one voice on behalf of the great game, we have become one of the leading grassroots advocacy organizations in the country.

We have expanded our reach coast-to-coast, opened offices in our nation’s capital, and we are fighting each and every day to preserve your ability to play the great game of poker. Politicians are hearing our message – that Poker Is Not a Crime.

Today, I am excited to announce that the PPA is ready to reward you for your participation. We are launching PPA Online, a new and improved Web site, and a brand new membership package of valuable benefits.

More…

Had a pleasant chat with PPA boss John Pappas yesterday about the state of poker legislation. “We have a new website!” he says. OK, that quote’s semi-made up, but he definitely wanted to pimp the Poker Players Alliance’s new forums, benefit packages, and webtronic goodies. Yeah, yeah, website uh-huh … I didn’t tell him that I get most of my PPA on MySpace, where they share rank with Ed, The Poker Atlas, and RawVegas TV.*

Anyhow, in hearing about what they’re trying to achieve, I came to realize just how much progress the PPA has made. There are currently five bills pending in Congress specific to our issue. You can say all you want about the “special interests” … but that’s what we are. And frankly a rather small one in the Beltway schema. Yet those five bills come with 98 unique sponsors — meaning nearly a quarter of the House of Representatives are more than familiar with poker causes and have affirmatively declared themselves on our side. That’s pretty impressive progress over the course of 18 months.

With that said, Pappas doesn’t necessarily expect to see a legally enforceable undoing of the UIGEA this year. Nor do I, nor does Lavigne in Austin, nor does anyone actively working toward that goal. This being a presidential election year, with so many big big issues in play and seats at stake, Congress just isn’t gonna get around to making the world safe for online poker in ‘08. I could be wrong on this — and hope I am — but I’m not. Fortunately the PPA leadership and lobbyists seem to recognize that hoping is seldom a good strategy … and while there’s always a chance poker could hit a political miracle on the turn and river, the PPA should shove all-in! what’s important now for the PPA is putting us in a position to succeed in 2009, when table conditions are sure to have changed.

* Pauly, dude, when are you gonna get on MySpace?

In this week’s episode:

What are the SSIGI and HR 5767?
It’s Bob Goodlatte’s Worst Nightmare…
Barney Frank and Ron Paul have introduced HR 5767 to target the financial powers of the UIGEA, and they are receiving the backing of several prominent groups including the SSIGI… or the Safe and Secure Internet Gambling Initiative.

ePassporte Pushed Out of Industry…
Another one bites the dust…
Last Friday ePassporte abruptly abandoned their US Customers with little explanation. This week we learn that the US Attorney’s Office in New York has been putting the screws to them. Imagine that!

Legal Online Gambling in the US?
It’s no lie…
American citizens can use credit cards and ban accounts to fund their online gambling activities at this site that the US Government not only knows about, but actually encourages you to play at!

Since the UIGEA became law, poker has desperately needed a superhero to save it. With the U.S. government breathing down our necks, it’s been uncomfortable and a bit scary.

Some organizations have played significant roles in attempting to come to our rescue. The Poker Players Alliance (PPA) and the Safe and Secure Internet Gambling Initiative are lobbying on our behalves, but it was going to take some actual members of our Congress to stand up and gain support for our cause.

We seem to have two of them in Rep. Barney Frank (D-MA) and Rep. Ron Paul (R-TX). Not only have them spoken out against the UIGEA, but they have now proposed new legislation to stop it. H.R. 5767 was introduced on Thursday, April 10th, to prohibit the implementation of UIGEA regulations by banks and financial institutions, basically rendering the UIGEA ineffective.

Read the press release from the House Committee on Financial Services here.

Could poker’s superheroes be Frank and Paul? Bet on it.

Now is the time for the poker community to step up and show their support for H.R. 5767. Tell your Congressional representatives to back this legislation and push it through. The PPA and SSIGI websites make it easy to do.

PPA provides a simple form here, as does SSIGI here.

In this week’s episode:

There’s No Cheating in Online Poker!
Now that we have your attention…
We thought that we should let ya know that some companies are boldly selling poker bot software for under $200, claiming big returns on your investment! Good luck with that! =0)

Our Tribute to the FBI…
We just LOVE the FBI…
I mean, why wouldn’t we love the FBI? They give us so much free comedy material that we would otherwise have to write for ourselves! God bless those brave men and women fighting the tyranny of online gambling!

Washington State to be a Battleground… Again…
The War Rages on…
First, it was J Todd battling the State Gambling Commission over his websites in 2006. Then our friend Nick Jenkins was actually arrested and charged with online gambling in 2007. Now, in early 2008, Attorney and poker player Lee Rousso is challenging the State’s online gambling ban in court!

In this week’s episode:

Congressional Hearings on UIGEA…
Barney Frank Heads to the Hill…
We all know our friend Barney Frank isn’t shy about speaking his mind, calling UIGEA the “stupidest”law ever passed. Now, he’s taking his straight talk about the law before Congressional Committees on the issue. See what was said!

Coverage of the Amsterdam Conference…
Reporting from Amsterdam!
We’re hear and we’re causing trouble! See our exclusive report from the Casino Affiliate Convention, and where J. Todd has been having to spend the night!

In this week’s episode:

The Man Behind Poker Dream… Meet John Dutchak…
The “dream” is over, but the nightmare has just begun. John Dutchak swears he’s not the owner of the now destroyed Poker Dream Network, but family, friends, and former co-workers all say differently. And did we mention that the hundreds of thousands of dollars in player deposits are missing as well? Yea…

Tusk Gaming Gone… Players Money is Safe… APCW Member Saves the Day…
We tried to tell players not to worry! Even though the Tusk Gaming group folded, we knew that MicroGaming would honor the player’s cash on deposit. What we didn’t expect was that Rewards Affiliates would step in and manage the casinos left homeless by the collapse… but that’s just what they did!

UIGEA Enforcement to be Debated Within Weeks… Barney Frank Expected to Speak…
It only took one year, six months, and five days, but it looks like Congress will finaly discuss how to enforce the regulations they passed into las on September 30th, 2006. Barney Frank is expected to speak, and we know he’ll remind them all just how stupid this law is… we just hope he uses really small words to do so…

What exactly does the Poker Players Alliance (PPA) stand for?

Frank Frisina of Life’s a Bluff has posed that question, specifically as it relates to the organization’s mission statement that, in part, says it will ensure the integrity of the game of poker. The fact that the PPA would not and will not make an official statement about the recent online cheating scandals at Absolute Poker and UltimateBet was a major concern for Frank. And upon the conclusion of an e-mail interview with John Pappas, Executive Director of the PPA, Frank decided that John’s answers - or non-answers - were the straws that broke the donkey’s back.

Frank has officially terminated his membership with the PPA and has explained his reasons in great detail. Life’s a Bluff as a whole has also stopped any support of the PPA. He asks that others who agree with him stand up and do the same.

The introduction and the interview are well worth the read, as Frank poses some serious questions to the online poker community about organization, legislation, regulation, and membership organizations like the PPA.

Pokerati file photo: The HB-3186 war room, led by Lavigne in Austin (standing, top left) with Texas poker politicos, player representatives, and out-of-state allies preparing for a capitol offensive.

In addition to those state-by-state member numbers, the PPA put out a press release this week announcing its new state directors. Good to see poker players getting more involved in grassroots activity as the politi-dudes looking out for us in Washington DC continue to develop into a real Beltway force. However, there’s one state where the director curiously isn’t named — and that’s Texas.

Um, Mike …? Has there been a change to your resume that you might wanna blog about that you might wanna blog about?

UPDATE: Lavigne in Austin en-route-to-Wichita-Falls confirms via Blackberry that he is indeed still a state director for the PPA, and showed off his political skills by dodging my follow-up question about “why the ‘TBA’ then?” by reassuring me that the poker political machinery in Texas, having been built and tested now, will be well-oiled for 2009 with real Texas Hold’em in Texas in 2010 so long as I don’t write anything to muck it up.

The political season is well underway, and the PPA, having brought on board a new seasoned politico to coordinate grassroots efforts and direct external affairs, is lining up their state directors and kicking butts into gear. Here is a breakdown of how many members poker’s version of the NRA has by each state, as of noon EDT today. (Go Texas!)

CA: 97107
TX: 58512
FL: 57924
NY: 52090
PA: 50221
OH: 40356
IL: 35147
MI: 34541
NJ: 23999
IN: 23538

More…