News and Blog

Politico Pro: FAIR PLAY USA TO CONGRESS: ACT ON WEB POKER

Admin — Fri, 13 Apr 2012 19:44:47 +0000

Former FBI Director Louis Freeh, a member of Fair Play's advisory board, wants to make clear that one year after the Justice Department crippled several offshore poker sites - known as "Black Friday" - the market for "illegal and unregulated online gambling still exists." And congressional action in the form of an online poker bill is needed now more than ever to stop the proliferation of unregulated sites, he says.

"Congressional action is required to restore the Wire Act and provide law enforcement with the tools necessary to effectively patrol a borderless Internet that is fraught with rogue online gambling sites outside the reach of U.S. law," he said in advance of Black Friday's one-year anniversary on Sunday. "We must provide strict, uniform national standards for online poker that protect adult consumers and prevent minors from gambling."

FairPlayUSA’s Judge Louis Freeh Statement on Black Friday Anniversary

Admin — Fri, 13 Apr 2012 19:36:54 +0000

MARKET FOR ILLEGAL AND UNREGULATED ONLINE GAMBLING STILL EXISTS, FEDERAL LEGISLATION NEEDED TO SUPPORT LAW ENFORCEMENT EFFORTS

WASHINGTON – On the anniversary of “Black Friday” Louis Freeh, former FBI Director and FairPlayUSA Advisory Board Member, released the following statement:

“The shutdown of a few online gambling websites for laundering money and defrauding banks was a step in the right direction. Yet, in the year since ‘Black Friday’, we have seen an effective law enforcement tool – the Wire Act – taken away, even though the market for illegal and unregulated online gambling still exists.

“Federal legislation is needed to stop the proliferation of these unregulated sites and protect American families through safeguards against fraud, underage gambling and money laundering. Congressional action is required to restore the Wire Act and provide law enforcement with the tools necessary to effectively patrol a borderless Internet that is fraught with rogue online gambling sites outside the reach of U.S. law. We must provide strict, uniform national standards for online poker that protect adult consumers and prevent minors from gambling.”

Fraternal Order of Police Calls for Strong Regulatory Framework

Admin — Tue, 27 Mar 2012 16:28:24 +0000

In a letter addressed to Senator Reid, Speaker Boehner, Senator McConnell and Representative Pelosi the Fraternal Order of Police have called for a strong regulatory framework for online poker:

"...Millions of Americans wager regularly on offshore Internet gambling sites beyond the reach of the Federal government. Today, there are no controls on Internet gambling to give U.S. consumers recourse to U.S. courts to provide prompt and accurate payment; no protections are in place to prevent or detect money laundering; no firm and transparent licensing of operators exists; and no regulatory controls are in place to prevent criminals from entering the marketplace, rigging games, or misusing customer financial data. This has created a situation in which U.S. law enforcement authorities cannot shut down illegal activity, nor is there any way for those victimized by fraud or other criminal activity to seek redress.

Just a few weeks ago, former Governor and Homeland Security Secretary Thomas J. Ridge and former Director of the Federal Bureau of Investigation Louis J. Freeh penned an opinion piece in the Washington Examiner explaining the scope of the problem and the need for a national strategy and Federal action. The FOP shares their approach-- we need to modernize the Wire Act, create a strong regulatory framework for legal gaming that provides law enforcement the tools necessary to put the illegal offshore sites out of business and protect consumers from the operators who engage in criminal activity."

Click here to download the full text of the letter (pdf)

Washington Examiner Op-ed: New Internet gambling law needed now (Louis Freeh and Tom Ridge)

Admin — Fri, 17 Feb 2012 03:42:49 +0000

By Louis Freeh and Tom Ridge

Having served for the last 30 years in significant legal roles -- legislator, governor, prosecutor, judge -- we understand that fundamental elements of the rule of law include clarity and enforcement.

Opaque directives have the potential to invite violations and hinder enforcement. This is particularly true when attempting to apply old laws to new problems, and a recent vote by the District of Columbia Council demonstrates why.

The council just voted to repeal the city's first-in-the-nation Internet gambling law. Regardless of the council's intentions behind their decision to repeal, this vote brings to light a larger problem facing the country, illegal Internet gambling.

Unless Congress acts and works toward a national policy to regulate online gambling, we could be facing different laws that are designed, in theory, to operate within the borders of a state.

But, in practice, we all know that Internet gambling takes place in a borderless enterprise outside an already ambiguous policy arena that affects millions of Americans.

Americans across the country can gamble on various games on the Internet such as cards, sports and games of chance, even though various laws make those activities illegal and the operations running them are offshore, unregulated and offer no consumer protections.

There are as many as 1,700 offshore sites of these kinds taking bets with an annual market of $4 billion to $6 billion.

Unlicensed and unregulated online gambling websites may very well now proliferate more than ever, all still lacking safeguards against fraud, underage gambling and money laundering.

And unfortunately individual states simply do not possess the necessary law enforcement tools to effectively police gambling in a borderless Internet.

While this seems like a dire outlook, there is some cause for optimism. There is a growing consensus that strengthening law enforcement and consumer protection should be the focus, and ultimate goal, of the debate on Internet gambling.

Leading professional law enforcement organizations like the Fraternal Order of Police, National Association of District Attorneys and the National Association of Police Organizations have publicly stated that federal Internet gambling laws are in need of reform and that online poker should be strictly regulated.

Organizations ranging from nationally recognized Internet child and consumer protection advocates to the U.S. Chamber of Commerce are also advocating for a federal solution to the issue of Internet gambling.

To build on the chorus of calls for action by America's law enforcement community and bring greater legal clarity to this issue, federal policymakers should consider four key steps:

First, modernize and strengthen the Wire Act, as well as the Unlawful Internet Gambling Enforcement Act of 2006 to eliminate illegal Internet gambling and unambiguously define related crimes.

Provide federal law enforcement agencies with additional tools to crack down on rogue operators and empower those agencies to shut down illegal sites, working with financial institutions to stop illegal gambling.

Protect the rights of states to determine what forms of gambling are legal within their borders, by giving them the authority to accept or prohibit online poker and mandate geo-location tools to block consumers in prohibited jurisdictions.

Finally, establish a strict and uniform gambling regulatory framework for licensing and enforcement of online poker only in jurisdictions that choose to accept the activity with state-of-the-art technology and strong regulations.

These steps are critical to protect millions of Americans from shady offshore operators, especially in light of the D.C. Council's recent decision repealing the city's Internet gambling law.

Applying old laws to new problems poses significant challenges to a clear understanding of the law, but if Congress can move quickly those challenges can be addressed. We hope they will.

Heads-Up with FairPlayUSA Advisor, Former FBI Director Louis Freeh

Admin — Thu, 19 Jan 2012 00:53:18 +0000

PocketFives
January 18, 2012
By John Douglas

Pushing for the Federal regulation of online poker in the United States is FairPlayUSA. The organization features an eclectic set of advisors, among them former FBI Director Judge Louis Freeh (pictured). The fifth Director of the FBI, Freeh has also served as an Assistant United States Attorney and is now the Founder and Senior Managing Partner of Freeh, Sporkin, and Sullivan. PocketFives sat down with Freeh to get his take on the current status of online poker in the United States.

PocketFives: Why did you decide to join the Board of Advisors of FairPlayUSA?

Judge Louis Freeh: It was the law enforcement piece that interested me from the start. I have long been aware of the problems associated with illegal gambling, going back to my earliest days in the FBI when I was assigned organized crime cases in the FBI’s New York City Field Office. I saw how what seemed like a little innocuous gambling was actually generating millions for organized crime and leading to a host of other crimes along the way, including money laundering, murder, and other violent crimes.

The advent of illegal online gambling is only the latest manifestation and so getting involved to try to raise awareness of this issue with the American public was actually an extension of what I had been doing for more than 30 years in criminal prosecutions.

Click to read the full interview

Pittsburgh Tribune-Review: Prospects improve for legalized online poker

Admin — Fri, 13 Jan 2012 20:19:52 +0000

January 13, 2012
By Mark Gruetze

While a recent Department of Justice ruling brings legalized online gambling in the United States closer, players won't be clicking their bets anytime soon, a noted gambling lawyer says.

"This can't possibly be done that fast if it takes action of the legislature," says Professor I. Nelson Rose, a longtime gambling-industry consultant and distinguished senior professor at Whittier Law School in Costa Mesa, Calif. He referred to the New Jersey legislature's failed attempt last week to approve an online measure before a lame-duck session ended.

Pennsylvania and other states with legalized gambling have the option to offer Internet gambling -- poker, slots and any casino games other than sports betting -- based on a U.S. Department of Justice ruling released just before Christmas.

In response to inquiries from the Illinois and New York lotteries about the legality of selling tickets online, the Justice Department says the federal Wire Act forbids only sports-related gambling in interstate and foreign commerce. Previously, the department interpreted the act as outlawing all forms of gambling.

"This ruling says the main federal statute doesn't apply to gambling that is legal under state law, except for sports-betting interstate," Rose tells Player's Advantage. "Therefore, we're going back to the way things have always been historically and traditionally -- which is, it's up to the states to decide their public policy, not the federal government to impose its public policy on the states."

Since the federal government's crackdown on offshore Internet poker sites nine months ago, gambling advocates have pushed for legalization and regulation of online poker in the United States. Proposals for federal regulation seemed to gain traction for a time; Nevada, New Jersey and other states started preparing their own versions.

Rose says he doesn't know of any move toward legalizing online gaming in Pennsylvania.

Pennsylvania Lottery spokeswoman Allison Roberts says the agency is studying the fiscal and social effects of selling tickets online, including the impact on retail outlets. Ultimately, the governor's office and Legislature would decide whether to pursue online sales.

A spokeswoman for state Rep. Curt Shroder, chairman of the Gaming Oversight committee, says his office has not had a chance to talk about online gaming since the ruling was released.

Before any state launches online gaming, Rose says, officials will have to address several issues: which games to allow, how many licenses to award, how much they will cost, how sites will be regulated, who will operate them, the tax rate and whether to allow bettors from other states -- or countries -- access.

Although the Justice Department says states may regulate online gaming, the debate appears far from over.

FairPlayUSA, which backs federal regulation and was funded by casino giants MGM Resorts and Caesar's Entertainment, released this statement from former FBI Director Louis Freeh, a member of its board of advisers:

"This (ruling) proves the need for federal legislation, because unlicensed and unregulated sites will now proliferate more than ever, without safeguards against fraud, underage gambling and money laundering. Further, we will have multiple state regimes without consistent regulatory standards for activity that takes place electronically across state lines. States do not possess the necessary law enforcement tools to enact such regulatory requirements in a border-less Internet. Only strict and comprehensive federal regulation will ensure that play is safe, secure and confined to players among jurisdictions that permit the practice."

Professional player Robert "Chip Burner" Turner, credited with introducing the game of Omaha to casinos, says he supports online poker but thinks software is not advanced enough to protect players from cheats. He questions whether states would be able to regulate gamblers or operators outside their borders.

Rose doubts that opponents of online gambling can get the ruling overturned because court precedents support the new Justice Department interpretation. "It's already decided," he says.

Online poker sites want as many players as possible, and Rose predicts on his blog, www.GamblingAndTheLaw.com, that states will allow operators to take bets from residents of other states and countries that also have legalized online gaming.

The revenue potential is huge. In California alone, online poker could generate $1 billion a year for operators, Rose says. At a 20 percent tax rate, the state could reap $2 billion or more in 10 years.

"Because there is so much money involved," he says, "(Internet gambling) will be done."

New Study Finds Online Poker Would Have No Damaging Effects on Lotteries

Admin — Tue, 06 Dec 2011 15:33:16 +0000

A new study released today by FairPlayUSA found that the federal regulation of online poker would not have deleterious effects on state lotteries because lotteries and poker are fundamentally different products, used by fundamentally different consumers.

“This study will be an important tool in FairPlayUSA’s ongoing efforts to educate and create public momentum for effective law enforcement, consumer protections and regulation surrounding the legalization of online poker,” said Tom Ridge, former governor of Pennsylvania and advisor of FairPlayUSA.

The report, “An Evaluation of the Effects of Online poker on State Lotteries” was created by Christiansen Capital Advisors (CAA) for FairPlayUSA and analyzed demographic and economic data in addition to a recent report by Public Gaming Research Institute (PGRI). “Americans who want to play poker online deserve a strictly regulated, safe industry here in the United States,” said Marisa McNee, executive director of FairPlayUSA.

“This study uses empirical data to refute any claim that the federal regulation of online poker would adversely impact U.S. lottery sales or state lottery revenues.” The study explains that online poker wouldn’t affect lottery sales for several additional reasons:

Internet gambling games of all kind are already available today and, if any substitution effect exists, it has already been experienced by state lotteries.
Proposed federal legislation would regulate online poker and establish new methods and tools to enforce laws against casino-style games and Internet sports wagering.
Proposed federal legislation would allow states to “opt-out” of regulated online poker which means any state that fears impacts on their lottery can simply opt out.
If substitution has already occurred, lotteries would benefit from the new federal legislation that would remove the illegal sites that are currently in the U.S. marketplace.

To view the full report please visit http://www.fairplayusa.com/sites/default/files/FairPlayStateLotteriesRep...

National Association of Police Organizations Commends Efforts to Give U.S. Law Enforcement Tools to Crack Down on Illegal Gambling, Protect Consumers

Admin — Thu, 17 Nov 2011 22:23:31 +0000

The National Association of Police Organizations (NAPO) recently commended the efforts of FairPlayUSA to give U.S. law enforcement agencies the resources needed to crack down on illegal gambling operations and to protect children and American consumers who choose to play Internet poker.

“Americans who want to play poker online deserve a strictly regulated, safe industry here in the United States,” said Marisa McNee, executive director of FairPlayUSA. “It's time to modernize the Wire Act of 1961 and the law enforcement tools necessary to put the illegal, offshore sites out of business and protect children and consumers. We appreciate NAPO joining the discussion and supporting our efforts. Their support demonstrates the growing consensus about the need to act on this important issue. We look forward to working with NAPO and other advocates as we continue to inform people about the problems associated with offshore Internet gambling.”

The statement, referenced above, from William J. Johnson, executive director of NAPO is listed, in full, below:

"The National Association of Police Organizations (NAPO) commends the efforts of the FairPlayUSA coalition to give U.S. law enforcement agencies the resources needed to crack down on illegal gambling operations and to protect children and American consumers who choose to play Internet poker.

"Notwithstanding legislation passed in 2006 that was intended to stop Internet gambling in the U.S., millions of Americans continue to bet billions of dollars every year on foreign websites, many based in jurisdictions with little or no regulatory oversight.

"Recent actions by the U.S. Department of Justice to crack down on certain rogue gambling operations are laudable. However, as we have seen in the past, when companies that flaunt American law are put out of business, they are inevitably replaced by operators who may be even more unscrupulous.

''NAPO believes that the most realistic solution to this problem is by implementing effective licensing and regulatory procedures, coupled with vigorous law enforcement actions against illegal gambling operations. NAPO believes that this is the most practical means by which to thwart illegal gambling sites, protect American consumers and children, address problem gambling and crack down on money laundering and other criminal activity.

"We applaud FairPlayUSA and encourage other law enforcement organizations to join this growing coalition."

About NAPO:
The National Association of Police Organizations is a coalition of police unions and associations from across the United States that serves to advance the interests of America's law enforcement officers through legislative and legal advocacy, political action and education.

Founded in 1978, NAPO is now the strongest unified voice supporting law enforcement officers in the United States. NAPO represents more than 1,000 police units and associations, 241,000 sworn law enforcement officers, and more than 100,000 citizens who share a common dedication to fair and effective crime control and law enforcement.

Highly-decorated Former FBI Agent Joins FairPlayUSA Advisory Board

Admin — Tue, 15 Nov 2011 16:50:45 +0000

FairPlayUSA announced today that Jack Garcia, a highly-decorated former FBI agent with more than 25 years of investigations experience, has joined the coalition as a member of the Advisory Board. He joins a group that includes former federal judge and FBI Director Louis Freeh, former governor and first Secretary of Homeland Security Tom Ridge and child advocate and cyberlaw expert Parry Aftab.

“Jack further expands the exceptional group of law enforcement and advocacy experts advising FairPlayUSA about how to best address the growing problem of illegal Internet gambling and the need to pair enhanced law enforcement tools with a strict, transparent regulatory structure for online poker,” said Marisa McNee, Executive Director of FairPlayUSA. “We look forward to having him actively engaged in our education efforts.”

Garcia worked as an undercover FBI Agent in more than 100 operations, including infiltrating the Gambino crime family in New York for nearly three years – an investigation that resulted in the arrest and conviction of 39 mobsters, including top members of the family. His work also included investigations into political and law enforcement corruption, drug cartels, terrorism and national security cases. Jack currently serves as a guest speaker and lecturer at the FBI Academy.

“I’ve seen up close the role that illegal gambling plays in funding a whole host of other criminal activities and the power of the internet has given the problem global reach,” said Garcia. “I am very pleased to have the opportunity to relate my experiences and contribute to efforts to update the law to address the specific challenges law enforcement faces from illegal Internet gambling operations based offshore.”

Video: Consumer and family cybersafety issues expert Parry Aftab's testimony before Congress

Admin — Wed, 26 Oct 2011 18:11:49 +0000

Watch FairPlayUSA Advisory Board Member and consumer and family cybersafety issues expert Parry Aftab's testimony before Congress. Then click the "Tweet" or "Like" button to spread the word to your friends: Urge them to stand with us and sign the FairPlayUSA online petition!

Click here to watch the full video of the hearing on the C-SPAN website