PPA Talking Points

General

- Talking Points: Why Congress Should Regulate Internet Poker
- Can Internet Gambling Be Effectively Regulated? Managing the Risks – Malcolm K. Sparrow
- Who Plays Poker?
- Games of Skill and Games of Chance: Poker as a Game of Skill
- Talking Points: Regulated I-Gaming Provides Strong Consumer Protections and Federal Enforcement
- Talking Points: Tribal Governments and Poker Legislation
- Talking Points: The Benefits of Federal v. State Licensing and Regulation of Online Poker

Federal

- Summary of HR 2366
- Talking Points: Regulating Internet Poker is Good Public Policy: HR 2366
- Talking Points: Regulating Internet Poker is Good Public Policy: HR 1174

State

- Talking Points for California Regulation of Internet Poker
- Florida Regulation of Internet Poker
- What does “intra-state” Poker Mean for You as a Poker Player


General

Title: Talking Points: Why Congress Should Regulate Internet Poker

Excerpt:
On April 15th, the Department of Justice launched an unprecedented crackdown on Internet poker. The DoJ targeted the three largest Internet poker sites that take play from individuals located in the U.S. The domain names of the sites have were seized, and the sites have ceased all operations in the U.S., such that an estimated 6 to 8 million Americans who played on these websites are not able to do so.

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Title: Can Internet Gambling Be Effectively Regulated? Managing the Risks – Malcolm K. Sparrow

Excerpt:
This study was commissioned by Wired Safety, an Internet Safety and Educational charity. It examines a range of harms potentially associated with online gambling, and alternative methods for mitigating or minimizing them. Recognizing that the current U.S. prohibitionist regime with respect to online gambling is largely ineffective in achieving its aims, and provides no platform or opportunity for the implementation of most of the relevant harm-reduction strategies, we find that an alternative regime of legalization and regulation of online gambling would likely improve consumer welfare and protections.

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Title: Who Plays Poker? – PPA

Excerpt:

Quick Facts: More than an estimated 55 million Americans play poker. Of those, an estimated 15 Million Americans play on-
line poker for money. And who are these poker players? A recent survey of PPA Members found:

- More than 72% of PPA Members have at least some college education.
- More than 75% of PPA Members are between 30-64 years of old.
- 47% of PPA Members earn more than $50,000 a year.
- More than 30% of PPA Members are Independents.

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Title: Games of Skill and Games of Chance: Poker as a Game of Skill – PPA

Excerpt:
The Poker Players Alliance is a nonprofit organization whose members are poker players and enthusiasts from around the United States. The Alliance works to protect the legal rights of poker players and advocates rational gaming laws at the state and federal level. In this White Paper, the Alliance describes the role that skill plays in determining the outcome of a game of poker, and offers an overview of the scientific studies that address that question. This paper devotes particular attention to Texas Hold’em, the most popular poker game and the one to which the most study has been devoted.

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Title: Talking Points: Regulated I-Gaming Provides Strong Consumer Protections and Federal Enforcement

Excerpt:
- Internet gambling and p2p online poker in the United States is common, despite federal and state laws aimed at combating it. For example, an estimated 10 million Americans played p2p online poker for money
- This federally unregulated activity takes place in the absence of any U.S.-established consumer protections, fair play standards and financial transparency.
- A recent study concluded that the legalization and regulation of online gambling would offer significant improvements to consumer welfare and protections related to key risk factors, including: gambling by minors; problem gambling; fraud by operators and players; money laundering by
operators and players; organized crime; violation of jurisdictional prohibitions.

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Title: Talking Points: Tribal Governments and Poker Legislation

Excerpt:
The Poker Players Alliance believes that federal poker licensing legislation should treat Indian tribes fairly by allowing them to participate in a regulated poker market as licensors, operators, or ancillary service providers. PPA’s long-held position is that it supports as wide-open and competitive a market as possible, and it welcomes the entrance of any and all participants into it.

PPA believes that Federal poker legislation would not have negative competitive impacts on brick-and-mortar tribal gaming enterprises. Tribal gaming is overwhelmingly slots and table games. While some Indian casinos have poker rooms, it is a small part of their business. Poker players and slot players are very different people. Furthermore, Americans have been playing poker on the Internet for years — if there were any competitive effects, they would have already been felt, and moving Americans to an on-shore, regulated market would not add to them.

Poker legislation should not impact IGRA or existing Class III compacts. IGRA was designed to deal with the geographic proximity between states and tribal reservations. Geographic proximity is meaningless on the Internet. The prerogatives of state and tribal governments under IGRA should not be impacted by poker licensing legislation.

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Title: Talking Points: The Benefits of Federal v. State Licensing and Regulation of Online Poker

Excerpt:
Online poker is not going away. Federal legislation to license and regulate the U.S. market would provide the necessary level of consumer protection and uniform regulations to support all states who choose to participate

Federal legislation will ensure a fair and competitive marketplace for all participants

- Federal poker legislation will not impact current brick-and-mortar gaming or lottery operations or the revenue they generate for the states.

- Federal legislation would uphold the brick-and-mortar compacts that ensure tribes have the ability to compete fairly in the marketplace.

- As unregulated Internet gaming has proliferated for years, any effects would already have been felt by the states and tribes.

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Federal

Title: Bill Summary: HR 2366

Excerpt:
1. Create a licensing regime for Internet poker. Under the bill, the U.S. Department of Commerce would issue regulations governing state programs for qualified bodies (state and tribal gaming commissions) to issue licenses for U.S. companies to accept Internet poker bets.
Any company licensed by any state could accept Internet poker play from every participating state. It creates an Office of Internet Poker Oversight within Commerce to oversee state and tribal licensing programs. Commerce would set minimum standards for state and tribal licensing bodies, such as size, staffing, expertise, conflict of interest, etc.

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Title: Talking Points: Regulating Internet Poker is Good Public Policy: HR 2366

Excerpt:
H.R. 2366 does not repeal UIGEA, but corrects the ineffective prohibition policy within the law, while also strengthening its regulatory scope, to ensure player protection. It makes the UIGEA clearer and more effective by defining “unlawful Internet gambling” and requires the regulators to publish a list of businesses that U.S. financial institutions should not transfer money.

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Title: Talking Points: Regulating Internet Poker is Good Public Policy: HR 1174

Excerpt:
Online poker is not going away. Congress has a choice: turn its back on consumer protection and billions in revenue OR pass sensible public policy to license and regulate online poker.

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State

Title: Talking Points for California Regulation of Internet Poker

Excerpt:
- Yes. Internet poker is a worldwide phenomenon which is already highly controlled through appropriate government oversight and regulation.
- Reputable regulatory regimes such as the United Kingdom, Alderney, Isle of Man, and Italy set a very high barrier to be licensed to operate an Internet poker site. Because of the unique characteristics of the internet space, regulation of online games can be accomplished thoroughly and
efficiently. In fact, this oversight is even more stringent and controlled than regulated brick and mortar casinos in the U.S.
- It is estimated that more than 1,000,000 Californians have active online poker accounts with operators who are regulated overseas. These residents would greatly benefit from the additional protections state regulation can provide.

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Title: Florida Regulation of Internet Poker

Excerpt:
- Yes. Internet poker is a worldwide phenomenon which is already highly controlled through appropriate government oversight and regulation.
- Reputable regulatory regimes such as the United Kingdom, Alderny, Isle of Man and Italy set a very high barrier to be licensed to operate an Internet poker site. Because regulation of online games can be done so thoroughly and efficiently, this oversight is even more stringent and controlled than regulated brick and mortar casinos in the U.S. states.
- It is estimated that more than 600,000 Floridians have active online poker accounts with operators who are regulated overseas. These residents would greatly benefit from the additional protections state regulation can provide.

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Title: What does “intra-state” Poker Mean for You as a Poker Player

Excerpt:
What does “intra-state” poker mean? Today, when you play online poker you compete with other individuals from across the United States and the world. Essentially you are part of a multi-million person global network of poker players. Under the “intra-state” model being pushed in states across the country, your play would be limited to only residents within the state you live. Ultimately, this means fewer players, fewer games, fewer stakes/limits and less opportunity for you to play poker how you want, when you want.

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