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: Online Gaming and the Challenge of Problem Gambling

Federal

- The Wire Act does not apply to online poker
- H.R. 4301 & S. 2159 Are Bad Public Policy
- Why Americans Should Oppose Internet Poker Prohibition
- Talking Points: Regulating Internet Poker is Good Public Policy: HR 2666
- Summary of HR 2282

State

- Internet Poker in California is Good Public Policy
- Talking Points for HB305/SB428, the Maryland Home Games Protection Bill
- Regulating Online Gaming – A Central Component in Putting Atlantic City “Back on Track”
- Legalizing Internet Poker in New Jersey is Good Public Policy
- An Evaluation of the Effects of Online Poker on State Lotteries – FairPlay USA
- 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: Online Gaming and the Challenge of Problem Gambling

Excerpt:

Extensive research conducted in recent years proves that online gaming does not increase the social risks and damage of problem gambling.

Moreover, comprehensive research that has investigated this issue has come to the conclusion that online gaming operators have more effective and sophisticated tools to prevent and combat problem gambling compared to the measures that are available in the offline gambling world. Such measures have been adopted in jurisdictions around the world that specifically regulate online gaming and have proved themselves to be highly efficient.

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Federal

Title: The Wire Act does not apply to online poker

Excerpt:
The Wire Act provides that it is unlawful for a person to “knowingly use a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest…

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Title: H.R. 4301 & S. 2159 Are Bad Public Policy

Excerpt:
On December 23 2011, after careful review of relevant case law and legislative history, the U.S. Department of Justice (DoJ) released a memorandum clarifying their position on the Wire Act. The DoJ found that the Wire Act does not apply to non-sports betting, thus allowing states to consider their own legislation to license and regulate online poker.

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Title: Why Americans Should Oppose Internet Poker Prohibition

Excerpt:
In 2002, the Fifth Circuit Court of Appeals found that the DOJ’s expansive interpretation of the Wire Act was incorrect. The Wire Act of 1961 was written to prevent interstate sports betting by telephone, with an eye on combatting organized crime. It was clearly not intended to prevent all forms of gaming on the Internet, including even state-authorized intrastate poker. In 2013, following requests for review by two states, the DOJ rewrote the policy to meet the actual language of the legislation.

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Title: Talking Points: Regulating Internet Poker is Good Public Policy: HR 2666

Excerpt:
Internet poker is a worldwide phenomenon which has continued to grow for more than a decade.  Prior to the Department of Justice crackdown on April 15, 2011, it was estimated between 8 to 12 million Americans had online poker accounts.

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Title: Bill Summary: HR 2282

Excerpt:
Legalizes all forms of online gambling, with the exception of sports betting, when offered by federally licensed and regulated operators who meet strict standards for integrity and controls to protect consumers.

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State

Title: Internet Poker in California is Good Public Policy

Excerpt:

Internet Poker is a fast-growing, global industry

- The U.S. represents the largest percentage of Internet poker players worldwide, and
California is estimated to have more than one million online players.

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Title: Talking Points for HB305/SB428, the Maryland Home Games Protection Bill

Excerpt:

Home games are an American tradition.

- Whether the game is poker, mahjong, bridge, chess or even Monopoly, nearly all Americans have learned to play such games with relatives and friends in the privacy of their own home.

- The traditional game of poker stretches back to the Civil War and players over the years have included generals and privates, presidents and congressmen, CEOs and janitors, and nearly everyone in between.

- The vast majority of these games, just to make them interesting, have included a small wager.

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Title: Regulating Online Gaming – A Central Component in Putting Atlantic City “Back on Track”

Excerpt:

Executive Summary
The Economist recently noted that “innovative thinking is needed in the City by the Sea” if Atlantic City wishes to become once again the gaming capital of the Northeast. This innovative thinking will need to comprise of several components, sports betting being one of them. However, the key component which can make Atlantic City the World capital of gaming is the introduction of a regulatory licensing regime for online gaming which will take Atlantic City into the 21st Century.

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Title: Legalizing Internet Poker in New Jersey is Good Public Policy

Excerpt:

Internet Poker is a fast-growing, global industry
- The U.S. represents the largest percentage of Internet poker players worldwide.
- As worldwide popularity of online poker continues to grow, more countries are seeking
to regulate it.
- Within the U.S., states are quickly seeking to benefit from a regulated online gambling
industry. Nevada and Delaware have already passed legislation and more states are
recognizing the benefits and proposing their own intrastate laws including, California,
Florida and Iowa.

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Title: An Evaluation of the Effects of Online Poker on State Lotteries – FairPlay USA

Excerpt:
Internet poker and lottery games are fundamentally different products. Playing lotteries and playing poker are fundamentally different consumer activities.

The available evidence suggests that the growth of Internet poker prior to the Unlawful Internet Gambling Enforcement Act of 2006 did not adversely impact State lotteries or reduce State lottery revenues.

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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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