Problems of Regulating Poker

National Poker Week just concluded, and by all accounts it was a great success. So what are we hoping to come out of this lobbying effort? Everyone wants licensed, regulated, legal online poker. And we might just get it. But we shouldn’t be celebrating yet. Any bill, at least as currently proposed, faces a world of hurdles. Here are just two:

Issue 1: Poker is different from other forms of online gambling.

We all know poker is a game of skill. It takes a lot of skill to play as badly as I do. But despite what we know as poker players, most of the general public just see poker as “gambling.” They think poker and craps are just about the same. You bet. Sometimes you get lucky, sometimes you don’t. Part of National Poker Week was focused on educating legislators on the skill involved in poker, as opposed to other casino games.

The current legislation proposed by Barney Frank, however, does not distinguish between poker and other casino games. It aims to legalize all internet gambling and to then tax and regulate it as well. The upside is that it will make online gaming a lot safer for the public. The downside? The bill may be D.O.A. because it includes other forms of gambling.

While we as poker players have a great response to the “this is just gambling and gambling is evil” argument, we don’t have as strong an argument as it relates to other games of pure chance. Because Frank has included all online gaming, this bill might face an uphill battle. Understandably, Frank’s bill focuses on personal liberty, and Frank is not so much a champion of poker’s cause as he is the cause of personal choice. While it’s laudable, in practice it might just hinder our chances of getting regulated online poker.

Issue 2: States might opt out.

Surely any finalized bill will allow states to opt out of legal regulated online gaming. It’s pretty much a constitutional requirement to have such an opt out. But in this case, it could mean that the poker legislation will have no teeth, as many states will want out.

States like New Jersey might see Internet gaming as a threat to their brick and mortar operations. These gambling states could very well choose not to let residents play online if they think it will hurt the huge casino industry.

In addition, more conservative states could opt out as well. It would not be surprising to see Bible Belt states choosing not to let residence play online. In the end, it could mean that any bill legalizing and regulating online poker leaves a majority of the citizens in the United States out in the cold.