There's a Skill to Making Online Gambling Legal - IPAGOS

I was relatively amused by an article published in eWeek yesterday, entitled: "Senator Deals New Online Poker Bill."

I learned that "the luck of the draw" has been re-categorized into a "a game of skill."   At least that is the new mantra being pushed by Sen. Robert Menendez (D-NJ) in his new "IPAGOS" (Internet Poker and Games of Skill) bill.

Apparently the difference between "Internet Poker" and "Sports Wagering" is skill.  And I've got the perfect example as to why...  

What else would explain the a skillful art behind deciding to keep two kings and henceforth "drawing" three aces...to beat the three kings you didn't know your opponent had! 

At the end of the day, they can spin it however they want...but the very fact that there are now (last time I counted) "53 co-sponsors" to Barney Frank's initial bill suggests that this Internet gambling thing is going to be re-legalized.  The government needs the billions it will bring in and U.S. bettors drive 50% of the $16 billion Internet gambling industry anyway. 

Personally, I don't gamble, (except entrepreneurally)  So why do I even bother to cover this and how is it related to the payments industry? 

The 2006 Unlawful Internet Gambling Enforcement Act, prohibits financial institutions from accepting payments from credit cards, checks or electronic fund transfers to settle online wagers.  Which means it also prohibits a "real-time" AML/KYC compliant bank card to bank card payment transfer application as well. 

Here's some excerpts.

Online poker advocates upped the legislative ante Aug. 6 with the introduction of a bill in the U.S. Senate that would legalize online poker and other "games of skill."  

The Internet Poker and Games of Skill Regulation, Protection and Enforcement Act  (that's "IPAGOS" for short) would provide a U.S. licensing, regulatory and taxation framework to establish a legitimate American online skill game industry. The legislation would impose further enforcement against individuals and financial entities that accept illegal Internet gambling proceeds.


Despite the ban, Americans continue to gamble online with estimates showing that at least half the $16 billion Internet overseas gambling industry is driven by U.S. bettors. Since the 2006 law was approved, Internet poker players have contended that poker is a game of skill and should not be lumped in with other forms of online gambling such as sports wagering.  

Bill sponsor Sen. Robert Menendez (D-NJ) estimates that more than $3 billion in annual revenue can be raised by licensing and regulating Internet poker.

"Pulling Internet poker out of the shadows and into the light of the law, we have the opportunity to help our economy while protecting our families. By bringing "these games of skill into the mainstream", we can generate billions in revenue for businesses and the Treasury during these tough times," Menendez said in a statement.

Read the article in it's entirety at eWeek