The New Political Landscape and the Online Gambler

I have no love for G.W. G.W ruined my very happy life when he tacked on some anti-online gaming legislation to the Safe Ports Act. I'd been playing online poker for a living for nearly 2 years at the time, and at no time before or since have I ever been so financially secure. The day after the legislation passed online poker was dead for me.
My payment processor announced it was going out of business, and traffic at my particular site went from about 40 tables to 4. It was estimated at the time that 82%of all online poker players disappeared from the game overnight.
With the latest election, there had been some faint hope that some of the laws might be repealed. However G.W. and his team have seen fit to put the final nail in the coffin of the online poker player.

By Brian Chan on November 8, 2008

WASHINGTON, D.C. -- Observers are wondering what has caused the sudden finalization of regulations to enforce the UIGEA by the Treasury Department. Both online casinos and banking industry leaders are surprised and appalled by the announcement that official implementation of the law against payment transactions involving Internet gambling will move forward, despite lack of adequate legislative definition.

Steve Cohen, a Democratic Representative from Tennessee, has asked the White House to explain what role may have been played in the Treasury's decision to act by William Wichterman. Wichterman is White House Deputy Director of Public Liaison, but his previous job was as a lobbyist against online gambling for the National Football League.

Cohen requests in a letter to Fred Fielding, White House Counsel, to explain the story from Treasury officials that Wichterman "has been a source of considerable political pressure to speed this regulation through.''

Neither Wichterman nor spokesmen for the Treasury nor the Federal Reserve would respond for comment.

Internet casino industry leaders were surprised by the Treasury action, coming as it does during the transition from the Bush administration to the Obama Presidency. Testimony before the Treasury by banking and government officials had panned the UIGEA, calling it unworkable and suggesting that implementation would put the American banking system at a competitive disadvantage.

Cohen said in his letter, "I am surprised that your administration would seek to rush through a rule that would saddle an already ailing financial services sector with a burdensome rule in the current economic environment."