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Regulated and Licensed Enviroment

Licensing Requirements

The Internet Gambling Regulation, Enforcement, and Consumer Protection Act of 2013 (H.R. 2282), introduced by Rep. Pete King, requires that in order for an operator to qualify for a license, the applicant must demonstratethey have established and can maintain the following requirements, at minimum:

  • Consumer protections – Safeguards to ensure the individual placing a bet is of legal age to gamble and there are protections to combat compulsive gambling
  • Safe financial transactions – Safeguards to prevent fraud, identity theft and money laundering
  • Tax collection – Mechanisms to ensure all appropriate taxes and fees are collected from the licensees and individuals
  • Location verification – Safeguards to ensure that the individual placing the bet or wager is physically located in a jurisdiction that permits that form of Internet gambling

Approval Process

Rep. King’s bill creates an Office of Internet Gambling Oversight in the Department of the Treasury. As the federal regulator, the Office would oversee state and tribal agencies carrying out licensing activity, and would have independent authority to carry out licensing activity for any entity that chose to apply directly to the Office instead of an existing state or tribal authority. The bill establishes criteria for state and tribal bodies to carry out licensing activities on behalf of the federal government.

Additional Requirements

Rep. King’s bill to regulate Internet gambling also addresses the following issues:

  • States & Indian tribes - Gives any state or tribe that does not wish to participate in the federal interstate system the ability to opt-out and prohibit online gambling or to operate intrastate gaming within its borders as authorized under state or tribal law
  • Level playing field - The Act treats casinos, Indian tribes, lotteries, and other potential operators equally. None would receive preference in licensing, and once licensed an operator would have the authority to take play on all types of online gambling as authorized under the Act
  • Problem gambling support - Revises the Public Health Services Act to allow federal funds to be used to treat gambling addiction.  Currently, federal health funding cannot be used to help those who suffer from this addiction
  • Sports wagering - The proposed regulatory framework would prohibit any Internet gambling on sports games and events.

Click here for a complete outline of Rep. King’s bill. 

Key Issues
  • Protecting Children
  • Compulsive Gambling Safeguards
  • Secure Financial Transactions
  • New Government Revenues
  • Regulated and Licensed Environment
  • International Ramification
  • Safe & Secure Internet Gambling Initiative
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