Legislators Support In-State Online Gambling at RAWA Hearing

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Members of the US House Committee on Oversight and Government Reform heard on Wednesday both opponents and supporters of the proposed Restoration of America’s Wire Act, a bill that would prohibit the provision of online gambling services across the United States, if approved.

During yesterday’s hearing, Congress members from both parties and witnesses called by Rep. Jason Chaffetz, the legislator behind RAWA, were given the chance to voice their opinion on matters related to the in-state legalization of online poker and other gambling options. Most of the people that were heard on Wednesday made a strong case against RAWA.

Rep. Chaffetz’s legislation has long been backed by casino mogul Sheldon Adelson. The gambling magnate has repeatedly pointed out that the legalization of online gambling would pose a serious risk to land-based casinos and to Americans. Mr. Adelson is known for financing the campaigns of Rep. Chaffetz as well as other key legislators backing the proposed anti-online gambling bill.

Two main issues were discussed during the Wednesday hearing. In the first place, lawmakers voiced their opinion on whether in-state online gambling options would present more risks to gambling customers as well as law enforcement challenges than land-based casinos. They also commented on whether there is software that may prevent people from other states from playing online casino games in a state where those are considered legal.

According to proponents of a federal ban on Internet gambling, the legalization of online casino options may result in increased criminal activity and may pose more challenges to gambling customers. However, RAWA opponents said that with proper regulation, in-state online gaming would not be more challenging than existing brick-and-mortar casinos.

The other topic that was widely discussed was the existence of software that would prevent residents of states without online casinos from accessing gaming sites available in states where Internet gambling is legal. RAWA supporters have repeatedly said that such technology cannot be applied. However, Rep. Ted Lieu, one of the proponents of in-state online gambling, presented committee members with geolocation software that allows users locations to be determined by the servers that host online casino sites.

Although a number of influential people back RAWA and the federal prohibition of online gambling, the Wednesday hearing before the US House Committee on Oversight and Government Reform was a small victory for proponents of the idea for in-state regulation of Internet gaming options. Not much is expected to happen until the end of the year regarding Rep. Chaffetz’s bill and the matter is likely to be a hot topic next year, as well.

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