Menendez To Introduce Poker Regulation Bill

Pro-gambling legislation continues to gain momentum, driven by a faltering economy and an increasingly effective lobbying apparatus. The latest example: Sen. Robert Menendez, D-N.J. is reportedly set to introduce legislation that would establish a regulatory framework for online poker.

While full details of the bill aren’t yet available, the early word is that Menendez’s bill will be essentially a revision of the bill sponsored by Barney Frank that’s currently circulating. Frank’s bill recently gained its fiftieth co-sponsor.

So if Frank’s bill is already gaining some steam, why introduce a second one? The answer may lie in the key difference between the two bills. The big one: Menendez reportedly has language in the bill that would limit regulation to poker and other skill games, whereas the Frank bill seeks to regulate a broader swath of the online gambling market. Menendez may be banking on public support for poker to give his bill an edge with a Congress that might find legalizing all forms of online wagering unpalatable.

As far as revenue goes, Menendez proposes a 10% tax on all deposits, to be evenly split between the state and federal government. Most in the industry believe that the poker room operators would happily cover this tax on behalf of players.

Updates as events warrant…