The new Unlawful Internet Gambling Enforcement Act is going to stifle the online gambling industry in the United States, and state politicians supporting the idea of regulated poker in the state of North Dakota should know that it is time to fold their cards, says state attorney general Wayne Stenehjem.
The issue of regulated online poker as a means of raising taxes for state services has been a hot topic in state politics since Rep. Jim Kasper introduced a proposal in 2005 . The proposals won approval in the House, but were overwhelmingly defeated in the North Dakota Senate.
Kasper said he was likely to give up his effort to make North Dakota a licensing agency for Internet poker sites. He has promoted the idea as a way for the state treasury to make millions from licensing fees, and said the state-owned Bank of North Dakota could profit from handling gambling transactions.
“I was saddened to see what the Republican Congress did,” Kasper said. “It was a terrible way to make public policy.”
Stenehjem was neutral on Kasper’s bill during the 2005 Legislature, but said he would oppose any similar idea in the 2007 session. The new federal law makes the bill clearly illegal, said Stenehjem, who is a director of the Bank of North Dakota.
“The federal law prohibits the use of credit cards, which are issued through banks, and the use of banking institutions to transfer money to pay off the gambling debt,” he said. “You can’t use the Bank of North Dakota for that purpose under the federal law.”