Senator Reid Pushes For Legalizing Online Poker

Leave it to a Senate Majority Leader from a gambling state, to lead the charge for a bill to legalize online poker in the United States.

Senate Majority Leader Harry Reid, Democrat from Nevada, is pushing a bill to negate a 2006 law that made it illegal for US financial institutions from processing online gaming transactions. Since passage, millions of US online poker players have gone to offshore poker sites making this one failed attempt by the Fed to put a stop to the practice.

But isn't this really about US casino companies wanting a piece of the action?

Senator Reid's new bill is proposing to give certain established casino operators a license to operate online poker in the US. New companies will have to wait two years before they get their license. In addition, oversight will be given at the state level. Online poker operators will be taxed with funds going to both the state and fed.

But why would any existing online poker player go to a US based online poker site? If anything, this just opens up the door for American casino companies to go online legally to operate their business. If it is online poker today, what's to say it won't be online craps, blackjack, tomorrow? Besides, won't US players be taxed on their winnings if playing on US based websites?

I am not against online gambling, simply because it is not going to go away. One would be a hypocrite if they were against online poker yet go to travel to Mr. Reid's Las Vegas playground every year. I think it's pretty obvious that government shouldn't slap people on the hands if they want to use online gambling - it's really their business. If they get ripped off or lose a substantial amount of money, its their own fault for not recognizing what they were getting themselves into in the first place.

Benefits of legalizing online poker

• Regulated state business
• Less potential of cheating and stealing
• Taxes generated go to state and federal governments

Disadvantages of legalizing online poker

• Acknowledgement by the government that online poker is a legal activity
• Potential increased activity among young adults
• Potential increased credit card fraud and use

There are risks in going online to gamble. Much of this stems from rogue operators and players who team up and cheat the system. You can't see anyone physically and who's to say that the very players you are playing against are the operators themselves? That they can peek ahead at the cards to be dealt? Anyone who participates in any online game that involves money must be aware of the trustworthiness of the site and what security precautions are in place to reduce the level of foul play. Like going into any casino, you've already lost it before opening the door. The fact that you are sitting in the comfort of your own home, makes it even more easier for you to lose your shirt. Your participation will increase and so likely will be your losses.

That said, there is something more important that needs to be discussed here.

We need to recognize that a prominent Senate Majority Leader is using his power to run a bill up the steps of America's Capitol during a time when we are drinking egg nog and enjoying time with family and friends. We need to take note how companies can support a politician through political contributions with an agenda. And when the time is right, both politician and company move to self serve themselves without the American public having any say in this other than your local politician leaning back in his chair with a cigar hitting a button.

There is no consensus. There is no public discussion. We leave that in the hands of our local politician to make that decision for us. And this is where the problem lies.

The dialogue is missing America. We need to be heard and one through a real time National Polling Infrastructure as I suggested earlier.

About Kerry Kobashi

Kerry is the founder of KerryOnWorld. He lives in Silicon Valley and has worked as an engineer and project manager. He owns Kobashi Computing a consulting company.