Just when we thought that we’d heard the last of RAWA, lawmakers may be changing their tactics.
The Restoration of America’s Wire Act (RAWA) failed to come to a vote in Congress in 2014. In 2015, RAWA was resubmitted but other than a couple hearings, the bill again failed.
According to recent claims by the Poker Player’s Alliance, lawmakers may be changing their tactics and will instead focus on stopping illegal offshore iGaming.
This tactic, if successful, would significantly change the landscape of online gambling in the United States and may even begin prompting a move towards regulation.
What Does This Change in Focus Really Mean?
If lawmakers do indeed move forward with plans on a revamped version of RAWA, this new version would seek to shut down online gambling sites that operate outside of the United States but service U.S. players.
Online poker rooms such as Bovada, America’s Cardroom and others would then become potential targets of the U.S. Department of Justice.
Such a law would effectively make online gambling with unregulated sites illegal.
Presently, it is illegal for U.S. banks to process online gambling proceeds. However, except for a few states like Washington, the act of playing online poker is not illegal.
Realistically, we don’t expect the DOJ to go knocking on the doors of online poker players. That’s not who they want to shut down. Rather, they want to target sites such as Bovada who continue to accept U.S. players.
The difference is that a revamped RAWA would give them a broad sword to wield against offshore sites rather than the constraints of using UIGEA.
What This Means for U.S. Online Gambling
Should a new version of RAWA become legal, it is safe to assume that you will see a mass exodus of online gambling sites out of the U.S.
This isn’t like the few that decided to leave in 2007. Rather, you will find that the majority of U.S. facing gambling sites will take off.
At least, the sites that are at least attempting to operate legitimately. Sites that simply don’t care and are running suspect operations will probably continue until they are forced offline.
For U.S. online poker players, you can kiss what few options you have to play online goodbye. Bovada, America’s Cardroom and others will certainly withdraw out of the U.S. market.
The Impact on U.S. iGaming Regulation
With offshore sites effectively crippled under a revamped RAWA, this could start to push the envelope for iGaming regulation in some regions.
There’s a demand for iGaming, and shutting down the offshore options will leave the door for states to regulate the activity and rake in the money that was mostly going overseas.
Those wanting to play online will also be forced to speak up for a change instead of just moving to another risky offshore option because “regulation is too slow.”
A successful revamped RAWA could actually help the regulated online poker market to grow. The ban will be on offshore sites, not on regulated U.S. sites.
Most of us will agree that offshore iGaming is a risky proposition at best. Look at the horror stories of the past including Full Tilt, Bulldog Poker and Lock Poker and it is clear we need regulation.
A revamped RAWA may ultimate force the issue and bring about an explosion in regulated gambling.
Then again, the revamped RAWA may flounder during this election year and next year we’re here debating whether President Trump will be our ally.