Blotter: Florida considers legalizing online poker

Another state may be working to legalize online poker within its boundaries. Following the announcement by Iowa legislators that they are working on a bill to tax and regulate online poker, officials in Florida are debating the state's Internet Poker Consumer Protection and Revenue Generation Act.

Florida State Representative Joseph Abruzzo of Wellington, the bill's sponsor, said that the measure could create US$200 million in taxes and other revenue after twelve months.

Rep. Abruzzo also said that about a million Florida residents play poker and other games at online casinos, with most of these sites owned by companies based outside the US. He said that his bill would create safeguards for those players on various online poker sites to protect them from fraud and insure that they received their winnings in a timely matter.

Some of the provisions of the proposed legislation include that any site intending to do business in the state would pay a US$500,000 license application fee and twenty percent of gross revenues as an income tax. According to Rep. Abruzzo, the intent of the bill is to build an infrastructure for state gaming officials "to regulate intrastate internet poker sites" and "ensure consumer protections" while also creating new revenue streams for the state's coffers.

The bill also has clauses that would protect against underage players and have self-exclusion measures for problem gamblers. License applicants would also have to submit to identity and criminal background checks. If the bill receives enough votes in the state legislature, and the state's governor signs it into law, officials with the Division of Pari-Mutuel Wagering would establish a web server to oversee the various online poker rooms for Florida residents.

Sites seeking to operate in the state would also need to be incorporated in that state. Such a provision may limit players' access to many offshore sites, including major poker sites such as Full Tilt Poker or PokerStars. Also, representatives of the site would need to have a physical office in the state to handle consumer questions or complaints.

While the measure does not seek to overturn the federal Unlawful Internet Gambling and Enforcement Act of 2006, some industry observers see that these measures could pave the way for a fully regulated and taxed online poker industry in America.

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