A shift in Capitol Hill Internet gambling politics may be in the offing reports Gambling Compliance.

Changing Tack? A shift in Capitol Hill Internet gambling politics may be in the offing @CKrafik reported earlier today.  

Sources told @GamblingCompliance a proposal that would (i) mandate a federal study on Internet gambling and (ii) impose a moratorium on Internet gambling expansion in states that have yet to legalize the activity is being discussed as a possible alternative to the prohibitions set out in S1668 and HR707.

They note that such a proposal would appear to be in line with the recommendations of the Clinton-era National Gambling Impact Study Commission.

It bears noting that a potential US iGaming moratorium on further real money online gaming in all but 3 States which currently have such activity should not be underestimated; to wit, even if New Jersey, Nevada (which is poker-only), and Delaware evolve and become more robust eCommerce markets (a proposition which is doubtful at best) – a moratorium stopping larger States like New York, Pennsylvania, Texas, Florida, Illinois, and other larger States (even California which has to date been quite effective stopping itself with online gaming stakeholder in-fighting), the anticipated impact of new credit card codes as well as the expected entry of Poker Stars into New Jersey would likely be greatly minimized.

Thus, except for a few small States that would not be subject to the new prohibition, the moratorium on further online gaming expansion of any type into those populous US states with huge potential eCommerce markets and commensurate liquidity — particularly for peer to peer online poker activity —  would largely accomplish the primary goals of a full-scale Restoration of Wire Act (RAWA) prohibition that is presently controversial and not able to gain critical mass for passage on Capitol Hill.

Could a US federal moratorium on expanded online gaming accomplish most of what a failed RAWA prohibition could not achieve? Stay tuned…!

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