US Online Poker Gambling Stance Slammed by UK Secretary Jowell

The U.K. culture secretary, Tessa Jowell, mounted an extraordinary attack on the "new prohibition" in the U.S. saying that the Unlawful Internet Gambling Enforcement Act (UIGEA) is closing down reputable sites and encouraging badly regulated offshore internet sites.

"America should have learnt the lessons of prohibition" said Ms Jowell.

Jowell warned that there was a "real danger" the U.S. would create "the modern day equivalent of speakeasies" which could provoke an increase in fraud and exploitation reminiscent of the 1920s ban on alcohol sales.

Her statements appeared in an interview with U.K.'s Financial Times last Thursday. Aides to the culture secretary said Jowell was determined to kickstart a debate on global regulation of gambling, ahead of an unprecedented summit on this issue which she is hosting October 31.

In addition to regulation and taxation of the online gambling industry, the summit will discuss ways to protect the public through age verification systems, the role of government and online gambling, and the societal implications of online gambling. The US is a notable absentee from the 31 countries who have pledged to send delegations to the summit being held at Royal Ascot.

As Culture Secretary, Jowell is in charge of the U.K. government office of Culture, Media and Sport, of which includes the U.K.'s Gambling Commission. The Commission is overseeing implementation of the UK Gambling Act of 2005, which will make online gambling completely legal in the U.K. by September 2007. At that time, online gambling companies will be allowed to relocate in the U.K. and legally offer internet gambling to the world.

The UK wants to win international converts for its approach of allowing online casino and poker sites, subject to legal controls, rather than expelling them offshore.

Ms Jowell argued that governments had three ways to respond to the explosion in online gambling: "you can prohibit, like the US, do nothing, or regulate, like we have." In fact, more than 80 nations of the world have policies where online gambling is considered a commodity to be traded, taxed and regulated.

"I firmly believe we have chosen the path that will do the most to . . keep out crime," Ms Jowell said.

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