LIVE UPDATES - Hearing on Barney Frank bill

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Says UIGEA creates an unfair regulatory burden. Also says it is unreasonable to give small institutions policing responsibility without defining what is illegal.

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UIGEA already generating "false positives" in terms of transaction blocking.

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Wants a list of illegal gambling providers to help financial industry.

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Rep. Joe Baca says this bill will do nothing but hurt the California gambling industry and violates tribal compacts. Says we should be building brick and mortar casinos and not trying to tear them down because brick and mortar casinos provide jobs.

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Frank: This is an interesting coalition in opposition to this. Those that hate gambling and those that think it's so wonderful that they want to keep it for themselves.

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It is the death of freedom if you say that some minority of adults are addicted, then you can't allow it, adds Franks. Should we ban video games, he wonders, because people are addicted to them.

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Frank: Do we stop people from engaging in activity because of busybodies or competition? I hope the answer is no.

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Bachus is now trying to focus the argument (through questioning of Fagan) on restricting the avenues through which terrorists can move money.

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Bachus going after UltimateBet for its issues. Duke stepped up and said Franks' bill would offer the appropriate consumer protections to help on this matter.

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Bachus just pointed out the headquarters are of the Safe and Secure Gambling Initiative is a UPS drop box. He disapproves. Apparently, this his effort to show that the online gambling industry operates in the shadows.

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Duke says that online poker is growing despite UIGEA, and that it makes more sense to regulate it.

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Bachus just jumped in to stay the reason UIGEA hasn't worked is because the online gambling industry postponed implementation.

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Duke is now explaining that preventing collusion is easier online than it is at brick-and-mortar, and that software is continuously checking to see if collusion is occurring.

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Malkasian wants all operations located in the U.S., bad operators banned and states forced to opt in via a vote of the legislature rather than an opt out provision.

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Fagan dancing around the issue if online gambling his handled by U.S. banks and U.S. companies, whether that ends the money laundering/terror money issues. Sounds like Fagan is just anti-online gambling but doesn't want to admit it.

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Malerba says she's impressed with the ability to track transactions online. Also says she recognizes the Internet is here to stay and you can't put your head in the sand.

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Malkasian wants the bill restricted to poker.

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They're on a 15-minute break.

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This break is clearly taking longer than 15 minutes. As soon they're back, I'll be back.

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Duke says that online poker is growing despite UIGEA, and that it makes more sense to regulate it.

Considering UBs history, I found it pretty amusing that Annie Duke was talking about detecting collusion was much easier online than in landbased casinos ...