US Government Aiming to
Enforce UIGEA Rules
 November
17 - When the US Congress voted in the draconian 'anti-online
gambling' bill UIGEA - Unlawful Internet Gaming
Enforcement Act - in October 2006, it was enough to scare
off many offshore online gambling operators, despite its being
largely unenforceable.
However, that is all set to change.
As happens with most outgoing US government administrations -
right before the incumbent President takes office - they rally
around trying to enforce all manner of bills, laws and credos in
the hope, I guess, of leaving their mark. One such law is that
based on UIGEA which was signed into effect by Bush.
While UIGEA does not strictly speaking prevent Americans from
gambling online, it was designed to prevent US financial
institutions such as banks and credit card companies from
accepting or processing online gambling-related payments. But in
practice, that proved virtually impossible to achieve or
enforce.
Or so most people thought until last week the US Treasury
Department and the Federal Reserve issued a hard and fast set of
rules to prevent financial institutions from processing online
gambling transactions - including traditionally popular
credit-card payments, electronic transfers and regular checks.
Long-time supporter of the legalization and regulation of online
gambling in the United States, Barney Frank (Democrat,
Massachusetts), who is also Chairman of the House Financial
Services, is outraged at the proposed enforcement of UIGEA by
further training the already creaking US financial industry.
Said Frank, 'I am dismayed that the Bush administration would
make it a priority to enforce these rules now, just a few months
before Obama takes office. I don't mind admitting that I think
it is a disaster, and I will do everything in my power to have
them overturned.
'Last week I sent a letter to Treasury Secretary Henry Paulson
urging him to delay the rules until Congress and Obama's
incoming administration had the opportunity to review UIGEA
properly next year,' he said.
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