UIGEA - A Look At The Most Controversial USA Online Gambling Law

Tuesday 26 May, 2009 08:30

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The Unlawful Internet Gambling Enforcement Act (UIGEA) was sneaked into the US legal framework on the back of an unrelated bill in 2006 by the then-Bush government. The law essentially calls for all US financial groups, such as banks and credit card operators, to stop payments to and from offshore gambling sites in a bid to bar online casino and poker fans from taking part in their favorite form of entertainment.

The final stages of the UIGEA are due to kick in at the end of this year, and already banks are complaining of the havoc that this controversial law will cause. The bill stipulates that financial groups need to check literally millions of transactions to ensure that they are not breaking the law and in fear of prosecution, and millions of dollars, not to mention precious manpower, will be wasted on this fruitless bill.

Pressure is mounting on the new administration to reconsider the effectiveness of the UIGEA. When Obama came to power, winds of change blew through the government and many believed that if anybody could bring about reform over this issue, it would be the present Democratic-led administration.

Several high profile politicians work tirelessly to convince their colleagues on Capitol Hill to support the legalization and regulation of the US's online gambling industry. Among them is the Chairman of the House Financial Services Committee, Barney Frank, whose HR2266 (Internet Gambling, Consumer Protection and Enforcement) Act has attracted scores of cosponsors and there is hope that the bill be will heard by Congress in the near future.

Unfortunately, the Obama government has been faced with numerous obstacles such as the recession, health care reform and an erratic foreign affairs policy, which has prevented it from dealing with online gambling reform. However, analysts predict that there are too many online gamblers in the US to ignore and that changes are already taking place through grassroots efforts and at the highest levels.

It won't be long now that the US realizes that Prohibition is simply not the way to go and the only just solution is to do away with the UIGEA and adopt a regulated industry policy that will see the government earn billions in taxation and licensing fees.

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