Representatives Call for UIGEA Revision

The recent implementation of the Unlawful Internet Gambling Enforcement Act (UIGEA) has been making waves on both sides ever since it first was in the draft stages. From vague terminology and the unclear definition of “unlawful internet gambling” citizens and businesses alike have been confused as to what exactly is ok and what is not. The way it is written right now, the responsibility of enforcing the law has been left to financial institutions’ discretion, just by default, who have not been given any guidelines for deciding what to allow and what not to. It is not the actual participation of online slots and casinos that is outlawed, but rather it is the financial transfer to those institutions that is not allowed. This means that financial institutions (banks, credit unions, credit card companies) are the ones who are left to decipher what kind of business a merchant is, and then decide whether or not that falls into the “unlawful” category.

Perhaps in reaction to a recent letter from four representatives, along with pressure from all sides, American legislators have finally issued a revision for the UIGEA. The main letter that has brought about all this change is from four Republican representatives who, while they are and have always been, supporters of the UIGEA, have called for change in order to strengthen the legislation, and avoid disparities across the board. They issued an open letter to the Federal Reserve Board and the US Treasury, and requested that further clarity and definitions were needed.

Since then, the new legislation has been released, although, nobody is ever happy and this new rule is no exception. The new rule has upset online poker proponents, who claim that the wording implies that their online behavior is and has always been considered unlawful and that their members should be implicated or pardoned for their actions.

It seems that nobody can really decide what is going on and how best to proceed with regulations for online casinos and slots.

Back to August 2008 Archive.