UIGEA Update

American foreign policy is making waves once again, as the highly controversial Unlawful Internet Gambling Enforcement Act (UIGEA) is still in place, much to the chagrin of countries all over the world. The legislation, which targets off-shore gaming casinos and online slots websites from Europe, has caused quite a stir, since it has yet to actually define what is legal and what is not. Furthermore, the UIGEA states that the financial transactions between American citizens and foreign casinos are what is actually illegal, not the gambling itself.

The latest development in this story is that the European Commission has formed a small committee that will be coming over to the States to tackle a few (ok more than a few) questions and concerns that they’ve had in the past year. Because the US Trade Representative (the body that regulates trade with other countries) had met with the European Commission last year to discuss an appropriate settlement to make up for the supposed lack, or at least reduction, in revenue from the American market, the US has refused to revisit the issue with the Commission.

The UIGEA has been criticized by government officials all over the world, as well as even members of the World Trade Organization. Many feel that the legislation is simply flawed, as it is vague and arbitrary in its ruling, and many financial organizations have had trouble even following the guidelines, as they are so unclear. Furthermore, the Enforcement Act has simply not been enforced so people have not been taking it seriously. In the meantime, people continue to play online slots and casinos that belong to other countries, and the US is still missing out on revenue from a market that is clearly here to stay. Much like the rest of the policies from the current administration, the UIGEA is simply a way to turn a blind eye to what is actually going on in the country.

Back to July 2008 Archive.