Unlawful Internet Gambling Enforcement Act of 2006
The latest obstacle to internet gamblers and gambling websites is the passage of the Unlawful Internet Gambling Enforcement Act of 2006. Passed by the American government, the UIGEA is intended to prohibit money transfers on unlawful internet gambling.
Before we get into what the UIGEA means to you, let’s look at the bill’s history. Prior to the UIGEA passage, there were numerous (but mostly fruitless) attempts to regulate internet gambling. Legal questions such as “Where does the bet take place?”, “Is it illegal to make a bet if the online site is based where gambling is legal?” to even distinctions between games of chance and skill couldn’t be answered to satisfaction. So, we ended up with murky definitions of what was legal, illegal, and what enforcement was available.
Unfortunately (well, depending on which side you’re looking at it from), in 2006 two things happened which many believe allowed passage of the UIGEA. Jack Abramoff, a lobbyist known for opposing gambling bills plead guilty to a series of fraud and corruption scandals. In an attempt believed to show Congress wasn’t under lobbyist influence, it began work on the passage of a bill to regulate internet gambling.
Next, Republicans lost a large number of elections and the new Democratic Senate and House was expected to be friendlier toward online gambling. Before the leadership transfer, the UIGEA was attached to an unrelated Homeland Security bill designed to protect and enhance port security. The port security bill passed before the Democratic transfer and the UIGEA rider became a reality.
Unfortunately for the bill’s backers and fortunately for gamblers, the rush to pass the bill left it with serious loopholes, legal questions, and questions of enforcement. The bill does state what isn’t gambling but doesn’t clearly state what is a wager or bet. There’s the option to force banks to check online transactions for revenue from unlawful internet gambling sites. Thankfully this is time consuming and expensive for banks so expect resistance on the banks’ part. There’s the language to allow blocking access to websites but can you remember the last time you had a website blocked? Expect outrage if the government decides to restrict online access (or at least increase the number of blocked sites).
So despite early panic (which caused many a stock to dip in price) most people and sites are taking a wait and see approach to this. The language is ill-defined and the bill is currently being challenged in court. With a friendlier Senate and House and a poker playing President (!) due in January 2009, things are looking hopeful for players worried about the UIGEA.
