Delay in Implementing UIGEA
Just before he retired last October, republican Senate Majority Leader Bill Frist, passedthrough the Unlawful Internet Gambling Enforcement Act (UIGEA). The UIGEA makes it illegal for credit card companies and bank payments to be made between gambling businesses. The UIGEA was passed in an effort to protect children and problem gamblers.
Although it does not specifically outlaw online gambling, the ban on the transfer of monies will break global trade rules. Hundreds of America’s top poker players went to Washington last week to lobby politicians to rescind the law.
The World Trade Organization and the U.S. have announced they need more time to work out how billions of dollars will be compensated because of the ban. A deadline for the settlement was scheduled for last Monday is now scheduled for December 14, 2007.
Also, the delay in implementation of the ban is because the rules for it are nowhere ready. The rules will not actually hold online gamblers or the banks making the electronic transfers guilty. Online the online gambling casinos can commit a crime under the UIGEA. The banks however must come up with a procedure to identify the payments and stop them. The procedure must be put into effect by the middle of next year.
Opponents are hoping the new law will be stopped before it is put into affect. There are several initiatives to stop it working its way through congress now.
- 2007-10-27



