BestCraps.com

June 1 Is D-Day For UIGEA

Posted on May 30th, 2010

News Sponsored by Online Vegas Casino

Rated 5 Stars by BestCraps.com

Read Review

Visit Casino

Download Software

————————————————

The Unlawful Internet Gambling Enforcement Act (UIGEA) will officially be enforced on June 1, four years after legislation was made into law. When the UIGEA was passed in October, 2006, lawmakers were not given a chance to debate on the bill. It was attached as a provision to the SAFE Port Act, a bill that sought to enhance protection for U.S. seaports, which is totally unconnected to online gambling.

When the SAFE Port Act was approved by an almost unanimous vote and became law, so did the UIGEA. The deadline for putting the UIGEA into effect has been moved back several times by the Obama administration. Senate Minority Leader Whip John Kyl, the UIGEA’s most ardent backer, reacted by blocking the appointments of US Treasury nominees. Treasury Secretary Tim Geithner eventually agreed to push through with the June 1 deadline set by Kyl if the nominees would be allowed to take office.

To sum it up, the UIGEA makes it illegal for a bank or any financial institution to effect transfer of payments to online gaming sites. The law does not provide specific rules on how to prevent transfers, but appears to have dropped the responsibility in the laps of banks to make their own policies effective June 1.

The UIGEA makes Internet gambling illegal only for those operators of online gaming and those financial establishments that help process wagers and payments to online sites, but would not enforce legal action against players. The federal government is targeting the financial arm of the online gambling industry because without the support and services of financial institutions, online gambling’s functioning and progress would be impaired.

Poker networks operating within the country would be seriously impacted because poker accounts are regarded by some as online bank accounts which could be seized by federal authorities. However, those sites outside the U.S. would be safe from prosecution by the Department of Justice.

Already, the different poker sites have announced their plans after June 1. Bodog Poker said it will stay open and assured U. S. players of its continued service. The site said it has made changes to its operation after the UIGEA was passed in 2006, and promises to make necessary adjustments as further required by the Act.

Bodog, though, is based overseas. PokerTime site announced that by June 1 it will not be allowing customers from the U.S. All accounts of U.S. players in its site will be pulled out automatically before the deadline.

PokerStars and FullTilt Poker have no clear plans. These two sites, being the most popular, may not yet be prepared to stop accepting U.S. players. They may choose to continue their business and face the risk of a legal action from the federal government where they can present their arguments.

Some of the other U.S. online gambling sites will continue to provide the same services it had been offering prior to UIGEA. Different speculations abound as the UIGEA’s deadline looms. Some worry over its possible repercussions, while others say nothing significant will happen. Lobbying groups like the Poker Players Alliance and lawmakers are taking steps to repeal the UIGEA. Congressman Barney Frank, D-Massachusetts has passed a bill to invalidate the anti-online gambling law.

His bill aims to set up a regulatory framework for licensing, taxing and regulating online gaming in the U.S. Another Democratic Representative from Washington, Jim McDermott, also passed a measure seeking to tax online wagering. But the UIGEA has first to be enforced as a law before it can be repealed.

Supporters of online gambling say the UIGEA may not have a full range of powers to enforce because of a lack of clear definitions in its provisions. Also, the way it was hurriedly passed into law seems to convey the idea that it is not one that would be well-liked by and acceptable to the general public.