A Step Towards Freedom with Online Casinos

December 02, 2009 | News Category: Gaming Law

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Barney Frank had many good things to say, and much praise to offer, in connection with the delay of the implementation of the UIGEA (Unlawful Internet Gambling Enforcement Act).

Frank offered praise to both the Federal Reserve officials and the Treasury officials for making the bold move to delay UIGEA compliance. He said that this decision has guarded the freedom of those resident in the United States.

In a short written statement, Frank noted the unfair burden that would have been placed on already strained financial service providers. Since the UIGEA was pushed through at the last minute by the Bush administration, Frank noted that these kind of "midnight regulations… would curtail the freedom of Americans to use the Internet as they choose."

A portion of Frank’s statement reads as follows: "The Department of the Treasury and the Federal Reserve Board of Governors deserve a great deal of credit." He further explained "This will give us a chance to act in an unhurried manner on my legislation to undo this regulatory excess by the Bush administration."

Frank, for some time, has said that practically and on a philosophical level, the online casino ban would not be positive, and that Congress has no right to make decisions for individuals as to how they should behave, and what they should do in their own private homes.

He also explained that his plan to tax online gambling, as well as regulating the industry, would generate large amounts of income that will be able to be used elsewhere as needed.

It was also noted that the UIGEA was not effectively reaching the goals that it was meant to have achieved. While it was meant to protect children and consumers, it certainly failed in this area. Instead of ensuring that United States residents were kept safe the payment ban simply left a gap where untrustworthy payment processing companies were able to rear their heads while those that are trustworthy had to cease operations.

If the industry is regulated, there will be guidelines in place that will keep consumers safe, and legal redress should any problems occur. There was, of course, also the general confusion created by the UIGEA as to what exactly was, and was not, legal. While online gambling payment processing was considered illegal, online casinos themselves, were not considered to be illegal.

It is hoped that the next six months will give financial companies and legislators the time needed to address the problems and issues, as well as finding solutions, for the flawed UIGEA. Should this not be achieved in that time, it is likely that compliance with the act will be required unless Barney Frank or someone else are able to arrange another delay.