Canadian Lotteries Blocked by UIGEA

May 04, 2009 | News Category: Gaming Law

0 Comments The UIGEA (Unlawful Internet Gambling Enforcement Act) has once again caused disruptions because of the lack of clarity that has become part and parcel of the UIGEA. The latest debacle is once again connected to blocking payment transactions to online casinos. As has happened before, unintended consequences have resulted from payment blocking.

The most recent problem caused by the enforcement of the UIGEA has struck Canadian lotteries, who have been caught up in the extremely cautious measures to block online gambling sites by financial companies. These companies obviously are not sure what is, and what is not, considered to be illegal Internet gambling.

Constance Ladell, the director of legal services for the British Columbia Lottery said "Our biggest challenge comes from south of the border and the UIGEA. We've got caught up in that and have suffered as a result of the UIGEA as well as the risk-averse nature of the payments industry."

Barney Frank's bill, with regards to repealing the UIGEA, is being met with both hope and much expectation by all North Americans connected to the online gaming world. The need for regulation and specific laws in connection with online gambling are sorely needed, and the imminent appearance of Frank's bill will be welcomed by the representatives at the International Masters of Gaming Law Spring Conference in Windsor.

Maggie McGee, vice-president of the Nova Scotia Gaming Corporation in Canada said "The business imperative to do so is clear, yet no jurisdiction in North America regulates." The Canadian gaming authorities that the effects of the UIGEA have crossed the border into Canada, and have interfered and disrupted sales out of the United States. The lack of law has filled the vacuum that exists in Canada where regulation should be filling the space.

Constance Ladell expressed her frustration over the fact that neither the Canadian nor the United States governments have seen the importance of correctly regulating online gambling. She feels that steps need to be taken by both governments to correct this issue. Ladell said "If Congressman Frank gets his way then that will help us, too." Ladell added that "Ignoring the Internet is like holding on to the notion that the world is flat."

The unclear and little understood UIGEA came into being in 2006, and has created much confusion since its inception. Correctly regulating and licensing Internet gambling will benefit both players and online casinos.

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