UIGEA Looming with Deadline Less than a Week Away

May 27, 2010 | News Category: Gaming Law

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The online casino players in the United States are wondering what exactly will take place as the June 1st deadline arrives, on which the UIGEA (Unlawful Internet Gambling Enforcement Act) will officially be implemented.

Although some feel that the changes will not be felt all at once for the individual players because many financial institutions have already begun to follow the guidelines that are laid out by the UIGEA in preparation for the implementation deadline.

Even with the UIGEA implemented, the legality of online gambling does not have a clear status. It is not seem to be illegal for individuals to gamble online, however the financial institutions will now find that it is illegal to transfer any money to or from online gambling sites. Essentially, it will just become harder and harder for player to deposit and withdraw their money to and from online gambling sites. There are those, however, that are not concerned, since in many ways, the UIGEA has already been implemented, as explained above.

Many are angry, or at least frustrated, with Barney Frank, since it was he who had “scheduling conflicts” and delayed the hearing for his own online gambling bill until July, at least a full month after the UIGEA will have been implemented.

The executive director of the Poker Players Alliance (PPA), John Papas has been working tirelessly to try and convince the Federal Reserve, and the Department of the Treasury, to once again delay the official implementation of the UIGEA.

On another point, Papas notes that at least for poker players, the games are not only games of chance, but of skill, and should therefore be exempt from the UIGEA laws. He has been trying to get the support of members of Congress, and has said that he has 22 Congressmen who support this point of view. A former Senator, Alfonse D’Amato, who now holds the position of PPA chairman, met with Senator John Kyl, one of the strongest supporters of the UIGEA, and was unable to convince him to compromise in any way.

John Papas does remain optimistic that things can still change. Since the UIGEA has not yet been implemented, it is possible that perhaps the next few days could bring about the necessary changes for the US online gambling world.

There is no clear answer in the United States as to the legality of online gambling, and it can be seen by a number of court cases that the issue has been dealt with in a subjective manner, rather than an objective one. Lawmakers and those who uphold the law often act as if online gambling is illegal in the United States, but they would be hard pressed to point out a law that makes it so.