Will Treasury Postpone Official Implementation of UIGEA?

October 07, 2009 | News Category: Gaming Law

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December 1st is fast approaching, which means that the UIGEA (Unlawful Internet Gambling Enforcement Act) will officially take effect. Although the UIGEA has already been affecting the online gambling world, it has not yet officially begun. Many are now seeking to delay the implementation of the UIGEA by one year so that it will prevent any further stress to the current economic system.

Since Congress has simply been too preoccupied with the economic crisis and issues surrounding health care, the online gambling bills proposed by Barney Frank have been put on the back burner. No less than nineteen United States Representatives have signed a written request, which has been sent to both the Secretary of the Treasury and the head of the Federal Reserve, requesting that the UIGEA laws be put on hold for now.

The written request asks that the laws regarding the prohibition of payment processing of illegal online gambling sites by financial institutions, should not yet be implemented. Payment processing of online gambling sites, which are considered illegal, are against the law according to the UIGEA. The delay has been requested by a number of Congressmen, led by Barney Frank and Pete King.

The Representatives that have expressed their concern by officially requesting the delay, feel that the regulations brought down from the UIGEA are simply “flawed.” Apart from that, it is felt that the procedures and the schedule to implement them that are currently planned will impose an “unreasonable burden on regulators and the financial services industry.”

The Representatives are not the only voice that the Treasury has heard in support of delaying the implementation of the UIGEA. The Poker Players Alliance has sent the Treasury a petition with the same request, to extend the waiting period before the UIGEA comes into effect. The American Greyhound Track Operators Association and the National Thoroughbred Racing Association have also joined those requesting the delay. Although horse racing is meant to be exempt from the gambling ban, there is some concern that they will also be denied services of certain overly-cautious credit card companies. A number of people who purchase lottery tickets online have found that there were some issues a few months ago, where they were unable to purchase their lottery tickets online since credit card companies had blocked them along with other online gambling sites.

When Congress does eventually debate Barney Frank’s online gambling bill, it may well be that the gambling bill will become law, and the UIGEA will simply become a moot point.