UIGEA trajectory summarized
The Unlawful Internet Gambling Enforcement Act or better known as the UIGEA was signed into law on October 13, 2006.
The UIGEA objective was to stop the transfer of funds from any USA financial institution to a online gambling websites, excluding USA based websites for lotteries and horse racing. As a result, this legislation caused many online poker and sports betting sites to stop accepting players from the United States.
The law actually forced many online gambling and poker sites, that were publicly traded, to stop taking players and bets from American players. The sites or companies that were hardest hit were Party Poker (Party Gaming), Paradise Poker (Sporting Bet), Pacific Poker (888), Pokerroom.com (BWIN) The UIGEA was attached to the PORT SECURITY ACT as a last minute maneuver by Senator Bill Frist (rep), Jim Leach (rep), and Robert Goodlatte (rep) in order to try to stop Americans from playing online poker from online. They had no idea how many millions of Americans they upset Bill Frist, who was hoping for the Presidential Nomination was asked to step down from politics. Jim Leach, who was a shoe in for being reelected in Iowa, did not win a few months later in November (thanks to the Poker Players Alliance lobbyist).
The sad thing about the UIGEA was it was a law that was really unenforceable. You just cant stop offshore transfers of money from bank wires, checks, Western Union, Money Gram, or pre paid visa cards. The UIGEA hurt the Freedoms of American Poker players who feel they have earned the right to have the freedom to play online poker in their own free time.
The UIGEA objective was to stop the transfer of funds from any USA financial institution to a online gambling websites, excluding USA based websites for lotteries and horse racing. As a result, this legislation caused many online poker and sports betting sites to stop accepting players from the United States.
The law actually forced many online gambling and poker sites, that were publicly traded, to stop taking players and bets from American players. The sites or companies that were hardest hit were Party Poker (Party Gaming), Paradise Poker (Sporting Bet), Pacific Poker (888), Pokerroom.com (BWIN) The UIGEA was attached to the PORT SECURITY ACT as a last minute maneuver by Senator Bill Frist (rep), Jim Leach (rep), and Robert Goodlatte (rep) in order to try to stop Americans from playing online poker from online. They had no idea how many millions of Americans they upset Bill Frist, who was hoping for the Presidential Nomination was asked to step down from politics. Jim Leach, who was a shoe in for being reelected in Iowa, did not win a few months later in November (thanks to the Poker Players Alliance lobbyist).
The sad thing about the UIGEA was it was a law that was really unenforceable. You just cant stop offshore transfers of money from bank wires, checks, Western Union, Money Gram, or pre paid visa cards. The UIGEA hurt the Freedoms of American Poker players who feel they have earned the right to have the freedom to play online poker in their own free time.
Challenge to UIGEA part of Act
In May 2009, U.S. Congressman Barney Frank introduced a bill to overturn the gambling aspects of the Act, “The Internet Gambling Regulation, Consumer Protection, and Enforcement Act,” which seeks to repeal the major online gaming obstacles of the UIGEA and go further in protecting Americans from fraud, while safeguarding against underage and problem gamblers.
Frank also introduced a bill to delay the implementations of the UIGEA for one year, until Dec. 1, 2010
As the December 1st deadline for UIGEA compliance in the United States gets uncomfortably close, some figures in the political and online gambling worlds are scrambling to get the laws delayed, permanently or even just temporarily.
But, at the risk of taking a slightly negative perspective, those efforts don’t seem to have much hope. (See previous blog post 1 )
California and Florida are currently looking at legislation to establish intrastate online poker systems and regulations as permitted by an exemption under the Unlawful Internet Gambling Enforcement Act (UIGEA).
Since it seems that the UIGEA is here to stay, at least for the short term, some states have begun plans for legalizing and regulating online gaming within their own borders, ignoring the larger national market.
But, at the risk of taking a slightly negative perspective, those efforts don’t seem to have much hope. (See previous blog post 1 )
California and Florida are currently looking at legislation to establish intrastate online poker systems and regulations as permitted by an exemption under the Unlawful Internet Gambling Enforcement Act (UIGEA).
Since it seems that the UIGEA is here to stay, at least for the short term, some states have begun plans for legalizing and regulating online gaming within their own borders, ignoring the larger national market.
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