In a recent interview given to the Medill News Service, the vice-president of the American Bankers Association, Steve Kenneally spoke out against the UIGEA calling it ineffective and costly. This is not the first time that someone has used such language about the upcoming law but his words did carry a certain weight with those who have grown frustrated with its quickly approaching deadline. Should something not go through soon the UIGEA is set to become applicable on June 1^st.

Kenneally said that it will still take a lot of time to implement systemic changes that are needed to be able to implement the law. When it comes right down to it he wanted to make it clear that there are certain transactions that banks won’t be able to stop. For example if a player writes a check to an online gambling site the banking system won’t be able to stop it from clearing since it would be in the name of the holding company. The same would apply to wire transfers. It is true that these funding methods take longer to go through then electronic transfers but it would be enough to keep the online gambling industry going.

He also points out that banks could prevent transfers by credit and debit cards to online casinos provided they honestly identified themselves but most online casinos use a code that belongs to another kind of online merchant and effectively disguise their identity. This makes it impossible to track and stop all the electronic transfers going on. Though the practice of disguising itself is illegal it’s doubtful that many casinos are above doing it if it means keeping their business a float. Sure banks could get overzealous and start blocking legitimate transfers if they find them suspect but that wouldn’t be good for anyone involved.

When it comes right down to it though, it’s the cost of the extra measures that really bothers Kenneally. Under no circumstances would the banks be able to pay for all of the extra things and ultimately it would be the consumers that would have to carry much of the burden. It just doesn’t seem fair that people who have no intention of gambling online would have to pay for such a futile attempt he notes.

The only solution according to Kenneally would be to legalize and regulate online gambling. This seems to be the words on everyone’s mouth lately but nothing appears to be happening. The House Committee hearing on Barney Frank’s bill was postponed and no new date has been set. Kenneally finished up his interview with a grim warning, "We're just telling all of our bankers to be prepared on June 1."