Nearly Two Months Later, What Are the Effects of the UIGEA?

Posted by: Missb123

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Missb123

altIt's been nearly two months since the United States implemented the Unlawful Internet Gambling Enforcement Act (UIGEA) - a US ban on online gambling infamously passed under the Bush administration back in 2005. Since its June 1st implementation, what, if any, effects has the UIGEA had on the online gambling community in the United States?

John Pappas, executive director for the Poker Players Alliance (PPA), stated: "I think we've seen very little impact on the ability of Americans to play poker on the Internet ... For many Internet poker sites and players, the ill effects of the UIGEA were felt several months ago if not several years. Most sites migrated to other responsible payment systems and the players migrated to that as well."

Many Internet gambling firms pulled out of the US market before UIGEA went into full effect to avoid any possible legal troubles.

Credit card companies are now caution and blocking most transactions that come directly through online betting websites. Major credit card companies claim that the UIGEA uses vague language therefore, there simply is no way to confidently identify which transactions are allowed and which are not. However, a large number of blocked transactions are apparently legal. In addition, some prepaid and reloadable gift cards are now being rejected, where before they weren't.

An unpredicted problem has also arisen from the implementation of the UIGEA. Although online horse racing wagers are excluded from the effects of the UIGEA, some banks and payment processing companies are blocking some transactions pertaining to horse racing betting.

Overall, online casinos and Internet poker rooms are reporting very few UIGEA related problems, and none since June 10th. So while the major problems feared by many have not materialized, there are still a few expected and unexpected problems surfacing with UIGEA.

Meanwhile Congressman Barney Frank (D-MA) and others are working to get the UIGEA overturned and new legislation passed to effectively legalize and regulate online gambling. As chairman of the House Financial Services Committee, Frank has confirmed that HR2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, will again be debated on July 21st.

Miss B says: All of the effects of the UIGEA are caused by the ambiguity of the law. It's ridiculous! Congressman Frank was right in labeling the UIGEA as the "stupidest law ever passed."

 

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