Senator Jon Kyl Blocks Treasury Appointments Over Online Gambling

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Senator Jon Kyl from Arizona was unhappy with the Obama Administration's delay of the implementation of the Unlawful Internet Gambling Enforcement Act rules. Now, Kyl has responded by blocking the appointment of four Treasury positions.

According to the law, a senator may place a "hold" on political appointment. Kyl has done that to four appointees that can not help in the Treasury Department until the "Hold" is lifted. Many believe this is a retaliatory move by Kyl.

While Kyl has not admitted to the reason for the "hold," there is little doubt to his involvement with the online gambling laws in the US over the past several years. Kyl has been one of the biggest opponents of Internet gambling regulations.

Representative Barney Frank has proposed legislation that would eliminate the UIGEA and set up a regulated online gambling industry in the country. Frank, who also serves as the Chairman of the House Finance Committee, was busy with the economy last year and did not have time to address the online gambling legislation.

The rules for the UIGEA were set to go in effect in December of last year, but Frank and other lawmakers asked the Treasury Department to delay the implementation of those rules. The Treasury Department did just that, delaying the rules from taking effect until June 1st.

That gave Frank time to push his legislation in the coming months. Frank's Bill already has over sixty co-sponsors, and there seems to have been a philosophical change in the way the US government is approaching online gambling.

While the Department of Justice has continued to go after online gaming sites that are doing business in the US, Frank and other Internet gambling supporters are developing a plan for regulation of the industry.

The US is one of the European Union countries that has been warned by the European Commission regarding their online gambling laws. The Commission conducted an investigation and found that the US was in violation of trade agreements. They have given the US a grace period to correct their laws before possibly bringing the case to the World Trade Organization.

The blockage of the appointees has left Treasury Secretary Timothy Geithner without the services of Charles Collyns as the undersecretary of international finance, and Lael Brainard as the assistant secretary of international affairs.

January 26, 2010
Posted By Larry Rutherford
Staff Editor, CasinoGamblingWeb.com
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