Unlawful Internet Gambling Enforcement Act Implemented Tuesday

The Unlawful Internet Gambling Enforcement Act goes into effect on Tuesday and many gamblers are wondering how that will alter the way they currently play at online casinos. Although the law will be enforced, some analysts believe that not much will change within the industry.

Back in late 2006, the UIGEA was created by a largely Republican Congress. Many of the Democratic leaders that originally voted in favor of the UIGEA, have since changed their position on the online gambling issue. That was due to many meetings and educational opportunities for lawmakers.

The UIGEA places the burden on financial institutions to block transactions to and from online gambling sites. Financial representatives have expressed to Congress that this may be something that is beyond their control.

The banks will be able to block online gambling transactions that are marked as such. Many of these transactions, however, have the sites transferring the funds using coding that can get passed the financial institution systems.

"I don't think much will change for US online casino players because their transactions are currently being coded to throw off the banks, and that will continue even with the new law in place," said Gaming Analyst Steve Schwartz.

Backing up Schwartz's claim is the fact that MasterCard has already started to block online gambling transactions, but many gamblers are still using their MasterCard's to increase balances in their online gaming accounts, thanks to the coding used by the sites.

The UIGEA is also set to spark a major controversy and divide between millions of Americans who gamble online, and the government. It is believed that this divide is the reason that Rep. Barney Frank has not yet pursued his legislation that would regulate Internet gambling.

"If Frank allows American gamblers to simmer over the UIGEA, it may mean more votes in November for Democrats who are in favor of having the freedom to gamble online," said Schwartz. "On the other hand, delaying any debate on the issue would also keep certain legislators from having to face scrutiny over their stance during the campaign season."

The UIGEA implementation has already been delayed once. In late November, Rep. Frank and several other lawmakers were successful in their attempt to delay the rules for the UIGEA by six months. That period ends Tuesday, and already there has been an agreement to not delay the law from taking effect again.

May 30, 2010
Posted By April Gardner
Staff Editor, CasinoGamblingWeb.com
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