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Overturning the UIGEA

When the Bush Administration passed the Unlawful Internet Gambling Enforcement Act in 2006, a significant portion of the population was up in arms over the way that the law managed to be ‘slipped through’ on the back of another, unrelated act at the very last moment. Nevertheless, the UIGEA was passed and it soon became clear that while the government was not going to prosecute gamblers for playing online, they were certainly going to clamp down on banks and financial institutions who transferred money to or from offshore internet casinos and gambling sites.

Since the UIGEA came into effect, there have been continuous efforts to try and overturn this law through legal channels. Perhaps the most vocal politician to push for any change has been Barney Frank, the House Financial Services Panel Chairman who recently proposed the Payments System Protection Act (H.R. 5767) in order to stop banks from implementing UIGEA because of the complex and ambiguous language used in the law.

Although the HR 5767 was not successfully passed into law, it was clear that this was only for political reasons as the Republicans voted en masse against it without any leeway for individual votes. Nevertheless, after the vote, many Republicans were heard saying that they would prefer the UIGEA to be put on hold until such time as the authorities managed to clarify exactly what it was that was expected from the banks.

It has become clear that many citizens in the United States – gamblers and non-gamblers alike – are keen to do away with the Unlawful Internet Gambling Enforcement Act. While it is obvious why gamblers would want to get rid of the law, it has come as a surprise to many just how many non-gamblers are so anti-UIGEA. This is mainly due to the fact that these citizens feel that the US government simply does not have a right to decide what kind of entertainment a person takes up on line, as long as it is not harmful to a third party in any way. These same non-gamblers believe that if the government starts dictating where and when they spend their money, there will soon be other areas that authorities will step into – creating a blatant attack on the free will of the average citizen.

Many grassroots organizations also seek to do away with the UIGEA, among them the very powerful Poker Players Alliance that is pushing for legislation to declare poker a game of skill, instead of a game of chance. If this happens, it may be that poker will not be included under the terms of the Unlawful Internet Gambling Enforcement Act and therefore online poker sites will become legal again.

Whatever the case, it is absolutely clear that many politicians, groups and organizations are pressuring the government to do away with the very controversial UIGEA once and for all. If and when this becomes the case, players will be extremely thankful.

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