US Banks Influenced Postponement of UIGEA

Published Tuesday, December 01, 2009 -

The banking system in the USA has enough on it's plate for now. They were part of the recent request by several business sectors in the States for the postponement of the implementation of the Unlawful Internet Gambling Act. The banks are the ones that are to enforce the prohibition by not allowing transactions related to gambling on the internet.

Congressman Barney Frank, Kentucky politicians, horseracing organizations and the Poker Players Alliance seem to be garnering all the credit for getting the US Treasury and the Federal Reserve to postpone the implementation of the UIGEA. The regulations and definitions of illegal Internet gambling are vague at best say the banking institutions which poses problems for the administration of the UIGEA demands.

In a joint statement by the Federal Reserve and the Treasury Department they publicly declared, "The agencies acknowledge some of the challenges regulated entities are experiencing with the act's definition of 'unlawful Internet gambling," "Moreover ..., several members of Congress have indicated interest in revising the Act.
The agencies are thus persuaded that a limited extension of the compliance date for regulated entities is appropriate,"

Named among the submissions the Fed and Treasury considered were Wells Fargo, the American Bankers Association, the Credit Union National Association and a large group of businesses associated with the gaming industry in America. reported in it's latest issue an evaluation of what the financial organizations are up against, "a thicket of confusing and often contradictory definitions and rules." Among other things, the UIGEA never got around to defining the term "illegal Internet gambling."

Of course there was opposition to the delay in implementation of the law from the usual suspects the Republicans. In a letter sent to the Treasury, and the Federal Reserve, Rep. Spencer Bachus, R-Ala., and Sen. Jon Kyl, R-Ariz., they maintained, "Simply delaying the compliance date serves no interest except that of the Internet gambling enterprises that have long evaded American gambling laws and will continue to do so until effective enforcement is in place,"

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