Pressure on the United States authorities continue to mount regarding the Unlawful Internet Gambling Enforcement Act.

A special hearing has been planned in order to address the problems faced by US banks and other financial institutions when trying to apply this anti-gambling legislation.

So urgent is the matter, it seems, that the hearing may be held as early as April. It will be hosted by Democratic Congressman Frank Barney, Chairman of the US House Committee on Financial Services. 

Since the UIGEA was passed in October, 2006, in order to make it illegal for banks to handle and honor transactions between US residents and online poker and gambling sites, there has been an uproar by many sectors of the community, including the banking industry, especially regarding the ambiguity of the law. One of the most important complaints has been that it is nearly impossible to differentiate between legal and illegal gambling activities, making it a ‘guessing game’ for many financial institutions that want to avoid prosecution by US authorities.

As the American banking sector faces increased pressure on other fronts, including plummeting property prices amidst a mortgage crisis, it seeks to resolve the UIGEA burden as soon as possible. As Frank Barney noted: “The banks have a lot of other things to worry about right now. I do not think poker should be one of them.”

Jeffrey Sandman, speaking for the Safe and Secure Internet Gambling Initiative welcomed the news of the hearing and said in a statement this week: “This hearing is significant and must address the issues being raised by the financial services sector and others. The proposed Treasury Department regulations are unclear, burdensome and untenable. It becomes clearer each week that the attempt to prohibit internet gambling activity is doomed to fail. Rather than waste valuable resources attempting to enforce the Act, the US should instead regulate and tax internet gambling.”

Meanwhile, support continues to grow for Frank Barney’s counter law to the UIGEA, the Internet Gambling Regulation and Enforcement Act (also known as HR 2046). At the end of last month, one of congress’s most influential personalities, George Miller, expressed his official support for the proposed bill and became a co-sponsor.

It is encouraging to see the momentum building in support of regulating Internet gambling," said Sandman. "It is time for Congress to address this issue and support legislation that would not only protect consumers, but generate billions in revenue needed for critical government programs."

Author:  Renee Kingsley