UIGEA Congressman Accepts $40,000 from Betting Source

Written by Renee K | Tuesday, December 4th, 2007

UIGEA Congressman Accepts $40,000 from Betting SourceThe passing of the Unlawful Internet Gambling Enforcement Act in October 2006 brought a huge clamp down on online poker and casino gaming in the United States.

While the law did not make it illegal for US players to gamble at offshore sites, it did forbid US-based financial institutions to honor these transactions. Banks, credit card companies and even internet money transfer services faced closure, fines and jail sentences for staff members.

One of the US congressmen who headed the UIGEA campaign was Virginia politician, Bob Goodlatte (pictured upper right). Goodlatte was responsible for writing the details of the act and pushing for its acceptance by the Senate. Over the years, Goodlatte explained to his supporters (and opponents) again and again that he wanted to bring an end to online poker and casino gaming in the country on the grounds that wagering was ‘immoral’.

However, Goodlatte’s opponents have always contended that if the congressman really felt that wagering was immoral, then he would not have made provisions to exclude certain types of betting in the UIGEA. As a result, state lotteries, fantasy sports and horse betting are not covered by the act, yet they still involve wagering. Goodlatte’s opponents contend that betting is betting and that if ‘morality’ were the real reason behind the act, he would not have left a loophole for these industries to thrive.

So it came as no surprise this week when online industry expert, J. Todd reported on his “Perspectives Weekly” show that Goodlatte had recently accepted over $40,000 in lobbying money from the horse racing betting industry.

Many industry experts feel that this incident is just one more reason why the passing of the UIGEA was a serious mistake. They feel that the act was not considered seriously enough by those who voted on it and some have even said that it was ‘sneaked’ through, attached to another, unrelated act at the last minute.

The results of this ‘mistake’ are now being felt on all spheres. The US has been slapped with a multi-billion compensation claim by a number of countries around the world after losing the case brought against it by through the World Trade Organization. The US has been charged with an unfair monopoly on its gambling industry by only allowing local companies to compete in the horse racing market. With so much pressure on the country’s economy, Congress may soon have to do a rethink on Goodlatte’s act and consider legalizing and regulating online gambling once and for all.

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