UIGEA Postponed, USA Gamblers See Temporary Respite

Gambling News - November 29th, 2009 - Written by Glen

The Unlawful Internet Gambling Enforcement Act of 2006 has been postponed, allowing financial institutions another six months to meet compliance to the draconian banking restrictions regarding most forms of USA Online Gambling.

Petitions from both Political Action Committees and even government officials had brought the issue before the Treasury Department and the Federal Reserve. The UIGEA has henceforth been delayed and postponed until June 1st, 2010.

Players had been contending with the looming threat of increased difficulty with many USA deposit methods, as banks and credit bureaus would have been unable to process most transactions that had been related to online gambling. With the ban temporarily delayed, players will continue with business as usual through their favorite USA online poker rooms, casinos, and sportsbooks.

With the delay in place, legislators have managed to buy some time with repealing or reworking the UIGEA. Barney Frank, a Democrat in the House of Representatives, has been working to remove the UIGEA and indeed regulate online gambling through his bill H.R. 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act. This Act would set the framework for the taxation and regulation of online gambling, including casinos and poker rooms. Over 60 cosponsors have signed on to the Bill, and all parties involved have been carefully deliberating over the matter.

Online gambling is a multi-billion dollar industry, one that remains untaxed and unregulated. These billions are being shipped over seas, left untaxed. Indeed, winnings from these casinos are rarely taxed, as players are not typically required to declare their winnings or loses from online gambling sites.

With six months remaining on the deadline, a repeal of the UIGEA or at least relaxed restrictions, could become a reality.