Postponed Internet Gambling Ban Edging Closer

Gambling News - March 2nd, 2010 - Written By Glen

In 2006, the Safe Port Act had been passed. A provision of the Safe Port Act was the Unlawful Internet Gambling Enforcement Act. The UIGEA, as it is more commonly known, made it illegal for financial institutions to process gambling payments, whether it is to a gambling site or to the player.

The UIGEA was meant to go into effect in December of 2009, but a legislative war had erupted nearly six months prior. Barney Frank (D-MA) had begun the fight to overturn the UIGEA. After gathering 65 cosponsors to his bill, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, Frank managed to delay the UIGEA by six months.

With February down and March already under way, the enaction date of June 1st is right around the corner. This means that payment processors will have to cease processing gambling payments or face heavy penalties from the law.

Unfortunately, many companies have already suffered from criminal impositions. Zip Payments, Account Services, and other processors had been hit with severe penalties. Players had been without winnings while the gambling providers had sorted out the issues, but were ultimately paid. The gambling sites as well as the operators of the payment processors had taken the hit in this instance, though some players had been summoned to testify. While a rare case, the government had involved the gambler.

Under current laws, the gambler would not face any legal trouble.

Both VISA and MasterCard have both attempted to pull from the gambling market, and alternative Gambling Deposit Methods have become more popular. This has not stopped players from enjoying online gambling, but the future of the industry may change if legislators do not succeed in stopping the Unlawful Internet Gambling Enforcement Act from coming into play. With new pieces of legislation constantly erupting, the most recent of which is a provision of the Bipartisan Tax Fairness and Simplification Act, many have grown hopeful over the future of online gambling.

Until then, the legal USA gambling sites are at the forefront of the industry, and will likely remain active despite prohibition attempts that are expected to fail.