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Politicians Seeking Clarity

Four politicians are really creating a stir with their open and vocal support of the online casino gambling industry in a way. The four Republican representatives are not outright calling for an end to the controversial Unlawful Internet Gambling Enforcement Act (UIGEA) but their pointed questions and demand for answers could very well cause the UIGEA to continue faltering. The crux of the dilemma for many is the fact that the UIGEA is entirely flawed and unenforceable without a very clear understanding of what is intended with the words “illegal internet gambling.” The UIGEA was designed to block offshore online casinos while allowing some forms of U.S. internet based gambling choices – the result of that dynamic is a thoroughly confusing set of enforcement regulations.

Last December the U.S. Federal Reserve Board and the Department of the Treasury released a set of draft regulations for the UIGEA. These controversial regulations caused a furor of debate and concern from supporters of the online casino gambling industry as well as the U.S. banking industry. The four Republican politicians, Judy Biggert, Jim Gerlach, Christopher Shays, Kevin McCarthy sent a formal notice to Secretary Paulson and Chairman Bernanke concerning the online casino gambling regulations.

The letter included a very specific and justified request that the two state agencies withhold release of the online casino gambling regulations until the agencies have clearly defined the precise meaning of “illegal internet gambling.” The letter stated, “As proposed, these regulations do not provide clear guidance to the public, in particular those that engage in online skill games, or regulated industries regarding what constitutes "unlawful internet gambling." We believe that implementing such vague law and regulations, while holding the public and regulated industries liable for non-compliance, is an abdication of the federal government's responsibility to both the public and unregulated industries.”

The controversial regulations are just one of the many issues that the national and international online casino gambling has with the UIGEA.