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The US's Questionable Choices

The United States Department of Justice took the passage of the 2006 Unlawful Internet Gambling Enforcement Act (UIGEA) and essentially ran with the new legislation. Once the act passed most of the online casino gambling industry was forced into a mass exodus from the market. And though a handful of sites defy the US DoJ and the UIGEA by continuing to service American gamblers, most online casinos exited the market despite huge profit losses. Notably, the DoJ went beyond just forcing the internet casinos out of the market, the UIGEA is specifically related to the processing of financial transactions with internet gambling sites and the DoJ imposed some very hefty fines on the Neteller payment processing company for their actions in the US market after the passage of the UIGEA.

With all of this going on though, it’s interesting to note that the Department of Justice is basing many of these negotiations and prosecutions on the highly controversial UIGEA. There is little agreement in the United States, or the international online casino gambling industry for that matter, about the legality and propriety of the UIGEA. But despite the fact that measures to alter the UIGEA have bi-partisan support in Congress, the DoJ is content to continue handing out harsh penalties to online casinos operating in the market prior to the UIGEA.

There is definitely an argument to be made that the US’s draconian legislation banning online caisno gambling is hardly viable for current use consider it was passed long before a computer was even available for home use. The news that a founding member of Party Gaming may pay nearly $200 million in fines and penalties to the DoJ is startling – most agree that prosecution of pre-UIGEA gambling actions are hardly prosecutable…perhaps though Party Gaming is just hoping to put the entire situation in the past.