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Vagueness Called Into Question

The UIGEA has been called a lot of things and the allegations by the Interactive Media Entertainment & Gaming Association (iMEGA) has perhaps pinpointed the problems with the UIGEA in one word: vague. The vagueness of the UIGEA’s wording and ban on illegal online casinos has prompted concerns and outrage from many in the industry as well as politicians concerned with the Act’s impact on the US banking industry.

iMEGA has been in legal proceedings with the U.S. government concerning the Constitutionality of the UIGEA ban on online casino gambling companies for nearly two years at this point and the Association claims that the Act should be repealed or neutralized based on the fact that it is unenforceable in its vagueness. Additionally, iMEGA points to the fact that even the US Department of Treasury has acknowledged the difficulties and flaws inherent in the UIGEA that have led to problems drafting the support regulations needed to firmly block illegal online casinos from accessing US players.

The wording of the UIGEA entirely lacks precision and even the drafters of the Act have shown difficulty defining and ‘”illegal internet gambling transaction” when prompted. The vagueness of the “illegal internet gambling” means that the banking industry has no guidelines to follow when attempting to distinguish between legal and illegal online casino gambling transactions – especially considering the Act has specific carve-outs for various sectors of the internet gambling industry.