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Why'd They Do It?

The UIGEA is now well over two years old and yet there still remains a not of incredulity in the global online caisno gambling industry that the US government not only passed this questionable and flawed piece of legislation – but that said legislation has then been in effect and not repealed for the past two and a half years.  When the UIGEA passed in 2006 there was international outcry – and not just the online casino gambling industry was appalled – on a respect level, the US government seemed to be snubbing its nose at the rest of the world.  As one of the superpowers, it’s a bit difficult to force this powerful nation to anything.  The World Trade Organization however did step in and attempted mediate the issue and find resolution – US Trade Representatives though were unwilling to compromise in the least.

Now, with all of this continued opposition and a negative ruling from the World Trade Organization, it’s got to be asked, why is the US government continuing to uphold the controversial UIGEA?  The answer pretty much comes down to money according to most online casino gambling industry analysts. The US government’s UIGEA may be flawed in its total enforceability, but is has effectively eliminated a huge portion of the competition that was taking money away from the land gambling venues in Las Vegas, Atlantic City, and other state run casinos.

The UIGEA is nothing more than a protectionist piece of legislation that forces foreign online casinos and gambling competition out of the country so that the land gambling industry is not forced to reckon with the new internet gambling medium.  There is a lot of money in the US land gambling industry; even during a recession, the land casino venues know which side their bread is buttered on and continue to support US politics and lobby for the continuation of the UIGEA.