New Bill to Clarify UIGEA
Published on: August 6, 2008
Prior to Congress going on recess last week, Representative
Pete Sessions, a Republican from Texas, introduced a bill into session
that would help clarify and modify the Unlawful Internet Gambling Enforcement
Act. Sessions’ and many others feel that the
wording of the UIGEA should be modified so that the definition of what
is considered illegal online gambling is outlined with no
confusion. H.R. 6663, as it is currently worded, seeks to
limit the definition of illegal online gambling to sport
betting. Sports betting is illegal in 49 of 50
states. The bill also points out how the UIGEA’s wording has
caused companies to leave the online gambling market in the United
States, banning American players from their sites.
The bill proposed by Representative Sessions and Congress found the following issues that prompted the proposing of H.R. 6663:
- Prior to the UIGEA, federal law regarding gambling was passed decades before the commercial use of the Internet and much of the wording was both vague and outdated when used in reference to online gambling activities.
- All of the gambling prosecutions pursued so far by the government have involved sports betting and there are no defining court decisions on the books that apply to online casinos and poker rooms.
- Sports betting has been banned in 49 states in an attempt to preserve the integrity of professional and amateur sports and there are definitive cases on the federal books that clarify it as being illegal on the Internet.
- Many of the internet casino and poker sites that have banned American players because of the UIGEA were fully listed on the London Stock Exchange and already subject to transparency standard and scrutiny. They chose to block Americans due to the clarification of the UIGEA they received.
- Companies that complied with the UIGEA in a good faith effort are still facing legal jeopardy from the United States.
- Congress feels that criminal statutes are applicable only to online companies that offered sports betting services to American citizens prior to October 13, 2006.
- Companies that offer internet sports betting to American citizens or who process payments for illegal sport betting by American citizens are the only ones that should be prosecuted.
Surprisingly, H.R. 6663 is not being supported by everyone in the online gambling world. The Poker Player Alliance is not sure how the findings will affect online poker playing – and ultimately online gambling overall – and that the bill does not clarify how online poker and gambling should be viewed. Prior to the UIGEA, only online sports betting was considered illegal and there is nothing on the federal books that states online gambling and poker is illegal. The bill will be studied in more depth when Congress comes back into session in September and could incorporate the concerns of the PPA before it is put to a vote.
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