The UIGEA is one of the most discussed online casino laws, the U.S. anti-gambling law was introduced in 2006 and would actually be implemented on December 1st. The Treasury Department and the Federal Reserve of the U.S. announced last Friday, that the implementation date for the UIGEA is postponed with a half year.
The two agencies reported Friday that the implementation date has moved to June 1 next year so that financial institutions have sufficient time to comply with the law. Democratic opponents of the ban praised the action and said that Congress now has enough time to overturn the law. The delayed act would prohibit financial institutions to process payments for online casino gambling. The financial industry complained that the rules were difficult to comply with because it is not explained properly what is seen as Internet gambling. The Bush administration had put in place legislation to enforce the law from November 2008, and December 1, 2009 was made the date that financial institutions must comply with the law. But in a joint announcement last Friday, the Treasury Department and the Federal Reserve reported that several congressmen had requested postponement of the rules, arguing there was considerable support for legislation to clarify the current legislation. The 2 agencies said those groups seeking delay, provided sufficient reason to justify a delay of 6 months for the rules. Organizations like the American Bankers Association and the Poker Player Alliance had written to the 2 agencies with a petition from the gambling industry, which asked for postponement. Barney Frank, Chairman of the Financial Service Committee, was very pleased with the announcement Friday. He has introduced 2 legislations, one to postpone the implementations of the UIGEA, and the other to legalize and license the online casino gambling industry, which overturns the UIGEA. Barney Frank said in a statement: “This will give us a chance to act in an unhurried manner on my legislation to undo this regulatory excess by the Bush administration and to undo this ill-advised law.” Frank’s bill gives the Treasury authorization to license and regulate online gambling companies that provide service to U.S. customers. Barney Frank says that online casino gambling should be legal as a personal choice and that government tax revenue may increase if Internet gambling is regulated. The announcement is great news because it brings regulation of U.S. gambling a step closer. On December 3, the Barney Frank legislations will be up for discussion in the House.