UIGEA Places Too High a Burden on US Banks

by Lou on October 30, 2007

Rules proposed by the feds to implement the Unlawful Internet Gaming Enforcement Act (UIGEA) place a high burden on US financial institutions, according to the Safe and Secure Internet Gambling Initiative. This is according to a report issued a few days ago from Alston & Bird, a national law firm.

According to Alston & Bird, even with UIGEA in place, US residents would be able to continue to gambling online and avoiding UIGEA’s regulations by processing transactions through foreign banks in jurisdictions where online gaming is legal.

According to the Safe and Secure Internet Gambling Initiative’s Jeffrey Sandman, “The proposed rules create an unprecedented and unwieldy regulatory burden on the US financial services sector. US financial service companies are being left to interpret ambiguous state and federal gambling laws, which do not clearly differentiate between legal and illegal Internet gambling activities or transactions, and then implement unreasonable and costly solutions to achieve compliance.”

Sandman’s group favors regulating and taxing online gaming through the Internet Gambling Regulation and Enforcement Act and the Internet Gambling Regulation and Tax Enforcement Act. These bills seek to allow Internet gambling while requiring operators to obtain licenses, take precautions to prevent underage and compulsive gambling, and ensure safety and integrity of financial transactions.

By regulating online gaming, the United States could collect billions in revenue that is now being lost.

Comments on this entry are closed.

Previous post:

Next post: