Delay to UIGEA implementation officially requested

08 October, 2009

Even though the Unlawful Internet Gambling Enforcement Act legislation jumped through the Congressional hoops required of bills back in 2006 and many financial services providers are already toeing the line vis-à-vis denying transactions involving online casinos and online gambling outlets, the law doesn’t truly come into effect until December 1 this year.

If then.

For it seems that some 19 lawmakers headed by – you guessed it – U.S. House Financial Services Committee Chairman Barney Frank (D.-Mass.) have filed paperwork requesting a delay to UIGEA implementation.

The group, which included Ron Paul (R.-Texas), Peter King (R.-N.Y.), and Judy Biggert (R.-Ill.), addressed U.S. Treasury secretary Timothy Geithner and Federal Reserve chairman Ben Bernanke in arguing that putting UIGEA into full force for December would “put an unreasonable burden on regulators and the financial services industry at a time of economic crisis.”

“We are writing,” reads the epistle, “to strongly urge you to ... extend the date of compliance for the final regulations implementing the Unlawful Internet Gambling Enforcement Act by one year.”

The delay was first requested via petition from the high-profile lobbying group Poker Players Alliance, the National Thoroughbred Racing Association, and the American Greyhound Track Operators Association. The latter two groups have a common bond with the PPA in that UIGEA puts dog-racing, like poker, into an unfair legal gray area while horseracing interests’ rights are protected in the would-be law.

Certain to challenge this request if possible are America’s professional and university sports leagues, who have blocked Frank proposals at nearly every turn. Frank’s latest bill, HR 2267 or “the Internet Gambling Regulation, Consumer Protection and Enforcement Act,” does not address sports betting.