For several weeks, media reports have had the industry and US online gamblers anticipating a full repeal of the UIGEA, enacted October 2006, which prevents US banks and credit card companies from processing payments to online gambling businesses outside the US.
According to an official press release: “The Act establishes a federal regulatory and enforcement framework to license companies to accept bets and wagers online from individuals in the US, to the extent permitted by individual states, Indian tribes and sport leagues. All such licences would include protections against underage gambling, compulsive gambling, money laundering and fraud.”
Under the bill, entitled the Internet Gambling Regulation and Enforcement Act, the UIGEA would remain in place, as would the Wire Act. Banks and credit card companies would still be prevented from doing business with illegal online gaming operators.
However, Frank’s bill, co-sponsored by Representative Pete King, provides a defence against the regulations that will soon be set forth by the UIGEA by proposing federal licensing and regulation of offshore internet gambling companies.
