News

US Treasury Wants UIGEA Before New Administration Takes Office

19 Nov, 2008

uigeaThe US Treasury Department has confirmed that rules relating to the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) are being pushed through to be implemented prior to the end of the Bush administration.

 

All administrations leaving office seek to complete controversial rules before their end of their term in what is called the “midnight drop”.

 

In the last few weeks, the Treasury sent the final rules to the Office of Management and Budget (OMB), a step required in their institution.

The UIGEA effectively blocks people residing in the US from making financial transactions with online gambling companies (the notable exceptions are websites that handle betting on lotteries, horse racing).

 

The UIGEA has faced much resistance from the financial industry and banks, Democratic legislators, factions suggesting it is an individual’s right to gamble as well as individuals. Treasury representatives have even testified against the UIGEA earlier this year. The Interactive Media Entertainment and Gaming Association has appealed the UIGEA on constitutional grounds.

 

Poker playing groups such as the Poker Players Alliance (PPA) is intensifying its efforts to make Internet poker an exclusion from the UIGEA. John Pappas, Executive Director of PPA stated his surprise that the government would try to place these restrictions “given the burden it would place on financial institutions at this time of financial crisis.”

 

Pappas is going to meet with the OMB, in a final effort to stop these policies being put into place. He may also wait for the new Obama administration to take office, when a more thorough review can take place.