UIGEA Regulations Delayed 6 Months

by Poker Team on November 30, 2009

Online gambling and online poker in the United States can take its head off the proverbial chopping block for now at least. Late last week, during the Thanksgiving holiday, the online gaming community was given something to truly be thankful for as the US Treasury Department and the Federal Reserve Board collaborated to issue a joint statement to announce that the day feared by online gambling entities, December 1st, the date that was set for the implementing of UIGEA regulations had been delayed by a full six months to June 1, 2010.

In a nutshell, the December 1st deadline was the day in which financial institutions would be forced to comply with the rules set by the (UIGEA)Unlawful Internet Gambling Enforcement Act. Since its passing several years ago, banks were both wary and unclear on how they would be expected to enforce the legislation and the December 1st target date was when it all would finally be defined once and for all. The purpose of the regulation definition was to force virtual and brick and mortar banks to cease processing all transactions associated with internet gambling.

Representative Barney Frank, who has long been an opponent of the UIGEA was quite pleased by the delay stating,

“’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.”

The delay will now allow for more due diligence on the matter, giving the U.S. House Financial Services Committee the time needed to hold hearings on two bills designed to regulate and tax online gambling and further delay UIGEA enforcement which are currently scheduled for December 3rd.

Added PPA Chairman Alfonse D’Amato,

“This is a great victory for poker, but an even greater victory for advocates of good and fair public policy. These additional months are critical to provide legislators time to clarify UIGEA and pass legislation to license and regulate poker early next year.”

Time will tell if this delay is just what proponents of line gambling need to push forth their agenda.