UIGEA Failing to Stave Off Online Gambling

A panel of gaming industry experts encouraged lawmakers from the National Council of Legislators from Gaming States on Saturday to move towards state-regulated online gambling. The experts substantiated their claims by pointing out the shortfalls of the 2006 UIGEA.

Failed Act
According to the act, banks are responsible for screening any dubious transactions, though Wells Fargo alone handles millions of transactions on a daily basis. Senior company counsel for Wells Fargo Teruo Kitada said, "Perhaps the idea behind the act is commendable, but the challenge is the implementation."

Consultant Frank Catania says federal law is ill equipped to regulate online gaming, suggesting instead that states do the regulating. He called the act "bad public policy" that is "impossible to enforce."

While the California Coalition Against Gambling Expansion argues that Internet gambling is a recipe for making every home with a computer a potential gaming facility, Catania and other experts argue that it should be regulated just as traditional casinos or other gaming venues are. "We're talking basic consumer protection," Catania said.

Destined for Regulation
With the US presidential election approaching, gaming experts are increasingly preoccupied with the question of whether online gambling will start being regulated nationally. Catania believes the US will get on the regulatory wave after the November election.

"The online gaming market will continue to expand regardless of decision to regulate. Consumer demand and industry growth will force governments to act," he said.

According to Catania's estimates, online gambling in the US is valued today at more than $15 billion, a figure that clearly underlines the need for sound policy.