Is It Time to Repeal the UIGEA?

They say there's no smoke without fire, and recent murmurings about a possible repeal of the infamous UIGEA act could mean that moves are afoot to reverse the unpopular US Congress vote of October 2006. Such a move would open the floodgate for online gambling companies wanting to grab a share of the lucrative US market.

While the US bill did not ban online gambling outright, it did criminalize the electronic transaction of funds between online gambling companies and their clients.

Playing it Straight
A number of market watchers have speculated that Republican senator Barney Frank (D-Mass) may try to squeeze a repeal of the act by piggy-backing another bill that is sure to be passed. Observers of this issue will be well aware this was how the UIGEA was passed in the first place.

However, Frank, who is currently chairman of the influential House of Representatives Financial Services Committee, has declared that he's playing everything above board. He believes that there is now enough support to repeal the bill, and that underhand methods may be unnecessary.

No Singing Fat Lady Yet
However, skeptics of the Frank approach believe that his optimism may be somewhat misplaced. Pointing to the condition of the world economy, other commentators on this issue suggest that there are no indications that the UIGEA is ready for repeal.

The pessimists suggest that there are simply too many more crucial financial issues on the statute books that a repeal of the anti-gambling act is just too far down the priority list.

Currently, it would appear that the game is an even-money bet, but one thing that most people would agree is that the bill is so unpopular and full of holes that it will eventually be replaced.