December US Gambling Deadline Looms

As the Christmas Season approaches, gamblers' eyes are focused on the beginning and not the end of the month. America is on the brink of deciding the legal status of gambling as it debates the endorsement or delay of the Unlawful Internet Gambling Enforcement Act (UIGEA).

The act would make it illegal for banks to accept illegal online gambling transactions, preventing US bettors from funding their gambling by debit or credit card.

Experts predict that the US gambling market, which currently has a very fuzzy legal status to say the least, attracts 10-15 million gamblers annually, who between them wager $100 billion on a range of internet casino games.

Opposing Sides
The UIGEA bill was passed in late 2006 but online gambling supporters are working to the wire to negotiate a delay to legislation, which they say they would use to repeal it.  Supporters include House Financial Services Committee Chairman Barney Frank.  In the opposite corner are Sen. John Kyl and Rep. Spencer who are urging for a strict enforcement of the December 1 deadline. Even at this late hour, the Treasury and Fed, according to officials, are undecided.

Legislation Lacks Logic
One of the problems with the legislation is that it does not specifically make it illegal to gamble. It doesn't even define what "illegal Internet gambling" is. Instead the act puts the onus on financial institutions to uphold the blocking of online transactions, bringing in the industry's illegal status through the back door.

Since there are no proper legal definitions and wider consideration has not been given to non financial online gambling issues, this piece of legislation is seen as being lacking logic and clarity by many.

In another anomaly, the legislation does not make the individual gambler in any way liable for his or her actions; instead it passes accountability on to the banks if they process gambling related financial transactions.

With such a back to front piece of legislation many pro gamblers are hoping that law makers will see sense and not enforce UIGEA on December 1. With heavy pressure on both sides who knows where the clever money should go on this key legislative gamble.