Government Bullying Affects More Than Gambling

"Prohibition Era lessons be damned," was the message of US Congress as they approved the Unlawful Internet Gambling Enforcement Act (UIGEA) in October of 2006. The bill, effectively outlawing online gambling in the United States, is seen by many as an outdated fearful reaction to the perceived social threat espoused by opponents to any form of gaming. Or leisure, for that matter.

The Last Laugh
Not that this is a laughing matter, but what the fat white men on Capital Hill seem to be missing is the long term economic effects that are only beginning to be realized, according to a recent study by Eli Lehrer, a senior fellow at the Competitive Enterprise Institute of Washington, DC. According to the study, the UIGEA "seems unlikely to stop Internet gambling and could even threaten the stable, smooth operation of America's banking system. UIGEA and its currently proposed enabling regulations will undermine the financial privacy of all Americans and reduce the security of their bank accounts."

"Exaggeration", you declare? Consider the facts:

Sleigh of Hand
"UIGEA, at its root, serves to regulate banking and credit cards. It has nothing to do with port security and, just as importantly, does not actually ban any type of Internet gambling activity that was not already illegal under state laws."

What this means is that the institutions the government has targeted have, in fact, very little to do with gambling. Instead, the bodies that stand most to lose here are the ones that indeed have the most to lose: banks, credit unions, credit card companies, wire transfer services, and even brokerages.

In short, any institution that has to do with money stands to risk serious destabilization, courtesy of the US government. Motions to repeal UIGEA, or at least ease up on the Draconian elements of it are underway by opposition in Congress and lobby organizations.