Proposed UIGEA regulations to be discussed

2008-03-26 13:36:43

Potential changes to the controversial Unlawful Internet Gambling Enforcement Act (UIGEA) will get a hearing on April 2nd, it has been announced.

A discussion regarding the proposed amendments to the regulation that has angered gamblers and finance institutions alike will start at 10:00 local time at the Rayburn House Office Building.

Democratic Illinois representative Luis V Gutierrez, who is also chairman of the sub-committee for domestic and international monetary policy, trade and technology, announced the hearing.

The UIGEA regulation, which is part of the Security and Accountability For Every Port Act of 2006, prohibits the transfer of funds from a financial institution to an internet gambling site. However, online lotteries, horse racing and fantasy sports are exempt.

"We believe that UIGEA will in the end catch more banks in a compliance trap and do greater damage to the competitiveness of the American payments system, than it will stop gambling enterprises from profiting on illegal wagering," said Richard R. Riese, director of the ABA Center for Regulatory Compliance.

All online gambling sites listed on the stock exchanges have stopped taking on US players as a result of the 18-month old act.