Unlawful Internet Gambling Enforcement Act of 2006
We are going to discuss the UIGEA. It is short for The Unlawful Internet Gambling Enforcement Act. The act took place in 2006. The UIGEA is a United States law. It regulates online gambling. It is added as a Title VIII. The Safe Port Act which governs port security. UIGEA restricts gambling establishments from receiving money. Only in connection with another person’s participation in a bet. The wager involves using the internet. That makes it illegal under any federal law. We will talk about state laws.
Learn More About The United States Gambling Laws
The act does not include fantasy sports that meet a given requirement, skill-games and legal interstate and intertribal games. The law does not outright mention state lotteries lotteries, and it also doesn’t clarify whether interstate wagers on horse races is legal. Can you play slot machines online?
Background On Online Gambling
There was a ruling in November 2002. It is from the United States Court of Appeals. The Fifth Circuit states take the Federal wire act.
The Federal Wire Act prohibits the electronic transmission of information for sports betting. They do this across telecommunication lines. The Federal Wire Act does not prohibit online gambling. These Online gambling companies require a license to start online gaming. Nevada was the first to issue such in March.
The Act passes on the last day off before Congress closed for 2006 elections. Sen Frank Lautenberg stated that no one had seen the final bill.
A bill with a gambling wording passed by the House of Representatives. The SAFE Port Act passed the house on May 4th. There is no evidence of the UIGEA is the SAFE Port Act.
George W. Bush signs into law on October 13th, 2006. The UIGEA includes in the conference report 109-711.
House of Representatives passes by a 409-2 vote. Tthe Senate passed it by unanimous consent on September 30th, 2006. The reading of the report waives was due to H.RES.1064.
The Internet Gambling Prohibition Act
There was a previous Internet Gambling Prohibition Act. It passed the House in 1999. The bill failed in the Senate due to the influence of Jack Abramoff.
The UIGEA 5364 requires for regulations issue by the Federal Reserve. It also requires the Treasury Department within 270 days of passing the Act.
These agencies issued a Notice of Proposed Rulemaking. This took place in October 2007.
The Bush administration made a stand. They said they would make final any rule before 1st November 2008. This ruling was binding the hands of the incoming government.
The final rules came out on November 2nd, 2008. They became effective on January 19th, 2009.
Compliance with this rule was not necessary until December 1st, 2009. This was to give non exempted participants a chance to change procedures.
Details Of The The Unlawful Internet Gambling Enforcement Act Of 2006 (UIGEA)
The Act bans gambling businesses from secured transactions. It also requires the Treasury and Federal Reserve Board consult. They speak with the Attorney General.
The goal is to publicize rules. They want participation in payment systems. The system used in unlawful internet gambling.
The U.S. has policies and procedures. They identify and stop the restricted processing transactions.
Section 5361, Findings and Purpose
Findings include a recommendation from the National Gambling Impact Study Commission. There were controversial findings.
The law showed that internet gambling problems. It would be a problem for banks and credit card companies.
The act also states that new mechanisms for implementing gambling laws. This is only on the internet. They feel it is necessary for cross-border betting.
There is a clause in the Act. It ensures there is no change to any other law. This provides the Act can’t apply as a defense to another crime. Also, this includes expanding existing gambling.
Section 5362, Definitions
The act defines a bet as risking something valuable. The risk is the outcome of something. Examples are competitions, sports or event or games.
The Act states other things. Vetting includes buying a chance at winning a lottery.
This is subject to chance. The Act outright prohibits lotteries based on sports events.
Some activities like commodities that trade on US exchange are by statute declared not to be gambling.
Designated payment options involve any system used by anyone in money transfers. They determine the federal government use for illegal gambling.
Financial transaction provider is a wide definition. It covers every participant in transferring money for illegal internet gambling.
This also includes an operator of a terminal. Where an electronic fund transfer initiates, and international payment works.
Interactive computer service includes internet service providers. The restricted transaction is any transfer of money involved with illegal internet gambling.
The Unlawful internet gambling is betting, receiving or transmitting. An illegal bet under federal state or tribal law.
The Act looks at the place where a bet is made or received.
A financial institution includes gambling businesses. The definitions are standard.
Section 5363 Money Transfers
It states the gambling business can accept money transfers. They cannot take money participating in unlawful intent gambling.
Such restrictions limit to internet gambling businesses and not players.
Section 5364 Regulations
Federal regulators have 270 days of signing this bill into law. They come up with rules to identify and block transfer of money to gambling sites.
The laws make payment systems to block every restricted transaction.
Section 5365 Civil Suits
There is no other way to regulate overseas payment options. Section 5365 allows the US attorneys general to bring civil suits. This happens in federal court.
The courts can issue a temporary restraining order. Permanent injunctions to put a stop to secured transactions.
An internet service provider has to remove sites. They must block hyperlinks to sites.