The Unlawful Internet Gambling Enforcement Act: U.S. legislation that could end poker as we know it

The legality of Internet poker has always been a contentious issue mired in a mix of federal statutes and state laws.

During 2010, we will see the full extent of the controversial Unlawful Internet Gambling Enforcement Act (UIGEA).  Despite being submitted and successfully passed by the House of Representatives and Senate in 2006, the UIGEA has as of yet had a muted effect on the world of poker.

The UIGEA does not make it illegal to play Internet poker, nor does it make any kind of online gambling illegal. What it does make illegal is for any business to accept financial transfers from the U.S. for the purpose of 'unlawful Internet gambling'.

If implemented, financial institutions will be fined for non-compliance and therefore poker sites will find it harder to process transactions. Consequently poker sites might find it too risky or costly to continue offering their services to American players.

Abuse of the system

Three years ago Senator Bill Frist (R-Tenn.), Sen. Jon Kyl (R-Ariz.), Rep. Robert Goodlatte (R-Va.) and a cast of conservative Republicans tacked on the Unlawful Internet Gambling Enforcement Act into the Safe Port Act during the final session of Congress in 2006. It was a devastating moment in online poker history caused by abuse of the political system.

Recent news of a six-month postponement of the UIGEA's deadline for enforcement, has given poker players new hope that this ill-advised law may be overturned.

An impassioned plea from, among others, the Poker Players Alliance, resulted in the deadline being moved back by 6 months to June 1, 2010.

As originally planned, December 1, 2009, was to be the date by which American banks were expected to begin interpreting and enforcing the undefined parameters of the bill, which called for the blocking of "unlawful Internet gambling transactions." How the term would be defined was left to individual interpretation. Since banks were not prepared to have determined exactly which transactions were unlawful, they were prepared to block all related transactions.

The pressure is now on those who have worked to achieve this temporary success once again to prove the case for adjusting the legislation.

Now, with a bit of leeway to act, Congressman Barney Frank (D-MA) can spring into action. Frank has long been poker's most powerful ally in Washington, objecting to the UIGEA on financial and moral grounds. As head of the House Financial Services Committee he has an important voice on all monetary issues.

Barney Frank's stance on the online gaming issue has made the Massachusetts Congressman a hero of the poker world. He believes that The Government shouldn't tell people what to do with their own money.

Will Obama bring change?

Recent press reports have revealed that President Obama supports poker, as he himself is an avid poker player, and quite a good one at that. And Obama has said he would like to regulate online poker and gambling, rather than criminalise it.

During the past eight years of Republican ruling, the emphasis of the White House and Congress has been to implement anti-gambling laws. President Bush and his allies used a loophole to pass the UIGEA by including it as a section of an unrelated law about port shipping. Obama announced that he will repeal all so-called midnight laws, enacted in a rush just before the end of President Bush's administration.

It seems clear to the poker playing public, especially those who desire to be able to play poker online, that Obama wants to see a reversal of the UIGEA instituted under the previous administration.

So many people have voiced their opinion on this subject that it may be too difficult for President Obama to ignore.

One of the key technical aspects to be addressed in legislation concerning poker and casinos is to determine if poker is a game of skill or a game of luck.

Freedom to play

Given the current financial climate, the main argument in favor of legalising online poker is that it will bring billion of dollars in taxes. At present, billions of American dollars are going offshore to online poker companies.

The Poker Players Alliance is a rapidly growing group of 650,000 player members who are fighting and lobbying Congress in order to get UIEGA repelled.

The PPA's primary goal is to overturn the United States government ban on Internet poker and to legalise free poker throughout the country. Their mission, with the support from advocates such as Congressman Barney Frank, is to establish favorable laws that provide poker players with a secure, safe and regulated place to play.

You can join the PPA and show your support at www.theppa.org

Online poker players want the freedom to play legally and without fear of prosecution. All the while boosting the economy by letting American companies and players make money and pay taxes instead of sending online poker businesses offshore.

Even though the legalities of online poker might scare some people from logging on, the number of online poker players continues to grow. Poker supporters say the sport's popularity bodes well for its chances in Congress and in court.

In the coming year, it will be interesting to see how Obama deals with his job at a critical time in his nation's history. Poker players of America have voiced their feelings on the right to play online very clearly. Will Obama bring change? We will have to hold tight.

Let's hope that regulation becomes a reality sometime in 2010.

GX would love to hear your views and opinions on this issue. Email us: comments@gamblingexclusive.com

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