UIGEA criticized by American banks
The Unlawful Internet Gambling Enforcement Act, which rocked the worldwide gambling industry in 2006, has been heavily criticized by the American Banking Association.
The UIGEA aimed to stop online gambling in the US by blocking financial transactions to online casinos, poker rooms and other betting sites. Banks and financial institutions were charged with the responsibility of identifying and blocking such transactions.
However, in a surprise attack, the ABA has hit back at the government for their unprecedented delegation of power.
The controversial act has drawn much criticism, but this is the first time that US banks have officially responded to the
Treasury. Richard Riese, Director of the ABA’s Compliance Center, stated that the bill could in effect harm the banking industry instead of stopping illegal online gambling.
The ABA claims that the current system is ‘virtually impossible’ to enforce. This is in part due to unclear definitions of ‘unlawful internet gambling’ and other terms.
The ABA report calls the UIGEA ‘fundamentally flawed’ due to the fact that the burden of enforcement has been transferred to the private banking sector, with no assistance from the government, when in fact, governmental agencies â€" and resources â€" should be used to enforce the act.
Among the harsh comments, was the facetious assertion that the task was passed on to the banking sector after the combined forces of the CIA and FBI’s detection systems failed to succeed in the policing of online gambling. This inadequacy led to the ‘unprecedented delegation’.
This could be good news for the online gambling industry. With US banks unable or unwilling to fully police online casinos and betting sites, there may still be hope that this disastrous legislation will eventually be scrapped.
