Unlawful Internet Gambling Enforcement Act

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The Unlawful Internet Gambling Enforcement Act (abbreviated UIGEA) is a 2006 United States federal law that brought regulations to online gambling transactions. The bill lead to many offshore betting sites withdrawing from the US market.

History

2005: House of Representatives

On November 18, 2005 representative Jim Leach of Iowa introduced the Internet Gambling Prohibition and Gambling Enforcement Act.[1] It's purpose was to prevent various payment methods from being used for unlawful online gambling.[1] Leach's proposed bill redefined terms of the 1961 Federal Wire Act. A bet was now defined as any game subject to chance, and a communication facility includes transmissions over wired and mobile networks.

Representative Shelley Berkley of Nevada attempted to amend the bill by expanding it's reach to include online schemes classified as games of skill. Berkley's amendment fails by a vote of 114 - 297.[2] The Internet Gambling Prohibition and Gambling Enforcement Act is passed by the House of Representatives on July 11, 2006.

2006: Senate

The Internet Gambling Prohibition and Gambling Enforcement Act stalled in the Senate. Proponents of the bill decided to cut it down and tack it on to the end of unrelated legislation. This was highly controversial as the majority of Congress did not read the final language. The gambling legislation was added to the end of the SAFE Port Act which provided counter terrorism funding. The law passed the Senate on September 30, 2006 on the last session of Congress before the mid-term elections.

President George W. Bush signed the SAFE Port Act into law on October 13, 2006.

2009: Internet Gambling Prohibition and Gambling Enforcement Act

On May 5, 2009 representative Barney Frank proposed legislation to repeal the Internet Gambling Prohibition and Gambling Enforcement Act. His bill titled Internet Gambling Regulation, Consumer Protection, and Enforcement Act would exempt licensed US-based gambling companies from the UIGEA.

UIGEA

The Internet Gambling Prohibition and Gambling Enforcement Act was signed into law on October 13, 2006. The Act targeted U.S. banks that were doing business with offshore betting sites. The UIGEA prohibits gambling sites from restricted transactions; which occurs when they knowingly accept payments from another individual for an online wager.

Congressional findings

Congress believed that current gambling legislation was not adequate in the Internet era. Online betting frequently crossed national and state borders. In 1999 the National Gambling Impact Study Commission recommended legislation that would prohibit wire transfers to online betting sites and their associated banks.

Congress found that online gambling was primarily funded through credit cards and wire transfers.[3] They believed current gambling legislation was not adequate for the Internet era where betting frequently crosses both state and national borders.

References

  1. 1.0 1.1 "H.R.4411 - Internet Gambling Prohibition and Enforcement Act", Congress.gov'. November 18, 2005. Retrieved on 2020-02-16
  2. "Amendments: H.R.4411 — 109th Congress (2005-2006)", Congress.gov'. July 11, 2006. Retrieved on 2020-02-16
  3. "PROHIBITION ON FUNDING OF UNLAWFUL INTERNET GAMBLING", Cornell Law. June 3, 2019. Retrieved on 2020-02-13