US Players Seeking Online Gambling Options- Part 1
Thursday, December 17th, 2009Due to the changing rules of online gambling and gambling, in general, many US players have been pushed out of the online market of gambling. This posed problems for legislators because there are billions of US dollars being channeled out to offshore casinos. Those dollars could be kept in the country if the US were willing to move quickly on legalizing and regulating online slots. One legislator, Barney Frank said, “Every moment the US declines to find regulation on online gambling is another moment it is letting huge dollars slip through its fingers and into other economies.”
Frank has been instrumental in working to change the laws of online gambling. In October of 2006 the US passed the UIGEA, or Unlawful Internet Gambling Enforcement Act. The act was designed not to ban online gambling, but to make it difficult for North American residents to deposit and withdraw funds from financial institutions. There has been limited success with the UIGEA because banks are tasked with flagging and monitoring transactions. Unfortunately, due to their fervor to not break any laws, or incur penalty fees as a result of breaking laws, other forms of gambling that were meant to be legal are falling into the mix and being denied.
Now that the UIGEA has been accepted it has had limited success in achieving its written goals. Banks are not fans of the law because they are now responsible for checking all transactions and that costs them money. The law is generally believed to have fallen short of its goal. Supporters of the law used its goal of “protecting family values” as the main reason it should be accepted into law. The position of taking a “family oriented” stance is indicative of a campaign that is built to cater to the conservative vote.
Some say that the UIGEA backfired because what it did was push US online casinos out of the country. Many online casinos were worried about infringing on US law and closed up shop in the states altogether. They found more casino-friendly countries like Macau and Gibraltar to set up shop. This was their solution to strict US rules, but it also brought more money to other countries and cut off gambling revenues from the US economy.
Part two coming next.

