What the UIGEA Really Means (Part II of III)

The legal definitions of several words are important in determining what the UIGEA is really about. Section 5362 is all the definitions that are needed to decipher the bill.

Bet or Wager is defined as someone risking something on a transaction of some sort. The important part of this definition is the idea that it is based on “chance” which the poker groups have jumped on as they do not feel that it accurately describes their game.

Designated Payment System is any company that is used as a middleman to get your money from your bank to the online casino.

Financial Transaction Provider is anyone that provides the “Designated Payment System” for the purpose of getting your money to the online casino.

Interactive Computer Service is basically your ISP – or whoever charges you for you getting on the internet.

Restricted Transactions are any money that is floating around out there for the purpose of going to an online casino.

Unlawful Internet Gambling is the gambling that is illegal in the United States. Online casinos and bookies are held accountable for the transactions, not the ISP.

The Notes section is where it gets really confusing as it doesn’t expressly mention the types of online casinos or gambling and the Wire Act does. The Horseracing Act makes horseracing legal, and the Wire Act makes sports betting illegal. However it is assumed that online casinos and everything else fall into the UIGEA category.

This section also talks about the fact that online casino gambling is legal as long as it stays in the same jurisdiction as where it started – sort of a “what happens in Vegas stays in Vegas” kind of deal.

Next time we continue on with the various sections.