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BANKS GEARING UP FOR UIGEA IMPLEMENTATION

9/1/09 - With 2009 entering its last quarter, reports are surfacing that some US banks are already starting to gear up for the implementation of the Unlawful Internet Gambling Enforcement Act regulations on December 1st.
 
Even at this early stage, the reports indicate an unfamiliarity with the law, which many have previously criticised has imprecise, that may lead to banks being overly zealous in blocking financial transactions with gambling companies.  Earlier this year at least two state lotteries - exempt from federal anti-gambling laws - complained about banks imposing blocks that were not justified on certain transactions.

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Poker News Daily reports that Nevada State Bank recently mailed customers advising: "In compliance with the U.S. Unlawful Internet Gambling Enforcement Act, we are required to notify you that you are prohibited from processing transactions derived from Internet bets or wagers where such bet or wager is unlawful under any applicable Federal or State law."
 
PND correctly points out that it is debatable whether any federal law makes the playing of Internet poker illegal - an issue that legislators and enforcers have shown a reluctance to address in court. It also questions the wording, emphasising that the UIGEA applies only to deposits sent to Internet gambling sites, not to withdrawals made from the site to a bank.
 
California Bank & Trust appeared to similarly confused, advising customers that it "will not process transactions derived from Internet bets or wagers." More can be expected, given that the banks both belong to the Zions Bancorporation, a holding company based in Salt Lake City that oversees eight banks in eight states: Nevada, California, Arizona, Texas, Oregon, Washington, Colorado and Utah.
 
"The problem is that banks will have every right to overblock to make sure they comply with the UIGEA," PND accurately observes - the UIGEA gives them an out in cases of erroneous blocks.
 
Time is running out for the best immediate hope of fighting the UIGEA and eventually relegating it to the scrapheap - Barney Frank's Reasonable Prudence in Regulation Act seeking to postpone the implementation of UIGEA by a year to allow his HR2267 proposal to regulate and license online gambling in the United States to be debated.
 
The "Reasonable Prudence" bill has yet to exit Frank's House Financial Services Committee although it has already attracted 34 co-sponsors.

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Gambling News :

Interwetten 2016 Earnings Results - Privately-owned online sports betting operator Interwetten delivered robust full year results for the 2016 fiscal period, in which the company has almost achieved doubling its revenues over the past four years, success it attributes to its in-house developed platform

EU Online Gambling Tax Harmoney Dead - Tax expert says European Court of Justice Attorney General's opinion on UK-Gibraltar litigation signals that EU courts are happy for individual member states to impose their own laws on online gambling.

Jack Lam Facing Big Fines in the Philippines - It's going to be costly for Macau online gambling and junket tycoon Jack Lam to return to the Philippines following his rather hurried departure last year with allegations of economic sabotage, bribery and tax evasion swirling around him.

Walter Merricks Term As Gambing Commissioner Extended - The UK Government has extended Walter Merricks’ term as Commissioner of the Gambling Commission for a further year, ending December 31, 2017.

Loot’enKhamun Pays $3.8 Million Jackpot - A London-based construction worker’s year got off to a great start when he hit the Loot’enKhamun jackpot at bwin casino.

PlaySugarHouse To Carry Konami Content - Content provider Konami will provide its Gypsy Fire and Fortune Stacks slot games to Rush Street Interactive-operated PlaySugarHouse.com on an exclusive basis in the New Jersey real-money online and mobile wagering market.

ITF TERMINATES BETWAY SPONSORSHIP DEAL - The International Tennis Federation (ITF) has reportedly terminated Betway’s three-year sponsorship partnership as an extension to their anti-match fixing and sports integrity policy.

GSA To Launch European division - The expansion enables the GSA to better focus on the regional needs of its members outside of North America and underscores its recognition and commitment to growing European membership.

Paddy Power Trading Update - Company prevails despite adverse sports and US election results; Trump success cost the group GBP 5 million, whilst punter successes took another GBP 40 million in Q4-2016.

Tabcorp SunBets project - The details were revealed this week in an IT News article quoting Tabcorp's chief information officer, Kim Wenn, who described the SunBets project as Tabcorp's biggest global venture yet.

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