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Top Bankers Warn on UIGEA

4/23/10 - An article on internet gambling prepared by the Medill News Service (a Washington program of the Medill School of Journalism at Northwestern University) was widely published by US mainstream media this week.
 
The article gave a balanced perspective on the status quo of the various efforts underway to legalise online gambling in the United States, and pointed to the looming deadline for the June 1st implementation of the UIGEA regulations, which enjoin US financial institutions to enforce a law that has been widely criticised for its lack of precision.
 
Under the Unlawful Internet Gambling Enforcement Act, the banking industry will be responsible for policing Americans trying to play poker or place wagers online. The act requires banks to monitor credit card transactions to ensure that none are going to offshore gambling websites.
 
The article revisits the difficulties faced by American bankers in fulfilling this difficult duty, forced upon them by federal legislators in a much criticised law.
 
The vice-president of the American Bankers Association told the Medill reporter that the impending implementation of the UIGEA will not prevent transactions to online casinos. He opined that what this attempt at banning online gambling financial transactions will achieve is higher costs and uncertain rulings.
 
The banks are confident they can enforce the law, but say it will take time to implement changes, and that some transactions will inevitably slip through the cracks.
 
Kenneally said that there would be no way for banks to stop people from writing a check or making a wire payment to an Internet gambling site.
 
He asserted that banks can easily prevent credit and debit card payments, provided the online casinos are labeled as such. What he did not address was the problem of overzealous implementation by the banks, and the real possibility that some offshore internet gambling operators may resort to subterfuge to get around the regulations, indicators that what is really required is effective legalisation and regulation.
 
Kenneally said banks will incur extra costs associated with the new responsibilities, and that ambiguities in the law make determining what is actually an "unlawful transaction" challenging.
 
"We're just telling all of our bankers to be prepared on June 1," Kenneally said.

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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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