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Hearing Expected on Proposed UIGEA Regulations - Tuesday, March 11, 2008 at 14:35

It is expected that the US Houce Committee on Financial Services, chaired by Barney Frank (D-MA), will hold hearings on the proposed UIGEA regulations in April. These hearings will examine the claims of US banking and financial institutions that the proposed regulations unfairly put a substantial burden on banks and financial institutions to enforce the ambiguous law. Some have claimed the proposed regulations are a compliance trap and are not likely to stop citizens gambling with foreign-based internet gambling operators.


In a letter sent to the US Treasury Department by Republican Senators John Sununu (N.H.) and Pete V. Domenici (N.M.), the senators stated, "in failing to provide more detail, the proposed rules would inordinately burden every bank, credit union, credit card company, money transmitting business and payment system in the country, leading to non-uniform compliance and confusion."


It is important to note the UIGEA does not actually prohibit online gambling in any way, it simply addresses the processing of funds by banks and financial institutions. Currently, there are a number of poker rooms that are still open for US online poker players, including FullTilt and PokerStars.





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