548:
poker. The Act then addresses the issue of skill by describing betting as including the purchasing an "opportunity" to win a lottery, this lottery being predominantly subject to chance. The Act expressly prohibits lotteries based on sports events. Some activities such as securities and commodities, including futures, that are traded on U.S. exchanges are, by statute, declared not to be gambling. "Designated payment system" covers any system used by anyone involved in money transfers that the federal government determines could be used by illegal gambling. "Financial transaction provider" is a very broad definition covering everyone who participates in transferring money for illegal
Internet gambling. This expressly includes an "operator of a terminal at which an electronic fund transfer may be initiated" and international payment networks. "Interactive computer service" includes Internet service providers. "Restricted transaction" means any transmittal of money involved with unlawful Internet gambling. "Unlawful Internet gambling" is defined as betting, receiving, or transmitting a bet that is illegal under federal, state, or tribal law. The Act says to ignore the intermediary computers and look to the place where the bet is made or received. To force casinos to report large cash transactions, federal law was changed to define "financial institution" as including large gambling businesses. All other definitions are standard.
557:
But the restriction on transfers is limited to
Internet gambling businesses, not mere players. It also would not cover payment processors or ISPs, even under a theory of aiding and abetting. The Act does not make it a crime to knowingly transmit funds for illegal gambling. Neither the player nor the intermediary can be charged with this crime. The language of the Act even eliminates the possibility of charging financial institutions and computer hosts under a theory of aiding and abetting, since it explicitly states in the definitions section that being in the business of gambling does not include a financial transaction provider or an ISP.
575:
restricted transactions. However, this is not effective against payment processors who are entirely overseas. The Act provides for limited civil remedies against "interactive computer services". An
Internet service provider can be ordered to remove sites and block hyperlinks to sites that are transmitting money to unlawful gambling sites. ISPs are under no obligation to monitor whether its patrons are sending funds to payment processors or even directly to gambling sites. But once it receives notice from a U.S. Attorney or a state attorney general, the ISP can be forced to appear at a hearing to be ordered to sever its links.
76:
38:
535:. One of the findings asserted in the opening of the bill is the assertion that Internet gambling is a growing problem for banks and credit card companies. The opening section of the act also states that "new mechanisms for enforcing gambling laws on the Internet are necessary," especially for cross-border betting. The Act contains a clause that ensures no change be made to any other law or
1247:"17 Southern California Interdisciplinary Law Journal 2007–2008 Prohibition Reincarnated – The Uncertain Future of Online Gambling following the Unlawful Internet Gambling Enforcement Act of 2006 Symposium Issue: Association of American Law Schools Section on Law &(and) Humanities – Law & Order: SUV – Sexuality, Videos and You – Note"
583:
Criminal penalties under section 5366 include up to five years in prison, a fine, and being barred from involvement in gambling. Under section 5367, the Act makes ISPs and financial institutions liable if they actually operate illegal gambling sites themselves. Lastly, the Act requests, but does not
1562:
The 2006 Unlawful
Internet Gambling Enforcement Act made it a crime for gambling businesses to knowingly accept most forms of payment for illegal Internet gambling. The defendants allegedly tried to circumvent these rules with the help of individual payment processors, also named as defendants, who
556:
This section covers money transfers. The bill states "o person engaged in the business of betting or wagering may knowingly accept" any money transfers in any way from a person participating in unlawful
Internet gambling. This includes credit cards, electronic fund transfers, and even paper checks.
496:
The final regulations (termed the "Final Rule") were released
November 12, 2008, and came into effect on January 19, 2009, the day before the Obama administration took office. Compliance was not required until December 1, 2009, in order to give participants an opportunity to implement the necessary
547:
This section outlines definitions of gambling terms to be used throughout the act. The Act defines a bet or wager to include risking something of value on the outcome of a contest, sports event, "or a game subject to chance". The "game subject to chance" restriction is designed to include
Internet
400:
prohibits electronic transmission of information for sports betting across telecommunications lines but affirmed a lower court ruling that the Wire Act "in plain language does not prohibit
Internet gambling on a game of chance". While some states have laws specifically prohibiting online gambling,
657:
dispute over U.S. restrictions on online gambling. The WTO ruled on
January 25, 2007, that the U.S. is in violation of its treaty obligations by not granting full market access to online gambling companies based in the island nation. On March 30, 2007, the WTO confirmed the U.S. loss in the case.
574:
Since there is no way to regulate overseas payment processors, section 5365 of the Act allows the United States and state attorneys general to bring civil actions in federal court. The courts have the power to issue temporary restraining orders and preliminary and permanent injunctions to prevent
484:
UIGEA § 5364 required that regulations be issued by the
Federal Reserve and the Department of the Treasury within 270 days of the passage of the Act. In October 2007, these agencies issued a "Notice of Proposed Rulemaking", which effectively tabled draft UIGEA regulations for public comment. In
505:
According to the overview posted on the FDIC website, the act prohibits gambling businesses from "restricted transactions". Restricted transactions involve gambling businesses when they knowingly accept payments from another person in a bet or wager over the Internet. It also requires that the
565:
Under section 5364, Federal regulators have 270 days from the date the bill is signed into law to come up with regulations to identify and block transactions with gambling sites. The regulations require everyone connected with a "designated payment system" to identify and block all restricted
611:
successfully forces easily regulated large publicly traded companies out the market and introduces small unscrupulous private companies into the market. Doing so could result in amplifying risks of consumer abuse, underage gambling, problem gambling and money laundering. Critics believe that
370:. The UIGEA prohibits gambling businesses from "knowingly accepting payments in connection with the participation of another person in a bet or wager that involves the use of the Internet and that is unlawful under any federal or state law." The act specifically excludes
661:
On June 19, Antigua filed a claim for US$ 3.4 billion in trade sanctions against the United States, along with a request for authorization to ignore U.S. patent and copyright laws. This claim was filed a day after similar demands for compensation were made by the
485:
response to the NPRM, 410 responses were received from depository institutions, depository institution associations, public policy advocacy groups, consumers, "gambling-related" entities, payment system operators, federal agencies, and members of Congress.
684:
called for the agreements to be made public. They stated that the concessions "could cost the United States many billions of dollars in compensation" and that the administration's invocation of "national security" as a reason to block disclosure under the
465:
are both credited with expediting the UIGEA's passage through the Senate. Though the SAFE Port Act's provisions related to Internet gambling were drawn exclusively from H.R. 4411, significant portions were removed, including text relating to the
518:
to have policies and procedures reasonably designed to identify and block or otherwise prevent or prohibit the processing of restricted transactions. These regulations are independent of any other regulatory framework, such as the
603:
has also been critical of the UIGEA stating that the act has "undoubtedly depressed play" but has failed in its primary objective as "there are ways of funding accounts without using US banks, and millions of players know that".
488:
The Bush administration had previously adopted the position that it would not finalize any rule until after November 1, 2008. This last-minute rulemaking that binds the hands of an incoming administration is commonly termed the
706:
1044:
780:
584:
require, the executive branch to try to get other countries to help enforce this new law and "encourage cooperation by foreign governments" in identifying whether Internet gambling is being used for crime.
712:
Frank also introduced a bill to delay the implementations of the UIGEA for one year, until December 1, 2010. The bill was put into effect, however, the regulations were only extended until June 1, 2010.
740:
374:
that meet certain requirements, skill games, and legal intrastate and intertribal gaming. The law does not expressly mention state lotteries, nor does it clarify whether interstate wagering on
624:
or similar markets have stopped taking United States players due to the passage of the Act, while most non-public companies have announced an intention to continue taking US customers.
709:", which seeks to repeal the major online gaming obstacles of the UIGEA and go further in protecting Americans from fraud, while safeguarding against underage and problem gamblers.
401:
many do not. Additionally, in order for an online gaming company to start, a license from a state is required. The only state to ever issue such a license is Nevada, in March 2013.
393:
442:(submitted at 9:29pm on September 29, 2006), which was passed by the House of Representatives by a vote of 409–2 and by the Senate by unanimous consent on September 30, 2006.
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450:
263:
739:, the three largest Internet poker companies that then accepted U.S. players, were among those indicted for charges that included violations of the UIGEA. According to the
1639:
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transactions. The Act allows the federal regulators to exempt transactions where it would be impractical to require identifying and blocking, such as paper checks.
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267:
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109:
An Act to prevent the use of certain payment instruments, credit cards, and fund transfers for unlawful Internet gambling, and for other purposes.
1500:
434:
on September 14, bore no traces of the Unlawful Internet Gambling and Enforcement Act that was included in the SAFE Port Act signed into law by
427:
1405:
1169:
477:, a prior version of the gambling part of the bill passed the House in 1999 but failed in the Senate in part due to the influence of lobbyist
410:
1070:
608:
439:
355:
213:
200:
914:
474:
943:
1277:
249:
747:, the companies allegedly tried to circumvent UIGEA rules with the help of others who acted as "payment processors" by helping
177:
169:
634:, had its publicly traded stock drop almost 60% in 24 hours as a result of the bill's passage. The company was moved from the
670:
1523:
805:
1103:
417:(D-N.J.), no one on the Senate–House Conference Committee had seen the final language of the bill before it was passed.
139:
722:
539:. This clause makes known that the Act cannot be used as a defense to another crime, or to expand existing gambling.
1563:
helped disguise their player payments with phony merchants selling non-existent goods such as jewelry or golf balls.
607:
Many have argued that the act has failed to address the dangers of online gambling. They state that the act and the
1649:
217:
1623:
75:
654:
956:
979:"Transcript of July 11th floor speeches on H.R. 4411 – the Internet Gambling Prohibition and Enforcement Act"
689:(FOIA) was "a misuse of the FOIA process." When the administration continued to keep the information secret,
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761:
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to promulgate regulations requiring certain participants in payment systems that could be used for unlawful
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17:
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The United States settled the dispute by granting concessions in other sectors. The administration of
592:
Opponents of the UIGEA have criticized the act and believe that it will not work, comparing it to the
842:"No. 01-30389. – IN RE: MASTERCARD INTERNATIONAL INC. Internet Gambling Litigation. – US 5th Circuit"
774:
431:
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207:
531:
The Act begins with Congress's findings and purpose. Findings include a recommendation from the
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has written that these provisions were "hastily tacked onto the end of unrelated legislation".
316:
308:
290:
241:
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1589:
515:
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841:
1130:"PROHIBITION ON FUNDING OF UNLAWFUL INTERNET GAMBLING – Notice of Joint Proposed Rulemaking"
896:
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refused to disclose the details of those concessions, however. In April 2008 Congressmen
51:
Please help update this article to reflect recent events or newly available information.
867:"First online casino to get a US gambling license turns out to be notorious UK spammer"
736:
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brought suit on behalf of Ed Brayton, a journalist whose FOIA request had been denied.
690:
673:
663:
639:
635:
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435:
326:
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478:
457:, who co-authored H.R. 4411 (the Internet Gambling Prohibition and Enforcement Act).
419:
371:
367:
351:
1292:"The U.S. On Tilt: Why The Unlawful Internet Gambling Enforcement Act Is A Bad Bet"
702:
677:
426:
Although a bill with the gambling wording was previously debated and passed by the
375:
1579:"Business Regulation and Consumer Protection: Interim Report on Internet Gambling"
363:
359:
1045:"I. Nelson Rose: The Unlawful Internet Gambling Enforcement Act of 2006 Analyzed"
627:
304:
276:
1170:"[UIGEA] Treasury, Fed Issue Final Rule on Unlawful Internet Gambling"
728:
458:
816:
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1593:
900:
885:"Viewpoint: The Unlawful Internet Gambling Enforcement Act of 2006 Analyzed"
446:
245:
1601:
1373:"The Guardian: PartyGaming drops out of FTSE 100. Retrieved 9 October 2006"
1578:
681:
181:
1313:
Players walk away as US law wipes out 90% of PartyGaming's poker revenue
430:, the SAFE Port Act (H.R. 4954) as passed by the House on May 4 and the
1501:"Frank's Bill to Regulate Online Poker Unlikely To Be Heard This Month"
650:
462:
114:
707:
Internet Gambling Regulation, Consumer Protection, and Enforcement Act
1278:"CasinoReviews Interviews – Michael Shackleford – The Wizard of Odds"
918:
409:
The Act was passed on the last day before Congress adjourned for the
705:
introduced a bill to overturn the gambling aspects of the Act, "The
751:
as payments for non-existent goods such as jewelry or golf balls.
438:
on October 13, 2006. The UIGEA was added to the Conference Report
781:
Southern District of New York Action Against Online Poker Players
315:
on September 30, 2006 (agreed unanimous consent, in lieu of
1128:
Johnson, Jennifer J. & Abend, Valerie A. (October 1, 2007).
915:"Library of Congress Congressional record for the SAFE Port Act"
253:
31:
1588:. U.S. Government Accountability Office. September 23, 2002.
1611:. U.S. Government Accountability Office. December 2, 2002.
1406:"Reuters: WTO confirms U.S. loss in Internet gambling case"
653:
and the United States have been involved in a long-running
1330:"The Guardian: Last chance saloon for online gaming firms"
445:
Among the Congressional supporters of the Act were Rep.
1102:
Schmidt, Susan; Grimaldi, James V. (October 16, 2005).
612:
regulation of online gambling is a better alternative.
95:
Security and Accountability For Every Port Act of 2006
981:. GovTrack.us (Civic Impulse, LLC). November 18, 2005
394:
United States Court of Appeals for the Fifth Circuit
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82:
340:Unlawful Internet Gambling Enforcement Act of 2006
69:Unlawful Internet Gambling Enforcement Act of 2006
1524:"Barney Frank Introduces Two Poker-Related Bills"
1328:Fiona Walsh, business editor (October 13, 2006).
1251:Southern California Interdisciplinary Law Journal
1195:"Unlawful Internet Gambling Enforcement Overview"
130:Internet Gambling Prohibition and Enforcement Act
1408:. Uk.reuters.com. March 30, 2007. Archived from
1137:Board of Governors of the Federal Reserve System
1624:Will ban end Internet gambling? Don't bet on it
1602:"Internet Gambling: An Overview of the Issues"
1455:"Congressmen request trade settlement details"
769:Commonwealth of Pennsylvania vs Walter Walkins
8:
1394:WTO rules against US in online gambling case
806:"Unlawful Internet Gambling Enforcement Act"
461:, former majority leader of the Senate, and
68:
1478:"Group sues government for settlement info"
878:
876:
847:. Caselaw.lp.findlaw.com. November 20, 2002
1645:United States federal gambling legislation
815:. U.S. Treasury Department. Archived from
346:) is United States legislation regulating
297:Reported by the joint conference committee
18:Unlawful Internet Gambling Enforcement Act
1499:Murphy, Stephen A. (September 17, 2009).
533:National Gambling Impact Study Commission
1640:Acts of the 109th United States Congress
620:All online gambling sites listed on the
98:Warning, Alert, and Response Network Act
1546:"Internet Poker Sites Seized For Fraud"
1189:
1187:
1047:. Gamblingandthelaw.com. Archived from
797:
1353:
1343:
946:, The Economist, April 23, 2011, p. 68
67:
957:"Transcript of the April 5th hearing"
7:
616:Responses from online gambling sites
523:or consumer protection regulations.
388:Online gambling § United States
350:. It was added as Title VIII to the
1522:Murphy, Stephen A. (May 6, 2009).
1276:CasinoReviews (January 30, 2024).
1025:. GovTrack.us (Civic Impulse, LLC)
1003:. GovTrack.us (Civic Impulse, LLC)
527:Section 5361, Findings and Purpose
307:, via Clerk.House.gov, in lieu of
303:on September 30, 2006 (409-2
25:
1432:"Antigua demands trade sanctions"
1375:. London: Business.guardian.co.uk
1332:. London: Business.guardian.co.uk
1104:"How a Lobbyist Stacked the Deck"
1076:. October 2, 2006. Archived from
475:Internet Gambling Prohibition Act
285:on September 14, 2006 (98-0
921:. March 14, 2006. Archived from
813:Examination Handbook Section 770
396:ruled in November 2002 that the
74:
36:
1453:Polson, Sarah (April 2, 2008).
1371:Fiona Walsh (October 9, 2006).
1224:"Internet Gambling Funding Ban"
1172:. Scribd.com. November 12, 2008
869:. theverge.com. March 22, 2013.
727:In April 2011, the founders of
1476:Polson, Sarah (May 21, 2008).
275:on July 11, 2006 (317-93
1:
552:Section 5363, Money Transfers
382:Background on online gambling
289:, via Senate.gov, in lieu of
366:) which otherwise regulated
201:31 U.S.C.: Money and Finance
140:109th United States Congress
723:United States v. Scheinberg
510:with consultation from the
497:safeguards and procedures.
449:, a former chairman of the
1666:
1141:Department of the Treasury
1139:and Departmental Offices,
720:
687:Freedom of Information Act
579:Other pertinent provisions
385:
1071:"CRS Report for Congress"
749:disguise gambling revenue
701:In May 2009, Congressman
570:Section 5365, Civil Suits
561:Section 5364, Regulations
543:Section 5362, Definitions
233:
73:
45:This article needs to be
883:Rose, I. Nelson (2006).
655:World Trade Organization
428:House of Representatives
264:House Financial Services
1023:"H.R. 4954 vote record"
1001:"H.R. 4411 vote record"
901:10.1089/glr.2006.10.537
762:Baxter v. United States
451:House Banking Committee
299:on September 29, 2006;
260:Committee consideration
787:Poker Players Alliance
741:United States Attorney
594:prohibition of alcohol
301:agreed to by the House
279:, via Clerk.House.gov)
256:) on November 18, 2005
89:Internet Gambling Bill
1412:on September 21, 2007
1257:. Heinonline.org: 381
1226:. gambling-law-us.com
642:on October 11, 2006.
622:London Stock Exchange
609:Department of Justice
508:Federal Reserve Board
218:ch. 53, subch. IV
1434:. BBC. June 20, 2007
1245:Schmitt, Michael D.
1150:on November 19, 2010
959:. Commdocs.house.gov
775:Daily fantasy sports
413:. According to Sen.
1480:. PokerListings.com
1457:. PokerListings.com
601:Michael Shackleford
405:Legislative history
329:on October 13, 2006
227:Legislative history
70:
1356:has generic name (
925:on January 8, 2011
697:Challenge to UIGEA
599:Gaming consultant
305:Roll call vote 516
287:Roll call vote 249
277:Roll call vote 363
83:Other short titles
1650:Poker and society
1222:Humphrey, Chuck.
889:Gaming Law Review
516:Internet gambling
336:
335:
283:Passed the Senate
171:Statutes at Large
66:
65:
27:United States law
16:(Redirected from
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1552:. April 15, 2011
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1526:. CardPlayer.com
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1503:. CardPlayer.com
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1143:. Archived from
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1099:
1093:
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1088:
1082:
1075:
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1051:on July 11, 2011
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827:
821:
810:
802:
521:Bank Secrecy Act
512:Attorney General
468:Federal Wire Act
455:Robert Goodlatte
415:Frank Lautenberg
398:Federal Wire Act
273:Passed the House
240:in the House as
229:
210:sections created
172:
149:October 13, 2006
119:
78:
71:
61:
58:
52:
40:
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1550:InformationWeek
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1108:Washington Post
1101:
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1083:on May 22, 2011
1080:
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823:
822:on June 1, 2010
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733:Full Tilt Poker
725:
719:
699:
648:
618:
590:
581:
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529:
503:
407:
390:
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348:online gambling
332:
323:Signed into law
268:House Judiciary
225:
170:
135:Enacted by
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101:
62:
56:
53:
50:
41:
37:
28:
23:
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5:
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1628:
1627:
1626:from MSNBC.com
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1572:External links
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1294:. Law.duke.edu
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944:Poker face off
936:
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895:(6): 537–541.
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737:Absolute Poker
721:Main article:
718:
715:
698:
695:
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