Steve Kenneally, Vice President of the American Bankers Association, recently gave an interview where he spoke out against UIGEA. In the interview, he called the law ineffective and a costly piece of legislation.
He stated that the banks will be able to enforce the law in most cases, but it will take time to implement. He went on to state that there are certain types of transactions that the banks will not be able to stop. One example would be wire transfers. Another would be if the player would write a check to the gambling site. Since the check would be in the name of the holding company, the bank would have no idea if the holding is involved in online gambling, and thus would not stop the transaction.
Another problem would be if overzealous bankers erred on the side of caution and stopped legitimate transactions, ie: the buying of state lottery tickets.
He further stated that the costs involved with the enforcement of UIGEA will be high and that the banks cannot bear those costs themselves. So the costs would be passed on across the board to all, even people who have no interest in online gambling.
Kenneally stated that the only real solution is the legalization and regulation of online gaming. And with the June 1st deadline for the implementation of UIGEA, and no new hearing date on Barney Frank’s bills, the banks, and everybody else, are just going to have to be ready for June 1.
Frank Fahrenkopf, president and CEO of the American Gaming Association, wrote a recent opinion piece on politico.com, pleading the case for federal regulation. This piece was a basic reiteration of what AGA has been proclaiming from their online rooftops since the first draft of the Reid-Kyl bill was leaked on the Internet.
Looking at the proposed bill, there is more at stake than just whether or not states choose to participate in the federally regulated poker program.
As the Iowa bill to legalize online gambling within their state goes from a Senate committee to the floor to be possibly voted on, Governor Terry Branstad was asked Monday what he stance is on the bill. It seems he has taken a page from New Jersey’s Governor Christies play book and is playing it right down the middle, for now.
At a news conference, Branstad said;
BankNet 360 Posted By: Vince Ryan Aug 30 2006 06:00:10 PDT
ICBA Opposes Bill to Stop Illegal Online Gambling
Congressional legislation that would attempt to block electronic transfers between U.S. gamblers and offshore casinos is being opposed by the Independent Community Bankers of America, according to The Wall Street Journal. The ICBA is asking the Senate to revise a House version of the bill that passed n July.
