Looks like the time is coming for an impossible law to come into effect that will put terrible hardships on banks in this country! We are hoping it will get postponed, but time is getting short.
In a couple of weeks financial institutions will be obligated to abide by the UIGEA regulations. It appears unlikely that a motion by Barney Frank and over 50 co-sponsors to postpone mandatory compliance to UIGEA regulations for a year will pass the House, so banks are getting their ducks in a row and are preparing to offer due diligence as is required under the UIGEA.
Some bettors they have received a notice with their bank statements the last month or so relating to internet gambling. The wording is slightly different for each bank, but the points being are similar. The following was the exact wording on a statement from a larger Midwest bank. The name of the bank is being withheld so as not to promote them.
“As a (fill in the blank) customer, we’d like to inform you that in accordance with the requirements of the Unlawful Gambling Enforcement Act of 2006 and Regulation GG, certain transactions are prohibited from being processed through your account
Prohibited transactions include those in which a person accepts credit, funds, or other proceeds from another person in connection with unlawful internet gambling. If you have any questions or concerns regarding this regulation, please contact us.”
The Unlawful Internet Gambling Enforcement Act in the United States, known as the UIGEA for short, absolutely crippled the industry by attacking the financial transactions for the sites in a way that was very difficult for players to get around. Now the Russian government is showing a lot of support for a similar bill that will have banks facing stiff fines and other punishments for processing payments for illegal online gambling.
How This Bill Would Work
Daily fantasy sports has become the single fastest-growing segment of the online gambling industry in the United States over the past 12-18 months. Major sports teams have signed on to sponsor daily fantasy sports services, and so have major league and college sports leagues. This popularity isn't sitting well with everyone, and this includes the author of the UIGEA. Jim Leach has spoken out about this form of daily fantasy sports.
A "Cauldron" of Daily Betting
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.