Casino News Article of the Month: Resistance to the UIGEA in Full Force

Headlining the month of June are the legal moves in the U.S. to challenge the Unlawful Internet Gambling Enforcement Act (UIGEA). Following the actions of Congressman Barney Frank to draw up legislation that would regulate online gambling and counter provisions of the UIGEA, two further bills have been introduced by members of Congress. A companion bill to Frank's Internet Gambling Regulation Enforcement Act, the Internet Gambling Regulation and Tax Enforcement Act, authored by Congressman Jim McDermott, sets out specific taxing provisions on U.S. facing internet gambling sites. Apparently, the taxation of online casinos and gaming sites which are taking bets from U.S. citizens would create annual gaming duties surpassing $25 Billion. McDermott's legislation proposes that all gaming sites registered with the Financial Crimes Enforcement would be required to pay 2% of all bets made by U.S. online gamblers. Another piece of legislation challenging the UIGEA is a bill called the Skill Game Protection Act, authored by Congressman Robert Wexler. Seeking to give carve-outs for online poker, bridge, chess, backgammon, mahjong and other games of skill, the Skill Game Protection Act seeks to ride the wave of lottery and horserace betting carve-outs that are already in the UIGEA. Frank's legislation, however, tackles the entirety of the internet gambling industry, including online casino gambling. The first of likely four or more House Committee Financial Services hearings designed to inform members of Congress on the technology and safeguards of internet gambling has already taken place. Moving in sync with these efforts is a push to undertake a long-term study of the U.S. facing online gambling industry. And to top it all off, the Interactive Media Entertainment and Gaming Association (iMEGA) has filed a lawsuit with the U.S. District Court, urging the "popular" US Attorney General, Federal Trade Commission and Federal Reserve System to cease the enforcement provisions of the UIGEA. It is safe to say that iMEGA has a decent case, especially considering the World Trade Organization ruling that the U.S. has not honored its obligations to free international trade, specifically in regards to Antigua and Barbuda.