An analysis of the UIGEA regulations

[bartongrl1]

Prior to the passing of the UIGEA last year via the Safe Port Act, banks and other U.S. payment companies were doing their best to try and block internet gambling transactions by Americans. The banks realized that there was a movement within congress that wanted to force them to ensure all transactions did not originate from offshore gambling sites, but in today's global economy that task would be enormous. Almost all transactions these days are done via ACH networks, credit cards or money transfers both locally and internationally, and to try to isolate and identify individual transactions would be a monumental task. Consequently banks took measures themselves and attempted to block gambling transactions when they could identify them to show congress that the proposed law was unnecessary and would be a major burden to the financial services industry. That didn't work. Congressman Bill Frist attached the UIGEA to the Safe Port Bill, which Senators and Congressmen had already approved and the law took effect in early October 2006. Thus the voluntary efforts by the banks were futile.

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