Tag: uigea

A laymans explanation of the Wire Act of 1961 and how it is affecting online gambling today
casino blog
23 January 2012

The Wire Act of 1961 is basically a Federal Law that was implemented to prevent organisations and persons in the United States from taking part in any form of gambling which involves wire communications.

This meant that people couldn’t accept or place real money bets or wagers for any sporting events or other similar betting contests through transmissions by wire communications and if people were caught doing this, they could be prosecuted and could face a fine with a maximum of two years behind bars.

Fast forward almost 40 years to the mid/late 90’s, to the age of the internet and all of a sudden there was a boom in websites which started taking online wagers at venues such as online casinos, sports betting sites, bingo sites and poker sites.

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UIGEA, the latest update in the situation in 2011
casino blog
07 May 2011

UIGEA, the Unlawful Internet Gambling and Enforcement Act came into effect back in 2006 to prevent financial institutions from transferring funds to online gambling operators and the initial aim was to stop financial transactions to offshore online casinos. It does not prevent the individual from placing bets on offshore online casinos just US financial institutions but it did lead to a dramatic decline in many online casinos accepting US players.

Operators like Party Gaming stopped its US operations immediately even before the legislation came into effect causing its stock price to drop by 60%. Another major player, Microgaming which powers approximately 100 online casinos also stopped business with US players causing a drastic reduction in their prices too.

In an attempt to change the dramatic effects that the UIGEA had on the online gambling industry a bill called the Barney Frank’s HR 2267 was introduced to the House Financial Services Committee but unfortunately it was not voted on in time by the House of Representatives so the initial full UIGEA came into effect on June 1st 2010. This meant that the HR 2267 bill had to be re-introduced making it a sure fact that any amendments would not take place to the legislation until a much later date.

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What is the UIGEA
casino blog
19 August 2008

What is the UIGEAMany disappointed gamblers gather together to discuss their country’s ban of internet gambling. On October 13, 2006, President George W. Bush signed a bill into affect that banned internet gambling. More specifically, banks and other credit cards, e-wallets, etc, which transfer the money back and forth. Though many see it as a clear-cut case of Christian values being forced upon a “free” country, the logical see it as nothing more than the government’s way of cracking down on tax evasion.

If a person visits one of the United States’ legitimate casinos, i.e. one of the Trump monstrosities in Atlantic City, then he or she is taxed on their winnings. But if that same person has free reign to slowly drain $50,000 from their internet account, $3,000 at a time, how would it be taxed? Regardless of what is true and what is false, this situation is sticky for all gambling lovers.

This Nation of Nations, which was constructed to be an equal opportunity land, by the people and for the people, has always been about the few, discarding the many. In ancient Rome, members of the senate would crucify a citizen for not paying homage to the gods. Even in Tudor England, 2,000 years later, men and women were slaughtered for not abiding to the chosen faith.

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