UIGEA Officially Delayed Six Months
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It’s been a long time since there’s been good news for online poker players in the United States. But the news about the Unlawful Internet Gambling Enforcement Act that was confirmed on Friday was certainly positive.
The UIGEA, which was supposed to have its rules go into effect on Dec. 1 of this year, was delayed six months by the Federal Reserve and the Treasury Department. Banks and other financial institutions that were to be required to be in full compliance with the ‘final rule’ of the UIGEA will now have to be in compliance by June 1 of 2010. If you’re unsure of what the UIGEA final rule is and how it might impact online poker players, you can get up to speed with our primer.
Here is the official press release:
Agencies Extend Compliance Date for Final Rule to Implement Unlawful Internet Gambling Enforcement Act
The Department of the Treasury and the Federal Reserve Board on Friday announced the release of a joint final rule to extend the compliance date for their joint regulation implementing certain provisions of the Unlawful Internet Gambling Enforcement Act by six months to June 1, 2010.
The Federal Register notice regarding the extension of the compliance date is attached.
The UIGEA has been under attack for years by the financial sector and online gambling interests because of vague language that makes enforcing the law difficult. What this delay means for the long term is still unclear. As of right now, this is still just a temporary stay for the UIGEA. The next six months will obviously be crucial as to whether the rules will go into effect as is, or if changes will be made, or perhaps some other outcome altogether.
The delay gives an opportunity for anti-UIGEA legislation to make its way though the U.S. Congress. Rep. Barney Frank (D-Mass.) has been spearheading efforts to legalize and regulate online gaming and poker in Congress, and this decision by the Treasury and the Fed gives some momentum to those bills. Right around the time this decision came down, it was also announced that the House Financial Services Committee will hold hearings on Dec. 3 regarding two bills, HR 2266 and HR 2267. The first bill would delay the UIGEA 6 more months, to Dec. 1, 2010, while the second sets up regulation of the online gaming industry.
We’ll have more news on the fallout the decision and on the legislation in Congress as events occur. Stay tuned.
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