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June 27, 2008
The online gambling industry, including online bingo games operators, is reeling from the defeat of the Barney Frank bill aimed at halting the implementation of the regulations governing the notorious Unlawful Internet Gambling Enforcement Act (UIGEA).
Known as HR5767 and co-sponsored by fellow Congressman Ron Paul, the defeated bill would have stopped the US Treasury and Federal Reserve from implementing a series of proposed regulations that would have effectively force banks to act in policing the online gambling industry under UIGEA.
Many online bingo industry observers and operators had hoped passage of the bill would have posed a serious problem for the viability of UIGEA and seen the potential re-opening of US markets to non-US bingo online companies. US gamblers who play online bingo made substantial contributions to the profitability of the online bingo industry which took huge losses when UIGEA was implemented in late 2006.
Banks have pointed out that UIGEA will force them to play an enforcement role with regulations that lack both precision and practicality.
"If there is ever a time not to burden the banks it is today," Frank asserted. "Why are we making the banks lives miserable? We are putting the banks at risk. Giving banks the job of carrying out an unclear mandate when the banks are at such heavy stress doesn't make sense."
UIGEA seeks to disrupt financial transactions between online gamblers and online gambling operators as a way of restricting online gambling growth. Barney Frank and his supporters would prefer a more regulated approach to online gambling in which some form of tax is imposed rather than an outright ban.
Written by John Witherspoon – Come and read all about the online bingo world. BingoStreet’s online bingo news section serves the freshest info of the industry.
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