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Gambling in USA
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There were many attempts to regulate online gambling both in US and Europe. Those days there are many people working hard to solve the problem. UK sports minister Richard Caborn was speaking at Ascot racecourse, west of London, at a summit of 32 international delegates, who agreed to a draft framework of regulation to protect consumers and prevent underage gambling and gambling addiction.
The United States declined to attend, though, making US gamblers situation even more confusing.
A 2005 survey commissioned by the American Gaming Assn. revealed that 4% of Americans gamble online, but 38% of them said they started last year, and 70% of them reported that they began betting online in the last two years. US players generate about a half of the revenues of $12 billion gambling market in 2006.
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Read more... [Is it legal for US players to gamble?]
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What happened?
Friday October 13, 2006 President Bush signed a bill whose principal purpose is to tighten security measures for the nation's sea ports.
But attached to that bill at the very last minute - in order to prevent Democrats running for re-election next month from stopping it - was a federal ban on banking institutions knowingly transferring funds to businesses or individuals that may conduct gambling operations in states and areas where gambling is prohibited.
The "Unlawful Internet Gambling Enforcement Act" goes after the money, not the millions of players, which would be nearly impossible to enforce.
It will essentially try to choke off the way Americans fund their gambling habits, hoping to prevent the transfer of dollars to the popular Internet sites. |
The Unlawful Internet Gambling Enforcement Act ( UIGEA ) of 2006 does not make it a crime for US residents to gamble online; American players are still free to gamble anywhere on the Internet, stated Rick Smith and Keith Furlong, who respectively are the Executive and Deputy Directors of the Interactive Gaming Council (IGC), in a press release this week.
Their press release continued, saying the bill focuses on the prosecution of financial institutions handling transmission of money from U.S.players to operators of online gambling sites.So some sites may no longer accept wagers, as many of the publicly traded online gambling companies announced they would stop taking American bets following recent passage of the bill by Congress.
"This bill doesn't do anything to protect American consumers who choose to enjoy Internet poker and other games," added Furlong."But the immediate effect is to drive the industry further underground.Gambling sites will devise new methods for getting money from / to a market where players have shown a resilient demand for this type of entertainment.
"In the guise of protecting vulnerable Americans- minors who want to gamble and adults who can't control their gambling - Congress has actually heightened the risk to these groups," said IGC Deputy Director Furlong.
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Read more... [UIGEA - U.S.Players Still Free to Gamble Online]
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