Banks Wanted Delay in Online Gambling UIGEA Reqs Too
It wasn't just the online gambling sector and ally Congressman Barney Frank who wanted a delay to implementation of Web gambling prohibition. The banks made a similar request.
The Unlawful Internet Gaming Enforcement Act (UIGEA) would make financial establishments responsible for monitoring online gambling transactions, including Internet poker. But the UIGEA distinguishes so-called "good" online gambling transactions (horse racing and state lotteries) from the "bad" (poker and sports betting). Banks have argued they have no way of doing so and threatened to restrict horse bets in their efforts to police such activity. That got the attention of lawmakers in Kentucky who also requested a delay in implementation of UIGEA guidelines until July 1.
"The agencies acknowledge some of the challenges regulated entities are experiencing with the act's definition of 'unlawful Internet gambling," the Federal Reserve and the Treasury Department said in a joint statement. "Moreover ..., several members of Congress have indicated interest in revising the Act.
"The agencies are thus persuaded that a limited extension of the compliance date for regulated entities is appropriate," the statement said.
Gambling911.com first broke the story of the UIGEA enforcement delay on Wednesday. The Treasury Department confirmed the report by Friday.
Wells Fargo Bank, the American Bankers Association, the Credit Union National Association were among those on the financial side pushing for a delay according to CreditCards.com.
Wells Fargo accounts were seized over the summer during an investigation of online poker processing companies by the US Attorney's Office out of the Southern District of New York.
Christopher Costigan, Gambling911.com Publisher
