Eric Holder Promises to Continue Going After Online Gambling

The online gambling sector might not be too thrilled learning that the soon-to-be-sworn-in Attorney General, Eric Holder, has informed a staunch supporter of Internet gambling prohibition he has every intention of enforcing  the Unlawful Internet Gaming Enforcement Act (UIGEA).

In an exchange with Arizona Republican Senator Jon Kyl, Mr. Holder affirmed his position.

SEN. JOHN KYL (R-AZ): But the question that I'd ask and wanted just to get confirmed for the record is that you indicated that under your leadership the Department of Justice would continue to aggressively enforce the law against the forms of Internet gambling that DOJ considers illegal.

ERIC HOLDER (US ATTORNEY GENERAL NOMINEE): That's correct, Senator.

(ED. NOTE: US DoJ has testified that it considers all Internet gambling, even horse racing, as illegal).

KYL: And then we discussed the regulations that were issued recently, actually, jointly by the Federal Reserve Board and the Treasury Department in consultation with the attorney-general.

The regulations primarily try to go at the problem by thwarting the payments for unlawful Internet gambling -- in other words, to shut off the cash flow.

And I mentioned the fact that they were already beginning to spend millions of dollars in an effort to try to undo these regulations somehow and hope that you would -- and you indicated you would -- oppose efforts to modify or to stop those regulations, and, of course, continue to be vigilant in enforcing those regulations to shut off the flow of cash from this illegal activity. Is that your intention?

HOLDER: Yes, that is my position. That's what I will do.

KYL: Yes, thank you, and I appreciate that very much. And we could talk a lot more about the pernicious nature of Internet gambling, but in view of the time here, let me move on.

One industry analyst, speaking on condition of anonymity, told Gambling911.com: "I think Holder has to honor the existing laws on the books and not try to make new laws.  His job is the enforce the laws on the books whether they are good or bad laws. It's up to Congress to try to change the laws, not Holder or even the Obama administration for that matter. Barney Frank has support in the house to change it."

Indeed, Democratic Congressman Barney Frank has told Gambling911.com he intends to do just that.

"With the Obama administration, you wouldn't see these bad regulations," Frank told Gambling 911 in November. "Clearly we have more support opposing (these attempts to stop regulation) with more Democrats in Congress. I wish it weren't an issue but the Republicans have made it one."

Senator Kyl was responsible for pushing through legislation (UIGEA) prohibiting many forms of online gambling through banking instruments, though checks were eventually removed from the UIGEA policy guidelines.

Christopher Costigan, Gambling911.com Publisher