UIGEA and U.S. Gambling

The use of online gambling was first prohibited when the UIGEA, or the Unlawful Internet Gambling Enforcement Act was passed. Ever since its enforcement in 2007, it has radically reduced the numbers of online gamblers over the net. Perhaps this is due to the fear of online gamblers that either they will be caught or the online gambling site they are in will be shut down.

Time and time again, efforts to allay these fears have been attempted, usually without any effect.  Some online gambling sites have even resorted to offering a martingale roulette system to lure more players. However, most of the time these fears have no basis since people aren’t really familiar with the provisions of the UIGEA. Information about the UIGEA is needed more than ever.

The Enforcement

The UIGEA basically makes it hard for online gambling sites to conduct its operations, especially to players in the US.A clearer picture can be obtained by looking at the two methods. One, the necessitation of gambling licenses under the Financial Crimes Enforcement Network, which will thoroughly assess the qualification of a gambling site to operate under legal measures; and second, the reclassification of certain games – poker, roulette, chess, and others – so that they will not be under the scope of the UIGEA.

The major benefit of the UIGEA to US players is increased security in gambling online. Ultimately, it will be less difficult to track down online gambling sites, so it will be more difficult for them to run away. The UIGEA has had adverse effects however. Actually, it hasn’t been enforced properly The enforcement problems of the UIGEA has been the reason for the myriad of failures in internet gambling.

The Status Quo

Because of the problematic enforcement of the UIGEA, more problems have arisen. Most of it have to do with the gambling sites’ shareholders.A number of shareholders and investors, especially those based in the US have pulled out of online gambling because of problems and disputes with the legalities.In turn, scores of online gambling sites have had to stop operating. Because these online gambling sites ceased operations, people were led to believe in the validity of the UIGEA. The truth is, these gambling sites wouldn’t even have closed had it not been for the presence of this Act. It only became a catalyst for a number of disputes and cut ties instead of making the general gambling world more safe.

But the lack of efficiency in the UIGEA’s enforcement has another significant consequence.Now, there is a lot of confusion involving a lot of states in allowing online gambling to be accessible to their citizens. In the strictest sense, the UIGEA does not hinder US players from online gambling. Some states however understood it differently. Such states are now making it illegal for US players to gamble online.On the same level, there are states that still allow US players to play online gambling.Obviously, the stands of these states are divided. Unless the UIGEA is enforced in the proper way, this dispute in the legalities will exist.