subject: Online Gambling Regulation in USA and Thereafter [print this page] Online Gambling Regulation in USA and Thereafter
Online gambling in United States of America (USA) is going through a tumultuous situation. The present Federal Act governing the online betting is known as UIGEA or Unlawful Internet Gambling Enforcement Act. This Act was passed in the US Congress along with SAFE PORT Act of 2006. At that time, the Republicans dominated the house and Junior Bush headed the government. The government was predominantly conservative in nature and was against gambling, especially the online ones. They were not able to ban online gambling but passed an act (Unlawful Internet Gambling Enforcement Act or UIGEA) that made online betting related payments illegal. The government had also arrested some payment processors regarding online gambling payments. After such incidents, many internet-based casinos stopped allowing virtual betting payers from USA. Freedom loving people of America started feeling the heat. They started feeling that their internet freedom is at stake. Freedom of choice was hampered by UIGEA, a Draconian law regarded by many.
Perceiving the mood of the general mass, Rep. Barney Frank had started a campaign against UIGEA. He tried to repeal UIGEA by bringing a motion in the year 2009. However, this motion was severely defeated in that year as the Republicans dominated the Congress. Discussions, debates and persuasions never stopped. In the year 2009, United States of America faced one of the most acute recessions of all times. This economic downturn made the coffers of the government empty. External borrowing increased and the investor confidence dipped. At this juncture, government started to find various avenues of increasing their revenue earning. Many people aired their view that revenue should be earned by taxing online gambling. This meant that the government had to make it legal in all terms and Unlawful Internet Gambling Enforcement Act repealed. In the mean time, the Presidential election saw win of Democrat candidate, Barrack Hussain Obama. He himself is a staunch supporter of online gambling and is a gaming aficionado too. Barney Frank kept on his campaign against UIGEA and approached PPA for support. He was successful. As a result of such huge support against Unlawful Internet Gambling Enforcement Act, the implementation of the ACT as a law was delayed by 6 months for discussion. UIGEA is rescheduled to be implemented from 1st of June 2010. Within this time, debates are scheduled and different proposals are heard. Barney Frank has placed two alternative proposals of online gambling regulation and taxation. These proposals are scheduled to be discussed in the House of Representatives. According to a KPMG survey and analysis, the free online gambling is supposed to expand at a 41% rate in the year 2012. The revenue that can be earned by taxing this swelling economy is enormous. Thus, government of United States of America is contemplating the idea of regulating and taxing internet based betting industry.
Frank has proposed two ideas, namely, HR 2267 (Internet Gambling Regulation, Consumer Protection, and Enforcement Act) and HR 2266 (the Reasonable Prudence in Regulation Act). Both these are highly pertaining to the current situation and popular mood.
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