I do disagree with the underlying objective of the Act
We are thrilled to pass along news on this development to those who may not have heard. Perfect timing with the banking crisis. If this can get out of committee, hopefully it can get swept into banking/mortgage relief legislation. Frank is smart, and he has a lot of support, so we hope this is Step 1 of a planned out strategy.
Frank, Paul Introduce Legislation to Stop Implementation of Antigambling Regulations
“These regulations are impossible to implement without placing a significant burden on the payments system and financial institutions, and while I do disagree with the underlying objective of the Act, I believe that even those who agree with it ought to be concerned about the regulations’ impact,” said Rep. Frank.
“The ban on Internet gambling infringes upon two freedoms that are important to many Americans: the ability to do with their money as they see fit, and the freedom from government interference with the Internet. The regulations and underlying bill also force financial institutions to act as law enforcement officers. This is another pernicious trend that has accelerated in the aftermath of the Patriot Act, the deputization of private businesses to perform intrusive enforcement and surveillance functions that the federal government is unwilling to perform on its own,” said Rep. Paul.
Specifically, at issue is the fact that the regulations, like the underlying legislation, fail to define the term “unlawful internet gambling,” leaving it to each financial institution to reconcile conflicting state and federal laws, court decisions and inconsistent Department of Justice interpretation, when determining whether to process a transaction. Furthermore, some of the information needed to make this determination would likely be unavailable to banks, either because customers or financial institutions in foreign jurisdictions are unwilling or unable to provide it. At the hearing, the regulators themselves admitted that there are substantial problems in crafting regulations to implement the UIGEA that does not have a substantial adverse effect on the efficiency of the nation’s payment system.
Chairman Frank and Congressman Paul opposed the UIGEA, and the two have been working on legislation, H.R. 2046 that would license and regulate online gaming. However, it was clear at the hearing that the regulations are unworkable for the financial services industry, and this bill would, therefore prohibit their implementation.
On Wednesday, April 2, the DIMP Subcommittee held a hearing “Proposed UIGEA Regulations: Burden Without Benefit?” to examine the regulations issued last year by the Federal Reserve and Treasury on the Unlawful Internet Gambling Enforcement Act, which garnered more than 200 comment letters.
It’s been 2 ½ long years but there may finally be some light at the end of the tunnel. Now more than ever, We need to continue to unite and grow in numbers and make our voices heard. Why? Because we can, that’s why. You can play a part in making your voice heard. On our blog’s main page, click on the banner link that says “Sign a petition to repeal this law” to fight the UIGEA. There you can sign up to help repeal the UIGEA. This is your chance. Take it!
Let’s get the dialogue going as alone we are weak but united, we are stronger. Send through your comments to becauseican2007@hotmail.com .