{"id":468,"date":"2009-10-05T06:57:51","date_gmt":"2009-10-05T11:57:51","guid":{"rendered":"http:\/\/www.commerciallawinternational.com\/?p=468"},"modified":"2009-10-04T12:11:56","modified_gmt":"2009-10-04T17:11:56","slug":"us-lawmakers-call-for-delay-in-internet-gambling-law","status":"publish","type":"post","link":"https:\/\/www.commerciallawinternational.com\/?p=468","title":{"rendered":"US Lawmakers Call For Delay In Internet Gambling Law"},"content":{"rendered":"

By: Ainsley Brown<\/em><\/p>\n

How do you\u00a0enforce\u00a0a law that\u00a0doesn’t\u00a0make clear what is to be enforced?<\/p>\n

\"Electronic
Electronic Transfer<\/figcaption><\/figure>\n

Well, this is the\u00a0dilemma facing US\u00a0regulators, namely the Department of Justice<\/a>, \u00a0the Federal Reserve <\/a>and\u00a0Treasury Department<\/a>, when the internet gambling law comes into force on December 1. The Unlawful Internet Gambling Enforcement Act of 2006<\/a>, part of the Security and Accountability For Every Port Act of 2006<\/a>, seeks to prohibit the transfer of funds from financial\u00a0institutions to online gambling sites – with a few exceptions for such things as horse racing,\u00a0online\u00a0lotteries and fantasy sports.<\/p>\n

These exception are a reflection of a greater legislative flaw. \u00a0The Act seeks to regulate, as the words “Unlawful” in its title indicates, unlawful – that is\u00a0already\u00a0illegal – forms of betting over the internet. The law\u00a0however\u00a0does not modify the Federal Wire Act<\/a> – the main US legislation that regulates interstate and international betting. It only applies, as the definition of Unlawful internet gambling makes clear, to activities that are already\u00a0illegal\u00a0under\u00a0Federal\u00a0or State law.<\/p>\n

\"What
What is the law?<\/figcaption><\/figure>\n

The law does not create new unlawful gambling\u00a0activities, it simple\u00a0enforces\u00a0existing law. And as the ruling in Re Mastercard International<\/a> makes explicit, the Federal Wire Act does not apply to all forms of gambling but is limited to sporting events. Therefore, \u00a0the Unlawful Internet Gambling Enforcement Act would\u00a0presumably not apply to online poker or other\u00a0online\u00a0casino games.<\/p>\n

It is this lacuna<\/a> that has led lawmakers, such as The US House Financial Services Committee Chairman, Barney Frank, to call for the law to be delayed until December 2010. This call follows concerns that were expressed by the Federal Reserve and Treasury a year ago.<\/p>\n

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