UIGEA - Safe Port Act
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What is the UIGEA?
The Unlawful Internet Gambling Enforcement Act, or (UIGEA), has been a subject of heated debate since it was passed in 2006. It regulates, or is supposed to regulate, banking transactions between U.S. citizens and online gambling establishments. It became law without any prior debate in the senate, as it was sneaked into the so-called SAFE Port Act of 2006.
Legislative history
The Act was passed at midnight on the day Congress adjourned for the 2006 elections. Though a bill with the gambling wording was previously debated and passed by the House of Representatives, the SAFE Port Act (H.R. 4954) as passed by the House on May 4th (by a vote of 421-2) and the United States Senate on September 14th (98-0), bore no traces of the Unlawful Internet Gambling and Enforcement Act that was included in the SAFE Port Act signed into law by George W. Bush on October 13th, 2006. The UIGEA was added in Conference Report 109-711 (submitted at 9:29pm on September 29, 2006), which was passed by the House of Representatives by a vote of 409-2 and by the Senate by unanimous consent on September 30, 2006. Due to H.RES.1064, the reading of this conference report was waived.
Among the more prominent Congressional supporters of the Act were Jim Leach, a former chairman of the House Banking Committee and Rep. Robert Goodlatte [R-VA], who co-authored H.R. 4411 (the Internet Gambling Prohibition and Enforcement Act). Bill Frist, former majority leader of the Senate, and Jon Kyl are both credited with expediting the UIGEA's passage through the Senate. Though the SAFE Port Act's provisions related to Internet gambling were drawn exclusively from H.R. 4411, significant portions were removed, including text relating to the Federal Wire Act.
A prior version of the gambling part of the bill passed the House in 1999 but failed in the Senate in part due to the influence of lobbyist Jack Abramoff.
WTO dispute
Antigua and the United States have been involved in a long-running World Trade Organization dispute over U.S. restrictions on online gambling. The WTO ruled on January 25, 2007 that the U.S. is in violation of its treaty obligations by not granting full market access to online gambling companies based in the island nation. On March 30, 2007 the WTO confirmed the U.S. loss in the case.
On June 19, Antigua filed a claim for USD $3.4 billion in trade sanctions against the United States, along with a request for authorization to ignore U.S. patent and copyright laws. This claim was filed a day after similar demands for compensation were made by the European Union.
The United States settled the dispute by granting concessions in other sectors. The administration of President George W. Bush refused to disclose the details of those concessions, however. In April 2008 Congressmen Barney Frank and Ron Paul called for the agreements to be made public. They stated that the concessions "could cost the United States many billions of dollars in compensation" and that the administration's invocation of "national security" as a reason to block disclosure under the Freedom of Information Act (FOIA) was "a misuse of the FOIA process." When the administration continued to keep the information secret, Public Citizen brought suit on behalf of Ed Brayton, a journalist whose FOIA request had been denied.
Challenge to UIGEA part of Act
In April 2007, U.S. Congressman Barney Frank introduced a bill to overturn the gambling aspects of the Act, saying "The existing legislation is an inappropriate interference on the personal freedom of Americans and this interference should be undone." Additionally the bill sets up the framework for taxing and regulating online gambling by individuals within the United States.
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UIGEA Faq - Questions & Answers
Can I play online poker legally?
Interpretation of the Unlawful Internet Gambling Enforcement Act of 2006 is still open. It hasn't been tested in a court of law. There isn't any language in the act that specifically forbids you from playing and enjoying online poker. But keep notice if you live in Louisiana and Washington. The laws in these states could possibly making playing online poker illegal if officials ever choose to enforce it.
What other forms of online gambling are not permitted and allowed under the UIGEA?
Sports gambling for one. The National Football League (NFL) was really pushing for the UIGEA to get pushed. All other forms of online gambling are affected, unless they are legal under state or federal laws. Online horse racing sites (e.g. TVG and Youbet) are completely and fully legal under law in most states. Online purchases of state lottery tickets are also permitted under the UIGEA. The reason for horse racing and state lotteries being legal is that they are taxes and/or regulated by the federal government and/or states.
Source: http://lawvibe.com/
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Rep. Frank to Introduce Stand-Alone Pro-Gaming Bill in April
By Jennifer Newell
In February of 2009, Representative Barney Frank (D-MA) made it known that he intended to introduce a bill to repeal the Unlawful Internet Gambling Enforcement Act (UIGEA) in March. However, that month came and went with no legislation on the books, though it would be fair to say that his role as Chairman of the House Financial Services Committee likely kept him focused on the banking crisis, budgetary concerns, and other highly volatile issues important to the American people. But with the poker industry being fairly self-absorbed, there were some quietly wondering if Frank had forgotten about us.
Alas, the issue of pro-gaming legislation is still in play. According to The Hill, a well-read policy publication covering the inner-workings of Capitol Hill, Frank intends to reintroduce his April 2007 legislation “soon.” More specifically, he said it would be “after the [Congressional] break, definitely in April.”
The reintroduction refers to H.R. 2046, the Internet Gambling Regulation and Enforcement Act, which was introduced by Frank in April of 2007. With the intention of legalizing and licensing internet gambling facilities, the original bill picked up 48 sponsors but never passed committee. Using the same piece of legislation, one that assures most of the same sponsors and looks to add more this time around, Frank feels it is the best way to change the law and reverse the UIGEA.
The choice of Frank to introduce the bill as a standalone one, however, puts its chances of passing into question. Not only will it be far more susceptible to criticism from opponents due to its higher visibility, it will require more effort to push it through both houses of Congress. The alternative, however, was to add it to legislation that would be sure to pass, similar to the way the UIGEA was passed initially, and Frank expressed his unwillingness to do that. He called it an inappropriate manner to pass the bill and told The Hill reporter, “That is not my intention. It would be a mistake. I want to do this with hearings, discussions and votes.”
A standalone bill is supported by people on both sides of the issue. The Safe and Secure Internet Gambling Initiative (SSIGI) spokesman Jeffrey Sandman commented, “We welcome a standalone bill, which would allow for a thorough discussion of all the issues relating to regulations and consumer protections.” And that sentiment was echoed by the Christian Coalition of America, represented by vice president of legislative affairs Jim Backlin, who opposes the proposed legislation but supports Frank’s methods. “I think it is good that Congressman Frank is not trying to attach it to a fast-track bill.”
With Congress returning after to work during the week of April 20, there will be little more than a week to introduce the legislation, per Frank’s wishes, but there is likely to be a solid effort to gain support for the responsible gaming bill.
Article Source:http://news.bluffmagazine.com
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