How The Unlawful Internet Gambling Enforcement Act Affects Internet Gambling

In 2006, congress passed a law under the UIGEA, or the Unlawful Internet Gambling Enforcement Act. This federal action made it unlawful for any person or business entity to break either State or Federal gambling laws by accepting monetary compensation through the use of an internet gambling website.

Understanding the Unlawful Internet Gambling Enforcement Act

The biggest problem is the fact that most internet gambling websites are physically owned and operated overseas, so the act was created and passed into law in order to:

• Prohibit any operator of an internet gambling website from allowing any sort of payment for any gambling done online that is in any way a violation of federal or state law. The court will now consider the violation of this act a crime, and if convicted, the individual can be permanently prohibited from engaging in any and all types of gambling.

• Enable the United States Dept. of the Treasury to create and issue strict regulations for all financial systems to create programs designed specifically for the blocking of funds transfers for any form of illegal internet gambling. The act also gives the Federal Attorney General the authority to file civil actions against any organization that facilitates illegal internet gambling systems, without the burden of having to prove a crime has been committed.

• Enable and facilitate the rights given to every state in the U.S. to both decide upon and enforce any policies the state may have in place regarding its gambling ordinances and statutes within its borders. This act does not, however, make illegal any activity regarding gambling that may have been legal prior to the act’s inception, nor does it make any activity legal which may have been illegal before its implementation.

• The act is also meant to be an effective defense mechanism for the laws of the United States that stand against the evasion of U.S. laws as a whole and the erosion of U.S. capital income by overseas website or gambling program operator’s that are making attempts to earn substantial profits by bringing about the demise of these laws.

Is the Law Effective?

The UIGEA was the end result of an extensive effort by United States Congress over a ten-year period. After numerous markups by different committees throughout Congress, and even more publically-held hearings, the act received a show of increasing support over several voting sessions before it was passed in July of 2006.

Since the implementation of the act, the internet gambling industry has experienced a substantial monetary decline. Almost immediately, once the law was passed through Congress, stocks that were involved in the online gambling industry declined in value by over 50%, and most of the companies involved in unlawful online gambling withdrew from the markets inside the United States.

Getting Help

If you have been accused of violating the unlawful internet gambling enforcement act, you should consult with a qualified and experienced attorney. Your attorney can defend you against charges and can help you understand any potential penalties you are facing.