In September 2006, the United States House of Representatives and Senate passed legislation that would make it illegal for financial institutions to conduct monetary transactions with online gambling sites. This legislation, termed the Unlawful Internet Gambling Enforcement Act (UIGEA), was "tacked on" in the final hours (shortly before adjourning for the midterm elections) as an amendment to the unrelated and virtually unstoppable SAFE Port Act, which was intended to improve the security of American ports. The Act was signed into law by then U.S. President Bush on October 13, 2006. The specific UIGEA part of the Act can be read here.
Several large online gambling operators including 888.com, Party Gaming and Bwin immediately stopped accepting bets from U.S. customers, and saw their stock prices tumble accordingly. However, many other operators have continued to accept customers from the United States despite the legal uncertainty this law has created.
Curiously, no part of the UIGEA defines what exactly "unlawful Internet gambling" is and no part of the Act prohibits anyone from gambling online. A couple of years of hindsight has revealed the effects of this legislation to be:
- A minor inconvenience for U.S. players who would like to play poker or casino games online;
- A flourishing industry of smaller, less visible, and largely unregulated operators happy to accept customers from the USA;
- Most of the largest, most professional, and well regulated operators unwilling or unable to accept U.S. customers;
- Billions of potential tax revenue lost by State and Federal U.S. governments.
Below you can find an archive of all UIGEA related news articles we have posted to the site.
13 September 2017 by Dustin Jermalowicz
This week a Michigan politician introduced a new bill that would legalize online gambling within The Wolverine State, the latest in a string of bills looking to legalize and regulate the activity.
12 September 2017 by Dustin Jermalowicz
This week a Minnesota politician announced his plans to introduce a sportsbetting bill, which would legalize the activity within its borders.
5 July 2017 by Dustin Jermalowicz
This week a spokeswoman for US Attorney General Jeff Sessions revealed that he will be recusing himself from any discussions related to the classification of The Wire Act, a posititve step for those looking to see states continuing offering online betting within their borders.
27 June 2017 by Dustin Jermalowicz
Today the United States Supreme Court revealed that they will hear the state of New Jersey's appeal related to legalizing sportsbetting within their borders, possibly opening the door to legalizing sportsbetting throughout the country.
17 May 2017 by Dustin Jermalowicz
This week New Jersey politician Frank Pallone urged the U.S. Solicitor General to support the Garden State in its efforts to legalize sportsbetting within its borders.
25 April 2017 by Dustin Jermalowicz
The relationship between President Donald Trump and prominent casino tycoon Sheldon Adelson is reportedly on the rocks after the POTUS failed to appoint the POS's recommendations for posts in his administration.
21 April 2017 by Dustin Jermalowicz
Utah Representative and anti-gambling activist Jason Chaffetz announced this week that he won't be seeking re-election in 2018.
20 April 2017 by Dustin Jermalowicz
This week it was revealed that gambling tycoon and anti-online gambling advocate Sheldon Adelson donated $5 million to President Donald Trump's inauguration fund, leaving some to wonder if there will be implications for a federal ban on internet gambling.
11 April 2017 by Dustin Jermalowicz
Nearly six years after Absolute Poker was shut down the US government, the players who had funds in the site will begin getting restitution.
7 April 2017 by Dustin Jermalowicz
New Jersey's attempt to get their sportsbetting legalization appeal in front of the Supreme Court is inching closer to being heard, as the US Solicitor General paged the parties involved to give them a status update.