The news is not great, but it IS good!

The battle for reversing the UIGEA is heating up, and the positive outcome is within sight.

It’s been understood for many months (even since the UIGEA was quietly and covertly slipped into the notorious “Patriot Bill” – and therefore became “law”) that the law is lame (and uninforceable) for a number of reasons.

First, it doesn’t describe what Internet gambling is illegal. The only precedent is a case which identified “sports betting” as being illegal. That was to protect amateur athletes, and legitimate sports from getting corrupted. But it’s important to note that it did NOT included online casino games nor online poker.

Second, it placed the enforcement responsibilities square on the shoulders of the financial institutions. They were to investigate, enforce, and prosecute online gamblers. Meanwhile, they all objected because they had no resources nor capability to do anything about their clients depositing to, and withdrawing from, their money.

Third, other countries not only objected officially to the US making it difficult for their citizens to do business with overseas companies, but some even filed lawsuits claiming that the US was in violation to Free Trade Agreements, and therefore, US taxpayers will be responsible for paying $Billions in fines. The United States has delayed their talks with European Union regarding online gambling.

The meeting between the two global giants was proposed to take place next week in Washington, D.C. At issue is the Unlawful Gambling Enforcement Act in the U.S., which European online gambling operators are alleging is discriminatory against non-U.S. operators.

The problem, according to the European operators, is that the law is hypocritical because it excludes offshore businesses from the market while local gambling operations, including lotteries and horse racing, are permitted.

The issue seemed to come to a head when the World Trade Organization ruled in the favor of Antigua and Barbuda which is home to numerous online gambling operators.

Rather than change its laws to comply with the ruling, the U.S. chose to pay compensation to Antigua and Barbuda and to withdraw online gambling from its commitments to the WTO.

I can’t tell you why the US insisted in a delay. But hopefully, the law is soon to change making the complaints and subsequent reparations moot.

Fourth, almost immediately when it was discovered what they had done, US Lawmakers began attacking the law from any angle available, making it somewhat stupid to try to enforce what was soon to be an outdated, reversed law.

Now, there are many bills being introduced in the US Senate and House which will reverse the UIGEA. Some propose to regulate online gambling. That means; A) clear definitions to remove the ambiguities currently in place [HR 6663 - Pete Sessions R - Texas] B) Legalizing online gambling (with or without “sports betting”) C) Revenues estimated in the Billions by taxing the online gambling activites D) allowing the companies that were forced to flee the US, amnesty for their return [HR 6663] E) removes the hypocrisy that is rampant in the US [horseracing, lotteries, casinos]

You can contact the President here: president@whitehouse.gov

White House switchboard: (202) 456-1414

Contact your Senator here: http://www.senate.gov/general/contact_information/senators_cfm.cfm

Contact your Representative here:

http://www.house.gov/house/MemberWWW.shtml

House and Senate switchboard: (202) 224-3121

Jump on the Action Wagon, and let’s move this Elephant OUT of the room!

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