Barney Frank to Push for UIGEA Online Gambling Repeal
A spokesman for Congressman Barney Frank announced today that Frank will introduce a bill seeking the repeal of the UIGEA within the next month. The attempt to remove the law against payment transactions to online gambling sites was apparently crystallized by news yesterday that European complaints may be advancing to the World Trade Organization.
Frank had advised the Bush administration to wait on finalizing rules for the UIGEA, citing burdens it would place on financial systems. But White House operatives pushed through the midnight rules.
The European Union has been investigating unfair and protectionist policies by the US regarding Internet gambling. The inquiry came after the Remote Gaming Association complained that US law enforcement was seeking to fine and imprison foreign online casino operators, while online gambling conducted by US concerns continues uninterrupted.
It has been widely expected within the Internet gaming industry that Frank, a long-time champion of the individual freedom to gamble, would challenge the laws again this Congressional term, as he has done in the past. But many insiders were worried that running the Financial Services Committee would delay Frank's attention, as he tends to the foreclosure and financial crises.
Still, the need to assuage foreign trade partners nervous over potential US protectionism allows Frank a chance to tighten bonds with European allies by reopening the US online gambling market. This would also provide a major source of government revenue, assuming regulation follows legalization.
Proponents of the UIGEA are forced to concede that the stated goals of the online casino ban have not been reached, with the law effective only in deterring legitimate, honest companies. Protection of children and problem gamblers is non-existent without regulation, and money still moves in ways that invite money-laundering, only with oversight.
