Congressmen Urge Treasury to Postpone UIGEA Online Gambling Rules
A group of nineteen US Representatives sent a written request to the head of the Federal Reserve and the Secretary of the Treasury asking that implementation of a law banning payment processing to illegal online gambling sites be delayed. Led by Barney Frank and Pete King, the assorted Congressmen asked that the UIGEA rules, scheduled to be in effect December 1st, be put back a year to prevent stress to the economic system.
The concerned Representatives call the UIGEA regulations "flawed," and point out the procedures currently scheduled would be "an unreasonable burden on regulators and the financial services industry."
The letter also says the Treasury has received a petition from the Poker Players Alliance, the National Thoroughbred Racing Association, and the American Greyhound Track Operators Association to extend the waiting period before the online gambling law goes into effect. Horse racing is exempted by the UIGEA, but racing groups have seen that lotteries, also supposedly exempted, have been denied service by cautious credit card companies.
The group advises Fed Chairman Ben Bernanke and Secretary Timothy Geither that legislation is likely to force a suspension of the UIGEA implementation, and reminds the two they have the power to effect the decision to hold off as granted in the Administrative Procedure Act.
Barney Frank also has a bill waiting review which would regulate and license Internet gambling sites, making the UIGEA moot.
