Online Gamblers May Find Kentucky Derby Blocked Out
The Kentucky Derby is tomorrow, but some online gamblers may find their path to the roses blocked by the unwieldy and nightmarish presence of the Unlawful Internet Gambling Enforcement Act. Although online wagering on horse racing is legal in many states, the federal law puts banks and credit card companies at risk for honoring any gambling related transactions.
The law has been criticized by virtually every affected branch of society, from gamblers to banks, to the Federal Reserve and Congress itself. One of the plethora of complaints has been the vague terms and definitions applied by the bill, and that has horse players in a quandry.
Tony Cabot, an attorney for the Nevada Pari-Mutuel Association, said, "Unless the government takes the responsibility of telling the banks which merchants they shouldn’t deal with, and when banks take the position that they are not going to process these transactions without guidance, all heck will break loose."
The UIGEA's conflict with existing state and federal laws has led to utter chaos as to what is legal and what is a crime. Further, by permitting some operations by previously passed laws, the actions of the UIGEA have led to trade violations and complaints among numerous U.S. partners in commerce.
Last year, a letter drafted by House Judiciary Committee Chairman John Conyers, a Democrat, and Rep. Chris Cannon, a Republican, was sent to the Attorney General's office, complaining of ambiguity in the law in regards to online gambling on horses. The Department of Justice responded by advising the Congressmen to seek their answers from the Fed and the Treasury, two departments that have shown no desire to be caught up in this messy morass.
Until the UIGEA prohibition is repealed, many segments of society can expect disruption and confusion in the process of normal activity. This weekend, the dubious honor of suffering the most goes to horse afficianados.
