Confirmed: UIGEA Delayed until June 1, 2010

by , Nov 27, 2009 | 9:50 am

From the Federal Reserve and US Treasury:

Agencies Extend Compliance Date for Final Rule to Implement Unlawful Internet Gambling Enforcement Act

The Department of the Treasury and the Federal Reserve Board on Friday announced the release of a joint final rule to extend the compliance date for their joint regulation implementing certain provisions of the Unlawful Internet Gambling Enforcement Act by six months to June 1, 2010.

4 Comments to “Confirmed: UIGEA Delayed until June 1, 2010”

  1. DanM

    Kinda interesting that they put this out on the slowest news day of the year. You can be sure that’s not coincidental.

    Here’s the PPA Press Release:

    Fed, Treasury Accept PPA Request to Delay UIGEA

    WASHINGTON, DC. (November 27, 2009) –The Poker Players Alliance (PPA), the leading poker grassroots advocacy group with more than one million members nationwide, today applauded the six month delay of the implementation of the Unlawful Internet Gambling Enforcement Act (UIGEA) regulations. The Federal Reserve and Department of Treasury today extended the deadline for UIGEA enforcement until June 1, 2010, which is the result of a petition filed by the PPA, the National Thoroughbred Racing Association and the American Greyhound Track Operators Association. The groups filed the petition for an extension in order to give lawmakers and financial institutions more time to clarify definitions contained in UIGEA, as well as develop policies and procedures to ensure compliance with the law.

    “The PPA is extremely pleased with the decision by the Federal Reserve and Treasury to grant the six month extension. This is a great victory for poker, but an even greater victory for advocates of good and fair public policy,” said PPA Chairman and former Senator Alfonse D’Amato. “These additional months are critical to provide legislators time to clarify UIGEA and pass legislation to license and regulate poker early next year. It is our hope that another extension would be granted should the deadline approach before these pieces of legislation can be passed.”

    Concerns about the vague language contained in UIGEA, and the resulting challenge of enforcing the law, have been raised by the banking and gambling communities since the law was passed in 2006. PPA members have been, and continue to be, contacting their members of Congress via phone, email and visits to urge clarification of the UIGEA regulations. In fact, over 300,000 letters alone have been sent to members of Congress by PPA members.

    Given the significant struggles of banks over the past few years, deputizing them to enforce a poorly written and overly vague law would add to their already heavy burden. To this end, several leading banks and financial services groups also expressed their support of a delay with the Federal Reserve and Department of Treasury.

    Delaying implementation of the UIGEA regulations, which were pushed through by the previous Administration at the eleventh hour, will give Congress time to clarify the law to give clearer direction to the banks and those impacted by UIGEA.

    While pleased with the delay, the PPA remains committed to passing legislation to license and regulate online poker. UIGEA does not provide protections for underage and compulsive gamblers – the licensing and regulation proposed in legislation such as Chairman Barney Frank’s H.R. 2267 and Senator Robert Menendez’s S. 1597 would protect these vulnerable communities. A hearing will be held December 3rd in the House Financial Services Committee on Chairman Frank’s bill.

    “PPA is continuing its efforts to urge members of Congress to implement thoughtful and effective regulation of the online poker as opposed to outright prohibitions, which history has shown do not work,” said D’Amato. “We are thankful to our co-petitioners the National Thoroughbred Racing Association and the American Greyhound Track Operators Association and for the dozens of members of Congress who voiced their support for this petition through letters to Secretary Geithner and Chairman Bernanke. The PPA looks forward to working with regulators and legislators to pass legislation that protects consumers and the great game of poker.”

  2. Andrew

    Here’s the real kicker:
    “The Agencies believe that a six month extension is
    sufficient for regulated entities to address issues related to the definition of “unlawful
    Internet gambling.”

    Guess the PPA will be even busier over the next six months to make its case. Not over yet by any means…

  3. Beanie

    This always felt like Y2K or Sasquatch to me. In six months it will then as well. I don’t think they care about it, I don’t think they should care about it and if they don’t define it sufficiently I doubt it will matter.

    One thing good about this ruling though is if they define it and the logical conclusion would be that poker and casino games are not covered (they aren’t currently as most people know) then regulation isn’t needed. The only reason anyone wants regulation is so they won’t need to be bothered. No one really wants to be regulated because for the most part everyone is happy with the way things are.

    I still wonder if we offered up a restriction on gambling advertisements if that could get us over the bar. I think that might get us where we want to be but I doubt the online poker rooms want to concede that.

  4. Zoe

    Looks like it is just another example of red tape being processed through an already slow system, which does not surprise me at all. Would like to hear the (happy) end to all this, but nonetheless great news.