US Casinos – The Legal Issues
There has been a lot of controversy around the “Unlawful Internet Gaming Enforcement Act” abbreviated as UIGEA signed by president Bill Clinton on Oct 13, 2006 and enforced from Jun 1, 2010. The spirit behind this bill initially was to put an end to money laundering activities in the US; it was not intended to stop online casinos from operating in the US. The law was also targeting those who doing illegal money transactions. It can be stated categorically that casino businesses in US has never been and it is not currently an illegal venture.
It is important to mention that online casinos are not necessarily based in the US, they may be anywhere in the world and accessed through the Internet where the US players can participate. However for it to be acceptable to participate in US online gaming it must pass strict depositing rules. However, there are some states in the US that further resitrctions apply. These include; South Dakota, Louisiana, Nevada, Michigan, Oregon, Wisconsin, Illinois, Washington, Indiana. Finer details of the law can be obtained from respective own State Laws.
Since the Unlawful Internet Gambling Enforcement Act (UIGEA) law was enacted in 2006, it has not blocked Americans from taking part in gambling, much as the outlawed betting and also constrained the ability of financial institutions to facilitate payment of gambling sites. UIGEA particularly restricts credit companies and banks from transacting money for betting.
To address the money transfer challenges, that is restrictions by many states to allow banks from accepting deposits and transfers. The internet gaming community have devised a systems where online bettors are required to set up electronic wallets which serves as online deposit accounts. These electronic wallets receive money from debit cards, credit cards or bank accounts, and then forward the money to the gambling sites. Given that most of the electronic wallet programs are not US. The US has very little control over it and therefore the regulations do not affect them.
In Essence UIGEA has not been that effective, as people who are keen to gamble in the restricted states have found their way to do so. This has been on rise since UIGEA was signed into law, as almost all Internet gambling sites have since been moved out of the US and established at offshore sites where betting is not regulated. Resulting of the global financial render down that has been on since 2008, the congress is seriously having a second thought about UIGEA, given that Betting is within the US laws, its being considered to be regulated so that the government can fetch huge source of tax revenue up to the tune of about $42 billion by 2020. Much as many congressional representatives may be opposed to online gaming. They do appreciate the fact that they can never inhibit Americans from betting.
As a matter of fact, Legalizing gambling online in US as always been a battle for supremacy in political circles. Some states have decided to pass their own intrastate gambling online laws; this will go along way that permits online gambling within those respective states. For instance , New Jersey was the first state to pass an intrastate online gambling bill in November, 2010 in both houses of its state legislature. As per now it is only waiting for the governor’s consent for it to be enacted.
The debate for making gambling clearly legal in the US market has majorly been strengthened by the enormous tax revenues that is otherwise being lost and this has now pushed to legislation of this business model so that it the government reaps revenue the and boost the economy currently running massive deficits.
Online casino players themselves have little or no fear from US internet betting laws or lack of it as it is not crystal clear. The Attorneys appreciate the fact that placing a gamble online is not against federal law. It may at times trigger transactions that are against the state laws, but despite all that the cases of prosecutions are not strictly followed. With the revenue collection through taxation in mind many more states of the United States of America will consider removing all barriers to this trade as it really has the potential or raising huge income. as it stands now people are still gambling even with those restriction that cannot have no legal bearing.