Forbes – The poker world has pushed for federal legislation in the several years following the introduction of the 2006 Unlawful Internet Gambling Enforcement Act (UIGEA) – the bill that effectively made it illegal for US banks to accept deposits from online poker sites due to the implied likelihood of money laundering. The group’s hope is that a uniform, regulated environment would dissipate any fears created by the UIGEA’s passage, and that players, online poker sites and banks can work and play together with confidence.
But just how close is that dream to becoming a reality? And how bumpy has the road been to get to the current state of affairs?
Lobbyists for the poker industry were pleased in October 2012 when Senate Majority Leader Harry Reid (D-NV) presented Congress with a bill co-authored by Sen. John Kyl (R-AZ). It was initially presumed that the bill was geared toward creating a more comfortable and secure environment for US Internet poker to flourish. However, the text within the bill destroyed such a presumption.
Cumbersomely named the Internet Gambling Prohibition, Poker Consumer Protection and Strengthening UIGEA Act of 2012, the bill’s purpose was in essence, “to ensure an effective Internet gambling enforcement structure that leads to a substantial and sustainable decrease in Internet gambling.” (emphasis added).
Like most proposed federal legislation, the bill proved awkward in its directives, which is most likely why it never made it past the floor of the House of Representatives. The Act authorized online poker and horse racing, but then prohibited “house-banked games or sports betting,” thus shooting itself in the foot. Additionally, any states or Native American tribes that did not already have legal online wagering on their books as of May 1, 2012 would be prohibited from instituting same. That date was carefully chosen to ensure that no state could effectively compete with Nevada.
