New Study Shows UIGEA is a Burden

April 9, 2008

According to a new study by the Competitive Enterprise Institute that was just released, the Unlawful Internet Gambling Enforcement Act or UIGEA has turned out to be more of a burden than anything else on the US government. The fact remains that online gambling has not been made illegal, but the burden that has been placed on financial institutions has been too much for many to bear.

Published the 27th of last month, the study says that the UIGEA is simply a regulatory mandate on financial institutions such as banks, credit unions, brokerages, credit card companies and wire transfer services. It has forced them to stop doing business with anyone who could be deemed involved in online gambling, and has put an undue burden on them in trying to identify who these companies are.

According to the study, the act won’t stop online gambling, however, it could “threaten the stable, smooth operation of America’s banking system.” All it does it take away freedoms and privacy that is awarded to banking customers, making people less inclined to open accounts that may be looked at to see what you are spending your money on.

They say that the “financial privacy” of all Americans is at stake, and that the Act “makes no sense” from any viewpoint. The company says that the UIGEA needs to be repealed, and reexamined. Then perhaps they can start looking at regulatory controls and the like to see how they can protect people involved in the online gambling industry.

Back to April 2008 Archive.