Today the Unlawful Internet Gambling Enforcement Act (UIGEA), which was passed in 2006 as part of the SAFE Port Act, officially takes effect. What does that mean for online gamblers in the United States?

Not much, to be honest. The law makes financial institutions responsible for blocking transactions related to “unlawful” online gambling, though it doesn’t outline what is unlawful. UIGEA does not constitute a federal ban on online gambling and no such ban exists, though some states do have a ban on the books. Players cannot be punished under UIGEA; only the financial institutions can.

A result of the law is that many online casinos, sportsbooks and poker rooms have stopped accepting American customers, afraid that they or the players won’t get paid by the banks. However, most of those online gambling sites had already made the move and left the American market. In a sense, though it was not yet in effect, players have felt the effect of UIGEA for the last 4 years. Another effect is that VISA and MasterCard block transactions to and from online gambling sites, but again, they made that move before today. In a sense, the UIGEA taking effect today only matters in a symbolic nature, because it has affected the American online gambling market since 2006.

To some, it may seem surprising that the federal government would seek to control the financial industry in such a way and take liberties away from the people, but America has moved a long way from its roots and no longer resembles the collection of free states that the Founding Fathers created. It started in the early 20^th century under Woodrow Wilson, when the government expanded its power in a time of war. The Wilson administration controlled public opinion using a propaganda machine that would later be copied by Nazi Joseph Goebbels and imprisoned anyone who spoke out against the government. Many practices, such as the banning of books and prohibition of alcohol, were done in the name of protecting the people.

In the 1930s, FDR followed in his footsteps, imprisoning political dissenters, running internment camps for German and Asian citizens, and unleashing a New Deal economic policy that prolonged the Great Depression all in the name of an expansion of government power. Again, it was for the good of the people. Now we have the Obama administration taking over the healthcare industry and the financial sector. It is, of course, for the good of the people, to save us from another recession.

In between we had Harding, Coolidge, Reagan and a few others who attempted to take control away from the government and give it back to the people. The result in each instance was great economic prosperity. That is why there is now hope for a complete repeal of UIGEA and legalization of online gambling. Massive government takeovers always leads to a backlash and right now you can see it in the Tea Party movement. That is why I wrote earlier that the Tea Party movement is the best chance we have for a repeal of UIGEA. A Congress with many pro-gambling Democrats and pro-liberty Republicans would do the gambling community well.

Tags: gambling laws, gambling legislation, government control, online casino, online gambling, Tea Party gambling, UIGEA, Unlawful Internet Gambling Enforcement Act, US online gambling

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