Four Republican Congressmen have become the first from their party to formally declare their lack of satisfaction with the UIGEA. The act, which prohibits financial institutions from transferring funds to online gambling proprietors, has previously come under fire from both banks and lawmakers over it’s lack of clarity.
Congressmen Judy Biggert, Jim Gerlach, Christopher Shays and Kevin McCarthy were concerned in particular with the lack of a formal definition for “unlawful internet gambling.” In their letter to the Federal Reserve and U.S. Treasury the quartet suggested that they felt that the law could not be properly enforced without additional clarification in many areas. If not completed now the job of detailing exactly what it is for something to be “unlawful internet gambling” would most likely fall to a judge, if a case ever came to trial. They expressed their believe that it is both fiscally and legally preferable to complete that work in advance of any actual court proceedings.
In addition to calling for increased clarity for “a rule that leaves so much to interpretation,” they requested that an Administrative Law Judge (or similar) be put in charge of rule-making on the issue. Also they deemed the undertaking of a Regulatory Flexibility Analyses to be essential in discovering the costs of the UIGEA to small businesses.
Despite their qualms all four were keen to point out that they voted for and still support the bill, but feel that it cannot be properly implemented unless their outlined amendments and clarifications are forthcoming.
To read the letter in full click here.