The US House Financial Services Committee has rejected Bill H.R.5767 that would have blocked the implementation of the 2006 UIGEA: Unlawful Internet Gambling Enforcement Act.
The amendment would have required the Treasury & Justice Department along with the Federal Reserve to define the term “Unlawful Internet Gambling”. There is argument that without a clear definition of the term it will be impossible to enforce the act.
The baking industry has expressed its concern at having a role to play in regulating the online gambling sector. The bill was rejected with the comment that the proposal was “a banking issue, not a gambling issue”, with the comment that the banking industry should not have the right to determine what is legal.
The bill’s defeat is likely to be seen as a blow to the online gambling sector as well as the banking industry.