Proposed UIGEA Regulations: Burden without Benefit?

Washington, DC—Representative Luis V. Gutierrez (D-IL), chairman of the Subcommittee on Domestic and International Monetary Policy, Trade and Technology (pictured right) announced that his subcommittee will hold a hearing to discuss proposed regulations to the Unlawful Internet Gambling Enforcement Act (UIGEA) on Wednesday, April 2, 2008 at 10:00 a.m.

This is a subcommittee to the House Committee on Financial Services, chaired by Massachusetts Representative Barney Frank, an outspoken opponent of UIGEA, who introduced the Internet Gambling Regulation and Enforcement Act, a bill that seeks to overturn UIGEA and legalize online gambling by establishing a system to regulate the industry.

Under Frank’s bill licensing provisions would be established to guard against the four bugaboos cited as reasons to support UIGEA: underage gambling, compulsive gambling, money laundering and fraud.

If Frank’s bill were to be enacted, online gambling operators would be licensed subject to a review of their financial condition, corporate structure, and criminal background. The bill also gives the Director of the Financial Crimes Enforcement Network authority to establish regulations and to license internet based poker and casino web sites.

The title of the hearing is Proposed UIGEA Regulations: Burden without Benefit? The title pretty much sums up this issue as far as I’m concerned.