Just within the nick of time, word has escaped from highly-placed sources within the financial community that the U.S. Treasury will postpone enactment of the UIGEA rules concerning online gambling payment processing.

With only days left before the implementation of the UIGEA rules, sources inside the financial services industry are saying that the December 1st compliance date for blocking online gambling payments may be delayed another six months. In keeping with a report by PocketFives, a domain for online poker players, a proper announcement of the verdict to suspend implementation might be forthcoming from the Treasury.

The UIGEA rules were crammed onto the manager calendar as a collection of midnight rules, being put on the itinerary exactly in the future before the incoming administration of Barack Obama would have had say-so over the web casino block. Companies got a year to build mechanisms to conform with the law, which makes processing payments for illegal Internet gambling against the law.

But the UIGEA didn't define what constituted illegal gambling, and federal law leaves much open to opinion as to what's proscribed. The end result have been blocking of online gaming transactions clearly intended to be allowed via written exemptions within the UIGEA, reminiscent of state lotteries and horse racing, while financial companies reject all gambling as potentially dangerous legally.

Nineteen Congressmen, led by online casino hero Barney Frank, implored the Treasury and Federal Reserve to offer Congress more time to deal with the flawed legislation, sending a written letter to Secretary Tim Geithner and Chairman Ben Bernanke. Anti-gambling factions responded with a letter from Senator Jon Kyl and Representative Spencer Bachus, demanding the schedule be followed.

But this week, all the Kentucky delegation to the home of Representatives, a bipartisan group of 4 Republicans and two Democrats, asked again for a delay, citing unwanted blocking of online gambling on horse racing.

Formal proclamation of the suspension of UIGEA implementation is anticipated Friday or Monday, averting the Tuesday deadline with hours to spare.

Published on November 25, 2009 by JoshuaMcCarthy

Read More... [Source: UIGEA News]