After rumors had circulated that the UIGEA compliance date could be pushed back on the last second, the Treasury and Fed did exactly that, delaying the net casino ban another six months.

In a joint statement today, the Federal Reserve and the Treasury Department announced the extension of the delay in mandatory compliance with the UIGEA rules concerning payments to online casinos. Financial institutions were granted a six-month reprieve to position systems in place to dam the processing of transactions to Internet casinos.

The date for implementation, which were set for December 1st, was moved back to June 1st. The federal government agencies were reacting to quite a few pleas to stall the enforcement of UIGEA rules until legislative alternatives may well be examined.

"Commentators expressed concern that the Act and the general regulation don't provide a transparent definition of 'unlawful Internet gambling,' that's central to compliance," said the federal statement. Numerous complaints have arisen attacking the web gambling ban for vague language, leaving interpretation to frustrated financial operators.

A group of 19 US Representatives, led by UIGEA foe Barney Frank, had asked for a delay while measures authored by Frank which might make the UIGEA moot might be considered in Congress. Then, after discovering horse race betting on the web was being rejected by  some card companies, the entire contingent of Kentucky Congressmen wrote a bipartisan letter to the Treasury, again soliciting for more time.

Despite demands by Senator Jon Kyl and Representative Spencer Bachus, two men instrumental in foisting the UIGEA onto a Homeland Security bill on the last second to circumvent proper debate or consideration, that the midnight rules be enacted as scheduled, the financial overseers decided to provide lawmakers a possibility to mend the numerous flaws within the unpopular online gambling ban.

Published on November 27, 2009 by JoshuaMcCarthy

Read More... [Source: UIGEA News]