In breaking news from Capitol Hill, the mandatory compliance date for the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA), which came to life as midnight rules earlier this year by the outgoing Bush administration, will likely be delayed six months, according to several high-profile sources in the industry. Originally, the financial services industry in the United States had until December 1st to come into line with the 2006 law. Now, that date appears to be June 1st, 2010.
No official comment from U.S. Treasury Secretary Timothy Geithner (pictured at left) or Federal Reserve Chairman Ben Bernanke had been issued at press time. Interactive Media Entertainment and Gaming Association Chairman Joe Brennan told PocketFives.com, “I’m surprised because normally it's unusual for the Treasury to do this. Regardless of whether it was the Poker Player Alliance's (PPA) pressure, the banking industry's pressure, or Congressman Barney Frank's pressure, it’s encouraging to see. It's the first time you could say that things have stopped going against the industry here in Washington, DC.”The PPA, the poker industry’s main lobbying force, was among several groups that authored letters to Bernanke and Geithner urging that the mandatory compliance date for the UIGEA regulations be pushed back until December 1st, 2010. Others who chimed in included the National Thoroughbred Racing Association, the American Greyhound Track Operators Association, and members of Kentucky’s Congressional delegation, which feared that overblocking of legal internet gambling transactions could stunt online wagering on horse racing. In New Hampshire and North Dakota, overblocking led to denial of legal online lottery purchases.
Sources noted that final confirmation of a six-month delay had not yet been issued. Given the December 1st deadline, Geithner and Bernanke had until next Tuesday to issue a formal statement. On Thursday, residents of the United States will celebrate Thanksgiving, leading to a possible announcement coming on Friday or Monday. No timeline was available at press time.
On Thursday, December 3rd, a hearing at 10:00am ET in Room 2128 of the Rayburn House Office Building will see discussion of HR 2266 and HR 2267. The former delays the compliance deadline of the UIGEA regulations by one year to December 1st, 2010, although whether it will still be discussed given today’s news of a six-month extension is not yet known. HR 2266 has 53 co-sponsors on both sides of the aisle and is the brainchild of Frank, who introduced the measure in May.
On the same day six months ago, Frank introduced HR 2267, which establishes a full framework for internet gambling companies to solicit U.S. business. HR 2267 is up to 63 co-sponsors and has the full support of industry organizations like the PPA. When the UIGEA was approved three years ago, the new law drove online poker sites like PartyPoker and Paradise Poker out of the market entirely. The publicly traded companies Party Gaming and Sportingbet own the two sites, respectively; both can be found on the London Stock Exchange.
When the six-month extension expires, an option for an additional delay appears to be part of the plan as well. June 1st will mark the end of six months. Then, the country will be immersed in the 2010 elections, which will take place in November.
We’ll have more for you on this breaking story as it develops right here on PocketFives.com.
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