Ever since the enactment of the Unlawful Internet Gambling Enforcement Act (UIGEA) back in October of 2006, the industry has been in flux in the United States. The regulations of the Act were drafted last year and opened for comment. Hearings have since been held in the House Financial Services Committee featuring witnesses from the United States Treasury and Federal Reserve, each of whom has testified that the law’s vagueness makes its enforcement an overly burdensome task. Recently, word broke that the Bush administration is seeking to enact the regulations of the UIGEA before November 19th. The final UIGEA rules were passed from the Treasury to the Office of Management and Budget (OMB) on October 21st. The Poker Players Alliance is at the forefront of the fight against its enactment and sent out an action alert to its members on Monday.

The PPA’s action alert read, “The current Administration is hastily finalizing a number of ‘midnight rules’ before they leave office and the Unlawful Internet Gambling Enforcement Act (UIGEA) is on the list. Just like UIGEA was snuck into legislation in the dark of night in 2006, our opponents are again trying an 11th hour sneak job. We need you to help us expose and stop this reckless rulemaking.” The PPA encourages its members, as well as any poker players interested in seeing the game of poker preserved in the United States, to call the Federal Reserve’s Consumer Complaints department (888-851-1920) or Public Affairs (202-452-2955).

The final regulations are in a sealed document. As such, it’s difficult to tell exactly how the UIGEA will be implemented in its final state. However, Michael Waxman, spokesperson for the Safe and Secure Internet Gambling Initiative, told PocketFives.com, “I think it’s wrong for the Bush Administration to rush through fundamentally flawed regulations that even representatives of the Treasury and Federal Reserve say will be difficult to enforce. This decision is one that banks and credit card companies have pleaded with Congress to stop.” Waxman added that the financial services industry will be bogged down with enforcing the UIGEA during one of the worst economic times in American history.

Of note is the involvement of William Wichterman, who is the Special Assistant to the President of the United States. As recently as March, he was a lobbyist for the National Football League(NFL). A letter by Tennessee Democratic Congressman Steve Cohen to White House Counsel Fred Fielding explained, “The National Football League has been among the most vocal advocates for the proposed rule and the underlying law [UIGEA]. I am sure you will agree that, at a minimum, the appearance of a conflict of interest is undeniable.” Whether an actual link exists between Wichterman and the NFL in urging the Treasury to send the UIGEA’s regulations to the OMB is unknown.

Safe and Secure Internet Gambling Initiative Jeff Sandman commented in a press release distributed by the industry organization, “The special interests, including the NFL, are clearly the big winners with this last-minute maneuver, leaving already struggling banks and financial companies to implement costly and poorly crafted regulations.” According to the Poker Players Alliance (PPA), the Bush administration has a target date of November 19th to approve and implement the regulations of the UIGEA. The rules will then enter a 60 day review period before formally being enacted. Shortly thereafter, President-elect Barack Obama will be sworn in as President of the United States and would be unable to reverse the action. A call placed to Frank’s office confirmed a target date of November 19th.

Finally, Congressman Barney Frank (D-MA) has authored a letter to Treasury Secretary Henry Paulson and Federal Reserve Charman Ben Bernanke asking each of them to put a halt to the regulations’ enactment. Frank’s letter to Paulson stated, “I strongly urge you to delay implementation of these major and deeply flawed regulations to permit the incoming Administration the ability to review the consequences of such a significant policy decision, rather than unfairly being denied that opportunity.”

PocketFives.com will keep its members updated on this breaking news as it develops.

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