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New legislation to stop implementation of UIGEA

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  1. TheEngineer TheEngineer is offline Rich Muny - PPA Board VP

    KY
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    Apr 11th, 2008 (4/11/2008 6:22pm)

    Great news!

    <span><span><span>Frank, Paul Introduce Legislation to Stop Implementation of Antigambling Regulations</span></span>

    Washington, DCHouse Financial Services Committee Chairman Barney Frank (D-MA) and senior Financial Services Committee member Ron Paul (R-TX) have introduced legislation to prohibit the federal government from issuing regulations called for in the called for in the Unlawful Internet Gambling Enforcement Act of 2006. The legislation, H.R. 5767, will forbid the Secretary of the Treasury and the Board of Governors of the Federal Reserve System from proposing, prescribing, or implementing any regulation that requires the financial services industry to identify and block internet gambling transactions.

    These regulations are impossible to implement without placing a significant burden on the payments system and financial institutions, and while I do disagree with the underlying objective of the Act, I believe that even those who agree with it ought to be concerned about the regulations impact, said Rep. Frank.

    The ban on Internet gambling infringes upon two freedoms that are important to many Americans: the ability to do with their money as they see fit, and the freedom from government interference with the Internet. The regulations and underlying bill also force financial institutions to act as law enforcement officers. This is another pernicious trend that has accelerated in the aftermath of the Patriot Act, the deputization of private businesses to perform intrusive enforcement and surveillance functions that the federal government is unwilling to perform on its own, said Rep. Paul.

    Specifically, at issue is the fact that the regulations, like the underlying legislation, fail to define the term unlawful internet gambling, leaving it to each financial institution to reconcile conflicting state and federal laws, court decisions and inconsistent Department of Justice interpretation, when determining whether to process a transaction. Furthermore, some of the information needed to make this determination would likely be unavailable to banks, either because customers or financial institutions in foreign jurisdictions are unwilling or unable to provide it. At the hearing, the regulators themselves admitted that there are substantial problems in crafting regulations to implement the UIGEA that does not have a substantial adverse effect on the efficiency of the nations payment system.

    Chairman Frank and Congressman Paul opposed the UIGEA, and the two have been working on legislation, H.R. 2046 that would license and regulate online gaming. However, it was clear at the hearing that the regulations are unworkable for the financial services industry, and this bill would, therefore prohibit their implementation.

    On Wednesday, April 2, the DIMP Subcommittee held a hearing Proposed UIGEA Regulations: Burden Without Benefit? to examine the regulations issued last year by the Federal Reserve and Treasury on the Unlawful Internet Gambling Enforcement Act, which garnered more than 200 comment letters.</span>
     
  2. TheEngineer TheEngineer is offline Rich Muny - PPA Board VP

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    Apr 11th, 2008 (4/11/2008 6:22pm) in reply to TheEngineer

    <span>Frank Paul Bill text</span>
     
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  3. Dan Dan is offline Administrator

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    Apr 11th, 2008 (4/11/2008 7:17pm) in reply to TheEngineer

    Thanks for posting this. It's huge news. Here's the P5s article about it as well:

    http://www.pocketfives.com/online-po...k-to-end-uigea

    It's important that this is bipartisan legislation. As you'll see in the article, pressure is now mounting from all sides to reverse the harm caused by the UIGEA originally.
     
  4. ill flu ill flu is offline

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    Apr 14th, 2008 (4/14/2008 9:24pm) in reply to TheEngineer

    How long until we will know if this will go through or not?
  5. TheEngineer TheEngineer is offline Rich Muny - PPA Board VP

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    Apr 15th, 2008 (4/15/2008 12:26am) in reply to ill flu

     
    Originally Posted by ill flu View Post


    How long until we will know if this will go through or not?

    We should have a good idea of its prospects within the next few months, but maybe this will go through faster.
     
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  6. TheEngineer TheEngineer is offline Rich Muny - PPA Board VP

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    Apr 15th, 2008 (4/15/2008 12:28am) in reply to TheEngineer

    My latest letter. As I've sent a few letters recently, this is intentionally short and more casual in tone:

    -----------------------

    The Honorable Geoff Davis
    United States House of Representatives
    1108 Longworth House Office Building
    Washington, D.C. 20515-1704

    Dear Congressman Davis:

    I am writing to ask you to cosponsor HR 5767. HR 5767 places a moratorium on enforcement of the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA).

    As you know, many banks have complained about being deputized to interpret and enforce EVERY state and federal Internet gaming law, which is what UIGEA requires. They complained in comments to Treasury and to the Federal Reserve. They complained even more at the April 2, 2008 Subcommittee on Domestic and International Monetary Policy, Trade and Technology hearing on the impact of UIGEA on our nations financial services industry.

    One thing the Subcommittee hearing made completely clear is that Congress needs to define unlawful Internet gambling before it can expect financial institutions to have any chance at effectively enforcing any ban on such activity. The idea that the federal government cannot define this concept, yet expects banks to perform this law enforcement function, is ludicrous. We ought not force our nation's financial institutions to perform this function.

    Thank you for your consideration.

    Sincerely,

    [me]

    -------------------

    Senator Mitch McConnell
    United States Senate
    361-A Russell Senate Office Building
    Washington, DC 20510

    Dear Senator McConnell:

    I am writing to ask you to sponsor a moratorium on enforcement of the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) in the Senate. The corresponding House bill is HR 5767.

    As you know, many banks have complained about being deputized to interpret and enforce EVERY state and federal Internet gaming law, which is what UIGEA requires. They complained in comments to Treasury and to the Federal Reserve. They complained even more at the April 2, 2008 House Subcommittee on Domestic and International Monetary Policy, Trade and Technology hearing on the impact of UIGEA on our nations financial services industry.

    One thing the 2008 Subcommittee hearing made completely clear is that Congress needs to define unlawful Internet gambling before it can expect financial institutions to have any chance at effectively enforcing any ban on such activity. The idea that the federal government cannot define this concept, yet expects banks to perform this law enforcement function, is ludicrous. We ought not force our nation's financial institutions to perform this function.

    Thank you for your consideration.

    Sincerely,

    [me]
     
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  7. Dan Dan is offline Administrator

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    Apr 16th, 2008 (4/16/2008 10:57am) in reply to TheEngineer

    Great example letters. It's important to let your Congressmen know that you want them to support HR 5767 and that you're registered to vote in their district. Both are extremely important to say.
     
  8. TheEngineer TheEngineer is offline Rich Muny - PPA Board VP

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    Apr 16th, 2008 (4/16/2008 5:58pm) in reply to Dan

    Good point, Dan. I write to my congressman and both Senators frequently and have met with their staffs in D.C. As they know I vote, I didn't need to mention it.

    For others using my letter as a template: you should add the fact that you're registered to vote in your district/state to your letter.
     
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  9. TheEngineer TheEngineer is offline Rich Muny - PPA Board VP

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    Apr 17th, 2008 (4/17/2008 11:46pm) in reply to TheEngineer

    Rep. Robert Wexler (D-FL) has cosponsored HR 5767.
     
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  10. Dan Dan is offline Administrator

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    Apr 18th, 2008 (4/18/2008 4:21pm) in reply to TheEngineer

    Wexler stated on the PocketFives.com Podcast that he was going to co-sponsor HR 5767 as well, so it's good to see this come to fruition:

    http://www.pocketfives.com/podcast
     
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