UIGEA repeal gathers momentum

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Achieving wide coverage across the news wire services and numerous international publications today (Thursday) are comments by U.S. Congressman Barney Frank on his intention within the next two weeks to seek the repeal of the U.S. Unlawful Internet Gambling Enforcement Act.

Pushed through Congress late last year in an evening sitting just before a Congressional adjournament for electioneering, and attached to an unrelated but "must pass" Bill, the UIGEA has proved universally unpopular with American players, whom it forbids to conduct financial transactions with online gambling companies. The Act has caused widespread disruption in the U.S. market and been responsible for substantial investor and corporate losses on the London stock exchange.

Speaking from Belgium whilst on an overseas visit, Frank said he would commence activities lift the U.S. ban in the next two weeks, but emphasised that it was too early to make any substantial moves to lift US online gambling restrictions ruled illegal last month by the World Trade Organisation in the dispute between Antigua and the USA over discriminatory provisions in US anti online gambling law.

Congressman Frank, a senior Democrat who chairs a key Congressional committee that oversees financial services, told reporters that the online gambling bill passed last fall was "one of the stupidest things I ever saw."

"I want to get it undone. I plan to file legislation," Barney said, explaining that he would lay out his plans in the next couple of weeks but would not move them forward until other lawmakers are on board.

"I think a reconsideration among my colleagues is beginning," he said. "It's not far enough along yet so I wouldn't move the bill but I plan to introduce the bill and if the storm of public unhappiness is great enough, I will try to substantially revise that ban."

Frank's House Financial Services Committee alone could not do more than lift a ban on using credit cards to pay for Internet gambling, he said.

The American financial restrictions irked European Union member states which were home to online gambling firms forced to withdraw from the United States. The bloc's internal market chief Charlie McCreevy has hinted he may challenge the ban at the World Trade Organisation.

Last month the WTO said the ban violated international trade law as it still allowed online bets for horse racing.

Frank, who held talks with McCreevy during his visit to Europe, said the bill will be introduced or registered within a couple of weeks to test the level of support.

Poker players were lobbying for an exemption from the ban just for their game but Frank was "unpersuaded."

"I am not going to draw a distinction between poker and blackjack," Frank said.