House Financial Services Committee rejects UIGEA amendment bill.

The House Financial Services Committee has declined a bill today that would have keep the Treasury Department and the Federal Reserve from planning and put into practice policies to impose the Unlawful Internet Gambling Enforcement Act.

The House Financial Services Committee accepted the amendment presented by Rep. Peter King (R-NY) that would not only stop the execution of any of the regulations described in the UIGEA, but would also obligate the Treasury Department, the Justice Department and the Federal Reserve to describe the legal parameters and definition of “unlawful internet gambling”. Rep. King also manifested that this "was a banking issue, not a gambling issue" and that the banking businesses and commerce shouldn’t have the permission of determining what is legal and what’s not.

King’s gambling amendment was rejected by the full committee with a vote of 32 for and 32 against. The original bill proposed by Rep. Barney Frank (D-Mass.) and Rep. Ron Paul (R-Tex.) was defeated in a voice vote.

The decision of ruling against the proposition is a slap in the face for the online gambling industry, which has been looking to take down or at list ease the online gaming bill, and the banking industry, which doesn’t want to get involved in the online gaming regulation.The U.S has also attended several WTO hearings regarding trading violations that directly affect the online gaming and sportsbetting industries outside the U.S.

"The PPA is surprised that the Financial Services Committee today failed to clarify what constitutes 'unlawful Internet gambling' under the Unlawful Internet Gambling Enforcement Act (UIGEA). The King Amendment would have required a separate formal rulemaking with an administrative law judge to determine the definition of unlawful Internet gambling. The Federal Reserve, Department of Treasury and the banking industry have all testified before Congress that the lack of a definition of 'unlawful Internet gambling' makes it extremely difficult if not impossible to enforce this law and would result in a broader review and denial of financial transactions because they could possibly be deemed unlawful under UIGEA" said Alfonse D'Amato, chairman of the Poker Players Alliance.