Feeds

Online gambling law regs revealed

Unfinished business for late law

The essential guide to IT transformation

The US Treasury Department (DoT), in consultation with the Department of Justice, last week finally released proposed regulations for enforcement of the Unlawful Internet Gambling Enforcement Act (UIGEA).

The UIGEA wreaked havoc on the internet gambling industry when it was passed last October, and the proposed regulations are more than three months late.

The proposed regulations call for a six month comment period from the payment processing industry, and in truth, actual implementation will come some time after that to allow the Treasury to analyse the comments. It seems likely that actual implementation of the most influential unenforced law in American history will not happen until mid-2008 at the very earliest.

Of course, the damage has been done, with most of the gambling companies having fled the American market long ago, leaving a trail of angry customers and decimated share prices in their wake. The law put the onus on banks and other merchants in the processing industry to block restricted transactions with internet gambling companies. Banks and those in the cheque processing industry complained vociferously about having to check some transactions manually, and the DoT seems to have taken those concerns to heart.

As proposed, the regulations restrict implementation of the law to those in the processing industry who have any kind of hope of deciphering the origins of the transaction in question. International transactions pass through multiple parties on their way to a final deposit, and the regulations essentially cut out middlemen and those on the backend of the transaction who have no connection with the original suspect transaction.

The law also has a catch-all opt-out provision for those companies that can demonstrate to the DoT that the law would impose an undue hardship.

The regulations, long overdue, seem to say as much about an ambivalent regulatory attitude at the DoT as they do about the merits of the law itself. The proposed regulations add a regulatory burden and criminal liability that have nothing to do with industry malfeasance and have been opposed strongly by the very industry they regulate, and the proposals seem designed as much to placate the industry as to prevent suspect transactions.

With WTO claims mounting fast, it almost seems like a stalling tactic by a dissatisfied bureaucracy.

As many are starting to realise, the real battle is at the WTO.®

Burke Hansen, attorney at large, heads a San Francisco law office

The essential guide to IT transformation

More from The Register

next story
Britain's housing crisis: What are we going to do about it?
Rent control: Better than bombs at destroying housing
Top beak: UK privacy law may be reconsidered because of social media
Rise of Twitter etc creates 'enormous challenges'
GCHQ protesters stick it to British spooks ... by drinking urine
Activists told NOT to snap pics of staff at the concrete doughnut
What do you mean, I have to POST a PHYSICAL CHEQUE to get my gun licence?
Stop bitching about firearms fees - we need computerisation
Ex US cybersecurity czar guilty in child sex abuse website case
Health and Human Services IT security chief headed online to share vile images
We need less U.S. in our WWW – Euro digital chief Steelie Neelie
EC moves to shift status quo at Internet Governance Forum
Oz biz regulator discovers shared servers in EPIC FACEPALM
'Not aware' that one IP can hold more than one Website
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.