Barney Frank Submits Bid to Delay UIGEA

With implementation of the Unlawful Internet Gambling Enforcement Act (UIGEA) approaching on the calendar, the efforts to delay that implementation are becoming more frequent and forceful.

The latest salvo from the pro-poker side: A letter from Barney Frank (D-MA) to Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke, co-signed by 18 Congressmen, requesting that their agencies delay implementation of the proposed UIGEA rules.

Frank’s letter follows a similar letter issued by a broad coalition of groups opposed to the UIGEA, including the Poker Players Alliance and American Greyhound Track Operators Association. That letter argued that implementation should be delayed for logistical reasons, claiming that the amount of institutions that would be unable to comply with the rules would essentially render them ineffective.

Frank’s letter makes a similar point, and goes on to argue that the current economic crisis makes supplementation of the rules uniquely inadvisable. With financial institutions already facing challenges, Frank posits, subjecting them to the additional burden compliance with UIGEA represents will drain resources that need to be focused elsewhere.

What’s the issue for banks? Basically, the UIGEA forces them to block certain transactions, but the type of transactions that should be blocked are far from clear. Banks have to sort through a complex web of laws and a dynamic industry that will constantly be searching for ways to circumvent the regulations.

Frank’s letter doesn’t represent anything binding, but it does place pressure on Treasury to ensure that compliance with the rules is not only feasible, but also won’t result in any unnecessary economic harm.

Visit Barney Franks website here.

Visit the PPA here.