postheadericon UIGEA’s Fight Against Gambling

In 2006, the United States of America enacted a regulation to stop online gaming within the country. The Unlawful Internet Gambling Enforcement Act or UIGEA resulted in the end of numerous online gaming sites, but it was not effective in completely shutting down the industry. With authorities unable correctly to enforce the regulation and the majority of gamblers unaware or ill-informed on the act, there have been little or no consequences for those that continue to operate. In the chaos that followed the passing of the law, many Americans continued to play, ignoring the act while some companies continued to operate in the USA, ignoring the risk of being punished, or moved their operations elsewhere, despite the higher cost. These days, numerous online gaming websites are still operating with many US gamers eager to spend their time and money at these websites and the UIGEA is still incapable of completely controlling such operations.

Enforcement of the law was brought about in two steps. First, a legal outline was set up for the issuance of licenses for gambling portals. It considered different factors in the operations of these websites and was introduced to allow the Financial Crimes Enforcement Network to manage activities at these sites. The enforcement strategy also categorized games, so that it could specify the ones that are included in the confines of the UIGEA. This system was never a straightforward one, and it has been the chief reason for gaming’s fight against the UIGEA.

In many ways, this can be seen as a regulation that was to protect online gambling gone wrong. Sadly, due to unsystematic ordering, it has caused a lot of problems in the online gambling world which faces a dismal future all of the sudden. Stockholders backing the various portals also pulled out funds abruptly following the regulation, over the concern that they may lose their money. This in turn led to many gambling sites closing down due to high operational costs that they could not afford. Over time, with more and more websites shutting down, the scenario painted a dim picture on the future of online gambling.

Introducing the regulation in just a few states was one of the worst steps, and it resulted in much controversy. Most often affiliates were mixed up about their status and what applied to them. It was unclear if the act was put in place to abolish gambling online and to stop Americans from gambling on line, or to introduce control in the industry. The majority people were not clear if there was an abolishment in their state, and if the regulation was actually banning them from engaging in online gaming. In many cases, even states were unsure about the UIGEA’s intent. In reality, the law did not really ban American gamblers from gambling online or joining gambling sites, since it was created to put a structure in place, that could be streamlined and make operations controllable.

Investors were not the only ones to pluck out during these times of doubt. gamers also ceased playing gambling games online to make sure that they would not find themselves in problems with the law. This made it even more difficult for the gaming sites, as they were losing clients while being faced with higher operating costs and licenses required by the regulation. Though public awareness campaigns were started, the level of confusion surrounding online gambling was so great, that such campaigns had very little effect in reversing the harm that was done to the business. Today, most people still think that the UIGEA was a ruse by the American government to abolish American citizens from online gambling. Obviously, online gaming portals have the potential to bring in high taxes for the government if properly managed. Clarity in the system and better understanding provided to the public could have relieved some of the issues that the law has created in the industry.

The education campaign that came later, has done little to quell worries of playing online on different websites. The public need to get their poise restored, before coming back to enjoy their favorite games. Today, they have resigned to the feeling that online gaming prospects are doomed. What is now demanded, is damage control to stabilize the system and nurse it back to health. Until then online gambling’s struggle against the UIGEA will carry on.

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