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October 23rd, 2006
Recently the Unlawful Internet Gambling Enforcement Act (UIGEA) was passed in the United Stares Congress. UIGEA has already had some impact on the online gambling community, but in reality it does not really change that much.
The UIGEA is making it unlawful for American financial institutions to process transactions used to make “illegal” bets. But it does not specify what an illegal bet is, which means that the new act does not change the legal status of online gambling in the United States. To see what is legal or not when it comes to online gambling we have to go to much older sources. The law that persons who claim that online gambling is illegal usually refers to is the 1961 Wire Act. It was created to make it illegal to place bets over a telegraph wire and attempts have been made to apply it on online gambling.
Most analyzers agree that the Wire Act makes sports betting online illegal but how to view online poker and online casino games is a lot more unclear. But neither online poker nor online casino gaming has been found to be illegal in a U.S. court. Even though the UIGEA does not change the legal status of online gambling it has definitely had an impact. Some of the largest online poker rooms such as Party Poker have suspended American players from their sites, but at the same time major sites like Poker Stars are allowing Americans to play.
The new law will be in effect in about nine months and what effect it will have is to early to say, but it is important to remember that the legal status of online will not change with the UIGEA.
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