I'm still early on in the 52 pages but I found a very positive sentence describing the way the federal government has interpreted the UIGEA:
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The Act does not spell out which activities are legal and which are illegal, but rather relies on the underlying substantive Federal and State laws.
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That's good! So all internet sportsbetting is illegal (which we already knew), and other internet gambling from within one of the 11 states is illegal. That's wonderful news for those of us who don't bet on sports and don't live in one of those 11 states. It's confirmation from the federal level that we aren't breaking any laws.
Here's another good-sounding sentence:
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The Agencies are proposing to exempt all participants in the ACH systems, check collection systems, and wire transfer systems, except for the participant that possesses the customer relationship with the Internet gambling business.
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It sounds to me like that would be both effective and easily worked around.
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The proposal would provide an exemption for the ACH system operator because it is not reasonably practical for the operator to identify and block a particular ACH transfer as a restricted transaction. The ACH system operator’s function is to act as the central clearing facility for ACH entries. The ACH operator sorts the entries by RDFI routing information and transmits the payment information to the appropriate RDFI for posting. The ACH system operator would not have any direct interaction with either the gambler or the Internet gambling business and would not be in a position to obtain the necessary information to analyze individual transactions to determine whether they are restricted transactions. In addition, ACH operators use highly-automated systems to sort large volumes of ACH entries without manual intervention. A requirement to analyze each ACH entry manually to determine whether it is a restricted transaction would substantially increase processing times for all ACH entries, including entries that are not restricted transactions, and reduce the efficiency of the ACH system. Moreover, even if the payee information on an ACH entry is analyzed manually, it is very difficult for an ACH operator to determine whether the ACH entry is related to a restricted transaction.
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Big brother is... not watching?
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The proposed rule does not include ongoing monitoring and testing within the examples of the policies and procedures for ACH systems, check collection systems, and wire transfer systems because these systems currently do not have the same level of functionality for analyzing patterns of specific payments being processed through the system.
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I am not a lawyer so you shouldn't believe anything I just said.