BARNEY'S BILL BEFORE HOUSE FINANCIAL SERVICES COMMITTEE (Update)

20 June 2008

HR5767 seeks to halt implementation of the UIGEA


HR 5767, the bill introduced by Congressmen Barney Frank and Ron Paul on April 11 that seeks a moratorium on the implementation and enforcement of the UIGEA (see previous InfoPowa reports), has moved to "mark-up" stage in the House Financial Services Committee where amendments can be suggested before the Bill goes before the House of Representatives.

In its current form the bill would prohibit the Treasury Department and Federal Reserve from "proposing, prescribing or
implementing" any regulations under the Unlawful Internet Gambling Enforcement Act. The Act has been the subject of widespread criticism for its lack of precision and practicality, and the burden it places on the US banking industry, and thus far 18 Representatives have signed up as co-sponsors to stop it in its tracks.

The nature of any amendments suggested, and the further progress of the proposed legislation will be watched with considerable interest by the industry, which has been adversely impacted by the UIGEA and its ban on financial transactions with online gambling companies.

However, it faces a long and difficult road because it seeks to halt the continued drafting of supporting regulations for the UIGEA and will be strongly opposed in the House and the Senate.

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