History of Online Gambling Laws in United States of America

The scenario of online casino games in United States is somewhat different from any other countries across the world. This is because; US online gambling sector has consistently received opposition from the Government. Majority of operators responsible for providing online gaming services do not allow casino players from United States to enjoy casino games from their websites. Moreover, operators accepting the participation of American online casino players provide them with less or few online banking options.

The rules of UIGEA i.e. Unlawful Internet Gambling Enforcement Act have prevented large numbers of financial institutions to process their payments done in online casinos. Although, the rules mentioned in this gambling act has not become effective until now, but still majority of the credit card companies have put restrictions on all sorts of transactions associated with online gambling. Hence, rejections of credit cards at most of the online casinos have gone up in USA. Currently, credit cards provided by Amex did not reveal any of the rejection problems and was one of the popular and preferrable credit cards for US players. However, later on, rejection problems have severely surfaced with Amex credit cards. Therefore, alternative payment methods in the form of e-wallets i.e. electronic wallets have become very much popular in the online gambling sector of USA. Some e-wallets as Neteller have been withdrawn from the online gambling market of America. On the other hand, many other e-wallets such as UseMyWallet are still providing best and satisfactory results in the country of America. Players may wait for some amount of time to receive their payouts. These players like to obtain their funds via wirer transfer or paper checks.

On 1st of June 2010, rules of UIGEA have become effective in United States of America. In spite of this, DoJ i.e. Department of Justice have initialized prosecutions in opposition of organizations and individuals involved in processing of online gambling funds according to the laws enacting at that time. In the year 2009, most of the organizations have indicted to process online casino payments and have forwarded to their players. In fact, Justice Department have seized all the funds of players and initiated certain prosecutions in opposition to the processors. The scenario has become even bleaker after the implementation of UIGEA regulations.
However, there exist several chances for the repeal of UIGEA. A strong lobby has worked for obtaining the legalization and regulation of online gambling activities. On spearheading the movement, we may have anti-UIGEA bill to be sponsored by RBF i.e. Representative Barney Frank. Although, the gambling bill has been introduced in the month of May in 2009, the bill was held up due to the presence of many other pressing financial bill gambling. However, most of them have believed that House Committee would definitely give its vote in favor of this gambling bill. An identical gambling bill has introduced in Senate. The main problem with this bill was shortage of time. In two and half months, rules under UIGEA become effective and hence, second postponement seems to be of no use.

Another factor is proceeding towards the favor of online casino gaming activities in United States. The judicial opinion has indicated that in case states permit online gambling activities, then, in those states all the rules ofUIGEA become invalid. Majority of states in America have whipped for cash due to economical downturn. These states have taken several steps for legalizing of some of the particular forms of online gambling activities. After this, processing of payments in online casinos for these states will not be considered as illegal.


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