Unlawful Internet Gambling Enforcement Act

The Unlawful Internet Gambling Enforcement Act of 2006, also known as UIGEA, is a piece of legislation that was actually included within the Security and Accountability For Every Port Act of 2006 that was added to in the last minute prior to being enacted into law.

The Unlawful Internet Gambling Enforcement Act was included under Title VIII of the SAFE Port Act and is meant to restrict any kind of illegal gambling that is done through the internet. The Unlawful Internet Gambling Enforcement Act specifically prohibits the transfer of any kind of funds from financial institution to gambling sites found on the internet. However, the Act does not include online lotteries, fantasy sports, or horse racing.

Illegal gambling on the internet can prove to take various forms, though a major aspect of this has to do with offshore or foreign sites where there are no controls in regards to gambling, or simply, have less restrictions than in the United States. Therefore, illegal gambling could constitute in engaging in certain practices that are illegal in the United States, but since internet site abroad will abide by those rules, could create a loop hole for such illegal gambling practices.

The Unlawful Internet Gambling Enforcement Act was implemented to essentially close that loop hole. However, there has been some dispute in regards to the actual legality of the legislature, particularly in terms of the World Trade Organization, of which the United States is a member. Currently, there is legislation pending in regards to the ultimate future of the Act as currently implemented.

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