New Online Gambling Bill Passes House Committee - 09-25-08

September 25 -In the past week, The United States House Committee on Financial Services successfully passed a revised version of Rep Congressman Barney Frank's Payments System Protection (PSP) Act. This follows an initial unsuccessful attempt to pass the PSP in April this year.

The Unlawful Internet Gambling Enforcement Act (UIGEA) has come under sever criticism in numerous areas, not least the fact that it is seen to not definite the meaning of "Unlawful Gambling". The PSP Act is aimed at assisting The  Department of the Treasury and Federal Reserve System, in consultation with the Attorney General, to appoint a special Administrative Judge who will be tasked to define 'unlawful' online gambling. Part of the mandate will be a study to asses the impact and cost of compliance. .

The Bill still requires enactment. If it is successful, it would in effect result in a delay of the implementation of regulations under the UIGEA of 2006. The new bill will be aimed at ensuring that regulations do not impair the functioning of the US payments system or inappropriately prevent legal online transactions.

The Bill passed by a vote of 30 to 19, but has been the subject of criticism from sports leagues including Major League Baseball. Regardless it will go before the the House of Representatives or  a final vote.

Frank has been openly opposed to the implementation of the UIGEA following concerns raised by the financial services industry that they themselves would have to determine what is unlawful as the UIGEA is was not table to specify the distinction.

Frank commented that "at least the banks will know what is and what isn't illegal."

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