Online gambling has become very popular around the world.  Unfortunately, Americans haven’t had much luck when it comes to gambling due to restrictions imposed on them by the Federal government.  There are online casinos and online bingo sites claiming to allow US players, but credit card companies block any transaction related to gambling, so Americans find themselves shut off from the online gambling industry.

With the recent boom online bingo, it looks like they are finally getting an option, but they are still in danger as long as the law prohibits them.  The main reason that’s stopping US residents from gambling online is the Federal Bill that was passed called UIGEA.

Unlawful Internet Gambling Enforcement Act or UIGEA

Unlawful Internet Gambling Enforcement Act is under the Safe port Act of 2006 signed by President Bush.  He signed the act into law last Oct. 13, 2006.  The UIGEA prevents the transfer of funds from a financial institution to any Internet gambling site with the exception of horse racing, online lotteries and fantasy sports.

This is the main reason why US residents are not allowed play in online bingo rooms.  Online gambling sites, networks and operators took a huge blow from this act, and many companies were forced out of the US market due to the prohibition of Internet gambling.  Now, the Act is being redrafted by the US Treasury before Bush’s administration ends.  It’s a race against time as the new president elect takes the seat on the White House for a new administration.

This last-minute push is a common practice as the administration changes, and it is called the midnight drop.  Unfortunately, this Act hasn’t clearly defined what an illegal transaction is, and there has been much confusion over the issue.  Now, a new draft was created and sent to Office of Management and Budget.

Uncertain Future of Online Gambling

Right now, the situation of online gambling is still unclear.  Generally, US residents cannot play since their deposits are just going to be blocked.  The online gambling industry is hoping that this will get cleared soon, so US residents can enjoy their favorite online bingo and online casino games like everybody else in the world.  There are online gambling sites that welcome US players, but this may also be a gamble for  US citizens.

Let’s hope that the new administration will be more sensible to the online gambling industry and community.  Obama is just about to begin his administration, so the online gambling industry has to wait and see.

For the online gambling industry and online bingo games operators alike it’s been a bad day at the office with news that US Congressman Barney Frank’s attempt to halt the implementation of UIGEA regulations has failed.

The delayed vote on Frank’s HR5767 bill failed due to a tied 32-32 vote before the Financial Services Committee.

The result is that US banks face having to become regulatory enforcers of UIGEA’s attempt to restrict financial transactions between US gamblers and non-US online gaming companies. UIGEA has been criticized as both unworkable and a drain on US banks’ resources at a time when US banks are under severe pressure due to the current credit crunch.

Online bingo industry observers had hope HR5767 would be successful and possibly lead towards a re-opening of the US gambling market to non-US online bingo halls. The failure of the bill to pass has dealt a blow to such hopes, though bingo online operators have successfully explored other markets since the inception of UIGEA in late 2006.

An industry analyst has stated that a potential deal between online gaming company PartyGaming and the US government over the former’s possible prosecution under the notorious UIGEA policy is ‘premature’.

PartyGaming operated online games, including online bingo games, in the US market before the implementation of UIGEA in late 2006. The US government may take legal action against PartyGaming for its pre-UIGEA activities if an agreement cannot be reached.

Numis Securities analyst Richard Carter has noted that a potential deal is probably still months away.

PartyGaming operates online bingo hall PartyBingo, a popular UK online bingo site. The PartyGaming case is seen by many bingo online observers as a bellwether for where US government policy is heading regards the US online gaming market.

The US’ UIGEA policy restricts UK bingo online games operators from doing business in the US market.

The anti-Unlawful Internet Gambling Enforcement Act (UIGEA) bill introduced last April 10 by US Congressmen Barney Frank and Ron Paul has already garnered the support of ten co-sponsors.

The Frank/Paul bill seeks to stop implementation of the notorious UIGEA which saw many non-US gaming companies forced out of the US market.  The progress being made by the new bill signals a promising turn of events for online bingo games operators and online bingo halls hoping for a return to the lucrative US online gaming market.

Frank and Paul put the new bill before Congress after a hearing by the House Financial Services Subcommittee on Domestic and International Monetary Policy, Trade, and Technology that demonstrated the pitfalls and problems with implementing UIGEA.

Canadian MP Roy Cullen has set off alarms amongst Canadian and international online bingo players and online bingo halls with his intention to table a new bill before Parliament based on the US’ controversial Unlawful Internet Gambling Enforcement Act (UIGEA).

Speaking of his proposed bill to Interactive Gaming News, Cullen said “My bill is closely modeled off legislation in the US, except that it doesn’t distinguish between offshore and onshore gambling.”

The US’ UIGEA law decimated the online gaming industry last year forcing many online bingo games operators to quit the US market. UIGEA seeks to disrupt financial transactions between US-based players and online gaming operators. At this time bingo rooms like Wink Bingo and other UK online bingo halls are open to Canadian players.

Cullen is reported to have asked the Canadian House of Commons about what the government is doing about illegal Internet gambling. He is also reportedly working with the country’s Minister for Justice in finding a solution.