Canada Feels Messy Wake of Online Gambling Ban

by Devon Chappell, News Staff Writer

May 2, 2009

Being that gambling is a thriving and lucrative international activity, gambling business between companies and banks from various nations is an inevitable outcome. But with gaps in regulatory standards, gambling business these days can be a very tricky matter. Case in point are the repercussions of the U.S. bill that seeks to prohibit certain forms of online gambling - the Unlawful Internet Gambling Enforcement Act (UIGEA).

If you've followed this legislation since its passing in 2005, you've certainly gotten wind of the extreme challenges and downright failings of the UIGEA. Seeking to prevent U.S. citizens from gambling at poker rooms, online casinos, sports betting sites - basically, everything other than State protected online lotteries and fantasy football - by blocking financial transactions, while doing nothing to aide the banking sector in identifying and blocking such transactions, the UIGEA has left a major mess in it's wake.

As mentioned, international repercussions are inevitable. It was the Caribbean island of Antigua and Barbuda who apparently suffered the most, having lost a major portion of its business in the form of U.S. facing online casino licensees. More recently, other countries and business entities are speaking up about the cross border effects of the UIGEA.

At the International Masters of Gaming Law Spring Conference in Windsor, Canada, representatives like Nova Scotia Gaming Corporation's VP, Maggie McGee, said the UIGEA is interfering with sales where regulation should exist. The Director of Legal Services for the British Columbia Lottery, Constance Ladell, said collateral damage is taking place as a result of overly cautious measures being taken by the financial services industry, which as mentioned, is inadequately equipped to determine what online activities are deemed illegal.

Most people will agree that the best thing now for the UIGEA is for it to be overturned and superseded by more concise and effective legislation, which has manifested into a piece of legislation penned by House Financial Committee Services Chairman, Barney Frank. The legislation is currently making its way through Congressional circles and drumming up much needed support.

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