The US House Financial Services Committee will hold a markup of legislation with the purpose to halt regulations preventing banks from accepting payments from online gambling companies. This comes as a part of two-part strategy of Congressman Barney Frank, chairman of the US House Committee on the Judiciary, to regulate sooner than ban online gambling.

Barney is making attempts to hold on the 2006 law (UIGEA) that orders the Federal Reserve and the Treasury Department to draft regulations that could prevent financial institutions from depositing and withdrawal funds from internet-based gambling sites. This issue has been opposed by the online casino gambling industry, which has been arguing continually the federal government has no reason to outlaw completely internet gambling.

This has also been supported by banks and credit unions, including their regulators: the Treasury and Federal Reserve, according to which the current law is too indistinct.

Floyd Stoner, chief lobbyist at the American Bankers Association says, “We want to be sure that the regulations aren’t overly burdensome and they are workable. At the moment they are both.”

John Pappas, executive director of the Poker Players’ Alliance, considers that winning congressional backing for a delay of the UIGEA already registered would be a significant first step. According to Pappas, the UIGEA was extremely failed public policy. He notes that online poker isn’t going away, thus, the problem is what the responsible role of the government in regulating and licensing internet-based poker is.”

Even the first step isn’t simple.
In the end, Frank is eager to replace the UIGEA completely, with a new law which could regulate online gambling.

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