About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

57 Drake L. Rev. 515 (2008-2009)
Highlighting the Drawbacks of the UIGEA: Proposed Rules Reveal Heavy Burdens

handle is hein.journals/drklr57 and id is 519 raw text is: 
  HIGHLIGHTING THE DRAWBACKS OF THE
  UIGEA: PROPOSED RULES REVEAL HEAVY
                          BURDENS


                       TABLE OF CONTENTS



   I. Introduction  ........................................................................................... 515
   II. The Unlawful Internet Gambling Enforcement Act of 2006 ........... 517
     A. The Federal Framework Prior to the UIGEA ............................ 517
     B. Failed Attempts Leading up to the UIGEA ................................ 523
     C. The Enactment and Operation of the UIGEA ........................... 525
 III. Problems Associated  with  the UIGEA  .............................................. 528
     A. Missed Opportunity: A New Industry and Tax Revenues ........ 529
     B. Troubles with Enforceability  ......................................................... 531
     C. An Inconsistent Stance: At Odds with the Rest of the World..534
 IV. Burdens on U.S. Financial Institutions: Problems and Questions
     Before and After the Proposed  Rules ................................................ 536
  V . C onclusion  ............................................................................................. 544


                         I. INTRODUCTION
     Following the failure of several legislative proposals intended to
directly address the growing Internet gaming industry, Congress enacted
the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) in
October of 2006.1 Prior to the UIGEA, the legality of Internet gaming
activities was primarily governed by a framework of three federal laws.2
Although the Department of Justice maintained that these laws,
particularly the Federal Interstate Wire Act, banned Internet gaming,
inconsistent court holdings forced Congress to specifically address this
growing industry.3 Accordingly, the UIGEA was enacted in the fall of

    1.    Unlawful Internet Gambling Enforcement Act of 2006, Pub. L. No. 109-
347, § 801, 120 Stat. 1952 (codified at 31 U.S.C. §§ 5361-5367 (2006)).
    2.    See Federal Interstate Wire Act of 1961, Pub. L. No. 87-216, 75 Stat. 491
(codified at 18 U.S.C. § 1084 (2000)); Travel Act of 1961, Pub. L. No. 87-228, 75 Stat.
498 (codified as amended at 18 U.S.C. § 1952 (2000)); Illegal Gambling Business Act,
Pub. L. No. 91-452, § 803, 84 Stat. 937 (1970) (codified at 18 U.S.C. § 1955 (2000)).
    3.    See 18 U.S.C. § 1084; PeterPaul Shaker, Note, America's Bad Bet: How
the Unlawful Internet Gamling Enforcement Act of 2006 Will Hurt the House, 12

What Is HeinOnline?

HeinOnline is a subscription-based resource containing nearly 3,000 academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline with pricing starting as low as $29.95

Contact us for annual subscription options:

Already a HeinOnline Subscriber?

profiles profiles most