Posts Tagged ‘UIGEA’

Unlawful Internet Gambling Act has affected low stakes players

The Unlawful Internet Gambling Enforcement Act (UIGEA) came into effect on June 1st, 2010. The legislation requires all financial insitutions to not process transactions with online gambling companies, hence it impedes players from depositting at their favorite online gambling sites. It is important to notice that the UIGEA does not make online gambling illegal, but it only makes it illegal to deposit and withdraw from the sites.

The first effect of the UIGEA implementation has been a significant raise in the minimum deposit requirement at online gambling sites. Some online gambling sites have almost doubled their minimum deposit requirement and some say it is because the cost of processing transactions through credit cards has gone up, but this is debatable.

The bad news is that this new measure has affected the low stakes players who like putting small amounts of money into online gambling sites and have fun without risking a lot of money. The numbers will probably go down at online casinos as there are a lot of players who concentrate on the low stakes.

The word around the internet forums is that the UIGEA has only been successful in preventing online gambling from being taxed and regulated as a legal activity in the United States. A lot of online gamblers do not think this new measure will prevent everyone from playing casino games online and will definitely not help people who suffer of online gambling addiction.

Personally, I think it is true. Players continue to be successful in depositting into online casinos and poker sites but they often get the feeling that they are doing something wrong. I want to make it clear that online gambling is not an illegal activity and the way in which the US Federal Government is trying to tackle the problem gambler issue is proving to be unsuccessful.

A Break-Up Between Online Casinos and Online Poker? Part I

The online gambling industry is co-formed by online poker and online casino. When the Unlawful Internet Gambling Enforcement Act (UIGEA) was passed in 2006 both parts of the indutry were opposing the ban un unison. Representatives from both, online poker sites and casino operators, spoke out in one voice. This was because the issue at stake concerned both of them, the right to gamble online from the comfort of your home.

The Interactive Gaming Council (IGC) and the Poker Players Alliance (PPA) filed cases against the UIGEA arguing that everyone should be free to gamble from the privacy of their homes and expected to overturn the UIGEA. However, it did not take long for the industry to realize that this issue had more depth to it and that it was not an open and shut case in their favor. As its next move, the online gambling industry started offering a deal with regulation and taxation of both online poker and online casino.

It was only when the online poker sites realized that they had a different card to play in this argument that the online gambling industry faced a rupture. Online poker sites began pushing an argument forward that did not apply to online casino sites. The PPA began to make big stress in the skill factor of poker. Poker is being promoted as a game of skill, the PPA does not argue that there is no element of luck, but they claim that skill plays a greater part in poker and that a good player will consistently succeed in the long run. They have also made some scientific studies that prove this and helps them in prosecutions against land based poker players.

This is an argument that online casinos cannot use because in games like roulette, slot machines and craps are completely dependent on luck. Even games like blackjack and video poker which have some skill into them are mostly based on luck. Also, the fact that players gamble against the casino and not other players which takes even more away from this argument for online casinos.

Come back to the blog tomorrow to read about how a rupture within the online gambling industry would affect online casinos with financial concerns and the UIGEA.

Online Casino and Online Poker Break Up? Part II


The issue that arises with this is the division of the online gambling industry, will it want to divide itself? The other question is what will happen to the online casino industry should the online poker faction succeed in getting poker declared legally as a game of skill and get itself extricated from the UIGEA mess before any concerted action bears fruit?

If online poker and online casino split up in the case that poker is declared a game of skill legally and gets extricated from the UIGEA, then the money power required to fight the administration would be unavailable to the online casino world. This is because the revenue from online poker is a lot greater than the revenue from online casinos as they have a larger share of the market too.

The silver lining is that it would be costly and inefficient for the authorities to pursue UIGEA against only online casino and if they lose online poker then they may drop the whole thing altogether. At the moment this situation is only hypothetical because neither the law nor the government is likely to accept that poker is a game of skill in the near future.

Source: Casino Advisor

US Congress bills would Legalize and Regulate Online Gambling

With the recent tug-o-war on full heat between Land-based US gambling companies and foreign online casino operators there was only one way to end this feud, with the introduction of a dramatic change in US Law. Luring online casino operators to prepare in advance for the uplifting of the US regulation on internet gambling and it will  bring  millions in revenue. To obtain the US online gambling license, land based casinos are creating an alliance with the overseas internet gaming operators.

Only a short while ago big names such as Harrah’s and MGM were battling endless wars with foreign online gaming operators but with the advent of change in the online casino regulations by the US, both sides are finding a new place in their lives for one another.

The passing of the UIGEA in 2006 petrified many legitimate companies and they had to pack their bags and leave the US market. Maltreatment and bullying by the justice department continued to whip up more companies leaving, only a few foreign companies to operate under shaded garbs.

John shepherd of Party Gaming, one of the online gaming companies looking forward to making a comeback to the US online gambling market recently gave a statement to Bloomberg News that when the act was signed into law it resulted in a deprivation of 75 % users as they have to stop taking wagers from the US online market depriving their business of essential cash inflow.

US online gambling regulations were expected to create waves among the online casino owners thus they are bound to impose certain requirements that will favor the domestic land operators present under state regulatory rules while online casinos receive the advantage of being associated with US interests.

blog: thevirtualcasino.com