Now that Illinois has licensed three companies to function online gambling sites within the state, the operators must beware the inadvertent influence of the UIGEA. Like state lotteries in New Hampshire and North Dakota, the superbly legal online gambling may encounter payment difficulties, as bank card companies cautiously refuse all gambling payments to bypass penalties.Illinois decided to license the operators to simply accept online betting on horse racing so that you could build revenues for both the state and its racing industry. The U.S. Department of Justice says all online gambling is illegal, but has not interfered with domestic companies running very public Internet wagering.
The UIGEA, as defined by a contemporary decision by the united states Third Circuit Court of Appeals, allows penalties against payment processors who aid within the transfers of cash considering illegal online gambling. However, the court found the UIGEA doesn't make any form of gambling illegal of itself, but merely enforces state laws existing against gaming.
Also, exceptions are clearly spelled out within the UIGEA for horse racing and state lotteries. But, with the confusing and contrary position of the DoJ, card companies have shown extreme reluctance to process legal transactions in the event that they involve gambling.
The situation illustrates the desire for the government to quit trying to impose law at the states, allowing the states to make their very own decisions on gambling, as they traditionally have.
In the meantime, Illinois may find its new revenue source choked off by another unforeseen nasty side effect of the problematic UIGEA.
Published on October 16, 2009 by TomWeston
Read More... [Source: Horse Racing News]
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