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UIGEA Regulations Likely Go Into Effect on June 1

Online poker legislation has proven to be a tricky and unpredictable spectacle. The Unlawful Internet Gambling Enforcement Act (UIGEA) was passed by Congress in the middle of the night in the sneakiest of ways. Since that time, the online gaming industry discovered many friends in the halls of Congress, some of whom are willing to fight for our cause and denounce UIGEA at every opportunity. But despite the support for repealing UIGEA and the heavy push by several lobbying organizations for legislation to license and regulate online gaming, it seems no closer to reality than it was in 2006.

While several bills remain in Congress, complete with cosponsors and the promise of much-needed federal revenue, bills like the one introduced by Rep. Barney Frank in May of 2009-the Internet Gambling Regulation, Consumer Protection and Enforcement Act-they lack the momentum to move forward. None seem even close to coming up for a vote in the House or Senate. The chance for a bill to artfully be attached to some piece of must-pass legislation, ala the UIGEA, remains, but the tension in Congress this year may prohibit even that.

Despite UIGEA becoming law in 2006, its regulations were so complex and ambiguous that implementation was postponed until December 1, 2009. As that date neared, a number of Congressional members took it upon themselves to request an extension, which was granted by Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner. They extended the date to June 1, 2010. But complications arose when online gaming opposition leader Sen. Jon Kyl blocked a number of President Barack Obama's Treasury Department nominees as a result of Geithner's UIGEA extension. A standoff ensued.

Though there was talk of another request for another extension, Geithner seems hesitant as he would like the nominees for his department to receive their due hearings and votes. Frank was asked by PokerNews recently about this quandary: "Geithner promised he won't delay the [UIGEA] bill again because Kyl was holding up all the nominees." His response to the UIGEA regulations going into effect was simple: "It's fine with me. I think it's frankly so dumb and oppressive that it will create support to repeal the bill. I think, once it goes into effect, banks are going to raise hell and all the bankers will go to the Senate to complain."

Nevertheless, organizations like the Poker Players Alliance (PPA) continue to push for another extension and remain positive that something will happen before June 1, 2010. Executive Director John Pappas also noted that Frank is scheduled to pursue the mark-up process for his bill sometime this spring, and the bill introduced in 2009 by Sen. Robert Menendez has hope in the Senate.

The current state of the online gaming industry remains in question. Its legality is fuzzy at best, and the pursuit of regulation and taxation, no matter its benefits, seems to be in permanent limbo, whether because of more pressing issues like health care reform and economic growth incentives, or because the two sides of the gaming issue are too divided to find any middle ground.

What can be done at this point, without much time to spare, is a barrage of phone calls and letters to representatives in Washington, D.C. to let them know that the issue matters. It is the last opportunity to take a stand before regulations go into effect that will make it infinitely more difficult to make deposits to online gaming sites from bank accounts.

Poker players and enthusiasts may not realize the importance of June 1, but it will mark the implementation of an obstacle that will be much harder to hurdle for the poker industry. It's time to take notice, become informed, and take a stand.

Jennifer Newell is a compulsive writer. In addition to Poker Player Newspaper, she writes for numerous publications and blogs at Pokerati.com as California Jen. In her little bit of spare time, she plays poker, too. Contact her at jen3351@msn.com.

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