Uigea Could End Up Costing Every American Money
Author: J Davis

Representative Barney Frank (D-Mass) introduced legislation in June 2007 that would essentially repeal the ill advised Unlawful, Internet Gambling Enforcement Act of 2006. The bill was introduced in a very underhanded and dishonest manner By Bill Frist (R-Tenn) and John Kyl (R-Ariz) and was intended to pander to a tiny minority who seem to feel they know what’s best for all of us. Those opposed to Congressman Frank’s bill use many of the same dishonest tactics and arguments that were used when the online gambling ban was originally presented.

A close look at most of the arguments being used by the opposition to Mr. Frank’s bill reveals so much misinformation and outright untruths as to be astounding. A recent letter sent to members of congress by right wing pressure group Focus on the Family contains a wealth of misinformation and inflammatory claims. The letter has several talking points all of which can be easily refuted. First there is the outrageous claim that:” Internet gambling holds catastrophic potential for organized crime, funding terrorists and laundering money”. There has not been one documented case of money laundering or any connection between online gambling and terrorism. The key word is “potential”. In other words they are speculating on something has not happened. Another factor to consider is the fact that most online gaming companies are publicly traded companies and it is not in their interest to engage in illegal activities of any sort. Since there are documented cases of connections between labor unions and organized crime should we outlaw unions?

Another outlandish claim is, “Internet gambling sites took approximately $6 billion out of the U.S. economy in 2005 and may have funded foreign terrorist groups or criminal organizations.” Again notice the “may have” in the quoted sentence. Quite simply this means that there is no documented evidence to support this claim. Several groups use terrorism as a way to demonize those who disagree with them as “un American.” The six billion dollar figure cited is a totally unsubstantiated claim. Literally thousands of well paying jobs have been created in the US due to the popularity of online poker and bingo not to mention the millions of dollars spent on advertising and marketing in the US.

“Effective and strong regulations are necessary to ensure that the online gambling industry does not infiltrate millions of homes, destroy children, ruin families and mock U.S. laws prohibiting Internet gambling”. There is simply no credible evidence that online gambling does any of the things stated. This is a blatant appeal to emotion not factual evidence. If they have arguments based on logic I’m sure we would all like to hear them.

This letter was signed by representatives several organizations that have a track record of fabrication and support of legislation curtailing individual liberties. They include, The Christian Coalition, the American Family Association, Eagle Forum, American Values, and the Family Research Council.

Other factors that could spell doom for UIGEA are a recent decision by the World Trade Organization and a recent action by the European Union. In April 2005, the WTO ruled in favor of Antiguan online gambling companies offering services to consumers in America, and against US protectionism. It ordered the United States to comply either by lifting its ban on foreign operators or by withdrawing a “discriminatory” exemption for US online horse-racing betting sites, within 18 months. Antigua and Barbuda complained when the US failed to meet the 18 month WTO deadline to comply with international trade laws, so the WTO agreed in July 2006 to investigate their complaint, which resulted in a ruling late January 2007 against the United States. The United States appealed the ruling, asking that the judgment made by the highest trade body in the world be thrown out. The WTO announced on March 30 that it rejected the U.S. appeal, and again upheld Antigua’s claims that the US violates WTO rules by their efforts to prohibit US residents from gambling at online sites located outside of the United States, especially because the US allows online betting on horse races, to take place within US borders. A representative of the U.S. Trade Representatives Office, Gretchen Hamel, conceded that the WTO ruling had gone against her country. But she insisted that the U.S. would maintain a ban on Internet gambling financial transactions to “….protect public order and public morals as long as it doesn’t discriminate against foreign companies.” The argument used by the US in this instance is spurious at best and is seen by many as pandering to a small but vocal minority in the US. The action by the European Union could have more serious consequences and could potentially cost the US billions of dollars and sanctions by the WTO. To give a simple explanation, the EU is seeking compensation for losses incurred when the US blocked European based gaming sites from doing business in the United States. Europe is seeking commitments in other areas to compensate for the losses caused by UIGEA of 2006. The WTO decision has already affected the standing of the US in the international community.
Recent events give hope for those who advocate repeal of UGIEA. The elections of 2006 shifted the balance or power in congress and many of the new members favor repeal of this act. The burden this law places on financial institutions and law enforcement are staggering and the pressure for repeal is growing stronger as these institutions realize the unnecessary burden that has been placed on them. While it seems opponents of online gaming will use any tactics to advance their cause, truth will out and it is only a matter of time before this unnecessary law will no longer be with us.

J Davis is an author and content writer for several websites including Http://www.BingoHouse.com, Http://www.internetbingoblog, and http://www.bingolingo.com.

Article Source: http://www.articlesbase.com/online-gambling-articles/uigea-could-end-up-costing-every-american-money-324194.html

About the Author:
J Davis is an author and content writer for several websites including Http://www.BingoHouse.com, Http://www.internetbingoblog, and http://www.bingolingo.com.

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