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You Have Six Months to Fund Your Offshore Betting Account

Rep. Barney Frank (D-Mass.), Chairman of the House Financial Services Committee wants to repeal the restrictions on online gambling and would like to legalize and then tax it since we all know the government could use all the revenue it could get.  So, far, his efforts have not been fruitful but he has not had the weight of his position behind him chairmanship and a Democratic Congress behind him until now.

In 2006, Congress passed the Unlawful Internet Gambling Enforcement Act, making it a crime for financial institutions to process transactions used to place bets online.  In other words, no more funding your offshore account by wire transfer from your bank or by using your Visa or MasterCard.  However, following intercession by Rep. Frank and others,  the US Treasury and the Federal Reserve gave financial institutions six months to comply with the new rules.  The delay will give Rep. Frank additional time he needs to attempt to repeal UIGEA and the related underlying prohibition on online gambling itself.  The compliance extension will give legislators time to ?undo this ill-advised law,? Frank said in a news release today.

UPDATE:  The Wall Street Journal has an interesting article on the effect that the legalization of online gaming could have on various existing US gambling operations and companies lining up for the new opportunities.

Full post as published by Sports Biz on November 28, 2009 (boomark / email).