Report of the Law Reform Committee on Online Gaming and Singapore
The UIGEA defines “Unlawful Internet Gambling” as follows: “To place,
receive, or otherwise knowingly transmit a bet or wager by any means which involves the use, at least in part, of the Internet where such bet or wager is unlawful under any applicable Federal or State law in the State or Tribal lands in which the bet or wager is
initiated, received, or otherwise made.”
Judging from the approach of the UIGEA, it can be inferred that the US has
been mainly motivated by financial outflow and money-laundering concerns; and only
secondarily by morality and social concerns.
This is more apparent with the introduction of the Internet Gambling Regulation
and Enforcement Act of 2007101 and the Internet Gambling Regulation and Tax Enforcement Act of 2007,102 which opt for the adoption of an online gambling licensing scheme so that the US government can obtain revenue from the industry and exert some control over it. The final solution to the regulation of online gambling is yet to be reached as evidenced by the need for more research in the area.103 Most recently, in May 2009, a bill for an Internet Gambling Regulation Consumer Protection and Enforcement Act was introduced to establish a US federal regulatory and enforcement
framework which will require Internet authorising them to accept bets and wagers seen how far this bill will go in Congress. 104
gambling operators to obtain from individuals in the US. It is
licenses yet to be
US State anti-Internet gambling laws typically take one of two forms. Either it
prohibits all forms of Internet gambling without exception or it prohibits online gambling, with the exception of authorising local State gambling operations to take bets online.105 Few states have however adopted specific laws prohibiting online gambling.
the way these institutions will cooperate with the regulations. The Federal Reserve and Department of the Treasury released final regulations pertaining to the UIGEA in November 2008. The final regulations went into effect on 19 January 2009, but the companies have until December 2009 to comply with the new regulations.
100 101 102 103 104
31 USC § 5362(10)(A) (2007). HR 2046, 110th Cong (1st Sess 2007). HR 2607, 110th Cong (1st Sess 2007). Internet Gambling Study Act, HR 2140, 110th Cong (1st Sess 2007).
See http://www.scribd.com/doc/15022333/DC-Internet-Gambling-Regulation-Consumer-Protection-and- Enforcement-Act-050609. This bill calls for a federal system to license, regulate, and tax Internet gambling operators. It was introduced together with the Internet Gambling Regulation Consumer Protection and Enforcement Act (see http://www.scribd.com/doc/15031573/DC-Internet-Gambling-Regulation-and-Tax- Enforcement-Act-of-2009-Rep-Jim-McDermott-050609), which requires any organisation licensed under the former legislation to pay a two percent federal tax on all deposits. The bill also provides protection against tax cheating.
Nelson Rose, “The Future Legal Landscape for Internet Gambling, Gambling and the Law” (3 November 2000), available at http://www.gamblingandthelaw.com/antigua.html.