H.R. 4411: Unlawful Internet Gambling and Enforcement Act (UIGEA)
Chris F. Masse October 4th, 2006
Unlawful Internet Gambling and Enforcement Act (UIGEA)
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H.R. 4411 - (House version - Senate version - More info @ LOC): To prevent the use of certain payment instruments, credit cards, and fund transfers for unlawful Internet gambling, and for other purposes.
SEC. 102. MODIFICATION OF EXISTING PROHIBITION.
Section 1084 of title 18, United States Code, is amended to read as follows:
1084. Use of a communication facility to transmit bets or wagers; criminal penalties
“(a) Except as otherwise provided in this section, whoever, being engaged in a gambling business, knowingly–
“(1) uses a communication facility for the transmission in interstate or foreign commerce, within the special maritime and territorial jurisdiction of the United States, or to or from any place outside the jurisdiction of any nation with respect to any transmission to or from the United States, of–
“(A) bets or wagers;
“(B) information assisting in the placing of bets or wagers; or
“(C) a communication, which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers; or“(2) accepts, in connection with the transmission of a communication in interstate or foreign commerce, within the special maritime and territorial jurisdiction of the United States, or to or from any place outside the jurisdiction of any nation with respect to any transmission to or from the United States of bets or wagers or information assisting in the placing of bets or wagers–
“(A) credit, or the proceeds of credit, extended to or on behalf of another (including credit extended through the use of a credit card);
“(B) an electronic fund transfer or funds transmitted by or through a money transmitting business, or the proceeds of an electronic fund transfer or money transmitting service, from or on behalf of the other person;
“(C) any check, draft, or similar instrument which is drawn by or on behalf of the other person and is drawn on or payable through any financial institution; or
“(D) the proceeds of any other form of financial transaction as the Secretary of the Treasury and the Board of Governors of the Federal Reserve System may prescribe by regulation which involves a financial institution as a payor or financial intermediary on behalf of or for the benefit of the other person, shall be fined under this title or imprisoned not more than five years, or both.
- Regulations
- Comments(5)
Ah… Thanks.
Commission is a no-no too…
Looks like the US has just decided to opt out of a glorious future in e-commerce.
Just as the incredible utility of file-sharing systems can be scuppered by a prohibition of their use given they facilitate copyright infringement, so can general purpose prediction markets be scuppered - because their owners then have to take pains to ensure that no deal can be construed as a bet or wager.
Risk is a part of commerce. Risk can appear frivolous and may be exciting, even entertaining, and so prohibiting it online just because it can be seen as a vice for those abusing its indulgence, is probably extremely short-sighted.
I wonder if the US extradition treaty with the UK renders UK based online wagering providers subject to extradition? Non-US sites must presumably now base themselves in Tuvalu, Vanuatu, etc.
“I wonder if the US extradition treaty with the UK renders UK based online wagering providers subject to extradition?”
Unlikely since no UK law was broken — gambling laws, that is. In terms of the tax evasion issue: “Some British internet betting companies have previously offered to pay American taxes through a high-profile media campaign, but the US Government has been unwilling to condone lawbreaking. Mr Knowles believes that proof of such an offer might be enough to persuade an English court to refuse extradition. ‘It would certainly give rise to an abuse-of-process argument,’ he said.”
http://business.timesonline.co.....29,00.html
“I wonder if the US extradition treaty with the UK renders UK based online wagering providers subject to extradition?”
Sorry to contradict Jason “The Brain” Ruspini, but the answer is yes. After 9/11, the USA and the UK have signed a new extradition treaty, tougher. British businessmen have been extradited under this new treaty.
For more info, dig for the BetOnSports and SportingBet arrests:
http://www.chrisfmasse.com/3/3/news/2006/09/
http://www.chrisfmasse.com/3/3/news/2006/08/
http://www.chrisfmasse.com/3/3/news/2006/07/
As for the taxes, the offshore, Web-based sportsbooks or betting exchanges do not pay the US wagering taxes. They could be charged for that, also.
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Internet gambling ban has passed.
http://www.midasoracle.org/200.....as-passed/
Neteller will comply with the Unlawful Internet Gambling Enforcement Act of 2006.
http://www.midasoracle.org/200.....t-of-2006/
Reality check on TradeSports-InTrade’s recent statement
http://www.midasoracle.org/200.....statement/
TEN CEO John Delaney finally admits that the new law will cut off TradeSports-InTrade’s revenues.
http://www.midasoracle.org/200.....-revenues/
Internet Gambling Crisis - AGAIN
http://www.midasoracle.org/200.....sis-again/
Using NETeller for TradeSports-InTrade, no more
http://www.midasoracle.org/200.....e-no-more/
TradeSports-InTrade John Delaney won’t travel to the U.S. anymore.
http://www.midasoracle.org/200.....s-anymore/
Criminal prosecutions related to online gambling will be pursued even in cases where assets and defendants are positioned outside of the United States.
http://www.midasoracle.org/200.....ed-states/
TRADESPORTS-INTRADE HAS REMOVED NETELLER AS A DEPOSIT AND WITHDRAWAL METHOD FOR ALL MEMBERS –NOT JUST THE US CITIZENS AND RESIDENTS.
http://www.midasoracle.org/200.....residents/
NETELLER RECORDS OF THE TRADESPORTS-INTRADE CLIENTS WHO ARE US CITIZENS/RESIDENTS ARE NOW IN THE HANDS OF THE US DOJ AND IRS.
http://www.midasoracle.org/200.....j-and-irs/
NETeller money seized by U.S. prosecutors will be returned to NETeller’s (now, former) U.S. customers.
http://www.midasoracle.org/200.....customers/
Will InTrade-TradeSpots lose big after the (hypothetical) passing of the 2007 Internet Gambling Regulation and Enforcement Act???
http://www.midasoracle.org/200.....ement-act/
US DOJ searches financial records for traces of Internet gambling and betting.
http://www.midasoracle.org/200.....d-betting/
If US citizens can buy shares in UK companies…
UK company Shergar Holdings makes an executive decision to invest all share capital in a prediction that Shergar will win the Grand National.
They decide to wind up the company after the race. Investors’ shares have either gone up or down in value…
Legal in the UK?
Illegal in the US?
Must all UK companies with US investors now avoid all use of anything remotely resembling gambling?
I don’t think you are contradicting me, Chris. I didn’t say they couldn’t attempt extradition. And I appreciate the continued “bacio della morte” of that nickname.