Gamblings fight against UIGEA – Complicated Enforcement Strategy

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In 2006, the United States of America enacted a law to prevent online gaming within the country. The Unlawful Internet Gambling Enforcement Act or UIGEA resulted in the termination of many online gaming sites, but it was not effective in completely closing down the business. With authorities unable properly to enforce the law and most people uncertain or ill-informed on the law, there have been little or no penalties for those that continue to function. In the chaos that followed the passing of the law, many US citizens continued to play, in ignorance of the law while some businesses continued to function in the USA, ignoring the risk of being punished, or moved their business elsewhere, despite the high cost. These days, several online gaming sites are still functioning with many US players eager to spend their time and money at these sites and the UIGEA is yet unable to entirely controlling these activities.

The complicated enforcement strategy chosen was the main reason for gaming’s struggle against the UIGEA, not to speak about the messy enforcement that followed the passing of this law. A legal framework that delibered various matters was first put into the operations of gaming sites, and this was facilitated to issue licenses that could be managed by the Financial Crimes Enforcement Network. Additionally, categories were set up to specify the games that would come under the scope of the UIGEA.

Instead of improving the online gaming world as planned, the law that was enacted to secure the industry, turned out to be the destructive setback that the business has experienced. Investors started to pull out of the business, fearing that they would lose money or go bankrupt as operational costs skyrocketed, and revenue fell. The business was rapidly struck with the sudden withdrawal of financing. Additionally, the unorganized management of the system, created many issues for investors and players as well. Various sites were forced to shut down, and the future of online gaming seemed very bleak.

Introducing the law in just a few states was one of the worst steps, and it resulted in much controversy. Most often affiliates were puzzled about their status and what applied to them. It was not clear if the law was put in place to ban gaming online and to prevent US citizens from gaming online, or to introduce control in the industry. Most people were uncertain if there was an abolishment in their state, and if the law was actually banning them from engaging in online gaming. In most cases, even states were unsure about the UIGEA’s intent. In fact, the law did not really ban American players from gaming online or joining gaming sites, since it was introduced to put a structure in place, that could be streamlined and make activities manageable.

Investors were not the only ones to pluck out during these times of doubt. players also discontinued playing games online to ensure that they would not find themselves in trouble with the law. This made it even more hard for the gaming sites, as they were losing users while being struck with larger operating costs and licenses required by the law. Although public awareness campaigns were initiated, the level of doubt surrounding online gaming was so high, that these campaigns had very little effect in reversing the harm that was done to the business. Today, most people are still convinced that the UIGEA was a trick by the US government to ban American citizens from online gaming. Obviously, online gaming sites have the potential to bring in high taxes for the government if properly managed. Clarity in the system and better knowledge provided to the public could have alleviated some of the issues that the law has created in the industry.

Too many players and investors are still fearful of playing or investing in the business and the campaign that was introduced, brought little confidence back to gaming online at numerous sites. Developments in the management system and more campaigns are needed to bring the public back to enjoy their favorite gambling games. For now, online gaming prospects seem dim, and without radical alterations in the business, it is likely just to fade away. Improving the management system and promotions can bring back the spark that would end gaming’s struggle against the UIGEA. Without quick attention, this can carry on with apparently no end in sight, and to the detriment of the business. Learn about Online Kasino and bookmaker bonus offers at

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