Recall that the UIGEA prohibits U.S. banks and financial institutions in the United States to conduct transactions to or for online gambling sites, from 1st December. This law has brought the wrath of the financial sector, online casino and poker operators and civil liberties groups. A week before the UIGEA’s implementation, a Newsweek’s journalist openly attacked this law in an article entitled High Stakes for Online Gamblers.
He finds the UIGEA vague and not consistent with U.S. law. “The problem with the UIGEA is that this law raises more questions than it solves," says Herb. Still according to Herb, the law does not prohibit people from making online sports bets since it focuses on banks’ transactions. But it did not define what constitutes illegal online gambling. The Treasury and the Federal Reserve, which explain to banks how to apply the law, have not defined either what illegal online gambling is. The journalist wants to show the lack of the law definition in this last passage.