Internet Gambling Businesses: Restrict or Review

The Unlawful Internet Gaming Enforcement Act 2006 (UIGEA) signed into law on 13 October 2006, forces U.S. banks and credit card companies to block electronic transactions to Internet gambling businesses. The Act doesn't interdict skill-based contests or skill-based competition gaming, legislating only "games, subject to chance".

There are companies that complied with both the letter and spirit of the Act, like Game Account, one of the most important providers of person-to-person (P2P) skill games, and winner of the 2006 eGaming Review Award for Innovation. It was a difficult decision for Game Account, but the company logic was to protect the interests of directors, shareholders, and licensee sports book associates from the very real risk of prosecution or detention under the UIGEA.

The Chief Executive Officer of Game Account, Kevin Dale, confirmed the idea that closing access to US-resident real money players was a hard decision, but certainly a subtle one. He sustained the fact that skill-based online gaming is and probably will remain a blurry area under the UIGEA until tested under federal US law. Is clear that is impossible to argue that games of skill have zero element of chance influencing the outcome of real money tournaments. So, accepting the Act is probably a wise decision for those who can afford it.

GameAccount was the first, among other skill games companies, to take responsible measures that are not in favor of US resident players challenging in skill-based contest tournaments. Online gaming giants like King.com (formerly Midasplayer.com), FUN Technologies Plc (operator of WorldWinner.com and Skilljam.com), PartyPoker and 888 will suspend business with U.S.-based customers.

Considering the UIGEA, the US financial services institutions and online payment processors will include e-wallets such as PayPal and Netteller, which facilitate a significant proportion of cash deposits and withdrawals by US-resident skill-gamers. But, the gaming industry says the measure will force a thriving industry underground and hurt problem gambler.

Michael Bolcerek, president of the Poker Players Alliance, sustained the fact that he elimination of corporate gaming entities from the U.S. market such as PartyPoker actually makes the situation more dangerous.