Online gambling in the United States is threatened with the passage of the UIGEA or the Unlawful Internet Gambling Enforcement Act. It was enacted in 2007 and since then has dramatically curtailed the online gambler population. Many gambling sites have stopped operating and many online gamblers have controlled their urge to gamble for fear of getting caught.
The UIGEA is so inefficiently enforced that it has become the cause of the huge problems faced in online gambling today. This problem has a lot to do with shareholders investing funds in gambling sites. Due to the impending gambling ban, many shareholders withdrew their shares from online gambling sites for fear of bankruptcy. This slump caused many gambling sites to close their operations. As more and more sites closed, people began to believe that it would be the end of online gambling in the United States. Many of these online venues blamed UIGEA for its shutdown and non-operation. What was supposed to protect the gambling market caused it to nearly die.
Such fear persists despite attempts to reassure people. Some online gambling sites offer a gambling system in roulette where the prizes are multiplied by successful losses. This martingale system aims to attract more players. Many people are not aware of this prohibition and do not know the specifics. This led to a false assumption, and because of this, an information campaign about UIGEA became necessary.
The main implication of the UIGEA is to prevent the operation of online gambling sites, thereby, preventing players from gambling. This is US law and is being enforced in two ways. First, enforce the legal operation of gambling sites through qualifying assessments and issuance of gambling licenses as administered by the Financial Crimes Enforcement Network, which will oversee the legality of operations. Second, other games must be reclassified and redefined for delineation; therefore, games such as chess, roulette, and poker will be removed from the scope of UIGEA.
UIGEA does have good payoff security in gambling for US players. Due to tracking different online gambling sites, it is almost impossible for them to escape, should they commit a crime. The main problem is that UIGEA is driving the industry drastically. The more pressing situation is its ineffective enforcement. Irregularities in its enforcement have made UIGEA the ringleader of setbacks in the world of online gambling.