UIGEA bill defeated
 Last week the Frank/Paul bill has been defeated by the House of Financial Services Committee. The bill would have banned the Treasury Department and the Federal Reserve from implementing regulations to enforce the UIGEA.
Rep. Peter King (R-NY) proposed an amendment, which would stop the implementation of the UIGEA regulations and it would also force the Justice Department, the Treasury Department and the Federal Reserve to define unlawful Internet gambling. This amendment has been adopted by the Committee. After the committee voted, the King bill has been defeated too, because 32 voted for it, but 32 against it.
The online gambling industry was always looking for ways to abolish the UIGEA, while the banking industry, which doesn't want to participate on regulating the online gaming industry. The defeat is a blow for both of the industries.
The Financial Services Committee failed to explain what exactly is the "unlawful Internet gambling" under the Unlawful Internet Gambling Enforcement Act.
The King amendment would have needed a formal rulemaking with an administrative law judge to clarify the definition of unlawful Internet gambling.
The Federal Reserve, Department of Treasury and the banking industry affirmed that without a valid definition of unlawful Internet gambling it's impossible to enforce the law.
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