Unlawful
Internet Gambling Enforcement Act
aka
"Safe Ports Act of 2006"
by Michael Bluejay,
• Last Updated: October 2006
Republicans attached an anti-Internet gambling
amendment to the unrelated Safe Ports Act at the last
minute in October 2006, which passed overwhelmingly. The
Act is vague and confusing, but even what's clear about it
has been largely misunderstood. The amendment focuses almost
exclusively on funding mechanisms, preventing banks from
handling online gambling transactions. It doesn't
criminalize online gambling at all. It does prevent U.S.
webhosts from hosting online casinos, but they already
weren't doing that anyway.
"PROHIBITION ON FUNDING OF UNLAWFUL INTERNET GAMBLING"
amendment
- 5361. Congressional findings and purpose.
- 5362. Definitions.
- 5363. Prohibition on acceptance of any financial
instrument for unlawful Internet gambling.
- 5364. Policies and procedures to identify and prevent
restricted transactions.
- 5365. Civil remedies.
- 5366. Criminal penalties.
- 5367. Circumventions prohibited.
5361. Congressional findings and purpose
Some telling wording is this bit:
"No provision of this subchapter shall be
construed as altering, limiting, or extending any
Federal or State law or Tribal-State compact
prohibiting, permitting, or regulating gambling within
the United States."
This underscores that the act addresses only the
funding of online gaming, and not online gaming
itself. It does not create any new law about Internet
gambling.
5362. Definitions
The definition of "unlawful Internet gambling"
says that it involves bets "where such bet or wager is
unlawful under any applicable Federal or State law". Here
again, the Act is based on existing law. It does
not make any new laws against online gambling.
5363. Prohibition on acceptance of any financial
instrument for unlawful Internet gambling.
No person engaged in the business of betting or
wagering may knowingly accept, in connection with the
participation of another person in unlawful Internet
gambling--
(1) credit, or the proceeds of credit, extended to or
on behalf of such other person (including credit extended
through the use of a credit card);
(2) an electronic fund transfer, or funds transmitted
by or through a money transmitting business, or the
proceeds of an electronic fund transfer or money
transmitting service, from or on behalf of such other
person;
(3) any check, draft, or similar instrument which is
drawn by or on behalf of such other person and is drawn
on or payable at or through any financial institution;
or
(4) the proceeds of any other form of financial
transaction, as the Secretary and the Board of Governors
of the Federal Reserve System may jointly prescribe by
regulation, which involves a financial institution as a
payor or financial intermediary on behalf of or for the
benefit of such other person.
Our comments: The above
is the full and complete text of the most important
section, 5363. There doesn't seem to be any specific ban
on accepting advertising. Rather, the government could
argue that receiving revenue-share payments as an
affiliate violates (4), or that they're acting as an
accessory to a crime by aiding & abetting but that
would seem to be quite a stretch.
5365. Civil remedies.
(c) Limitation Relating to Interactive Computer
Services-
(1) IN GENERAL- Relief granted under this
section against an interactive computer service
shall--
(A) be limited to the removal of, or
disabling of access to, an online site violating
section 5363, or a hypertext link to an online site
violating such section, that resides on a computer
server that such service controls or operates,
except that the limitation in this subparagraph
shall not apply if the service is subject to
liability under this section under section 5367;
(B) be available only after notice to the
interactive computer service and an opportunity for
the service to appear are provided;
(C) not impose any obligation on an interactive
computer service to monitor its service or to
affirmatively seek facts indicating activity
violating this subchapter;
(D) specify the interactive computer service to
which it applies; and
(E) specifically identify the location of the
online site or hypertext link to be removed or
access to which is to be disabled.
Our comments: So it looks
like the government can order the removal of your links
IF your site is hosted in the U.S. and IF your site is in
violation of sec. 5363. How exactly would it be in
violation of 5363 unless it's an actual online casino /
sportsbook / poker room? We're not seeing a violation
from simple advertising, but of course we don't have
legal degrees so discuss this with a lawyer.
5366. Criminal Penalties.
(a) In General- Any person who violates section
5363 shall be fined under title
18, imprisoned for not more than 5 years, or both.
(b) Permanent Injunction- Upon conviction of a person
under this section, the court may enter a permanent
injunction enjoining such person from placing, receiving,
or otherwise making bets or wagers or sending, receiving,
or inviting information assisting in the placing of bets
or wagers.
Here are a few other analyses of the new
UIEGA:
And here are overviews of the U.S. situation in
general:
Amending the UIGEA
In April 2007, Rep. Barney Frank filed a bill
which would take much of the sting out of the UIGEA by
taking the first steps to regulate online gambling.
(GPWA,
iGamingNews)
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