The text and structure of the UIGEA make clear that no changes to underlying substantive gambling laws are intended. As an initial matter, the UIGEA’s prohibition only betting or applies to unlawful internet gambling: “No person engaged in the business of wagering may knowingly accept (the proceeds of certain financial transactions) in connection with the participation of another person in unlawful Internet gambling.
“Unlawful Internet gambling,” in turn, “means to place, receive, or otherwise knowingly transmit a bet or wager by any means which involves the use, at least in part, of the Internet where such bet or wager is unlawful under any applicable Federal or State law in the State or Tribal or wager is initiated, received, or otherwise made.”2 Furthermore, the UIGEA is, as its title suggests, an enforcement mechanism and not a substantive gambling law.
Indeed, it is evident from the “Rule of Construction” of the statute that it does not alter underlying federal or state gambling laws: “no provision of (the Act) 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.”3 It is clear, then, that there is no violation of the UIGEA in the absence of a violation of underlying law.
the Act is in accord. Following its enactment, Congressman The legislative history of Spencer Bachus emphasized that the UIGEA “addresses the problem of ilegal internet gambling through an enforcement mechanism” and “does not change the legality of any gambling activity in the United States.
The sale purpose of this law is to enforce against activities that are already ilegal. . . .4 Furthermore, in the Committee on Financial Services report on House Bill precursor to the UIGEA, the committee noted that the language of intended “to alleviate fears that the bill could have the effect of changing the legality of any gambling-related activity in the United States.”5
- 3I U.S.c. § 5363.
- 31 U.S.c. § 5362(10)(A).
- 3I U.S.c. § 5361(b).
- 152 CONGo REC. E2152-53, E2152 (daily ed. Dec. 7, 2006) .
- H.R. REP. No. 109-412, Part 1 (2006).
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