What is the Unlawful Internet Gambling Enforcement Act?

The Unlawful Internet Gambling Enforcement Act (UIGEA) is a federal law enacted in 2006 that makes it illegal for financial institutions in the United States to accept payments related to unlawful Internet gambling. The UIGEA is a part of the Safe Port Act, which was passed to help protect the United States from terrorist attacks and money laundering. The law specifically outlaws the transmission of money from a financial institution to an Internet gambling site or vice versa. The law is intended to regulate the online gambling and financial industry, including banks in the state of Virginia. The UIGEA applies to all financial institutions that are members of the Federal Reserve System, including state-chartered banks. This law requires banks to block any transactions that are associated with online gambling, including credit card, debit card, bank wire, check, and ACH payments. Banks must also keep records of these blocked transactions for certain periods of time. The UIGEA does not apply to legal forms of online gambling, such as online lottery and horse racing. Additionally, the UIGEA does not apply to “social betting” that is not associated with a gambling business. For example, if two friends agree to play a game of poker online for fun and not for money, this is not considered illegal under the UIGEA. This law does not affect online bingo or fantasy sports, as long as these activities are not run as a business.

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