Just days before compliance of UIGEA was to become official the big question was whether there would be a delay in its enactment. Now just days after the answer to that question, which was yes, there has been a reprieve and the big question is now what does this all mean for internet gambling regulation? Where does this leave the American people in respect to the online gambling industry?

Since the UIGEA was delayed there is a least a six month period to allow pro gamers the opportunity to put forth a stronger voice concerning their opinions of online gambling and the options for legalizing it formally.

Does internet gambling regulation now prevent US players?

All this legal talk about online gambling law is all well and good but to the average avid online casino player it just leaves one question. Will they or will they not be able to play a game of great enjoyment on the internet from the comfort of their own home? The answer? It still remains to be seen, however in the view of many authorities it does look more promising.

With UIGEA delayed there will be a hearing on two bills pertaining to internet gambling by the House Financial Services committee. Congressman Barney Frank who was a strong supporter of the postponement of UGIEA feels that this has allowed more time to work on his proposed legislation to undo the actions that were taken during the Bush administration regarding online gambling.

Those advocates for internet gambling such as Michael Waxman, Barney Frank, and the multitude of American online gamers all promote the fact that if the American Government were to banish UIGIA, the Government itself would have much to gain through what would be new found revenue.

By imposing internet gambling regulation and taxation it would seem like a win-win situation for all. The country would gain much needed funds for public programs and the people would have their rights to choose responsible gaming protected.

What Happens Next

Ultimately the decision for the postponement of UIGEA rested in the hands of the Treasury and Federal Reserve. It meant they would have to produce valid grounds to do so. Ultimately they came to their conclusion for an extension apparently after conferring with the USA Justice Department.

The grounds for delay were based on the Administrative Procedure Act determining that UIGEA in its present form is “impracticable, unnecessary, or contrary to the public interest.” This is in combination with other references to law allowed for a delay of six months although most gambling advocates were hoping for a year.

Although with UIGEA delayed it’s a great step forward for the online gaming community by no means is the battle over. No doubt many of the financial institutions that have been sitting on the fence in respect to online gambling law are anxiously awaiting a final decision as well. There has been a great deal of revenue lost by them as a result of withdrawing the funding opportunities for USA gamers.

With the UIGEA delayed, the gaming world now waits until June 1st, 2010 which is the next slated date for the enactment of UIGEA. It also has to be remembered that not only does the US Government have to consider the wants of the people, and the legalities that go with the enactment but there is also what stance the World Trade Organization take should the enactment of UIGEA take place?

Online gambling continues to skyrocket in its phenomenal growth. Revenues for online gambling are expected to exceed $18 billion by the end of 2010. More and more online casinos open every month, and there are over 2,000 in existence today. With all of this growth, many are questioning the link between online casinos and gambling addictions.

Are Online Casinos Fueling Gambling Addictions?

The rapid growth in online gambling has triggered a rigorous debate regarding its role in fueling gambling addictions. Based upon gambling addiction information, in the United States alone, there are more than six million people who face a gambling addiction. However, is there a correlation between online gambling and a growing rate of addiction?

According to Dr. Suzanne Graupner Pike from the San Diego Center for Pathological Gambling, casinos, whether online or traditional brick-and-mortar, do not cause gambling addictions. “Gambling, in and by itself, does not ‘cause’ problems.” Instead, in approximately 4% of the population, pathological gambling occurs because they like the adrenaline rush or use it as a means of escape.

We do know that problem gambling is rising, especially among certain populations. For example, currently half of all college men engage in gambling monthly, encouraged by the popularity of poker. In addition, according to a Harvard Public Health Task Force, 11% of college students have a gambling problem.

However, whether or not online casinos are contributing to gambling addiction is still an unanswered question. Additional research on online gambling addiction information is currently being conducted to develop more long-term longitudinal data.

Symptoms of a Gambling Addiction

According to the National Council on Problem Gambling addiction information, more than 80% of the American adult population gambles at least once annually, and the vast majority practice responsible gambling. Out of this group, only 1% is considered pathological gamblers, while another 2% have problems with gambling.

Those who suffer from gambling addiction meet a certain criteria, such as, but not limited to the following:

   •   Gamble longer than planned
   •   Gambled every last dollar
   •   Used money for bills or savings to gamble
   •   Used illegal means to acquire money for gambling

Gambling addiction becomes a major concern when individuals have family problems due to financial crisis, savings are lost, credit card debt soars, and illegal activity becomes prominent in order to sustain the habit.

The Link between Legalization and Decreased Addiction

Although legalized gambling has increased the numbers of players, there has been additional legislation, particularly in the United States, that help prevent compulsive gamblers from deepening their addiction. The Unlawful Internet Gambling Enforcement Act of 2006 created strict prohibitions and limitations on how a gambler could finance his or her activities. Money can no longer be sent via check, electronic funds transfer, or credit card. Legislators hope that by limiting funding options to only checking accounts, the move will help family members of addicted gamblers recognize the problem and encourage treatment.

With the gambling addiction information available, we know that the problem will always exist, whether or not the casinos operate online or through traditional, brick-and-mortar establishments. However, with the help of federal and state legislation, players can practice responsible gambling, especially in a legalized gambling scenario.

The question is two fold, is there such a thing as online gambling law and is gambling online legal or not? Many ask these questions but can’t get a straight answer. It seems it truly depends on where you live as each jurisdiction has different laws surrounding this controversial subject. US Legislation is very unclear because currently there is no existing federal law that prevents US citizens from gambling online or any other related activity.

Professor I. Nelson Rose of Whittier Law School is considered to be an online gambling expert and he states that there is “no United States regulation or federal statute that explicitly prohibits online gambling, either domestically or abroad.” He further states because of this, online gambling should be regarded as perfectly legal throughout the entire US.

This is not the case though as many states now have online gambling law and in 2006 the Internet Gambling Enforcement Act was introduced to try and fight illegal online gambling at a federal level. It would seem that they do consider their citizens as being able to partake in responsible gambling.

This approach has many Americans as well as others from around the world angry to the point where they are now starting a petition to be signed by all those who believe in internet gambling as a form of online entertainment. Those who sign this petition are of the belief that they should have the freedom of choice of their online entertainment without the interference of any government.

Obviously this new bill is not working to well because if you consider the statistics show that not only do Americans account for over 80% of all online poker players and participate in 55% of all online gambling activities, but a whopping 70% off all online wagers originate from the United States. It would also seem that the majority of those players do not need online gambling law to force them into responsible gambling.

As mentioned earlier, depending on where you live it is illegal to gamble online. States like Nevada, Michigan, Illinois and Louisiana already enforce laws prohibiting online gambling and it seems others may soon follow suit. It is truly up to state government to determine what gambling is legal or not as states like Utah, California, Massachusetts and South Dakota allows some games yet not others!

One of the biggest controversies in this ongoing argument is that many believe the main reason for outlawing online gambling in certain states is just to protect the revenues created by the brick and mortar casinos. The money brought in by these casinos are heavily taxed which generates a huge chunk of money for that state.

The belief is that if people are not allowed to gamble in the comfort of their own home they will go to a live casino to spend their money there and the government will get its piece of the pie! Many online Casinos and Poker rooms are set up in different countries so even if it is played elsewhere the taxes are collected by that countries government. There are many in the government now though that may be having a change of heart regarding the full legalization of online gambling.

Even in the tough economic times it seems the gambling industry is booming more than ever and the government of the US would like to see more of the revenues from this growing industry. Hopefully they will come to their senses and allow people the freedom to do as they choose when it comes to enjoying responsible gambling from the comfort of their own home when they so choose.

Perhaps by receiving a petition full of names from responsible gaming enthusiasts they will see that people are capable of making their own entertainment choices. There is no need for the government to set online gambling law in order to fight illegal online gambling which is what they perceive it to be.

The LGA (Lotteries and Gaming Authority) of Malta is the governing body of online gaming and Malta gambling . In 2004 the regulatory laws were restructured which brought about four distinct categories for gambling licenses.

Malta Gambling Categories

Class I
Governing games of chance and casino operators and games utilizing a random number generator.

Class II
Restricted for online sports and betting.

Class III
Any Malta affiliate based operators including advertisers and promoters who operate within Malta.

Class IV
Reserved for those Companies that are in control of remote gaming operations hardware but do not take the role of remote gaming operators.

With these in place in 2005, a regulatory body was formed as the Malta Remote Gaming Council. They are responsible for the support and service providers as well as remote gaming operations that are based here.

Malta Gambling Regulation

Malta is an independent country; however, it maintains close ties with the UK. In September 2007, the UK recognized the Malta gambling regulation standards and accepted them for inclusion on their white list. The UK white list upholds a standard that all jurisdictions named on it must have consumer protection standards and proper gaming regulation. The benefit of being on the UK white list means that one can advertise and promote their services to the UK residents.

With Malta being recognized by the UK, more parties became interested in obtaining licenses from Malta.

Malta Allows US Gamblers

One significant factor about Malta is their upholding of the free market when it comes to internet gambling regulation. As such, this means that Malta does not recognize the gaming laws of the USA. Therefore, they will accept US players. This adds to supporting the view of the UK and European in respect to the stance that the US has taken on the global gaming industry.

Malta is to be commended on their setting and enforcement of their gaming rules and responsible gaming position. There are numerous rules that license holders must adhere to. These rules include the overall operation and technical aspects. These rules ensure that the operation of the gaming not only runs smoothly but the integrity of Malta and the protection of the players are safe guarded.

In addition to this, there are numerous rules in place for player protection. For example, funds of the players are kept separate from the license holders’ funds. All information regarding a player’s account and the financial institution is open to disclosure to the LGA.

These are just an example of the types of protection and rules that have been put into play regarding Malta’s stance on gambling. It is easy to see why the UK would accept the inclusion of Malta on their white list.

Although this is one of the major incentives for operators to seek out licensing in Malta, it must be mentioned that the low licensing fee as well as taxes are most inviting as well. The combination has led to an overall respect for the gambling regulation and Malta gambling governing body.