Over the last several weeks, the US government has been aggressively pursuing bank accounts that have been allegedly used for illegal online gambling. The most recent seizures were made public last week in documents released by Maryland’s U.S. District Court.
Six Wachovia Bank accounts were seized in last week’s raid. The accounts belonged to Forshay Enterprises, a payment processing company. In the documents, Forshay is listed as the owner of TransActSvc.com. These raids follow nine other account seizures that were secured in Maryland in July and August. In addition to Wachovia, accounts have also been frozen at First Premier Bank, Interstate Net Bank and Bank of America.
Federal agents in Maryland have also been involved in a case with ties to Bodog.com. In 2008, charges were filed against Michael Garone and Edward Coury. The two men have allegedly been involved in money laundering with supposed ties to Bodog.
Controversial legislation being enforced
The recent seizures are tied to the Unlawful Internet Gaming Enforcement Act (UIGEA). The legislation attempted to ban internet gambling but the policy has proved to be a controversial measure since it was initiated by the Bush Administration in 2006. Despite a transition in the White House this year, the government’s recent actions in Maryland are a sign that the raids are set to continue.
The vagueness of the law is problematic for everyone involved. On the one hand, court rulings have stipulated that federal laws restricting online wagering apply only to sports betting. However, the Justice Department has taken a broader view of the legislation. In their viewpoint, all forms of online gambling are illegal.
click here to see most Popular PagesA reform bill could be the solution
There is hope that the UIGEA can be overturned. Massachusetts congressman Barney Frank has been trying to gain support for his online gaming bill since last year. The Democrat was unable to convince a Republican-led Congress to support the legislation in 2008. With Democrats now leading Congress, the bill has a better chance of getting approved.
Frank’s Internet Gambling Regulation, Consumer Protection and Enforcement Act (H.R. 2267) would license and regulate online poker and internet gambling for US residents. While he has secured nearly 60 co-sponsors to support the bill, the legislation is a very minor issue in the political landscape at the moment. Issues related to the nation’s struggling economy and health care reform are overshadowing other bills that are being proposed in Washington. It appears doubtful that Frank’s bill will be approved by the end of this year.
There is some light at the end of the tunnel. The controversies that have arisen over the last three years have drawn enough attention to ultimately overturn the UIGEA bill. There is little doubt that online gambling will continue to grow in the next decade. Frank’s legislation would help to remove the vague nature of what is currently being enforced. While it may take a backseat to the economy for awhile, online gambling reform is on the horizon.
