Written by: Dean Micknal
Researched by: Eric Wasik
Edited by: Darci G. Van Duzer
Managing Editor: Lauren E. Trent
A great American philosopher once advised, “You gotta know when to hold ‘em, know when to fold ‘em.” The deck certainly looks stacked against the online gambling industry. Last Wednesday the
Treasury Department and Federal Reserve issued new rules that give the Unlawful Internet Gambling Enforcement Act of 2006 (”UIGEA”) a pretty sharp set of teeth. The new regulations hit the online gambling industry where it hurts-the wallet. Â Financial institutions will be required to identify and block payments related to unlawful Internet gambling starting December 1, 2009.
Criticism has been sharp, with opponents lambasting the law as a sneaky bit of midnight legislating and warning that it could damage everything from the still-reeling banking industry, to individual constitutional rights, to international trade relations. Of particular concern to opponents of the law is the fact that the UIGEA doesn’t even try to define what “unlawful internet gambling” means. The Act expressly avoids “spell[ing] out which acts are legal and which are illegal, but rather relies on underlying substantive federal and state laws.” This puts the onus on financial institutions to interpret and enforce a widely divergent and ambiguous set of laws, using payment systems that officials acknowledge are generally not designed to comply with the new law.
Of course none of this might matter if Kentucky Governor Steve Beshear gets his way. You see, Kentucky owns the internet. Well, at least parts of it.

de facto way of proving that you are you. With such an infusion into everyday life, the dissemination of SSNs is progressively harder to curb and not surprisingly, things frequently go awry.