Re: Proposed Comments
[ QUOTE ]
This is my comment with a proposed definition of the term "unlawful Internet Gambling." It is not an alternative to TE's proposed comment on overblocking by banks. They could be separate comments or could be combined.
Jennifer J. Johnson
Secretary, Board of Governors of the Federal Reserve System
20th Street and Constitution Avenue, N.W.
Washington, DC 20551
Dear Secretary Johnson,
I cannot understand how the UIGEA or your proposed regulations can be enforced or interpreted without defining the term “unlawful internet gambling.” Surely, your agency does not intend for a bank to have to define this term. Yet, how can a bank know if any transaction is restricted under the UIGEA and the regulations without defining this term. In fact, unless a definition of unlawful internet gambling can be established, I believe that the UIGEA and its regulations are so vague that they could not be enforced under the US constitution.
Under federal case law, In Re MasterCard International Inc., 313 F.3d 257 (5th Cir. 2002) and other cases, the Wire Act covers sports betting only (excluding horse racing per the Interstate Horse Racing Act). Additionally, the Professional and Amateur Sports Protection Act of 1992 covers interstate (and, in 46 states, intrastate) professional and amateur sports betting. Since federal case law holds that the Wire Act only covers sports betting, then, for the application under federal law, the term unlawful internet gambling should only include all internet sports betting except for horse racing as defined under the Interstate Horse Racing Act.
Very few states have expressly outlawed Internet gambling. For application under state laws, to keep from placing an unfair burden on our banks, in defining the term unlawful internet gambling, the regulations should specify that state laws must contain a provision that uses the term internet gambling and expressly states that all internet gambling is unlawful, or other similar language or expressly states the specific forms of internet gambling banned by that state. Additionally, states wishing to have federal assistance in enforcing their Internet gambling restrictions should be required to request this assistance from the Treasury Department. This will enable our banks to have a clear understanding of what it required of them.
Thus, I recommend that unlawful internet gambling is defined to mean accepting, receiving or otherwise knowingly transmitting a bet or wager by any means which involves the use, at least in part, of the Internet where such bet or wager (1) involves, or is related to, a sporting event or sporting contest; except for horse racing, (2) involves, or is related to, a game of chance, contest, card game or other event that a statute of the state in which the bank resides expressly prohibits the use of the Internet to place, receive or otherwise transmit such bet or wager or (3) involves, or is related to, a game of chance, contest, card game or other event, and the state in which the bank resides expressly prohibits, by statute, all Internet gambling.
If your agency does not feel that it has the power to define the term unlawful Internet gambling, then I suggest that you use the following non-exclusive examples.
1. In any state, accepting, receiving or otherwise knowingly transmitting a bet or wager by any means which involves the use, at least in part, of the Internet where such bet or wager involves, or is related to, a sporting event or sporting contest; except for horse racing is unlawful Internet gambling.
2. Accepting, receiving or otherwise knowingly transmitting a bet or wager by any means which involves the use, at least in part, of the Internet where such bet or wager involves, or is related to a game of chance, card game, casino or other contest that does not involve a sporting event or sporting contest is not unlawful Internet gambling unless (1) the state in which the bank resides expressly prohibits, by statute, all Internet gambling or (2) the state in which the bank resides expressly prohibits, by statute, a bet or wager by use of the Internet on the particular game of chance, card game, casino or other contest that such bet or wager involves or relates.
Sincerely,
Please feel free to copy or use this comment in any manner that assists our efforts.
[/ QUOTE ]
That's pretty good.
|