Regulations are out

[grapabo]

If I'm reading this right, then this appears to be the setup of levels of enforcement:

1. All transactions are restricted unless there is an exemption.

2. If the transaction is exempt, then there is no requirement on the banks to identify and block under the Act.

3. If the transaction is not exempt, and therefore restricted, then the banks are required to implement a system of identifying and blocking those that violate UIGEA.

If the authors of these regulations meant this to be what it appears to be, and not some demonstration of the cost and difficulty to the banks, I would be worried. This method of enforcement seems to put the economic and regulatory pinch on financial institutions to have as little to do with non-exempt transactions as possible, and a lot of the transactions currently unhindered would suddenly become hindered.

It would also diminish the importance of whether poker is covered under federal law. The act covers transactions that are in violation of state law where the bet is made. No states have specifically legalized internet gambling, so banks aren't going to be too receptive to a customer's argument to the contrary.