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US Online Gambling Ban Extends Beyond Online Casinos

The April 06, 2023, By Zane Plate

The ban placed on online gambling sites by the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) is proving problematic for non-casino sites. online casino news: US Online Gambling Ban Extends Beyond Online Casinos

The South Florida Blues Society (SFBS) recently had all of their Internet payment transactions blocked because PayPal had the site listed as an online gambling website.

SFBS is an organization for blues music fans and has been selling raffle tickets on their website for years. Raffle prizes have included everything from music to shirts and other merchandise and trips on Blues cruises and other events. Because of the raffle the site had been listed as a gambling site and, because it has not been approved according to stringent UIGEA guidelines, site visitors are no longer able to process payments. This includes payment not only for the raffle, but payment for membership dues and other merchandise as well.

This is an example of how UIGEA stipulations have caused problems not only for casinos but also for legitimate non-gambling sites. Although the act does not ban online gambling it places restrictions on the banks, credit card companies and online banking services. As a result, payment services are denying service to legitimate sites in order to avoid any accidental breach of UIGEA laws, which are vague in their terms.

This is one of the first examples of non-gambling sites being pulled into the UIGEA’s attempt to place restrictions on online casinos. However, a legalization and government regulation of online casino gaming would be a step in the direction of fixing this problem.



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