Bodog's move and the UIGEA

Previously I wrote about Bodog’s move to be under the regulation of the Kahnawake Gaming Commission. BodogLife.com moved its headquarters to Antigua and is now owned by the Morris Mohawk Gaming Group in Canada. This poses an interesting international law issue as well as potential conflicts of law issues.

The Unlawful Internet Gambling Enforcement Act (UIGEA) has been notoriously difficult to implement so far. The United States government has struggled to come up with effective regulations and clarity necessary to make it work. Financial industry folks have been left holding the bag when it comes to policing gambling transactions going to online poker rooms. To put it simply, the UIGEA has created an ambiguous mess when it comes to financial transactions between consumers, the government, domestic corporations, and international corporations doing business within the United States.

Now that Bodog is licensed from Canada the United States will likely have the same view that is has of poker rooms like Full Tilt Poker and PokerStars, negative. Both Full Tilt and PokerStars.com have been and are currently licensed by the Kahnawake Gaming Commission. Having tribal regulations has done little to ease U.S. lawmaker concerns. For the most part the United States government has been silent when it comes to delving into the business of Indian tribes, especially Indian tribes located outside of the United States. However, just because Bodog now has ownership entities and licensing in Canada do not expect the United States perspective to change. It will still consider any attempt to fund an account on Bodog as illegal. Recently the Canadian government has also been questioning both the validity and right of the Mohawk to grant gaming licenses. I would not be shocked to hear that the U.S. government was encouraging its neighbor to the north to crack down on the issuance of licenses. The United States is simply using the UIGEA to combat what it considers a social problem, and that is internet gambling. No amount of licensing or regulation will be enough for the current Congress to accept.

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