The Unlawful Internet Gambling Enforcement Act of 2006 reflected a change in how the federal government attempted to enforce bans on Internet gambling such as sports betting, poker rooms and online casinos. Attempting to crack down on casinos and sportsbooks was almost impossible since most were run out of shell companies with offices and servers in foreign nations. In response, the Unlawful Internet Gambling Enforcement Act of 2006 attacked the flow of money that drives online gambling.
The main goal of the Unlawful Internet Gambling Enforcement Act of 2006 is to stop gamblers and online casinos from being able to transfer funds. The act makes it illegal for any business involving betting or wagering to accept money related to unlawful gambling. Created in response to legal challenges to the Federal Wire Act that raised questions about the federal ban on online poker rooms, the Unlawful Internet Gambling Act of 2006 was drafted to broadly include all forms of online wagering including sports betting and poker rooms.
The Unlawful Internet Gambling Enforcement Act of 2006 specifically makes it illegal for gambling sites to collect money relating to wagers; however, this doesn’t apply to other parties in online gambling. The act doesn’t apply to people who make a bet online, only to the sportsbook or poker room they are making a bet with. In addition, the act doesn’t prohibit banks from being a third party in transmitting funds from wagering between bettors and sportsbooks or poker rooms.