US Reps. Frank, Paul Write Fed, Treasury to Delay UIGEA Rules

United States Representatives Barney Frank and Ron Paul on Monday wrote separate letters to Federal Reserve Chairman Ben S. Bernanke and Treasury Secretary Henry J. Paulson Jr., soliciting them to consider delaying the regulation-writing process for the Unlawful Internet Gambling Enforcement Act.

Mr. Frank and Mr. Paul, who recently introduced H.R. 5767, a bill to prevent the implementation of the regulations under the UIGEA, were joined in the letter by Representatives Luiz V. Gutierrez, Democrat of Illinois, and Peter T. King, Republican of New York.

"We believe it would be imprudent for you to devote additional agency resources to this Sisyphean task, especially as we intend to vigorously pursue legislation to prevent the implementation of these regulations," the lawmakers wrote.

An April 2 House subcommittee hearing on the UIGEA rule-writing process highlighted the difficulty the agencies responsible are experiencing.

Louise Roseman, director of the Fed's operational division, acknowledged to subcommittee members that the UIGEA's ambiguous language has not been helpful in "drawing a brighter line" under what is intended by "unlawful Internet gambling."

Steven Adamske, a spokesperson for Mr. Frank, told Interactive Gaming News that the letter was a message to regulators that Congress wants to address the problems in the UIGEA.

"We understand there are serious problems in the legislation that shouldn't be there in the first place," Mr. Adamske said.

"But implementation is becoming problematic -- regulators told us that in the hearing. So rather than issue something that's going to be unworkable, we want more time to figure out the policy. That's why we asked for the delay."

Click here to view the letter to Mr. Bernanke.

Click here to view the letter to Mr. Paulson.