New Admistration May Change ‘Midnight Drop’ Regulations
Things were going great for the online bingo industry until 2006 when a small group of social conservatives added the Unlawful Internet Gambling Enforcement Act to a port security bill and passes the unpopular measure using less than honest tactics. The law wreaked havoc upon the online bingo industry and publicly traded bingo providers lost millions.
Fast forward to 2009 and the new Obama administration. The outgoing Bush administration using an underhanded tactic know as the ‘midnight drop’ finalized UIGEA regulations and put them into effect 24 hours before the new Obama administration took the oath of office. The use of the ‘midnight drop’ tactic makes the repeal of the new regulations difficult at best.
Besides sending a whole industry into chaos the UIGEA has created friction between the US and the European Union. The EU is prepared to take its case before the World Trade Organization but is giving the new Obama administration a chance to make things right.
Millions of US online bingo players found themselves suddenly banned from several online bingo websites. Even worse many online bingo players had their deposits frozen while the US Department of Justice pursued litigation against several online payment providers.
The Obama administration is perceived as sympathetic to online gaming including online bingo. Obama is known as a skilled poker player and his stepmother, who lives in the UK, is an avid online bingo player. US Democrats are unhappy with the previous abuse of ‘midnight drop’ regulations and are presently seeking ways to void these regulations. Should this happen the way would be paved for the legalization and regulation of online gaming including bingo. Hopefully congress will act quickly to correct the mistakes of 2006.




