UIGEA Blocking the Sale of Online Lottery Tickets

Poker players in the US are already painfully aware of the problems caused by the Unlawful Internet Gambling Enforcement Act which was passed in 2006. This particularly nasty piece of legislation was tacked onto a must pass Safe Ports bill making opposition to the UIGEA provisions impossible to oppose. Additionally the bill was presented 15 minutes before the close of the congressional session with no debate possible. Recently the Treasury Department announced a delay in the implementation OF uigea rules which prompted a hissy fit from one of the bill’s original sponsors, Jon Kyl of Arizona, who threatened to delay the Obama administration’s appointments to the Treasury department. This ill advised piece of legislation has had unintended consequences.

UIGEA rules are vague at best and enforcement responsibilities have been foisted on banks who have started to block perfectly legal lottery transactions as ‘gambling related.’ In New Hampshire credit card transactions related to lottery ticket purchases have been blocked. Additionally many state lotteries offer subscription se4rvices and these transactions have also been blocked by credit card companies who fear prosecution by federal authorities. In North Dakota overblocking by credit card companies caused a 54% decline in lottery subscription sales.

Many state lotteries would like to follow the lead of European lotteries and allow online lottery ticket sales but are hesitant because of vague regulations. Most states have been hard hit by the current recession and have seen significant declines in lottery ticket sales. This, in turn, has impacted state budgets negatively. Most industry experts agree that the sale of online lottery tickets would bolster sales and help states to fill budget gaps. Most states use lottery generated revenue for education and the decline in sales has impacted education budgets and caused the elimination of valuable education and sports programs.

The implementation of online lottery ticket sales would be relatively easy and the technology required is already in place. New Zealand has been a leader in the implementation of online lottery ticket sales. New Zealand lottery players can also have lottery winnings deposited electronically into their personal bank accounts and winners are notified via email. Players can log on to their personal lottery account and purchase online lottery tickets with a click of a mouse. In the US the sale of online lottery tickets would attract younger, tech savvy players. Online lottery ticket sales are also possible using the latest mobile technology. Once UIGEA rules are clarified most state lotteries in the US are expected to offer online lottery ticket sales.

Jeff Davis writes extensively about lotteries and internet bingo. His articles can be found at www.luckylotto.com and www.bingointernet.org

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