What Is the UIGEA? The US Online Gambling Law Explained
What the 2006 law does, how banks apply it and where it stands today
What Is the UIGEA?
The UIGEA is the Unlawful Internet Gambling Enforcement Act of 2006. It is a United States law that targets the money side of online gambling.
Congress passed it as Title VIII of the SAFE Port Act, Public Law 109-347. The President signed it on 13 October 2006.
Many players still ask when the UIGEA will fall. This page explains what the law does, how banks apply it and where it stands today. It replaces our older version, which was written in 2008 and 2009.
The UIGEA at a Glance
| Feature | Detail |
|---|---|
| Full name | Unlawful Internet Gambling Enforcement Act of 2006 |
| Passed as | Title VIII of the SAFE Port Act, Public Law 109-347 |
| Signed | 13 October 2006 |
| Banking rule | Regulation GG, issued jointly by the Federal Reserve and the Treasury |
| Rule published | 18 November 2008 |
| Rule effective | 19 January 2009 |
| Compliance date | 1 December 2009 |
| Main target | Payments to unlawful internet gambling businesses |
What the Law Actually Does
The UIGEA does not create a list of banned games. Instead, it relies on other laws to decide what is unlawful. A bet is unlawful when federal or state law bans it where the bet starts, ends or is made.
The Federal Reserve made this point when it announced the final rule in November 2008. It said unlawful internet gambling generally covers bets that use the internet and break an applicable federal or state law.
The law then targets the payment. A gambling business cannot knowingly accept money from someone else’s unlawful bet. The Act calls these payments restricted transactions.
The banking rule adds an important detail. Restricted transactions cover funds sent to an internet gambling business. They do not cover funds sent to a gambler. Our page on the legal situation of gambling in the USA covers the wider picture.
In short, the UIGEA is a payments law. It sits on top of the rules that already decide whether a bet is legal.
What the UIGEA Does Not Cover
The Act lists several exclusions. The text in section 5362 of the US Code sets them out.
- Intrastate bets: a bet made entirely inside one state is not unlawful under the Act. The state must expressly allow the bet and the method used. It must also require age and location checks and data security standards.
- Intratribal bets: bets placed entirely within one tribe’s lands can also be excluded. They need tribal approval and must follow the Indian Gaming Regulatory Act.
- Games with no real stakes: games where players risk only effort or internet access are not bets.
- Fantasy sports: these are excluded when they meet set conditions. Prizes must be fixed in advance, and results must depend mainly on skill across several events.
- Securities, insurance and bank deposits: these financial products are not treated as bets.
These exclusions explain why some state licensed sites can operate. They also explain why sweepstakes style sites are often discussed. Read our guide to sweepstakes casinos for how they try to fit these rules.
How Banks Apply the Rule
Regulation GG turned the Act into duties for financial firms. The Federal Reserve and the Treasury announced it on 12 November 2008. It appeared in the Federal Register on 18 November 2008.
| Date | Step |
|---|---|
| 13 October 2006 | UIGEA signed as part of the SAFE Port Act |
| 12 November 2008 | Federal Reserve and Treasury announce the final rule |
| 18 November 2008 | Rule published in the Federal Register |
| 19 January 2009 | Rule takes effect |
| 1 December 2009 | Compliance required for non-exempt participants |
The rule covers five payment systems. These are ACH, card systems, check collection, money transmitting businesses and wire transfers.
Firms must set up policies that are reasonably designed to identify and block restricted transactions. The rule gives examples of acceptable steps but does not demand that every payment is blocked.
Most participants are exempt. The main duty falls on the firm that holds the gambling business’s account. It checks the customer when the account opens. Card networks can also block payments through merchant coding.
The rule does not require a government list of unlawful gambling sites. It also leaves questions such as skill games and poker to the underlying gambling laws.
The 2011 Poker Indictments
The best known use of the UIGEA came on 15 April 2011. The US Attorney’s Office for the Southern District of New York announced charges against eleven people. They included founders linked to PokerStars, Full Tilt Poker and Absolute Poker.
The charges included violating the UIGEA, running illegal gambling businesses, bank fraud and money laundering. Prosecutors said the companies used payment processors that hid poker deposits as other purchases. They said banks had become unwilling to process these payments after 2006.
A civil complaint also sought at least $3 billion. These were accusations when announced, and defendants are presumed innocent unless proven guilty.
The cases ended in different ways. In 2012, PokerStars and related companies settled a civil action. They forfeited $547 million and took on about $184 million in player liabilities of another poker company.
PokerStars founder Isai Scheinberg pleaded guilty on 25 March 2020. He admitted one count of operating an illegal gambling business.
These cases show what the law was built to do. It gave prosecutors a way to pursue the businesses and payment chains, rather than individual players.
The Wire Act Is a Different Law
People often mix up the UIGEA and the Wire Act. They are separate laws. The Wire Act is an older federal law that deals with betting information sent across state lines.
The Department of Justice has changed its view of the Wire Act over time. A 2011 opinion said it applied only to sports betting. A new opinion dated 2 November 2018 reversed that view. It said most of the rules also apply to non-sports betting.
The Deputy Attorney General told prosecutors to follow the 2018 opinion in a memo dated 15 January 2019. A June 2019 memo then gave extra time before enforcement.
Law firm reports say the First Circuit appeals court ruled in January 2021 that the Wire Act covers only sports wagering. We have not confirmed the Justice Department’s current position from a first-party source. Check it before you rely on it.
The point for players is simple. Neither law gives you permission to gamble. Always check the rules where you live.
How States Changed the Picture
The intrastate exclusion matters more today than it did in 2008. It lets a state allow online gambling inside its own borders if it meets the Act’s conditions.
Michigan is one example. Its Gaming Control Board says online casino gaming and sports betting went live there on 22 January 2021. Ten licensed operators launched on that day.
Licensed state sites must verify your age and location. That is why a casino can reject you if you sit outside the state. Our page on legal online casinos for American players explains how to find regulated sites.
Gambling age rules also differ by state and product. Our guide to the legal gambling age lists the main thresholds.
Will the UIGEA Ever Fall?
Our old page predicted that the law would soon be repealed. That has not happened in the years since.
Section 5362 still appears in the US Code, and the 2008 rule remains the banking standard we found. We did not find a repeal in the government sources we checked. We could not verify the status of every bill in Congress.
Change has come in other ways. States have created their own licensed markets, and the intrastate exclusion gives them the legal room to do it. The UIGEA itself has stayed in place.
Three things could change the law in future.
- Congress: a new federal bill could repeal or amend the Act.
- The courts: rulings on the Wire Act and related laws can change how prosecutors act.
- Regulators: the Federal Reserve and the Treasury can update the banking rule.
Until one of these happens, the safest approach is to treat the law as active. Look at your own state’s rules before you deposit.
What This Means for Players
We are not lawyers, and this page is not legal advice. Still, a few practical points follow from the text of the law.
- Check your state: legality depends on where you are when you place the bet.
- Use licensed sites: a state regulated operator checks your age, location and identity.
- Expect blocked payments: banks may decline deposits to sites they see as unlawful.
- Be wary of promises: a site that says the UIGEA does not apply to it is not a safe sign.
- Keep records: save receipts and terms in case a payment dispute arises.
Our pages on casino safety and gambling laws give more tips on checking a site before you join.
UIGEA Pros and Cons
| Arguments for | Arguments against |
|---|---|
| Gives banks a clear duty to stop unlawful gambling payments | Relies on state and federal law to define what is unlawful |
| Targets businesses, not individual players | Left banks to decide how to apply it |
| Leaves room for state licensed online gambling | Created confusion over poker and skill games |
| Backs up age and location checks in state markets | Can block legal payments by mistake |
UIGEA FAQs
What does UIGEA stand for?
It stands for the Unlawful Internet Gambling Enforcement Act of 2006.
When was the UIGEA signed?
It was signed on 13 October 2006 as part of the SAFE Port Act.
Does the UIGEA make online gambling illegal?
No. It stops payments for bets that other federal or state laws already make unlawful.
Can players be punished under the UIGEA?
The banking rule covers payments to gambling businesses, not payments to gamblers.
What is Regulation GG?
It is the banking rule that applies the UIGEA. The Federal Reserve and the Treasury issued it.
When did banks have to comply?
Non-exempt firms had to comply by 1 December 2009.
Is fantasy sports covered by the UIGEA?
Fantasy sports that meet set conditions are excluded from the definition of a bet.
Is the UIGEA the same as the Wire Act?
No. They are separate federal laws.
Has the UIGEA been repealed?
We found no repeal in the sources we checked, and section 5362 still appears in the US Code.
Why can some US states offer online casinos?
The Act excludes bets made entirely within a state that expressly allows them and meets the Act’s conditions.
Please gamble responsibly. Only play with money you can afford to lose, and use deposit limits if you need them.
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