UIGEA (2006)

The Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006 is a landmark US gambling law that was passed as a last-minute addition to a port security bill. It made it illegal for US banks and other financial institutions to knowingly process transactions related to unlawful internet gambling sites, imposing significant banking restrictions on the industry.

The Crackdown and its Intent

This 2006 gambling act specifically targeted payment processing rather than individual players, aiming to cut off the financial lifelines of unregulated online gambling operations within the United States.

Immediate Fallout and Market Shift

• Publicly Traded Crash: PartyGaming (PartyPoker), listed on the London Stock Exchange, experienced a significant drop in its value and subsequently withdrew from the US market following the act's passage, leading to a major Partypoker crash.
• The Gray Market: While publicly traded companies largely exited the US market due to these new banking restrictions, private companies (such as PokerStars and Full Tilt Poker) continued to operate. This led to a significant consolidation of the online poker market, which persisted until the 'Black Friday' indictments in 2011.