Casino Watch Focus explained that in 2006 Congress passed the Unlawful Internet Gambling Enforcement Act. UIGEA made it illegal for online gambling companies to accept money for unlawful Internet gambling transactions and it called for regulations on the banking and payment processing industry. After many failed attempts by Rep. Barney Franks to regulate Internet gambling, the bill got its teeth when official enforcement rules were passed. Now, an online site is reporting how New Hampshire is attempting to usurp the law and allow internet gambling:
While the UIGEA does not allow the processing of payment to and from gambling sites, New Hampshire has found a loophole. The state will sell physical lottery tickets to players, which will fund their time to play online casino games.
This system avoids the need for New Hampshire to accept payment via the internet and thus means that the state is not breaking any law. Payment is collected by selling lottery tickets in a physical transaction involving the actual ticket and the player.
The purchased lottery ticket provides players with a code that offers them credit at the online casino site, which allows them to play. More importantly, this avoids the need for players to use their credit cards or alternative payment methods to pay for their online gambling fund.