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Also in September 2006, just before adjourning for the midterm elections, both the House of Representatives and Senate passed the Unlawful Internet Gambling Enforcement Act of 2006 (as a section of the unrelated SAFE Port Act) to make transactions from banks or similar institutions to online gambling sites illegal. This differed from a previous bill passed only by the House that expanded the scope of the Wire Act. The passed bill only addressed banking issues. The Act was signed into law on October 13, 2006, by President George W. Bush. At the UIGEA bill-signing ceremony, Bush did not mention the Internet gambling measure, which was supported by the National Football League but opposed by banking groups. The regulation called for in the UIGEA was issued in November 2008.
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In 1994, Antigua and Barbuda passed the Free Trade & Processing Act, allowing licences to be granted to organisations applying to open online casinos. Before online casinos, the first fully functional gambling software was developed by Microgaming, an Isle of Man-based software company. This was secured with software developed by CryptoLogic, an online security software company. Safe transactions became viable; this led to the first online casinos in 1994.
Horse wagering using online methods across state lines is legal in several states in the United States. In 2006, the NTRA and various religious organizations lobbied in support of an act in Congress meant to limit online gambling. Some critics of the bill argued that the exemption of horse racing wagering was an unfair loophole. In response, the NTRA responded that the exemption was "a recognition of existing federal law", not a new development. Interstate wagering on horse racing was first made legal under the Interstate Horseracing Act written in 1978. The bill was rewritten in the early 2000s to include the Internet in closed-circuit websites, including simulcast racing, as compared to simply phones or other forms of communication.
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While the criminal code of Canada does not prohibit online gambling, it does prohibit any type of gambling at an establishment not owned or licensed by a provincial government. Not withstanding this fact, there are an estimated 1,200 to 1,400 offshore websites that make casino type games and other gambling activities available to Canadians. For online gambling operations within Canada's borders, the Canadian authorities are willing to prosecute, but as of this date, have only done so once, when British Columbia prosecuted Starnet Communications International ("SCI"), a Delaware corporation, run by residents of Vancouver, where one of the company's servers was located. The court found that SCI had sufficient contact with Canada to be prosecuted under its criminal code. SCI was fined $100,000 and forfeited nearly $4 million in profits. It has since moved its operations overseas.
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The Bill also set out guidelines stating that gambling will be unlawful in the UK unless granted a licence, permit or registration. It outlined the penalty for being in breach of these guidelines, that being a maximum of six months in prison, a fine, or both for each offence. Any person under 18 will not be allowed to gamble and it is an offence to invite or permit anyone under the age of 18 years to gamble.
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