Internet Casino Gambling

Unlawful Internet Gambling Enforcement Act Doomed to Failure?

Sun, 22 Oct 2006 07:24 GMT

Observers have figured out the probabilities of success of the new US law on Internet gambling, called the Unlawful Internet Gambling Enforcement Act (UIGEA). The probabilities have been calculated to be almost little chance of the Act actually succeeding.

The Act prohibits banks and credit-card companies to allow online gambling payments and is based almost solely as a moral response to the surge in Internet gambling. In reality, it is a targeted and economic response to the daunting surge in competition against US based land casinos, state lotteries, horse racing and more.

Here are the reasons why the Act is doomed to failure:

The Title - Unlawful Internet Gambling Enforcement Act - The law forbids "unlawful Internet gambling," and not Internet gambling in general. Americans can still place online bets on horse racing, sports, state lotteries and other gaming activities approved by the states. The law has convenient loop holes.
The Political Sponsors - As we’ve heard, the law’s main sponsor in the House was Jim Leach, Republican of Iowa. Leach contended that the online betting parlor is a different animal from a physical casino -- a point he had to make in that Iowa is a leader in state-sanctioned gambling. The state of Iowa pioneered legalized gambling. Iowa casinos apparently produced tax revenues in 2006 of $297 million, and $81 million in the state lottery. Iowa officials would not want Internet gambling sites horning in on the action.
Impossible to Control both Players and Banks - Politicians with their hands in gambling and the US feds are unable to stop gamblers, especially the new wave of American Poker players, supported by the Poker stars of Hollywood. These, and web sites which market online gambling will find ways to evade the US law; some are moving to UK and other based servers. It is anticipated that the offshore-payment industry will grow even larger to meet the needs of America's online bettors. The Act also makes it almost impossible for banks to follow every credit card transaction that may have been paid to an online gambling institution and in addition to this, be expected to separate the ‘Lawful’ and ‘Unlawful’ sites.
Double Standard Policies – it is becoming obvious to the American public that those mostly against online gambling and who have not only supported but pushed through the new law are playing double standards. All gambling should be made illegal if Internet gambling is illegal. If American politicians can support the existence and expansion of thousands of slot machines in Las Vegas, Iowa and elsewhere, they should accept that players also want to play online.

Europe’s Measures - Europe is also worrying that Internet gambling will eat into the revenues of their state-run games -- but they seem to be doing the opposite of what the US has done. Europe is in the process of making Internet gambling legal and trying to tax it. The UK has already done this far ahead of Europe. The European Commission is apparently also investigating member nations which are suspected to be restricting access to private sports-gambling sites.

Online Payment Processor, NETeller, Confirms Its Policy on the New US Online Gambling Law

Thu, 19 Oct 2006 17:49 GMT

October 19, 2006, London, UK

The online payment processor NETeller PLC, an e-wallet facility based in the Isle-of-Man and used by many American online poker players has issued it's statement today on the new "Unlawful Internet Gambling Enforcement Act of 2006" [UIGEA] that was signed into law by President Bush as part of the Safe Port Act, on a black Friday indeed for the online gambling industry, on October 13th, 2006.

NETeller comments as follows:

[It will] "…comply with the Act and its related regulations as if it were subject to the Act's jurisdiction. This action is intended to ensure that the Company is able to continue to operate with the support of its principal commercial partners and to protect its shareholders, business partners, employees and reputation."

Neteller states that uncertainties regarding its obligations under the new law "…should be largely resolved when the Secretary of the Treasury and the Board of Governors of the Federal Reserve System issue the regulations they are required to prescribe within 270 days." and that it will determine "…what actions to take well before the conclusion of the 270-day rulemaking period."

NETeller further states that "Neteller customers not resident in the US are not affected at all by the legislative changes in the US, and the Company will continue to operate its non-US business as normal, maintaining existing customer and merchant support across all the other markets it currently serves."

"Neteller remains focused on developing its business in line with its stated strategic objectives including geographical and product diversification. The Company continues to launch localised services within the European market, most recently in Sweden and Denmark, and has plans for three further launches later this year. As well as focusing on the gaming sector outside of the US market, the Board considers the development of additional products and services for wallet users to be integral to its diversified market strategy. We expect to share more information on these initiatives in the coming months…"

The online payment service, Neteller, is trusted by millions of members and thousands of merchants and is the world’s largest independent money transfer business. NETELLER is a London exchange (AIM) publicly traded company and NETELLER UK Ltd. is authorized and regulated by the Financial Services Authority and has key offices in the Isle of Man and in London, UK.

The Financial Services Authority of the UK is the independent regulator set up by the UK Government to look after the financial services industry and protect consumers. http://www.fsa.gov.uk/consumer/

The Ayn Rand Institute (ARI) Comments on the New Restrictions to Internet Gambling

Thu, 19 Oct 2006 17:45 GMT

Irvine, California, USA Oct.19th, 2006

The Ayn Rand Institute (ARI) commented on the new law signed into effect on October 13th, 2006 by President George Bush. The new law, called the 'Unlawful Internet Gambling Enforcement Act', the UIGEA is a measure restricting Internet gambling.

According to the Insitute: "This measure, which requires financial institutions to block credit card and other payments to Internet wagering businesses, is an infringement on our rights," said Dr. Yaron Brook, executive director of the Ayn Rand Institute.

"Gambling, when practiced responsibly, can be a totally legitimate form of entertainment. The government has no right to prohibit adults from doing it--on the Internet or anywhere else--and no right to prohibit businesses from offering gambling opportunities to potential customers.

"Why do supporters of the law deny individuals the freedom to spend their hard-earned money on gambling? Because, they say, people will bet and lose more than they can afford. In other words, individuals are inherently incapable of making rational decisions, and thus it is the government's job to protect us from ourselves. This vicious, paternalistic idea has no place in a free society."

The Ayn Rand Institute (ARI), a 501(c)(3) nonprofit organization headquartered in Irvine, California, works to introduce young people to Ayn Rand's novels, to support scholarship and research based on her ideas, and to promote the principles of reason, rational self-interest, individual rights and laissez-faire capitalism to the widest possible audience. Named for novelist-philosopher Ayn Rand (1905―1982), who is best known for her novels The Fountainhead and Atlas Shrugged, the Institute is headquartered in Irvine, California. ARI has a distinguished Board of Directors and a staff of about 30 employees.