States May Want to Regulate Online Gambling
Michael Corfman of Casino City Press informed attendees at CAP Euro that State regulators have expressed interests in getting online gambling regulated, though Corfman stated this would be more a long term process.
"These regulators are not happy with the new laws," Corfman stated.
Corfman has been sworn to secrecy not to discuss which states are considering regulation but that these are "significant states."
State law to determine if it's legal or illegal within each jurisdiction. Regulators may see this as an opportunity to tax it, and legalize online gaming.
On the downside, the banking sector has already begun looking into organizations related to the online gambling industry whose accounts may need to be closed. Casino City's own account was scrutinized recently.
The banking system will try to stop transactions, including ACH transfers, even if the banking regulations provide an exemption.
AccuitySolutions.com - service that provides info on bank transactions that appear to be suspicious
Account may be closed because they don't want to do business w/ you. It is llegal for them to tell you why they are closing the acct.
Accuity wants to information to give banks, on who and who they should not pay.
ACH transactions will be looked at.
Attempts will be made to block access to gaming sites. Site blocking in the future.
Corfman discussed with the affiliates in attendance the transitions that will be taking place and how difficult things will be for affiliates during the short term.
"This is just the tip of the iceberg and I am afraid things are going to get worse," he said.
Corfman also gave the The Unlawful Internet Gambling Enforcement Act (UIGE Act), a new name.
"I prefer to call it the Unethical Euthansia of Gambling Act."
Meanwhile, Senior bankers and leading politicians in the UK have attacked demands from the American Department of Justice for British bankers to hand over details of their dealings with online gambling companies outlawed in the US.
According to a report in The Times, after calls on the British Government to spell out the limits of the US authorities' reach, the Treasury said it was monitoring the situation. Subpoenas have been issued by the Southern District Court of New York to at least 16 banks, including HSBC, Dresdner Kleinwort, Credit Suisse and Deutsche Bank. The official demands for e-mails, telephone records and other documents form part of a controversial push by the US Department of Justice to build cases against individuals and companies who profited from online gaming in the US. A senior banking source told the paper: ‘The US is saying to itself, 'We must get somebody', and in the process it seems to think it can foist …US legislation, even individual state legislation, on anybody’.
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Christopher Costigan, Gambling911.com
Originally published January 26, 2007 5:41 am ET
