|
This Casino Portal and Guide brings you the latest online casino news, reviews of web-based casinos and online
casino games in a clear, no-nonsense way.
|
|
|
|
|
|
|
|
|
|
 |
***GambLux EDITOR ARTICLES*** |
 |
| |
 |
Canada (and others) take up where US gambling sites leave off
[Wednesday, November 01, 2006]
|
 |
 |
 |
|
|
There's no question that online gambling activity in the USA will go underground, with all the negative effects that this implies. Think back to the boost that Organized Crime got in the 1920s and 1930s because a commodity that many people wanted was not freely available. Is the US Government about to give Organized Crime another Birthday Present? Looks like it!
|
Money drain
The plain fact is that a lot of people in the USA like to gamble. They gamble on horses, in state lotteries, in 'casino cities' like Las Vegas and Atlantic City, and yes, over the Internet. Being able to gamble from your own armchair has offered choices to people who had neither the time, inclination or money to visit a 'bricks and mortar' casino. This has been the essential problem and created the new anti-gambling law. It is estimated that in recent years, roughly $6 billion has flowed from the pockets of US gamblers into the accounts of foreign Internet casinos. This is US citizens' money that has side-stepped the US Government. So along comes the Unlawful Internet Gambling Enforcement Act 2006 (UIGEA) to halt this cash flow and prevent US credit card companies and other financial institutions from processing wagers (now deemed illegal).
Moving underground
As in every society, there are two kinds of gamblers in the States: those who expect to win from time to time and those who know they will usually lose. The first group studies the games and casinos a lot more, makes value judgments and has a higher level of commitment. These more 'serious' gamblers are going to continue their gambling practices, whether located in the USA or not. How will they do it?
Quite simply, they will shift their business with any site that has no connection whatsoever with the USA. NETeller is an Internet e-wallet provider that is registered in the Isle of Man, UK. It processed $7.3 billion in transactions in 2005, many for non-gambling related purchases. Should NETeller decide to block US customers in order not to lose this business, there are many other private e-wallets that will gladly take the millions in processing fees, typically a percentage of each transaction. In addition, Gambling sites are licensed by overseas governments (including Canada's) and have no restrictions in opening accounts on behalf of US citizens.
Less transparent (honest)
The trend in recent years has been for the major action in online gambling to go to publicly traded companies like PartyGaming, which opens its activities to audit and inspection. That made a lot of sense, because the No.1 concern among online gamblers is to be taken for a ride by an unscrupulous casino. These 'big names' (888.com, Empire Online etc) must abide by US law and so they have closed their US operations. However the vacuum is likely to be filled by private gambling companies and banks based in nations where the online gambling industry is loosely policed at best.
The risk is that the new law could ultimately make billions of dollars in US online gambling transactions more difficult to trace, and increase the likelihood that funds end up in criminal hands.
Playing the shell game
Trying to find out what money goes where can become a cost-prohibitive task, soaking up large government budgets that are desperately needed elsewhere. As mentioned earlier, many e-wallets process a mix of gambling and other transactions, making it difficult to indiscriminately block payments. In addition, some e-wallets use foreign banks to process transactions. One trick that e-wallets have started using is the pre-paid phone card. Users just load the card with money, open an e-wallet account with the funds, and then start gambling. When they want to cash out, they have the e-wallet send a check from a recognized financial institution that is then deposited in their account. Who is to say that a $950 entry is for gambling and not for paying several long-distance phone calls?
Keeping new gamblers away
One justification for the new US law is that it will deter the more casual gamblers. Certainly the extra hurdles than now exist will make it harder to send money out of the USA to pay foreign casinos. Some people who 'wanted a fling' at the casino will find their 'fling' somewhere else. But anyone who has locked his or her head on playing an online casino game will not be dissuaded. They will find a way to play and enough US services will pop up (under many disguises) to serve that demand.
|
| ARCHIVE GAMBLING ARTICLES |
|
|
ONLINE CASINOS PAYOUTS TABLE |
|
|
|
Sign-Up Bonus |
|
|
Welcome Bonus |
|
|
Online Tournaments |
|
|
| GambLux CASH HIGHLIGHTS |
 |
 |
|
|
|
| GambLux GAMBLING SURVEY |
|
|
|
| DEAL OF THE WEEK |
|
|
|
|
|
|
|
|
|
|
 |
Copyright © 2005 GLX. All rights reserved. |
|
|
|
|
|