Gambling News by Gambling Headquarters

Congress has passed a provision outlawing payments to Internet gambling sites by banks and credit card companies. Congress approved a bill to bolster port security Sept. 30, and attached to this "must-pass" bill is a special provision that would make it illegal for credit card companies and banks to transfer funds to online gambling companies. The law has been described as a "must-pass" after the controversy over a Dubai-based company controlling some of the country's major ports. Internet gambling has long been a target of conservatives and, in particular, Republican Majority Leader Bill Frist of Tennessee. The House passed a similar provision earlier this year, but the measure stalled in the Senate where Frist supported it. The bill is currently awaiting President George W. Bush's signature. Bush is not expected to veto the measure. "I think this is just a smokescreen because they're afraid of the backlash," senior Jason Rose said. "Instead of just coming out and passing a law that makes it illegal for anyone under 21 to gamble, they stick it on this port bill because they're scared." In fact, Internet gambling has been a target of Congressional conservatives for some time now. Similar measures have been proposed and passed but have always hit roadblocks in the past. As of late July this year, the House passed a provision that would have banned online gambling, but the Senate rejected it. While the bill would make it more difficult for people to gamble online, there are ways around the restrictions imposed by the bill. Credit card companies and banks are banned from making direct payments to gambling Web sites, but services such as the popular NETeller are not expected to be impacted as of now. The company provides a money transfer service.

It is doubtful that the United States will ever be successful in outlawing Internet gambling, especially under pressure from the World Trade Organization (WTO). The WTO has instructed the United States to refrain from blocking players in the country to use the mostly Antigua-based gambling sites, located around the Dominican Republic and Puerto Rico.

Most of the companies associated with the industry are based off shore and thus are exempt from U.S. regulations and laws. This includes both gambling Web sites and money transfer sites, causing the new legislation to have a minimum impact on the online gambling business.

"Why should NETeller comply with U.S. regulations?" professor I. Nelson Rose, author and a leading expert on gambling law, asked. "The U.S. and state Attorneys General can get court orders preventing ISPs [Internet Service Providers] from hosting sites that transfer money, but NETeller is not hosted by a U.S. server. Foreign nations are not usually required to enforce U.S. injunctions."

It seems that while the bill will make it harder for more casual gamblers to place their bets online, the majority of more seasoned players will remain unaffected and any who so desire can still gamble by signing up for one of these money transfer sites.