UK online gamers prepare for US rout – Industry sectors – Times Online — Is this what those new banking laws are really all about? It’s NOT the terrorism?
As much as 3 billion was today wiped off the value of UK online gaming companies after a dramatic US Senate ruling over the weekend that jeopardises huge swathes of their operations.
This morning, British companies active in the $6 billion American online gambling market rushed to update investors about the implications of the rule change amid a rout in their shares.
PartyGaming, the operator of the world’s biggest poker website, saw about 2.32 billion pounds sterling wiped off the value of its shares after it said it would suspend all real money gaming business with US residents once President George W. Bush ratifies a new law that outlaws the processing of internet payments by banks and credit companies.
The FTSE 100 group, which like many rivals has already moved to win new customers outside of the US, said the suspension would remain in force until the law had been clarified.
Access to free parts of PartyGaming’s sites will be unaffected, as will access to all of its sites by non-US residents.
This new law is going to bite somone in ass, I’m just not sure how yet.
I like how it was tacked on to an unrelated bill by Frist.
He knew he wouldn’t get it passed otherwise.
Wally –
And at the same time, the provision to keep felons from working in sensitive port jobs was removed.
Like it or not this this type of gaming is not legal in the US. Enforcing the law is one of the things our government is supposed to do. Now I personally like playing poker online and I’ll send an e-mail of support to any congress critter that puts a bill up making the act legal.
As far as #2’s comment about tacking it on to another bill. That happens all the time and buy both political parties. So don’t imply that this was something that is only done by an evil Republican.
And, for the record, I’d send a note of support to any body that put up a bill to stop the practice.
Your right, it is not legal in the US.
So if you are in the US and doing it overseas via the internet you are not really breaking any laws because the actual gambling is occouring overseas.
Why does the government have to meddle with this anyway? I don’t need a nanny to tell me what I can and can’t waste my money on.
“Your right, it is not legal in the US.
So if you are in the US and doing it overseas via the internet you are not really breaking any laws because the actual gambling is occouring overseas.”
That is quite a stretch. But in any case, the client software being interacted with by the US citizen being affected is still running locally on his computer within US jurisdictional boundaries.
It’s the hypocrisy that irritates me. If they want to ban on-line gambling, then do so. But don’t leave in exemptions for “protected” gambling, such as horse racing. (I don’t know if exemptions were included in the final bill, but I know they were there initially.)
I guess I just don’t know the purpose of the ban. The Senate can’t claim the moral high ground because of the exemptions. If they were protecting US business, then they should have imposed a tax (tariff) on the international transaction.
The whole thing stinks of political posturing for the upcoming elections, while still collecting substantial kick-backs from their constituents — US casinos and racetracks.
and don’t forget the most onerous of all legal gambling: state lotteries.
Although I haven’t read the law, it seems that it also targets other industries other than gaming. E-Bay, for one, the pornography industry for another and maybe even the file downloading business. After all, a small purchase is a small purchase, and credit cards are bank based.
I don’t understand the “on-line” gambling fantasy. At least with a brick and mortar establishment, you know the tables and machines are verified. But who verifies and audits the on-line games? How can people really trust these software based games, unless of course they are programmed by Diebold.
I am sure that it will come out that all of the proponents of this bill are backed by the big American casino cartels. Their profits must be way off. Why fly to Atlantic City, Bosier City, or Las Vegas when you can gamble from your home with the anonymity of the net? That is bad news for them.
Anytime you hear of a industry being worth billions of dollars, you will see lobbyists and legislators getting involved to steer the profits to their clients/constituents.
Is this a sure bet if you know these laws are coming down and you then short the stocks of these companies?
RBG