Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Gambling online faces collapse in US after Senate ban ($6 billion industry)
Times UK ^ | October 02, 2006 | Dominic Walsh

Posted on 10/01/2006 9:50:23 PM PDT by ellery

AMERICA’s $6 billion (£3.2 billion) internet gambling industry is facing meltdown after the US Senate pushed through a Bill at the weekend outlawing the processing of bets by banks and credit companies.

The surprise move, which is expected to spark a massive share sell-off, will prompt London-listed 888 Holdings to announce this morning that it is halting its entire US-facing operation, accounting for half its business.

PartyGaming, the world’s biggest internet gambling company, said last night that it was “still evaluating the situation”, although industry sources believe it will also announce a cessation of its services to American punters.

However Sportingbet, which was celebrating on Friday after a New York court released its former chairman, who had been facing gambling charges, will tell investors that it is still digesting the implications of the Bill.

Despite the Bill’s prescriptive nature, it excludes local online betting on horseracing, fantasy leagues and lotteries. It also has no impact on the hundreds of casinos and gambling emporia that dot America, ranging from the neon palaces of Las Vegas and Atlantic City to the riverboat casinos that ply their trade on the Mississippi.

One senior internet gambling executive said last night: “This is the worst form of protectionism I have ever seen. This will drive internet gambling underground and consumer protection will go out of the window. The religious groups that lobbied for this may live to regret it.”

The Unlawful Internet Gambling Enforcement Bill needs only to be signed by President Bush to become law. Legal sources predict that he will do so in the next two weeks, possibly as early as Wednesday.

The passing of the Bill in the early hours of Saturday surprised the industry. Although it had successfully negotiated Congress, its passage through the Senate looked likely to be blocked through lack of parliamentary time.

However, Bill Frist, the Republican leader in the Senate, got the measure through by attaching it to an unrelated Bill that enhances port security.

“Gambling is a serious addiction that undermines the family, dashes dreams and frays the fabric of society,” Dr Frist said. “The bottom line is simple: internet gambling is illegal. Although we can’t monitor every online gambler or regulate offshore gambling, we can police the financial institutions that disregard our laws.”

The ban may drive some small companies out of business, although big operators such as 888 and PartyGaming will highlight the strong prospects of their non-US business.

However, 888 is expected to warn its shareholders in a Stock Exchange statement this morning that its withdrawal from America will force it to pare back its cost base, resulting in a significant hit against this year’s profits.


TOPICS: Business/Economy; Constitution/Conservatism; Culture/Society; Foreign Affairs; Government; Miscellaneous; News/Current Events
KEYWORDS:
Navigation: use the links below to view more comments.
first 1-2021-4041-55 next last

1 posted on 10/01/2006 9:50:25 PM PDT by ellery
[ Post Reply | Private Reply | View Replies]

To: ellery

Glad to see we are worried bout the right things...I know ill sleep better at night...idiots


2 posted on 10/01/2006 9:52:40 PM PDT by skaterboy
[ Post Reply | Private Reply | To 1 | View Replies]

To: ellery

They saved me from myself. Thank you overlords! I feel safer already!


3 posted on 10/01/2006 9:54:18 PM PDT by Sir Gawain
[ Post Reply | Private Reply | To 1 | View Replies]

To: ellery
The gambling indutry only has themselves to blame.

The didn't bribe the right Senators.

4 posted on 10/01/2006 9:55:27 PM PDT by Wormwood (Everybody lies, but it doesn't matter because nobody listens.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ellery

The protection rackets, Washington style.


5 posted on 10/01/2006 9:55:48 PM PDT by oldbrowser (Islam is a lost religion)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ellery

If Frist runs for Pres I will switch to a differn't party.


6 posted on 10/01/2006 9:58:45 PM PDT by Iwentsouth
[ Post Reply | Private Reply | To 1 | View Replies]

To: ellery

Maybe the gambling spam will slow down.


7 posted on 10/01/2006 9:59:26 PM PDT by Theo (Global warming "scientists." Pro-evolution "scientists." They're both wrong.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: skaterboy
yes, its the big things that the Congress always seems to "fix"........

I'll bet the "religious" groups gunning for this are really just Indian Casino agents pushing for the exclusive gambling edge.......

I hate these people......(Congress)....

8 posted on 10/01/2006 10:02:46 PM PDT by cherry
[ Post Reply | Private Reply | To 2 | View Replies]

To: ellery

More hypocrisy from congress, its none of their damn business if someone wants to gamble on line.

Legislating morality never, ever works.


9 posted on 10/01/2006 10:04:16 PM PDT by Central Scrutiniser (I was in the house when the house burnt down.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ellery

Thank Heavens our moral leaders in Washington have vanquished the devils dice from our homes! Now I am off to buy my mega millions ticket and then on to bingo at ST. Phillips.


10 posted on 10/01/2006 10:12:04 PM PDT by spikeytx86 (Pray for Democrats for they have been brainwashed by there fruity little club.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ellery

Republicans are the party for smaller government

Bump


11 posted on 10/01/2006 10:13:10 PM PDT by qam1 (There's been a huge party. All plates and the bottles are empty, all that's left is the bill to pay)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ellery
Time to get creative! This will bring about a "Son of PayPal" universal P2P money transfer protocol over the Net.
12 posted on 10/01/2006 10:14:27 PM PDT by BlazingArizona
[ Post Reply | Private Reply | To 1 | View Replies]

To: ellery

5-1 Bush signs it.


13 posted on 10/01/2006 10:15:24 PM PDT by razorback-bert
[ Post Reply | Private Reply | To 1 | View Replies]

To: razorback-bert
5-1 Bush signs it.

Why wouldn't he? No stem cells, no veto.

14 posted on 10/01/2006 10:16:51 PM PDT by Wormwood (Everybody lies, but it doesn't matter because nobody listens.)
[ Post Reply | Private Reply | To 13 | View Replies]

To: ellery

Wow, I know my boss hasn't heard this news yet, but I will be hearing the screams soon, no doubt. I really wish the Government would stick to issues deemed important by those they are supposed to represent.

I thing reverse mortgages are a worse scam than online casinos.


15 posted on 10/01/2006 10:20:44 PM PDT by sockmonkey
[ Post Reply | Private Reply | To 1 | View Replies]

To: sockmonkey

OOps, that's think, not thing..past my bedtime.


16 posted on 10/01/2006 10:21:48 PM PDT by sockmonkey
[ Post Reply | Private Reply | To 15 | View Replies]

To: ellery
Actually this does not outlaw Internet gambling. It outlaws US banks transferring money to Internet gambling sites. Since most players use third party Internet banking services like Neteller and PlayPal to transfer funds already the effects will be minimal. The most troubling aspect is that the US has taken upon itself the right to criminalize Internet gambling companies based in other countries. Several executives of those companies have already been arrested when they visited the US. If the US can outlaw an Internet site operating in another country, what's to stop other countries from arresting Americans who run sites in the US with content they don't like?
17 posted on 10/01/2006 10:23:03 PM PDT by Hugin
[ Post Reply | Private Reply | To 1 | View Replies]

To: ellery

Contrary to the article's assertion, gambling is not an "industry."


18 posted on 10/01/2006 11:00:43 PM PDT by T Ruth (Islam shall be defeated.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Hugin

You've summarized the issue well.


19 posted on 10/01/2006 11:02:12 PM PDT by spyone
[ Post Reply | Private Reply | To 17 | View Replies]

To: Hugin
Actually this does not outlaw Internet gambling. It outlaws US banks transferring money to Internet gambling sites.
Or to web wallets that can be used to fund casino accounts. It will probably affect neteller and such. American Banks will just refuse to transact certain EFT codes and bank transfers. 6 Billion Dollars is a big industry. The U.S. has already lost one battle with Antigua over gambling in the WTO Court. A serious penalty from them might bring about a revisit to this law but it's still too early to tell.
20 posted on 10/01/2006 11:02:37 PM PDT by KDD (A wink is as good as a nod to a blind horse.)
[ Post Reply | Private Reply | To 17 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-55 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson