Online gambling soon to be banned in the US



In the closing hours of the US Congressional session on Friday, September 29, the Unlawful Internet Gambling Enforcement Act of 2006 (H.R.4411.RH) was attached to the Safe Port Act of 2006 H.R.4954.EAS. To the surprise of many, the bill passed both the House and the Senate, and Bush is expected to sign it into law this week. This effectively outlaws online gambling in the US, by way of making it illegal for credit-card companies to collect payments for bets. The financial markets punished the stock of online gambling companies as some prepared to pull out of the US entirely."

Shares of PartyGaming Plc, Sportingbet Plc and 888 Holdings Plc plummeted, wiping out $7 billion of market value, after Congress passed laws to shut down Internet gambling in the U.S.

Legislation to prevent credit-card companies from collecting payments for bets was approved Sept. 30 in the closing hours of the congressional session, the culmination of a U.S. clampdown on online gaming. PartyGaming, the world's biggest Internet poker company, will stop taking wagers from its 900,000 American players. Its stock lost as much as 62 percent.

The U.S. government has found a way to make life almost impossible'' for gambling Web sites, said Philippe Gijsels, senior equity strategist at Fortis Bank SA's private investment unit in Brussels, which manages $62 billion. The companies ``will have to regroup and rethink their business model,'' he said.

The U.S. accounts for about half of the $12 billion Internet gambling market and considers the industry illegal. PartyGaming is among more than 2,000 offshore companies operating poker and sports-betting Web sites. Authorities have detained British executives of Web bookmakers visiting the U.S., including David Carruthers of Betonsports Plc, who was charged by a federal grand jury in July with illegal interstate gambling.
I dont gamble, especially not online so it doesnt effect me, some other people might be really angry though.. oh well its soon going to be the law.


For a Free Scotland
its soon going to be the law.
I don't like this law at all. It hurts a booming business, which is ironic in the pro-business Bush administration, and it hurts our rite to lose our own money. If we can borrow money and gamble it away in New Jersey and Nevada, why can't we do it online?

I do know that a lot of people get hurt by gambling addiction and that credit card companies make their money through ignorance, desperation, and general mistruth; but it's still a civil right and business blow.

And of course most of this seems like a witch hunt for people doing things that are by definition not really illegal/election year issue. If it wasn't for Hastert, Foley, and Allen, this would be getting all the press.

Now here's a thought... Can you internet gamble on Native American Reservations?

This law is pretty ridiculous, but I'm guessing they'll find a way around it somehow. If it's something involving credit card companies, maybe they'll create a new method of working the payments or something. I doubt the business will just die completely.