Unlawful Internet Gambling Enforcement Act of 2006

[paul02085]

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It looks like the fallout is begining... 888.com as predicted is out. partygaming to follow.

Its over for US players. Please keep posting Winner Screenshots so us US guys can have something to get excited about, LOL.

 

[paul02085]

Hope they give players time to get their money out before they lock out all U.S. players.

I suggest doing it immediately if not sooner.

 

[amatrine]

Re

I am taking it then that US affilaites will also no longer recieve payment?

Scarey

Ama

 

[silcnlayc]

Absolutely Appalling!

Frist snuck in this anti gambling measure to "protect us" and yet , no one is watching the hen house!!! Geezes...instead of worrying what I do online during my leisure hours at home with my husband (slots and cards), isn't it time to clean up your own house with child predators such as Foley in your midst?? OMG, unbelievable that they would do this and yet, ignore the fact that one of their own is an online predator?? Are they all this STUPID???

I have sent e-mails out all day to the senators, governors and everyone on the list just to say exactly this...I am hoping others follow suit for it isn't over till it's over and with Foley in the hot seat...Frist's sleight of hand might not pass after all..(Watching the news they brought this up on CNN, for some of the commentators can't believe it was allowed in either).

 

[spearmaster]

Slow down, people... take a deep breath.... let it out.... take another deep breath....

I predict that this will not come to pass - and that the journalist has overstepped his bounds in making his prediction that 888 will pull out today. Party too.

However, 888 does have a strong base outside the US - if anyone can make that jump, it is 888 - but if Party dumps it will be big, big trouble for them.

 

[Rollo]

I really hope you're right about this spearmaster, but I think there is going to be a slow motion stampeed away from US players over the coming months.

Here's how I see the dynamic... as the guy that's bigger than you gets out, the pressure (real or imagined) will be on you to follow suit as no one will want the distinction of being "the biggest gaming site serving US players" as you will be the one in the cross hairs.

I think they would ride it out if it was just a question of fines (after all many of these organizations are totally dependent on the US for revenues), but I think 5 years in federal prision changes everything.

No one, especially someone with a comfortable life and money in the bank, is going to want to be the example (though the billionares that have received so much from US players really owe it to US players to take a stand, but I suspect they'll just go hide instead.)

Anyway, let's hope you're right. I guess we'll know about 888, partygaming, etc. shortly as the big boys are all going to have to say something as owners and investors watch the value of their shares evaporate here in a few hours.

 

[RobWin]

Umm, did you just give yourself a pat on the back there or am I seeing things?

If I'm not seeing things, I'd wager that someone's still drunk and not nursing a hangover as said before.

Yea Macgyver I had a crazy moment there...

 

[spearmaster]

Actually, I already stated my opinion, but it seems some people haven't been able to find it... and still people asking me what my opinion is LOL.

https://www.casinomeister.com/forums/threads/gambling-bill-to-pass-senate-by-midnight.14312/

There are many differing readings of the bill, of course - but for the most part it appears to be a lot of hype. I personally don't believe that 888 would make such a rash decision to get out without having fully studied the implications - certainly not on the first business day after the bill has been put forward - and especially as the legislation has not yet been signed by Dubya.

It's too early to speculate that operators will have to get out. Or that Neteller is going to be impacted. It takes time for a legal opinion to be established, and in this case you can safely say that hundreds of operations are obtaining legal opinions from their lawyers/solicitors.

Plus, there's a wait period as well for establishing what financial institutions must do.

This is not the end of the world.... yet.

 

[Casinomeister]

...There are many differing readings of the bill, of course - but for the most part it appears to be a lot of hype. I personally don't believe that 888 would make such a rash decision to get out without having fully studied the implications - certainly not on the first business day after the bill has been put forward - and especially as the legislation has not yet been signed by Dubya.

It's too early to speculate that operators will have to get out. Or that Neteller is going to be impacted. It takes time for a legal opinion to be established, and in this case you can safely say that hundreds of operations are obtaining legal opinions from their lawyers/solicitors.

Plus, there's a wait period as well for establishing what financial institutions must do.

This is not the end of the world.... yet.

I'll have to agree with Spear. It's too early to make any decisions on what to do since this is such a poorly written law. Please note: the main focus of this law are the financial institutions based in the US. This is a major obstacle being thrown in the middle of the road - don't think for a second that the big online companies aren't figuring ways around this. I'm sure they have contingency plans that they are pulling from the shelves an dusting off.

"When a door is closed, another will open" is very true in situations like this. The online gaming industry is dynamic and resiliant and has weathered storms like these - the last being the banning of US credit cards. This ban opened the door for webwallets like Neteller. I'm curious on how they plan on dealing with scenerio.

Lest we forget, I don't believe it says anywhere that it is illegal for players to engage in gambling activities online. The burden is on the banks and transaction facilities. I would say just be mellow and watch how the big dogs handle this.

As long as they stay within the law, then there is no problem.

 

[Rollo]

888 suspends U.S. gaming business

Statement by 888 reported by Reuters: "Whilst suspension of U.S. activities will have a material adverse impact on results for this year and beyond, the company has significant cash resources which are more than adequate to continue its operations and further develop its business."

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Well, so much for that. Let's see what Partygaming, who isn't in such a good position, does.

 

[Casinomeister]

Statement by 888 reported by Reuters: "Whilst suspension of U.S. activities will have a material adverse impact on results for this year and beyond, the company has significant cash resources which are more than adequate to continue its operations and further develop its business."

Hmmm, maybe no Casino-on-net is a good thing for US players

 

[Casinomeister]

Admin note: threads merged

By the way, I've merged a number of the threads that popped up over the weekend into https://www.casinomeister.com/forums/threads/gambling-bill-to-pass-senate-by-midnight.14312/

 

[Rollo]

Reuters on Partygaming:

"PartyGaming said on Monday it would stop doing business with U.S. customers if legislation passed there aimed at preventing gambling over the Internet was signed into law."

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Shit... Partygaming is out (this week most likely). I wonder who will be next... this is unfolding pretty damn fast.

 

[Rollo]

Sportingbet

Reuters on Sportingbet's statement:

"Should Sportingbet's non-U.S. international banking partners determine that the act applied to them, then Sportingbet would no longer be able to take deposits from U.S. residents and this would have a material impact on the company's trading performance."

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All the big boys are huritng are pealing off.

Sportingbet stocks down almost 70%, Partygaming about 50%, 888 about 40%.

Ouch.

Let's see what the privately held companies decide to do...

 

[Simmo!]

"PartyGaming said on Monday it would stop doing business with U.S. customers if legislation passed there aimed at preventing gambling over the Internet was signed into law."

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Shit... Partygaming is out (this week most likely).

Unlikely....there is a 270 day wait for it to become law as I understand it. I think Party are probably covering their backs for shareholder purposes and will bide their time.

NETELLER US Member Update: 1st October 2006
On Friday 29 September 2006, the US Congress passed legislation which includes certain provisions to prohibit unlawful internet gambling through the restriction of payments to such sites.

The Bill states that there will be a period of up to 9 months for the US regulators to prescribe regulations requiring each designated payment system and all participants therein to identify and block or otherwise prevent or prohibit restricted transactions.

It is currently unclear how NETELLER, a European company, with no assets, presence or employees in the US, would be affected by this bill. Once the regulations have been written, NETELLER will have a clearer view of which companies are affected, how those companies will be expected to comply, and any possible resulting impact on NETELLER and its US facing business.

NETELLER continues to operate its business as normal.

Over 3 million customers in 160 countries trust NETELLER to transfer over $7 billion each year. The company is authorized in the UK by the Financial Services Authority and listed on the AIM market of the London Stock Exchange. To protect its customers’ money, all deposited, in-transit, and un-cleared funds are held in Trust Accounts.

Now THAT is a sensible approach. Kudos to Neteller for the prompt and sensible reaction IMO.

 

[Rollo]

Looks like it will be the law of the land in about two weeks...

"The legislation is expected to be signed into law by President Bush within the next two weeks, and will become effective immediately thereafter."

Old / Expired Link - it contians a bit of analysis.

Damn...

 

[jetset]

Dubya may sign it into law, but without the regulations required within the 270 day period the law is virtually unenforceable, and without the banking cooperations also required within the 270 days even more so.

Neteller's response looks like the most sensible I have read so far.

 

[Casinomeister]

Looks like it will be the law of the land in about two weeks...

"The legislation is expected to be signed into law by President Bush within the next two weeks, and will become effective immediately thereafter."

Old / Expired Link - it contians a bit of analysis.

Damn...

The Act requires the Secretary of Treasury, within 270 days, to issue regulations requiring financial institutions to block transactions in connection with internet gaming.

9 months is enough time to implement plans to comply with the law. I think there is a lot of unnecessary panicking going on right now. Making rash decisions are rarely wise, and I feel that most everyone is in a wait-and-see mode or "business as usual."

I'm sure most of the larger casino groups will be issuing statements in the next few days after they've had time to analyze the situation. These should be interesting.

 

[vinylweatherman]

Hour Later

An hour later the meltdown has come to pass on the London stock exchange. This is a common reaction on a monday morning to an event over the weekend that appears to change everything.
If investors believe this to be overdone hype then the shares will make up some of the lost ground later in the day, but will have a volatile 2 week period until the expected signature does or does not take place.
If any one from the US wants to gamble online in the mean time, there are the stock markets
A good move on Friday would have been to heavily short the online gaming sector, and I bet a few market players did. Did any SENATORS do this? Would be a great scandal, and highly illegal (insider trading), more so than online gambling may be soon for the US.

 

[Casinomeister]

If any one from the US wants to gamble online in the mean time, there are the stock markets

 

[hakapuku]

Are there any chances of Neteller going out of business? I have some money there and i am not from US.

 

[vinylweatherman]

Talk about stupid!

Neteller this morning as their shares melt down on the markets:-

Were sorry; NETELLER.com is currently down for planned upgrades. Were adding new languages and refer-a-friend features. We plan to be back online at 11:00 AM UK time. Please try later. Thank you.

Naturally, the actual login site does NOT SIMPLY RESPOND, this message has to be found on the new user signup and home page. Naturally, they have NOT contacted their users about this, as per usual.

Choosing this particular "black Monday" to be unavailable just as users are seeing the sh-one-t hitting the fan is unbelievable (and probably just wanting to make sure Neteller is still open for business); especially as Wednesday has been the day of choice recently.

 

[Simmo!]

Are there any chances of Neteller going out of business? I have some money there and i am not from US.

https://www.casinomeister.com/forum...ernet-gambling-enforcement-act-of-2006.14326/

 

[Casinomeister]

Are there any chances of Neteller going out of business? I have some money there and i am not from US.

No, I doubt it. They may chose to stop dealing with US banks, but I think they would be far from going out of business.

 

[Rollo]

I totally agree that they won't be able to block US players from sending payments in the near future and that the banks will drag their feet and raise ojections the entire way. But way before then there may be few places to send money if you're a US player. I think a large portion of gaming outfits will have cleared outta Dodge by then.

Trying to put myself in their shoes, I don't think the bottom line or shareholder interest is what the execs really have on their minds, I think what they have on their minds is jail. It seems to me that the act isn't a just a feel good measure that tries to block payments, it discusses some serious criminal penalties for taking bets online that involves jail. They don't want to be the next David Carruthers. Prosecutors don't need to wait 270 days becuase jail isn't intended for the banks, it's for the casino operators.

Players and advertisers don't need to panic at all. US players may just need to find a new hobby and advertisers that made their living off US players will have to really tighten their belts soon, learn Japanese, or both.