Posts Tagged ‘legalization us gambling’

Unlawful Internet Gambling Act has affected low stakes players

The Unlawful Internet Gambling Enforcement Act (UIGEA) came into effect on June 1st, 2010. The legislation requires all financial insitutions to not process transactions with online gambling companies, hence it impedes players from depositting at their favorite online gambling sites. It is important to notice that the UIGEA does not make online gambling illegal, but it only makes it illegal to deposit and withdraw from the sites.

The first effect of the UIGEA implementation has been a significant raise in the minimum deposit requirement at online gambling sites. Some online gambling sites have almost doubled their minimum deposit requirement and some say it is because the cost of processing transactions through credit cards has gone up, but this is debatable.

The bad news is that this new measure has affected the low stakes players who like putting small amounts of money into online gambling sites and have fun without risking a lot of money. The numbers will probably go down at online casinos as there are a lot of players who concentrate on the low stakes.

The word around the internet forums is that the UIGEA has only been successful in preventing online gambling from being taxed and regulated as a legal activity in the United States. A lot of online gamblers do not think this new measure will prevent everyone from playing casino games online and will definitely not help people who suffer of online gambling addiction.

Personally, I think it is true. Players continue to be successful in depositting into online casinos and poker sites but they often get the feeling that they are doing something wrong. I want to make it clear that online gambling is not an illegal activity and the way in which the US Federal Government is trying to tackle the problem gambler issue is proving to be unsuccessful.

US Congress bills would Legalize and Regulate Online Gambling

With the recent tug-o-war on full heat between Land-based US gambling companies and foreign online casino operators there was only one way to end this feud, with the introduction of a dramatic change in US Law. Luring online casino operators to prepare in advance for the uplifting of the US regulation on internet gambling and it will  bring  millions in revenue. To obtain the US online gambling license, land based casinos are creating an alliance with the overseas internet gaming operators.

Only a short while ago big names such as Harrah’s and MGM were battling endless wars with foreign online gaming operators but with the advent of change in the online casino regulations by the US, both sides are finding a new place in their lives for one another.

The passing of the UIGEA in 2006 petrified many legitimate companies and they had to pack their bags and leave the US market. Maltreatment and bullying by the justice department continued to whip up more companies leaving, only a few foreign companies to operate under shaded garbs.

John shepherd of Party Gaming, one of the online gaming companies looking forward to making a comeback to the US online gambling market recently gave a statement to Bloomberg News that when the act was signed into law it resulted in a deprivation of 75 % users as they have to stop taking wagers from the US online market depriving their business of essential cash inflow.

US online gambling regulations were expected to create waves among the online casino owners thus they are bound to impose certain requirements that will favor the domestic land operators present under state regulatory rules while online casinos receive the advantage of being associated with US interests.

Douglas Rennick Pleas Guilty of Processing Illegal Payments

Canadian citizen Douglas Rennick was recently accused of processing betting payments for US residents who were playing at online casinos. Today, he pleaded guilty to the charge and by accepting the plea he avoided conspiracy and bank fraud charges.

Rennick admitted that he owned a company that spent two years transferring funds from a Cyprus bank to US acounts to pay off gaming losses. In a statement released by the federal authorities they said that Rennick had provided false statements to US financial institutions about the nature of the business he was conducting.

The US authorities seemed pleased when Rennick accepted the charge of processing payment for Internet poker rooms and online casinos. Prosecutors convinced Rennick to plea to a lesser crime of uncertain nature establishing a beachhead of sorts to anchor their contention Internet casino gambling and poker are illegal. Various US courts expressed their disagreement with the Justice Department, saying the Wire Act applies only to sports betting and leaves the question of online casinos unaddressed by federal law.

I can only say that things like this just make me angry, Rennick is facing a 6 to 12 months sentence for taking the deal. Much less than Mr. Phuong Quoc Truong who got condemned to 70 months in prison for a Huge Casino Gambling Scam.

In the process, however, Rennick has strengthen US prosecutors’ cases against the legalization and regulation of online gambling. His lawyers said that if he had stood trial and been convicted he could have faced a 40 years or more sentence.

We will keep you updated on how this turns out. In the meantime feel free to enjoy our great games at The Virtual Casino.