More info on the new political headache

[Mattdapimp]

WASHINGTON-- A Senate panel quickly and unanimously passed a bill Thursday aimed at crippling Internet gambling through banning the use of credit cards, checks or money transfers to place or pay out bets. With the House's approval of a similar bill in June, Thursday's action moves the bill closer to final approval than ever before.

But a last-minute change removing language that would allow states to legalize the practice within its boundaries, made through an amendment by Senate Banking Committee Chairman Sen. Richard Shebly, R-Ala., has Nevada senators and the casino industry concerned.

"The bill is unbalanced and unfair," said Frank Fahrenkopf, American Gaming Association president, adding that it could even expand online gaming as it stands now since Indian casinos and horse and dog racing could still participate in online betting.

Fahrenkopf noted that AGA uses a three-prong test to determine if it will support legislation. This bill failed two parts, since it does not treat all forms of gaming the same and does not preserve states' rights. He noted that this was not a factor in Arizona Sen. Jon Kyl's original bill or in the House version of the bill passed last month.

Sen. Harry Reid, D-Nev., and Sen. John Ensign, R-Nev., also could not support the bill, based on the state language removal.

The House approved Rep. Spencer Bachus' Internet gaming ban bill on June 10, with a much longer floor debate. The approved bill contained the exemptions for state-regulated gaming industries such as horse and dog racing, as well as casinos that could offer an Internet gambling site if Nevada wanted to figure out how to regulate it in the state.

Rep. Jim Gibbons, R-Nev., voted for the House version, with Reps. Jon Porter, R-Nev., and Shelley Berkley, D-Nev., voting against it.

The bill approved Thursday must still pass the Senate floor before it goes to conference with House negotiators. There selected members of each chamber will iron out differences between the two versions to form one new bill to be voted on again and sent to the president, if approved.

The Senate is expected to adjourn today for its August recess, so any action would take place after Sept. 3

Previously, only the Senate passed a similar ban in 1998 and 1999. In 2000 a House bill failed to gain a two-thirds majority needed for passage, as set by a special rule created for the bill.

A Reid aide said he wants to make sure there is nothing in the bill that could limit Nevada from regulating itself, should the state opt to allow Internet gaming in the future. As the bill stands now, it is not clear if that is the case.

MGM MIRAGE closed its Internet gambling site, which catered to non-U.S. gamblers, saying the legal and political climate on the issue was unclear.

 

[TTinCO]

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by Mattdapimp:
WASHINGTON-- A Senate panel quickly and unanimously passed a bill Thursday aimed at crippling Internet gambling through banning the use of credit cards, checks or money transfers to place or pay out bets.<HR></BLOCKQUOTE>

Headache? You call this a headache? It's more like having a ski pole slammed down your piss hole.

If they cut off WU, Sbuxx & Neteller-what's left??? Canada will fold like the French that they partially are when the US comes swinging big wood.

Call me an alarmist, but tell me how this isn't the "beginning of the end".

 

[Mattdapimp]

How are they going to cut off Western Union? When was the last time you sent a western union and and went to the sportsbook directly let, alone the same country the sportsbook is in.

Neteller is in another country as you stated and as we all know and I doubt Canada will fold, or even care, and neteller will not fold to anything because sports gambling makes up most or all of their revenue.

This is a huge threat, yes, but do you really think that they can stop anything other than credit cards or US operated third party processing companies without any major evidence backing up their claim of terrorism? There is so much crap involved with the claims and reasons behind the support of this bill. So much BS. We are all against it, of course, but even if we were not against it, anyone with half a brain knows that this whole bill they are trying to slide does not make sense and is clearly irrational. God this a$%&*le politicians piss me off!

 

[Mattdapimp]

I have been reading what "Wild Bill" has been writing. The man is very valuable. I do not think he has made a post about this or posted his predictions since the Thursday news. Perhaps he can make a new post with his opinion on this.

 

[DellDude]

"A Senate panel quickly and unanimously passed a bill Thursday aimed at crippling Internet gambling through banning the use of credit cards, checks or money transfers to place or pay out bets."

When I read stuff like this and how they may want to force ISP's to block websites, it just really sets me off.

It would not only be a guarantee I would break the law should this pass, it would be my duty as an American citizen. People have DIED fighting for the right of freedom for this country and these assholes seem to think they somehow have the right to control people's lives.

That may be the way it works in China or in Cuba with Papa Fidel, but not in America. They can pass all the laws they want but if they violate my rights to either life , liberty, and the pursit of happiness, I'll piss on them.

And despite what these conservatives say, privacy IS constitutionally guaranteed. That excuse may have been used wrongly on abortion, but you can not have liberty without privacy so them critiscizing the Supreme Court for their decision last month on gay sex and claiming somehow that opens the door to gay marriage is just as dishonest and stupid as claiming gambling is linked to terrorism.

It's amazing America is so great. It's despite of the government, not because of it. We were created with the idea of freedom. They have spent 200 some odd years trying to chip away at it.

 

[greg]

Maybe the industry will challenge this law in court after all do we not have the right pursue happiness, the right of privacy (lets only wager online in our bedroom) gambling is between consenting adults. Compare this to online child porn which is also illegal the only way people get busted for this is a sting operation it seems like enforcement against individual gamblers will be close to nonexistant. I can see moving money being regulated , but a law with prison for online wagering has almost zero chance of becoming law. Are they going to build more prisons? Since gambling is legal in the usa I say no way and even betting with your local bookie is not a crime for the player. Maybe some more Indian casinos will open outside the usa and not be covered by this law, wagerstreet may be an example of casino immune from it.

 

[red007]

so they will try to prevent payouts via checks?
how are banks supposed to know which checks are from sportsbooks.
the checks are drawn on US bank accounts.

 

[Fishhead]

We are headed towards something that will resemble the Boston Tea Pary.....however, this will be much grander than a few bags of tea dumped into a harbour. The average US citizen can only take so much more of this. It is an outrage!!

 

[Fishhead]

In fact, if I am not allowed to gamble online, I may do something that would draw national media coverage. I am a loose cannon......ask anybody that knows me.

 

[red007]

if it comes down to being impossible to bet anymore in the US (which I doubt will happen), I'll leave the US and move to somewhere it is legal.

 

[red007]

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by STRUT888/FISHHEAD:
In fact, if I am not allowed to gamble online, I may do something that would draw national media coverage. I am a loose cannon......ask anybody that knows me.<HR></BLOCKQUOTE>

how about beating the hell out of Kyl.

 

[Mattdapimp]

Any of the mods have anything to say on this? Predicitions? Anything?

 

[TheGeneral+]

I predict that the bill may be approved by the full senate and the president, but we will always have means of wagering offshore as long as the bookies have the doors open.

 

[Mattdapimp]

Thank you General. Anyone have any detailed opinions on what would happen with the payment processing methods and what the possibilities are, ie more third party processing companies like neteller that would be based in foreign countries?

 

[Chief]

mattdapimp, I will give my opinion as to what will happen, and for those who know me, this is coming from a deep knowlege base of the payment processing industry for sports betting.. say no more..

Neteller Firepay and Securebuxx will not get squeezed by the Canadian authorities, the squeeze will come from the US banks who will in turn squeeze the ACH providers that link these processors to their customers´bank accounts. The new banking rules based on the Patriot Act demand major compliance and the US banks are closely scrutinizing their customer bases and are discouraging middleman providers that have large anonymous client bases, particularly merchants that are offshore. As the ACH guys fall by the wayside for NT, FP and SB, they will have a challenge to fund accounts and to credit bank accounts via ACH.. they will be left only with direct deposit method, since credit cards are all but a thing of the past. Eventually that will also be cut off as the banks further evaluate the end merchant base of NT, FP and SB.

Western Union has already commenced a major move to force its LatAm and Caribbean agencies to meet stricter compliance guidelines. These are aimed at cutting off transactions to fake names or names that belong to sportsbook employees. They have flagged names that are repeated too often and are closely monitoring the volumes of business in certain jurisdictions, and will certainly be closing down the violators. They have no choice but to comply as they have a lot more to lose in the area of the stock price of their parent company, First Data Corp if they were indicted in violation of the Patriot Act of this new law on the books. Gaming represents a small part of their global business, in a nutshell, its not worth it to them!

My take is that the challenge to bookmakers this upcoming season will be greater than ever before. The name of the game will be creativity and constant motion to stay ahead of the curve. The cost of receiving money will increase and will cause an erosion of margins, and may lead to massive failure to those books that rely on postup business.

Im my eyes, the future is bleak. As a payment service provider, I fear for the future of our business and I feel that this represents yet another artery being closed off with the end game being a complete shut off of the life blood to the industry. The credit books will survive, but the massive post up operations like Nasa will hurt badly.

 

[Mattdapimp]

Thank you very much for your information chief.

Mine is stated below:

Worst case, this bill passes. It will still take a while before it goes into effect. Once it goes into effect it will take avery long time, minimum 6-months, for them to crack down hard enough for this to make a difference, a big difference. The law would not go into effect until after the football season, so in the worst case, a year from now will be a total different ball game for all of us, but people will still gamble and books will still be around.

Best case, it does not pass this time around and enough people high up in the industry are sick of their upset stomachs with the thought of this whole thing going down the drain, they come together with an effort to somehow regulate this, or at least present politicans with options.

My gut feeling is that this will pass and in a year from now, things will really stink for all of us. I do not see anything being effected this football season, do any of you??

 

[Amitightornot]

Best thing to do is to have your passports ready if you are serious gamblers and do some search on which countries have good gambling laws especially taxing laws

 

[Mattdapimp]

Shrink? Any thoughts?

 

[CountryDickMontana-]

This bill stinks of facism. This is a little off topic, but these days I feel more and more that big brother IS watching. I actually feel uncomfortable criticizing our involvment in Iraq (My personnal feelings), this bill ETC. Over the telephone, or internet. It seems to me that the U.S Has used the 9/11 attacks as a veil to screen, and monitor....Everyone. Even applying for a passport in CR, they want to know everything. Where are working, when is the last time you've been in the states. May we see your recent tax returns? ETC. I underdstand the need for hightened security, but where does it end? The Bush administration seems to want to turn the U.S. Into a dictatorship. People, this is really scary!

 

[ChuckSims]

The genie is out of the bottle. Billions of dollars bet off-shore. You think this nothing law is going to end it? Yeah right. Prohibition sure stopped drinking did'nt it.