Net Gambling Funding Bill Worries Banks
The "Unlawful Internet Gambling Funding Prohibition Act" being considered by the U.S. Senate is worrying banks and credit-card companies. The bill seeks to curb online gambling by requiring banks and other financial institutions to block all payments to online betting firms. If banks do not comply, attorneys general would be allowed to request injunctions against them. "We don't want banks to play cops. The onus should not be put on us to enforce this," declares Katherine Pulley, spokeswoman for the American Bankers Association. Pulley is concerned that a customer could send money to a company called, for example, "AMC Funtimes... and it could be an online casino. But how do we know?" However, Sen. Jon Kyl (R-Arizona), who introduced the Senate version of the bill, says it would be up to investigators to give banks and credit-card companies a list of offshore companies that violate the law.
BILL WOULD MAKE BANKS GAMING COPS
Banks could be put on the front line in stopping Internet gambling - and they're not happy about it.
The Senate is considering a bill that would require banks and other financial institutions to block all payments to online betting houses. A similar bill already passed the House, and backers are hoping to send it to the White House before the end of the year.
But Katherine Pulley, a spokeswoman for the American Bankers Association, said the group is worried that lawmakers are trying to put badges on tellers.
"We don't want banks to play cops," Pulley said. "The onus should not be put on us to enforce this."
One big issue, Pulley added, is that someone could send money to a company called, say, "AMC Funtimes . . . and it could be an online casino. But how do we know?"
Many online gaming companies already have been prosecuted under the Interstate Wire Act of 1961. Jay Cohen, founder of World Sports Exchange, was imprisoned in Nevada when he tried to fight the law in court.
But some Internet casinos survive off-shore in countries like Antigua, their executives unable to return to the United States.
Sen. Jon Kyl (R-Ariz.), who introduced the Senate version of the bill, said cutting off the bets is the only way to put the companies out of business.
"This would significantly crimp their style," he said.
The legislation was requested by state attorneys general, who have been stymied in their efforts to shut down online gaming. In addition to avoiding state and federal taxes, online gambling firms also cut into states' own revenue from lotteries and Indian gaming.
Kyl said that it would be up to investigators to determine which offshore companies are violating the law, and that lists would be given to bank and credit-card companies. But if banks did not comply, attorneys general would be allowed to request injunctions against them.
Pulley said the ABA would be trying to work out a compromise with legislators this fall.
http://www.nypost.com/business/5282.htm
The "Unlawful Internet Gambling Funding Prohibition Act" being considered by the U.S. Senate is worrying banks and credit-card companies. The bill seeks to curb online gambling by requiring banks and other financial institutions to block all payments to online betting firms. If banks do not comply, attorneys general would be allowed to request injunctions against them. "We don't want banks to play cops. The onus should not be put on us to enforce this," declares Katherine Pulley, spokeswoman for the American Bankers Association. Pulley is concerned that a customer could send money to a company called, for example, "AMC Funtimes... and it could be an online casino. But how do we know?" However, Sen. Jon Kyl (R-Arizona), who introduced the Senate version of the bill, says it would be up to investigators to give banks and credit-card companies a list of offshore companies that violate the law.
BILL WOULD MAKE BANKS GAMING COPS
Banks could be put on the front line in stopping Internet gambling - and they're not happy about it.
The Senate is considering a bill that would require banks and other financial institutions to block all payments to online betting houses. A similar bill already passed the House, and backers are hoping to send it to the White House before the end of the year.
But Katherine Pulley, a spokeswoman for the American Bankers Association, said the group is worried that lawmakers are trying to put badges on tellers.
"We don't want banks to play cops," Pulley said. "The onus should not be put on us to enforce this."
One big issue, Pulley added, is that someone could send money to a company called, say, "AMC Funtimes . . . and it could be an online casino. But how do we know?"
Many online gaming companies already have been prosecuted under the Interstate Wire Act of 1961. Jay Cohen, founder of World Sports Exchange, was imprisoned in Nevada when he tried to fight the law in court.
But some Internet casinos survive off-shore in countries like Antigua, their executives unable to return to the United States.
Sen. Jon Kyl (R-Ariz.), who introduced the Senate version of the bill, said cutting off the bets is the only way to put the companies out of business.
"This would significantly crimp their style," he said.
The legislation was requested by state attorneys general, who have been stymied in their efforts to shut down online gaming. In addition to avoiding state and federal taxes, online gambling firms also cut into states' own revenue from lotteries and Indian gaming.
Kyl said that it would be up to investigators to determine which offshore companies are violating the law, and that lists would be given to bank and credit-card companies. But if banks did not comply, attorneys general would be allowed to request injunctions against them.
Pulley said the ABA would be trying to work out a compromise with legislators this fall.
http://www.nypost.com/business/5282.htm
