With the initial panic over last weekend's rushed US Congress action
against online gambling dying down, operational companies are starting
to look more objectively at the practical implications of this essentially
financial restrictive US proposal.
The Unlawful Internet Gambling Prohibition Act contains no provisions
that would make it illegal for a person located in the U.S. to place
a bet with an online gambling company. All provisions are directed
at trying to stop the flow of US money to offshore gambling companies.
Jackpot Factory group started the positive ball rolling when it announced
earlier in the week that whilst it was monitoring the situation it
would be business as usual when it came to US players. Several other
major online casino and poker room groups have now followed suit,
and as we went to press the respected Cardplayer.com site had published
an excellent and practical review
of the entire situation which will go some way to calming the business
hysteria that has been so prevalent this week.
The Leisure and Gaming group, which includes many top online gambling
companies, acknowledged the introduction of the Unlawful Internet
Gambling Enforcement Bill, is monitoring the situation closely and
is continuing to take legal advice on any impact this may have on
its business. In the meantime the group continues to operate its business
in the usual course.
The important Mansion group said that the full effect of the legislation
at this time remains unclear. Mansion continues to closely monitor
developments of the proposed amendments to U.S. legislation, and the
online gambling group is actively seeking the best legal advice to
remain fully informed. "We are committed to ensuring our
members are well informed, should any of the proposed regulations
have an impact on the conduct of our business and the availability
of our products and services," says the announcement,
adding that: "We wish to reassure our members that at this
time, Mansion continues to trade normally and we remain committed
to delivering the quality and standard of service that they have come
to expect from us."
The Roxy Palace and Vegas Splendido online casinos told webmasters
that the company will be conducting business as usual and will still
accept US players at both casinos.
The Board of International All Sports Limited ("IAS") issued
a statement saying that the company "....is disappointed
that the USA Government is passing laws to circumvent its commitment
under the General Agreement of Trade and Services to the World Trade
Organization to allow free international trade in an effort to protect
USA gaming companies that operate in the USA."
The Board noted that US horse racing has been exempted from the legislation
and as such this aspect would not affect the business of IASbet.com.
Turning to subsidiary Canbet, the international brand of IAS that
operates out of the United Kingdom the statement said the US proposal
is not expected to have any financial effect on the operating profit
of the group.
UK based law firm Olswang has raised an interesting point of legality
concerning the much debated new US "Unlawful Internet Gambling
Enforcement Act of 2006", suggesting the measure may actually
apply to absolutely nothing!
"The UIGE Act does not actually clarify the law on what
is "unlawful Internet gambling," says the firm. Gaming
that is legal prior to the Act coming into force remains legal and
unregulated but no clarification is given on this unclear area of
law."
In his rush to steamroller the new law through a last minute session
of Congress attached to a totally unrelated but urgent safe ports
bill, Sen. Frist apparently chopped out one of the important original
intentions of the Goodlatte legislation that had earlier passed the
House.
This was designed to specify that the antiquated and confusing 1961
Wire Act does apply to the Internet, a contentious point that still
remains the subject of argument. Rep. Goodlatte expressed disappointment
at the excision (see earlier InfoPowa reports), and vowed to press
forward with it again, bringing it to a Congressional vote in the
hope that it will deliver the coup de grace to the industry in the
USA.
The Fortune Lounge and Vegas Partners Lounge online gambling groups
intend continuing services to US players whilst monitoring the US
legislative situation and any official attempts to disrupt financial
channels available to US players. Both groups have a number of online
casino and poker rooms in their respective stables.
VPL said this week: "We will be continuing business as
usual for the time being. Once it is clear how the new law is interpreted,
we will work at finding solutions so that play with us can continue
to be unaffected."
In an announcement in a Fortune Affiliates newsletter, the group said:
"The Fortune Lounge Group has notified us that they are
and will still be accepting USA players at their casinos and poker
rooms"
Meanwhile rumors were circulating that Friday the 13th could be a
significant day, and not just through ancient superstition. Apparently
under the US legislative process for the enactment of a law, the President
has 10 days in which to sign or veto and/or move for reconsideration
or ask for a postponement. The Unlawful Internet Gambling Prohibition
Act bill was presented to the White House on October 3rd, which would
make midnight Friday 13th the deadline.