Online Gambling Faces Crisis

The U.S. Congress may have dealt a serious blow to online gambling sites this weekend by passing the Unlawful Internet Gaming Enforcement Act, a bill which makes it illegal for banks and credit-card companies to do business with them. There seems to be little doubt that the President will sign it into law, and it has already affected the shares of companies like Sportingbet and ParadisePoker.com. This move follows the recent high-profile arrests of David Carruthers and Peter Dicks, both senior executives of online gambling companies, who were charged with breaking State gambling laws. While these firms have always been based offshore, the new Federal legislation may force them to discontinue operations in the U.S., where most of their revenue is generated. According to the press release, this ban will also hit payment processors such as Neteller, which have assumed the role of middle-man between banks and online casinos. Drop by About Poker for links to the bill, commentary, and a poll where you can weigh in on the subject.

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