Will the Seizure of Gambling Funds Affect Online Gambling?

June 17, 2009 - Written by Renee

Recently the federal authorities compelled certain banks to freeze the funds being remitted to players by online gambling sites through an e-cash processor. Unless legislative changes are brought about this is clearly not a one off action by the federal authorities. More are likely to follow. The question therefore arises that will the seizure of gambling funds affect online gambling.

Unfortunately such questions do no have simple yes or no answers. In this case as well there are contrary opinions. Some in the industry feel that it will not stop people from gambling online. It will harden the stance against the government and mobilize the proposals to legalize online gambling. Christopher Krafcik, editor of the trade publication IGamingNews, disagrees. He said, “If I was a player, I’d consider taking my money elsewhere.” This time the online gambling sites sent fresh remittances to the players through other means. But it is doubtful that they will be able to do this every time a seizure is made.

Harrah’s Entertainment is one of the largest land casino outfits that is eagerly waiting to move into online gambling and is backing Frank’s anti UIGEA bill. According to Harrah’s spokesman Gary Thompson this action by the federal authorities is the work of zealots in the Justice Department who are aware that online gambling is bound to be legalized soon and are simply trying to make a name for themselves.

Sanford Millar, a Los Angeles lawyer, points out that no matter what the online gambling community feels online gambling is illegal under current laws. He said, “If they [the online gambling community] think they are going to outmaneuver the U.S. government they are out of their minds.”