Another Government Seizure Attacks Online Gambling

Gambling News - September 13th, 2009 - Written by Glen

On September 4th, another federal raid took place against the online gambling community. Three bank accounts allegedly holding online casino money were seized by the feds. After an investigation, authorities had sufficient evidence to take the money under the UIGEA and money laundering pretexts. The funds, like the seized poker accounts from over the summer months, held winnings pay outs.

One Citi Bank and two Bank of America accounts were taken in the seizures. The Warrant cited that the funds were forfeitable due to the nature of the funds being associated with illegal gambling activities and money laundering transactions. The District of Maryland was responsible for the seizures, signed by the Honorable Paul W. Grimm. HMD, Inc. was the owner of the accounts, and it is suggested that they are some how linked to earlier seizures of accounts owned by another payment processor, Electracash.

Courts in Maryland and New York had been responsible for granting permission for the seizures. These two states do not have restrictions on online gambling, which brings new questions to light, particularly considering that the courts have recently deemed online gambling's legal issues the responsibility of the state. While the different online poker rooms which had money seized rectified the situation with their customers, there has been no word yet on the casino's willingness to return the absconded funds. An excess of $30M had been seized by the federal government in the last two months from poker winnings, citing the same reasons we see today.

December marks the final initiation of the Unlawful Internet Gambling Enforcement Act. When December hits, the responsibility of the UIGEA will land on the financial institutions themselves. Despite the upcoming arrival of the UIGEA, A senator and a representative are both struggling to make the online gambling issue remain legal. Those who frequently engage in online gambling, or simply believe in civil rights, are urged to write their congressperson and push for a solution.

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