Since the
passing of the Unlawful Internet Gambling Enforcement Act to block U.S. citizens
from gambling at online casinos and other internet betting sites, two noticeable
trends have started to develop. The first and most apparent is that some gaming
operators and software providers have ceased taking U.S. players altogether. A
milder version of this same trend is that some online casinos have begun to
cease taking bets from U.S. players residing in certain U.S. states with laws
explicitly renouncing online gambling activities or the placing of real money
bets over communicable devices.
As a direct
result from these changes another trend has developed, according to gaming
operators who've decided to keep doing business with U.S. players for the time
being. "Flooded with business" and "swamped with work" are sentiments from two
sources who say that U.S. players have not been phased by the legislation, but
are rather, turning to those online casino sites who have not closed their doors
to a continuously thriving U.S. internet gambling industry. With demand still
the same and fewer companies in business, it only makes sense these sites are
reaping the benefits of increased player registrations and account sign-ups.
Several
factors help to explain why this is the case, and ultimately how the Unlawful
Internet Gambling Enforcement Act is likely to become a highly fallible piece of
legislation. The first is that the Act does not specifically prosecute those who
participate in online gambling activities, but rather, goes after those large
companies who facilitate the processing and exchange of funds for gambling
services, such as the software providers, eCash handlers and the online casinos
and betting sites themselves. Secondly, those gaming companies who have decided
to stay in the U.S. market are located offshore and beyond the reach of U.S
authorities. Aside from stepping foot in the United States, the owners of these
companies know they are protected under certain jurisdictions other than the
U.S.
Some legal
expert insiders, however, are asserting that the U.S. is serious about opening
new investigations (some say that online poker sites could be the next targeted
bunch, following the recent sports betting crackdown). Renowned gambling expert
and lawyer, John Baughman, at New York's Paul Weiss legal firm, has stated that
U.S. officials are not even second guessing their decision to ban online casinos
gambling.
Rather, it
appears they are even more resolved to follow up on the Internet Gambling Act.
The only possibilities for the tide shifting would be a Democratic takeover
following midterm elections, the decision by a powerful lawmaker that online
gambling is an excellent source of tax revenue (which it would be), or if
several U.S. players are hit hard by fraudulent operations that could otherwise
be prevented by sound regulation, such as that of the United Kingdom.