President Bush landed his knock-out blow to the online gambling industry on September 30, 2006, with his signing of the Unlawful Internet Gambling Enforcement Act. With the stroke of his pen, as luck would have it, billions of dollars swiftly evaporated into thin air.
The legislation, surreptitiously attached to the Port Securities Bill and passed during the wee hours, rendered it illegal for American banks and credit card groups to allow transactions between online casinos and gambling web sites.
Considering that $6 billion of the estimated total annual $12 billion cyber take was coming from American gamblers, had that money been taxed, plenty would have been available to combat what’s been plaguing the gambling world forever, and long before the internet. Addiction and underage gambling, if regulated and taxed, could be much better controlled while also filling the vacuum only too happy to be filled by organized crime and other money laundering industries.
The US could have followed the United Kingdom’s lead in licensing and taxing the revenues, as are increasingly more European and Asian countries.
The Unlawful Internet Gambling Enforcement Act (UIGEA) is designed to thwart online gambling by prohibiting access to financial processors including U.S. credit card companies and banks. In doing so they are cutting off what would appear to be the only means among players and online gambling companies would have for transacting deposits and withdrawals. But gambling folk are a determined bunch.
Online Payment Systems
If you’re new to the online gambling biz, you’ll soon discover that there are in fact tons of online payment processors. Many of whom have been actively serving, among other industries, Internet casinos, poker rooms, sports betting firms and the like since the industry’s inception way, way back some 4,380 days ago; around 1994.
How They Work…
Also commonly known as eWallets and e-payment wallets, some of the more famous online payment companies include:
Basic 900pay – a safe and easy service whereby players’ deposits are charged to their phone bills. Neither a credit card nor bank account is necessary.
Citadel – is a debit card system for transferring funds from the player’s bank account to a casino. Citadel is an excellent service for transacting foreign currencies.
Click2Pay – is a breeze to use with credit cards and is available for U.S. dollars, Euros and British sterling.
Firepay – is a free personal Internet-based account that functions like a debit card. Players deposit money into their FirePay Personal Account, and use the virtual cash to purchase goods & services online.
InstaCash – works along with NETeller, providing ease and rapid on-line money transfers.
Moneybookers – enables players to quickly and inexpensively transfer funds into a ‘virtual’ Moneybookers account. The company offers direct banking in more than 30 countries.
NETeller – allows players to deposit, withdraw and transfer funds to any merchants supporting NETeller Internet payments, including online gambling casinos.