The US government effectively dealt the online gaming industry (or more accurate the online gambling industry) the proverbial “dead man’s hand”. The US Senate passed a bill that would make it a crime to use credit cards or online payment systems for Internet betting. As a result, several online-gambling companies said Monday that they planned to stop doing business with customers in the United States – by far the largest market for Internet gambling. Analysts said the measure would effectively bar online-gambling companies from operating legally in the United States, fundamentally altering their business models and perhaps forcing some companies out of business. Shares of many of the companies plunged, with some losing more than half of their value within minutes Monday morning.
In effect, it is a sort of “digital” prohibition. During 1920-1933 the USA outlawed the manufacture, transportation, import, export, and sale of alcoholic beverages – that is, liquor, wine or beer. It also includes the prohibition of alcohol in by state action at different times, and the social-political movement to secure prohibition. However: at no time was possession or drinking liquor, wine or beer itself illegal.
The same will be in effect for online gambling: it will not be illegal for US citizens to play or gamble online, but by making it virtually impossible to get money from an to the betting companies, the gaming companies – in effect – will be bled dry. The legislation, which now awaits the president’s signature, makes it illegal for banks and credit card companies to make payments to online gambling sites. A very effective measure – at least for now.
I for one will not be affected because I’m not am an American: I do have a account at Pokerstars where I play Texas Hold’em. My grilfriend on the other hand *is* an American and also likes to play poker online at the same company, but she won’t be able to do that anymore in the near future – at least not for real money.
I think the measure is dumb. It will not work, just as prohibition did not work and actually as a side-effect helped the mafia and other criminals become more powerful. In fact it will probably force people to go underground. People like to have the extra excitement of knowing that they play for something tangible: money.
As far as my girlfriend goes: I already thought up a loophole that the US will never be able to fix unless they make online playing itself a crime for US people: I will just let her use my account! It is in my name and I am European. She can just pay me and I put the money into my account and let her play with it. Hah!