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Interesting Article -- NO CC payment for Online Casinos

#1

When online live poker started a few years ago, credit cards were the
primary vehicle for depositing and withdrawing money. Now there are
very few (if any) credit cards that can be used for gambling purposes,
even when using third party companies like PayPal as an intermediary.

Now intermediaries (PayPal, NeTeller, FirePay and others) withdraw and
deposit funds directly from your bank account. Apparently there is considerable
pressure to plug this leak also, as PayPal (which is being acquired by Ebay)
has agreed to stop all gambling transactions later this month. It was rumored
that the PayPal - Ebay merger approval hinged on PayPal getting out of the
gambling business.

···

On 8 Nov 2002 Marc wrote:

They have passed legislation preventing the use of credit cards for
payment into and of course OUT of online casinos. Other means of
payment will also be blocked.

While the legislation has passed, it was not forseen to be put into
practice until after the new year.

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#2

The method being used by those who want to make internet gambling legal is
to do it piecemeal...step by step. For example, out of state betting is now
legal in California, so bettors can use their computers legally to make a
racing bet in any state that also has an "OTB" (off-track betting) law.
Interestingly, they can also place bets at tracks outside the U.S. I'm not
a horsey fan, but from what I've heard, credit cards are fine.

A growing number of states now have OTB laws, and supporters of internet
gambling are encourageing their spread as a way to slowly but surely
legalize all of internet gambling. Given the public's love of gaming these
days, it'll probably happen in the next couple of years. Not to mention the
well placed donations to various campaign funds.

lb

#3

Now intermediaries (PayPal, NeTeller, FirePay and others) withdraw and
deposit funds directly from your bank account. Apparently there is
considerable
pressure to plug this leak also, as PayPal (which is being acquired by Ebay)
has agreed to stop all gambling transactions later this month. It was
rumored
that the PayPal - Ebay merger approval hinged on PayPal getting out of the
gambling business.

  Unless I am confused, it is perfectly legal for people to send
funds to and from PayPal, NeTeller, or FirePay or similar money handling
groups. If that is the case, all the government will accomplish is
that it will force all of these companies to be based outside the
US. Even if the government managed to shut down every electronic
means of funding gaming, one could still send cashiers checks via
standard mail. This would have little effect beyond irritating
people who are going to play anyhow. Maybe the govt. should focus
on battles it can win and stop wasting time on ones it cannot.

  QX

#4

  Unless I am confused, it is perfectly legal for people to send
funds to and from PayPal, NeTeller, or FirePay or similar money

handling

groups. If that is the case, all the government will accomplish is
that it will force all of these companies to be based outside the
US.

Jim - you're absolutely right. NeTeller and SecureBuxx are both based
in Canada. Not sure about FirePay, but I'd venture a guess and say
that it, too, is baded in Canada.

hockeystl