New Treasury Rule Proposal and Online Gambling Funds

04 October 2010

There has been a new ruled proposed that has gotten online gamblers in the U.S. in a foul mood. A rule proposed by the Treasury Department would require a weekly report of all electronic money transfers into and out of the U.S. by all financial institutions. Along with the reports the social security numbers of all those making thing transaction will be included. Currently no reports are made if transactions are less than $10,000.

Could the U.S. government use this information to halt all U.S. online gambling in the U.S.? If you frequent the many gambling forums that are currently buzzing about the topic you would have to say yes. The Treasury Department says that this proposal is only aimed at catching money launderers with links to funding terrorism. U.S. gamblers heavily rely on third party payment processors are concerned though.

A business professor at the State University of New York College in Buffalo, Joseph Kelly seems to thank all these fears are going a little overboard and the overall effect this proposal will have on internet gambling will be minimal.

He reasoning seems reasonable enough; he claims that all the big reputable financial entities have already withdrawn from the online gambling market. These big institutions have been replaced by many smaller companies that in the long run are not good for money laundering.

These smaller payment processors are just right for keeping the online gambling industry funded and are mostly not large enough to get on the Treasury Departments radar. According to Kelly, the online gambling companies have done well with hiding their involvement with international wires and could continue to perform through the use of shell companies.

Related News

  • 14 May 2010

    Canadian Man Pleads Guilty in U.S. Online Gambling Charge

    Douglas Rennick, a Canadian man, has pleaded guilty to a count of processing offshore bets of U.S. citizens. Originally Rennick was looking at a charge of conspiracy and bank fraud. He had allegedly laundered $350 million dollars for overseas internet gambling companies. Rennick was indicted in August and on Tuesday entered a guilty plea to the one charge in New York Federal court. Part of the plea was forfeiting $17.1 million and a possible prison term of 6-12 months.

    Read full article
  • 02 June 2010

    France to Award 30 Licenses for Online Gambling

    Today the government of France approved a new online gambling bill. The bill passed the French parliament by a narrow 299-233 vote. The French will grant only 30 licenses to operate online casinos and poker rooms within its borders. Though it is now official and France says that licenses will be granted in time for the 2010 World Cup, not everyone is excited about the French market.

    Read full article
  • 09 June 2010

    France Issues 11 Licenses For Online Gambling

    France acknowledged that 11 companies have been granted license and have been registered to conduct online sports and horse race betting as well as online poker within France. According to Arjel president Jean-Francois Vilotte, the regulator of gaming in France, “There were 35 requests for licenses and we have retained 17 at this stage. None have been formally rejected.

    Read full article