Banks Don't Like Idea Of Having To Pay For Crackdown On Online Gambling

from the wrong-focus dept

One of the problems with government regulations is that they don't exist in a vacuum; it's hard to implement something in isolation without causing unintended consequences. We've already seen this in the crackdown on online gambling, as the arrest of the BETonSPORTS CEO only served to keep industry executives from meeting in the US. Now banks are stepping up to oppose the anti-gambling measures before congress, citing a technical challenge in implementing a block on money transfers to gambling sites. The current system isn't designed to indicate what type of business is on the other end of the transfer, meaning a significant overhaul -- at the bank's expense -- would likely be required. Like issues of ISP liability for illegal activity done by their users, targeting banks places an undue burden on the wrong party. If the government insists on criminalizing voluntary online activity, then it should target the actual perpetrators, not companies that are ill-equipped to deal with the problem.


Reader Comments (rss)

(Flattened / Threaded)

  1.  
    identicon
    Anonymous Coward, Aug 30th, 2006 @ 10:04am

    ...yeah... but...

    I was hoping to sue all the banks that handle the money for the state gambling institutions...

    I really wanted to use that to get the state controlled gambling institutions (Read: lotteries) shut down.. I really did..

    Pooies.

     

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  2.  
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    neil, Aug 30th, 2006 @ 10:12am

    sounds simple to me if they implament a way to stop the transfers the sites just need to sell a 5 cent candy for your site credits + 5 cents and then you get site credits on a free game site then when your unhappy with your candy you simply return it for your site winnings + 5 cents

     

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  3.  
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    Debo, Aug 30th, 2006 @ 10:21am

    Legalize

    Here's a novel idea....legalize online gambling and tax it. Hmmm.....

     

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  4.  
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    just me, Aug 30th, 2006 @ 10:23am

    doesn't really matter what the banks/government does. If people want to spend their money on a 10billion:1 chance...they're going to do it.

    I think this mostly comes down to the fact that the government doesn't like competition to their money racket...The Lottery.

     

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  5.  
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    Ryan, Aug 30th, 2006 @ 10:27am

    one of these days, somebody is going to invent the concept of personal responsibility and we'll see an end to stupid laws like this.

    "oh, i lost my money on a flaky website... my bad, won't do that again"

    sounds a lot better than the current

    "oh, my kid took my credit card and lost it online... that's the online site's fault.. my govt should have protected me from that.."

     

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  6.  
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    Anonymous Coward, Aug 30th, 2006 @ 11:05am

    what about middle men like paypal. are they banks? western union? money transfer centers? would they fall into the law?

    i've suggested taxing on many threads, however i have realized it's not that easy.

    how would you tax company A located in the the united kingdom of go |= l_ l( |( 0l=l=. they don't have to follow US laws. and the US can't go after them, unless there is some extradition treaty, right? if someone could suggest a proper way to do this, i'd be for it.

    however, i doubt there's a way to ensure that a site will NEVER be considered a gambling site.

     

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  7.  
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    Anonymous Coward, Aug 30th, 2006 @ 11:17am

    How about the government keeping their nose out of people's business?

    I'm curious though - would this include lottery sites or is that *not* gambling?

    I'm glad I don't gamble at all - well, with money anyway. I'm pretty guaranteed to loose if I do anyway, lol.

     

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  8.  
    identicon
    bendodge, Aug 30th, 2006 @ 11:20am

    Surprise, Surprise

    I've invented an Automatic Article Generator!

    {
    $article="Banks Don't Like to Pay For "+$hotbttnissue;
    }

    So this is news?

     

    reply to this | link to this | view in thread ]

  9.  
    identicon
    don't let the bookies know about me..., Aug 30th, 2006 @ 11:28am

    but the bookies....

    From my understanding of Bet on Sports, wasn't it really like a social networking site where the users shared a common interest on sports lines (available in any sports page of a newspaper). It just happens that there are 2 types of users - the gamblers and the illegal bookies, and this site eases the meeting of the 2 parties?
    Even though this activity takes place in cyberspace, isn't it still illegal for these bookies?

     

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  10.  
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    Anonymous Coward, Aug 30th, 2006 @ 11:49am

    here's the thing with "cyber crime" whos jurisdiction is it?

    if i break a law in contry a, while me, and my servers are located in country b, where it is legal, am i really breaking the law?

    i mean, you don't have to pay state sales tax for items purchases over the inet if you live in another state.

    so...with that being said...it's like the grockster case. we don't host servers and what not of illegal music, we just wrote a program where people could share music. it's not our fault the users do illegal activities.


    and no, id on't think loteries and horse betting will be deemed "evil" but that's only becuse the gov regulated them and get's a nice tax cut from them.

     

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  11.  
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    Poker Wizard, Aug 30th, 2006 @ 11:52am

    Morality

    When are governments going to figure out you cant make laws about moral issues. My house, my money, If I want to play, let me. I have worked for several online gambling companies and am a systems architect. The companies themselves regulate the industry betting than any government. In place like gibralter, the check the company has to go through are on the same level as nevada. The government just doesnt want competion. research some of the WTO issues on gambling with USA vs Antigua.

     

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  12.  
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    Cantalwayswin, Aug 30th, 2006 @ 12:04pm

    This will just lead to more sites like e-gold. Now countries like Romania, Switzerland and Isle of Man, that do not require personal information to be included with online payments.
    Hmm... Anyone want to be my Romanian business partner?

     

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  13.  
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    chris (profile), Aug 30th, 2006 @ 12:13pm

    lotteries are not state gambling institutions

    they are a tax on people who aren't good at math.

     

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  14.  
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    Mike, Aug 30th, 2006 @ 12:27pm

    Re: lotteries are not state gambling institutions

    You're Math!

     

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  15.  
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    dumbass finder, Aug 30th, 2006 @ 12:32pm

    Re: Surprise, Surprise

    uh..yeah...dumbass.

     

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  16.  
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    Belligerent0001, Aug 30th, 2006 @ 3:09pm

    Re: Legalize

    How DARE you.....How dare you make friggan sense!!!! If they legalize it they (the gov'ment) won't be able to bitch about not having enough money to give to those who don't want to work and or contribute to society....I am offended by your damn Vulcan logic! Legalize it...Shesh

     

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  17.  
    identicon
    Louis, Aug 30th, 2006 @ 8:34pm

    Poker Ads

    I don't know about you, but here, in Canada, I have noticed a very big increase in ads for online poker. Most of them are for site that don't support gambling, but they are a few that do, one even stating that they have given over a billion $ in winnings. And btw, most of these ads run on the american stations. If online gambling is illegal in the states, how can there be so many ads for online poker?

    Just my $0.02

     

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  18.  
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    Anonymous Coward, Aug 30th, 2006 @ 10:39pm

    Re: Morality

    it is not a moral issue- it is a corruption issue. the politican depend on their own gambling programs to bilk the public - lottery tickets and the heavily taxed horse tracks, dog tracks, and casinos. of course those industries also pay to keep the incumbants in power so the incumbenat protect them from overseas competition.

    the us is violating international free trade treaties when it does this- not just my opininion, but international courts have ruled.

     

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  19.  
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    Anonymous Coward, Aug 30th, 2006 @ 10:41pm

    Re:

    the Romulans don't tax it? i didn't know that, but heard the Klingons did. :)

     

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  20.  
    identicon
    Anonymous Coward, Aug 30th, 2006 @ 10:43pm

    Re: Re: Legalize

    Someone else said the Romulans don't tax it. I knew the Klingons didn't but was unsure about the Romulans. :)

     

    reply to this | link to this | view in thread ]

  21.  
    identicon
    HckyFght, Sep 18th, 2006 @ 8:44am

    Homeland Security?

    What isn't being discussed here is the possible abuse of new Homeland Security laws that cover the transfers of monies between countries. The Nixon Administration hid behind "National" Security to use laws meant to protect Americans to simply go after its opponents. Now, these same dangerous idiots (Rumsfeld, Cheney, et al, were once Nixon proteges)are hiding behind "Homeland" Security to enact their backwoods, provincial, religeous agenda...oh...and go after their opponents. They've gotta go.

     

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