News You Could Do Without

by Mike Masnick

Congrats Congress: You've Succeeded In Keeping Gambling Execs Out

from the such-big-successes dept

So what has the impact really been of the arrest of David Carruthers, the CEO of online betting site BetOnSports? It certainly hasn't caused many people to stop gambling. However, it has convinced other online gambling execs to stay the hell out of the US. The organizer of a conference about the online gambling market which was scheduled for next week has now cancelled the conference, after many of the attendees bailed out, rather than face the possibility of arrest in the US. It's not clear what good this does. Online gambling is still very much available, and plenty of people in the US will still choose to use these sites. All that the government has guaranteed is that these execs won't come to the US, won't throw conferences here and will simply take their business elsewhere. Is that really a victory? While the government could choose to regulate the online gambling industry in the same manner they do for the offline gambling industry, instead they've just made sure that they get no part of the lucrative business that will now flow entirely to foreign countries. It won't stop people from gambling, though it will make them less protected and will prevent the US from collecting any taxes on it. It's hard to see how that represents any kind of victory.

Reader Comments (rss)

(Flattened / Threaded)

  1. identicon
    Wire Cramped, Jul 21st, 2006 @ 4:13pm


    I like every word of that post!
    governement - 0

    stupid things government does: 1,234,634,562,977,122,118

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

  2. identicon
    Wire Cramped, Jul 21st, 2006 @ 4:16pm

    Re: AHMEN!!!!

    DANG it I lost count and forgot to add this one in

    stupid things government does: 1,234,634,562,977,122,119

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

  3. identicon
    DocMenach, Jul 21st, 2006 @ 5:22pm

    Re: AHMEN!!!!

    I still think your count is off by a few orders of magnitude. Unless that is the count of stupid things the government has done just for this year.

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

  4. identicon
    Wire Cramped, Jul 21st, 2006 @ 5:23pm

    yeah..... :(

    well I said I lost count so then its this year but its close maybe within a few thousand

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

  5. identicon
    Rick, Jul 21st, 2006 @ 5:28pm


    Yeah great job!!! Ya know whats really screwed is that I live in Washington state. The great NW. It has been voted in that it is a FELONY to gamble online here. Whiskey Tango Foxtrot!!!

    Someone has already been hassled with this new law and they only have a page which has gambling forums, and links to online gambling sites.

    The new count,,,

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

  6. identicon
    Anonymous Coward, Jul 21st, 2006 @ 6:45pm

    You could probably just start a ticker... add three per second or so.

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

  7. identicon
    dorpus, Jul 21st, 2006 @ 6:47pm

    Money Laundering

    Casinos are venues for money laundering. Also, casino proceeds are taxable. If any joe schmoe was allowed to trade money online outside US jurisdiction, it would greatly complicate money laundering investigations, asides from increasing ways for average citizens to commit financial crimes. With our present system of having a finite number of land-based casinos, the government can keep closer tabs.

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

  8. identicon
    the_real_zano, Jul 21st, 2006 @ 7:16pm

    Re: Money Laundering

    The argument you are making here is horribly flawed.

    One can launder money by mixing their illicit earnings with the revenue they get from ANY web-based enterprise that brings in revenue (much like any land-based business).

    Does this mean that we should disallow the use of web-based versions of grocery shopping, book stores, news sites, etc. because it would make it easier for the government to stop money laundering?

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

  9. identicon
    JB, Jul 21st, 2006 @ 7:42pm

    Re: Money Laundering

    So if a law allowed online gambling provided the operation was US based you're arguement goes out the window a second time. The ability to launder money would be no greater than a brick & mortar casino.

    I would think there'd be a lot of the current casino operations in the US that would happily add an online component to increase their business.

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

  10. identicon
    the_real_zano, Jul 21st, 2006 @ 8:08pm

    Re: Re: Money Laundering

    Furthermore, if these online casinos were based in the US and were regulated by the government, strict record keeping could be enforced. This means that the government could conceivaby account for and track all of the activity related to the account of somebody suspected of money laundering.

    The result? This would actually make it *more* difficult to perform money laundering through online casinos than through their brick & mortar counterparts.

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

  11. identicon
    Tia, Jul 22nd, 2006 @ 3:37am

    Works for me.

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

  12. identicon
    haiku, Jul 22nd, 2006 @ 4:57am

    Re: Money Laundering

    Don't forget the NSA's monitoring of all of these transactions ...

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

  13. identicon
    ogman, Jul 22nd, 2006 @ 5:35am

    It never ends...

    More needless, puritanical garbage from the the U.S. Theocracy.

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

  14. identicon
    DWREID, Jul 22nd, 2006 @ 9:43am

    Ummmm.. well.. they are stupid

    If you got a chance to see the Republican from Alaska, who happens to chair the committee that regulates the Internet, explaining on television that the Internet was a bunch of tubes that get clogged up, then you will begin to understand the depth of the stupidity of our govenrment and the people who elect them.

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

  15. identicon
    R.E., Jul 22nd, 2006 @ 11:25am

    Re: Re: Money Laundering

    Casinos make laundering easier because there is a huge number of of transactions taking place and far less of a papertrail.

    A regular business is required by law to maintain a record of its transactions for 3 years, including all purchases, sales, payroll expenses, incidental expenses, maintenance expenses, etc.

    If these records are reviewed and it's found that the Mafia Pizzaria "sold" 10,000 pizzas but only bought enough ingredients for 100 pizzas, then it's pretty easy to either get a warrant for further investigation or prosecute them for tax evasion (which is how the feds actually got Al Capone, for instance).

    The government regulates the hell out of land casinos, and it is lesss friendly to internet casinos specifically because they are much, much harder to keep an eye on. It's a trivial exercise to purchase new domains or to relocate the entire operation to a server across the country. Moving across the globe isn't much more difficult.

    I can agree with what they're trying to do, and I dislike gambling in general (I've dealt with gambling addicts, and I've seen what can happen to their families).

    But, this approach is going to be remarkably ineffective, and every resource spent toward implementing is a resource that doesn't get put toward an effective social program.

    And *that* is what pisses me off.

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

  16. identicon
    gurzot, Jul 22nd, 2006 @ 11:28am

    Ted Stevens

    The Daily Show covered Ted Stevens' from Alasaka's explanation well.

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

  17. identicon
    Clark, Jul 22nd, 2006 @ 11:37am

    Online gambiling

    Here is one thing you're not taking into account. When you lose revenue from gambling, the state governments raise your property taxes to support very expensive education and makes it harder for a family to rent or own property. What do I care, I moved to Brazil when I retired to get away from that burden and live a descent life.

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

  18. identicon
    Anonymous Coward, Jul 22nd, 2006 @ 2:11pm

    What about stock

    It does not take cards to gamble. Look at the stock market. It is a huge gamble. When the bubble burst all sorts of people robbed regular investors. The Enron crooks did not have to pay back nearly as much as they stole and they did not pay it back to the people they stole from.

    From the "Poker Players Alliance"

    "On Tuesday, July 11, 2006, American poker players were dealt a bad hand by the U.S. House of Representatives. In a 317 to 93 vote the U.S. House passed H.R. 4411, sponsored by Jim Leach, R-Iowa, which would prohibit banks and credit card companies from processing payments for online gambling bets. It also includes the major provisions of another bill HR 4777 by Robert W. Goodlatte, R-Va., that would force Internet Service Providers (ISPs) to block access or disable hyperlinks to Web sites that offer online gambling.

    Inexplicably, this legislation provides exemptions for online horse betting, Internet lotteries and certain fantasy sports, yet poker and other online games are swept into this prohibition bill."

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

  19. identicon
    Al Lentz, Jul 22nd, 2006 @ 2:13pm

    Re: Re: Re: Money Laundering

    M y feelings exactly.

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

  20. identicon
    tim stevens, Jul 22nd, 2006 @ 4:00pm

    do as I say and not as I do

    congress (it doesn't deserve a capital 'C') wants to outlaw internet gambling but allow horse racing, Vegas gambling, bingo, and of course, state lotteries. such hyprocracy.

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

  21. identicon
    Eric Martin, Jul 22nd, 2006 @ 9:24pm

    Shell company.

    How will the US. government find out you run a gambling business if you work with the host country and they say that they own the company ??? Profit $$$

    It's an easy bypass of US laws.

    I see alot of criminals getting into this business of hiding transactions.

    Good job congress !

    Maybe Al Qeada/Bin Laden will go into business. Then what ?

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

  22. identicon
    William, Jul 23rd, 2006 @ 5:25am

    Congress and the casinos

    I think the casinos are giving Congress a little Mafia style protection money via scumbag lobbiest like Jack Abramoff to try and shut down online gambaling. Who needs the old brick and mortar casinos when you can gamble at home. So whats the going rate on a senator these days? A two week vacation and 20,000$.

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

  23. identicon
    FenixBrood, Jul 23rd, 2006 @ 11:23am


    I live in Sweden and here we have a very heavy regulated gambing market, only the goverment are allowed to run gambling opperations. We(I) have notice a increase in gambling addictis due to online gambling when the goverment started a online-gaming site. The problem with the online gambling is that ANYONE can gamble, incuding minors, and there is no way to checking who that person is. I think it is good that the US goverment regulates online gaming.

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

  24. identicon
    Jose Figueredo, Jul 23rd, 2006 @ 12:07pm

    More of the same!!

    This is another example of the current's administration
    legal abuses, not too long was Guantanamo, now is Internet gambling, who knows what's next, sexual behavior in the privacy of your home???

    I will continue to gamble no matter what the local, state, and federal governments think, this is my right....

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

  25. identicon
    Josh, Jul 23rd, 2006 @ 1:04pm

    Personally i could give a dead rat's ass if im unable to gamble online. What i do care about is that the stupid politicians (reps AND dems) actually spent time on this and neglected real problems.

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

  26. identicon
    Jane Friedland, Jul 23rd, 2006 @ 5:07pm

    Re: It never ends...

    Are you Ogman of the Boca Ogmans?

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

  27. identicon
    World Can't Wait!, Jul 23rd, 2006 @ 8:23pm

    Re: It never ends...

    Help say goodbye to American Theocracy at

    Drive out the Bush Regime

    Make October 5th 2006 a day of mass resistance!

    They scream about morality but are the most unethical of all. Their whining about things like online gambling only serve to take our eyes off of the purely evil, tyranical stuff they're doing in the background...

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

  28. identicon
    Gavin, Jul 23rd, 2006 @ 10:24pm

    No gambling in the tubes?

    Yeah, like that will ever happen. Poker is just like porn, once it found its way onto the web you'll never get rid of it. Arresting these guys would be pointless and stupid.

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

  29. identicon
    Anonymous Coward, Jul 24th, 2006 @ 4:07am


    was a good blackjack player in my youth....made decent money.....but stopped when i started to lose....was shown a web site gambling game (free trial) and thought why not....not my money lets try a shot...... anti up $5000 and off i went....fully expected to win since a. i used to good but mainly b. i thought that the site would let me win to try and suck me in! how wrong was i.....lost $5000 in less than 20 mins......concluded that the way the cards were coming out it was a real con, way could i win...ran a short test with real pack and have to say that whom so ever designed the game I played was either a genius or a bet in on a .......

    so if the suckers out there want to spunk their hard earned money on this crap in the vain hope that they might just win......oh well...

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

  30. identicon
    Wire Cramped, Jul 24th, 2006 @ 8:13am

    This is a real issue only...

    BECAUSE... I am from Vegas originally and I can say without doubt that sales are down at alllll casinos the more the gamblers are getting internet and able to do so online. So the Casinos pay the politicians to go after the "crooks" so they can get their customers back.

    If you think it is anything less your foolish. This is an issue that is ran from casino money to politicians the end.

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

  31. identicon
    Pissed off American, Jul 24th, 2006 @ 10:57am

    F&ck Congress

    All members of Congress are corrupt, evil weasels. If gambling is that bad, just outlaw it all together. The only reason they have outlawed online gambling is because they are being bribed by the gambling industry in Los Vegas, Atlantic City, etc. The hypocritical government is even part of the gambling industry -- state lotteries.

    All members of Congress who voted for outlawing gambling should be impeached on grounds of
    1. Abuse of government power
    2. Consipracy to defraud the American public
    3. Fraud itself
    4. Bribery
    5. Human rights violations for arresting innocent people and subjecting them to humilliating and degrading conditions

    Of course, the American public is too damn stupid to get upset over this. What's someone else's liberty worth? If you're smart, you realize it's worth whatever your liberty is.

    And you heard this from someone who HAS NEVER, EVER gambled in his life -- not even a lotto ticket.

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

  32. identicon
    Robert, Oct 17th, 2007 @ 8:18am

    Re: Re: It never ends...

    Are you Dane from Delray ?

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

  33. identicon
    Surfer Boy, Nov 17th, 2008 @ 9:32am

    Re: Re: It never ends...

    Looking for Dane Friedland who lived in
    Delray Beach 1963 - 1965.

    It's her surfer boy.

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

  34. icon
    scojjtoe (profile), May 30th, 2010 @ 8:13am

    Re: Re: Re: It never ends...

    hey. i was a friend of dane's when she lived in new york and then we all moved to california together late 60's. i bumped into her a few years later when she was back with her family in philadelphia. i'd be so excited to find her again. have you had any luck?

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

  35. icon
    scojjtoe (profile), May 30th, 2010 @ 8:14am

    Re: Re: It never ends...

    is this dane deland? of billie and dane? this is scott. if this is you, i'd love to talk to you.

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

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