US online gambling problem?

[Dale Hubbard]

Just wondered if someone could give me a condensed version of what's happened here, to save me wading through Google.

As I understand it, the US government have made online gambling illegal.

How does this work? Is it such that people in the USA cannot pay with their credit cards? Or is it a flat ban which makes it illegal for any US citizen to gamble on the internet? Any other considerations? Are there any offshore loopholes or ways around it?

Betfair in the UK just spammed me an offer to enter their casino, and then the thought about the USA situation came to me.

Thanks for your input.

 

[RatherGood]

Just wondered if someone could give me a condensed version of what's happened here, to save me wading through Google.

As I understand it, the US government have made online gambling illegal.

How does this work? Is it such that people in the USA cannot pay with their credit cards? Or is it a flat ban which makes it illegal for any US citizen to gamble on the internet? Any other considerations? Are there any offshore loopholes or ways around it?

Betfair in the UK just spammed me an offer to enter their casino, and then the thought about the USA situation came to me.

Thanks for your input.

US online gamling is already illegal. Bush just signed a bill into law making it illegal for US banks and CC companies to transfer money in and out of US accounts to online casinos.

 

[Dale Hubbard]

Thanks NameJet, so it's a ban at the domestic bank level then? Is it still technically legal for people in the USA to gamble online? What if they had offshore accounts -- would that make it OK?

 

[Irish31]

It's never been legal in the states, from what I understand. But no one gave a rat's a$$ because no one inforced it, so it was a useless law.


Now Congress got sick of it being useless and passed this bill to try and enforce it more, with trying to cut off players funds allocation.


Yes there are workarounds and all the players I know are not worried about it and are laughing at the bill.

 

[RatherGood]

Thanks NameJet, so it's a ban at the domestic bank level then? Is it still technically legal for people in the USA to gamble online? What if they had offshore accounts -- would that make it OK?

The bill stopped short of making it a crime for an individual to use online gambling sites.

Offshore accounts can be used by hardcore gamblers in the US, technically speaking.

An American could easily get accounts with a bank in Canada or the UK but I don't think foreign banks will be handing out $50,000 limit credit cards to non-residents.

 

[RazorNF]

I'm sure there will be loopholes and there may be other means of funding your activities, however, that isn't going to be the issue - the main thing is what gambling site/company is going to risk it - most of them are going to play it safe and have/are going to block US addresses period.

 

[Dale Hubbard]

I'm sure there will be loopholes and there may be other means of funding your activities, however, that isn't going to be the issue - the main thing is what gambling site/company is going to risk it - most of them are going to play it safe and have/are going to block US addresses period.

I'm just wondering why they would want to block US IP addresses if it's technically not illegal for US citizens to gamble? Any American with suitable proof of identity can open a UK/Jersey bank account and get a debit Visa -- you don't need $50k credit cards. You can get a £5k (appx. $9000) daily limit which you can top up. Are they blocking paid proxies also? Aren't most of these casinos offshore to the USA anyway?

I suppose the block could be at the credit/debit cardholder address level, besides a check of the location of the issuing bank ...

 

[RatherGood]

I'm just wondering why they would want to block US IP addresses if it's technically not illegal for US citizens to gamble? Any American with suitable proof of identity can open a UK/Jersey bank account and get a debit Visa -- you don't need $50k credit cards. You can get a £5k (appx. $9000) daily limit which you can top up. Are they blocking paid proxies also? Aren't most of these casinos offshore to the USA anyway?

I suppose the block could be at the credit/debit cardholder address level, besides a check of the location of the issuing bank ...

$50k wasn't really my point.

Debit Visa's limit you to only being able to play with what you actually have and can fund the bank account with.

If I was one of these gambling companies I would know my bread and butter is addicts, borderline addicts, and people succeptable to becoming addicts using high limit credit cards to gamble with money they don't have.

 

[Dale Hubbard]

I think the cream is in the addicts, and the bread & butter in the recreational players. Like drugs.

 

[QuantumBeam]

what if you are on a cruise out in the ocean & you are gambling on your laptop ? :greensmilewinkgrin:

:bathbaby:

 

[gatorgrad]

what if you are on a cruise out in the ocean & you are gambling on your laptop ? :greensmilewinkgrin:

:bathbaby:

you're an addict :laugh: :boom: :boom: ound:

 

[Rarethings]

^. Well said.

 

[Duckinla]

It appears they are basically going after the middle-men, the funds processing companies that get money from your bank account or credit card to the online casinos. Firepay and Neteller are a couple of the big ones I believe. From what I understand you will just have to send money directly to the online casino and receive checks directly back from them.

The net result is probably that many people who have not yet started online gambling will never start because the process will be less comfortable and they will feel less secure. Those who already have online accounts will probably feel relatively secure sending money directly to the casinos they are already doing business with.

 

[Dale Hubbard]

Thanks for all your comments. I have an understanding of the situation now. Much appreciated.

 

[ponce007]

All the online casinos are targetting European customers now.

aZooZa,
You mentioned getting a UK/Jersey account. What's Jersey? and how can an American get a bank account in UK? Is it doable online?

 

[Steen]

All the online casinos are targetting European customers now.

aZooZa,
You mentioned getting a UK/Jersey account. What's Jersey? and how can an American get a bank account in UK? Is it doable online?

A UK tax haven. Check Wikipedia.

 

[octobus]

Check Barclays International for accounts, however as US citizen you have to sign a waiver which allows them to reply to any requests from US authorities.

It's a pain having a US passport when it comes to tax issues and offshore bank accounts.

 

[Theo]

Gotta love dual citizenships :-D

Not...

The US government is imposing a ban on location, not status. They do that because they want to regulate (See: tax) the proceeds from online gambling. Also, gambling via bookers is seen by many as money laundering.

 

[octobus]

Are dual citizens (US and some other country) exempted from being taxed for their worldwide income by IRS?

 

[Theo]

No, and hence lies the problem
But as I said, the new law prohibits online gambling that originates in the US to be funded via CC or bank funds so it's irrelevant.