On the 16th of January, the crackdown on online gambling by the US government continued when two of the founders of Neteller, John Lefebvre and Stephen Lawrence, were charged with conspiring to transfer funds with the intent to promote illegal gambling. If found guilty, they face a sentence of up to twenty years in prison, though both men have already stated through their lawyers that they plan to contest all the charges. In a press release from the US Department of Justice, FBI Assistant Director Mark Mershon said: “Internet gambling is a multibillion-dollar industry. A significant portion of that is the illegal handling of Americans' bets with offshore gaming companies, which amounts to a colossal criminal enterprise masquerading as legitimate business. There is ample indication these defendants knew the American market for their services was illegal. The FBI is adamant about shutting off the flow of illegal cash.”
Two days after the arrests, Neteller announced that US residents were no longer able to use Neteller to transfer funds to online gambling sites though people from other countries would still be able retain that right. Last weekend’s big Sunday night tournaments showed the consequences of this action, with Pokerstars losing around 900 players in their big $1 million dollar tournament whilst neither Full Tilt’s $750k or Ultimatebet’s $200k made their guarantee.
With the Neteller arrests, the passing of the UIGEA (Unlawful Internet Gambling Enforcement Act) and the perhaps underhand abuse of an important Port Security Bill that was passed last year shows just how far the US government are prepared to go to clamp down on online gaming.
Two days after the arrests, Neteller announced that US residents were no longer able to use Neteller to transfer funds to online gambling sites though people from other countries would still be able retain that right. Last weekend’s big Sunday night tournaments showed the consequences of this action, with Pokerstars losing around 900 players in their big $1 million dollar tournament whilst neither Full Tilt’s $750k or Ultimatebet’s $200k made their guarantee.
With the Neteller arrests, the passing of the UIGEA (Unlawful Internet Gambling Enforcement Act) and the perhaps underhand abuse of an important Port Security Bill that was passed last year shows just how far the US government are prepared to go to clamp down on online gaming.
Many people within the industry will now be looking towards a World Trade Organisation ruling in March where the small state of Antigua has accused the US of protectionism against international online gambling companies. If the WTO rules in Antigua’s favour, then they will be allowed to introduce sanctions against the US, though the true benefit of the ruling could be that the EU take up the cause and subsequently force the Americans to slow down their online crackdown.
Meanwhile, the Neteller founders will face a preliminary hearing on the 14th of February.
Meanwhile, the Neteller founders will face a preliminary hearing on the 14th of February.