Gambling News - November 2006 Edition

Online Casinos Eyeing BetOnSports Settlement with U.S. Federal Prosecutors

In a move no doubt being closely followed by other online gaming companies and online casinos, London-based BetOnSports has decided to settle the lawsuit brought against it by U.S. federal prosecutors.  As part of the settlement, BetOnSports has agreed to permanently ban U.S. residents from making payments to the company as well as to set up a hotline where players can call to reclaim money placed on pending bets.

The lawsuit, spearheaded by U.S. District Attorney Catherine Hathaway, sends a strong message to online casinos and the online gambling industry in general about the U.S. position on online gambling and its determination to keep its citizens from playing at online casinos and other online gambling venues.  The outcome of the case also serves to undermine Antigua’s position with regards to the WTO case since BetOnSports was operating under a license granted to it by Antigua’s Directorate of Offshore Gaming.

Many online casinos, online poker rooms, and online sportsbooks are justifiably nervous about the potential impact of the Unlawful Internet Gambling Enforcement Act (UIGE) and the BetOnSports case is a potent reminder of the recent legislation.  While some online gambling companies are reacting cautiously and taking a wait-and-see approach, others have already decided to stop accepting bets from U.S. residents, preferring not to risk getting hit with a suit similar to the BetOnSports suit.  The UIGE Act has already had serious consequences for several online casinos and online poker rooms and is already affecting the way the online gambling industry, as a whole, operates.

Back to Latest News
Back to News Archive
Back to Online Gambling News - November 2006