Re: Neteller Federal charges, news conf this afternoon per SDNY
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Nate, I do not agree with you. IMO, federal law, regulations or procedures cannot be enforced to the extent that they violate an international treaty like GATT or the Geneva Convention. See the recent Gitmo case ruling that President Bush's procedure to try Gitmo detainees and enabling legislation must conform to the Geneva Convention.
David Carruthers attorneys have already filed a motion to dismiss the case against him based on the WTO case. However, that case mostly involves bets taken by telephone line.
This new "Neteller" case only involves sports bets taken by Internet, which the WTO has ruled cannot be made unlawful by US law. How is the US going to claim compliance with the WTO decision? I think that the WTO case ruling that the Wire Act cannot be applied to Internet gambling will be the major issue in this new Neteller case. What other defense is available? The facts are true as stated. So the issue must be the criminality of the conduct.
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Well, I'm not an expert on this stuff. I don't know if the WTO ruling actually means that the US violated one of the treaties that underly the WTO (such as GATT or GATS), or if the WTO process is more akin to something like arbitration.
I do think, though, that what happens to the actual proceeding is not terribly material. The intimidation effect this will have on the remaining US-facing companies in the sector (including, ultimately, US banks themselves) is enormous.
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