UIGEA Screws Tightening on Pro Net Gaming Offshore Banks!

[gaboonviper]

Another very interesting front page article today over at gambling911.com that could have huge ramifications for online poker in the not too distant future. Name of article is; "Online Gambling Friendly Bank In Curacao Warned."

In a nutshell: Giro Bank, which is located in Curacao, and does business with a number of online gambling sites, was warned by its corresponding United States bank to either stop doing business with net gaming companies or lose the relationship with the US bank. This is of course more fallout from UIGEA and it will only continue to grow.

I do not know if any of the poker sites do business with Giro Bank. But what is really important here is that US banks are now starting to directly tell offshore banks that they must either stop doing business with online gaming companies...and of course poker is included here...or have their relationship with the US bank ended.

Well, it is only a matter of time--probably no later than June--before all the US banks that deal with offshore banks who do business with online gaming companies, give those offshore banks such an ultimatum. And then what happens?? The sites are totally cooked if they choose to continue to do business with the US is what happens. This is beacause, obviously, no site can operate without having a relationship with an offshore bank-- and to do business with US players that offshore bank must have a relationship with a United States bank. No offshore bank/US bank relationship, no doing business with the United States players for the online sites.

As we move closer and closer to June you will be seeing more and more of this. I do not see how the remaining US friendly poker sites will be able to continue doing business with US players in such an environment.

[RoundGuy]

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Well, it is only a matter of time--probably no later than June--before all the US banks that deal with offshore banks who do business with online gaming companies, give those offshore banks such an ultimatum.

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What about the US banks, like mine, who are still doing business with online gaming companies? When do you predict they will -- I guess -- give an ultimatum to....themselves?

What about all your other predictions over the last two or three months that have failed to materialize?

You're full of crap, gaboon.

[gaboonviper]

1. When UIGEA fully kicks in the US banks MUST COMPLY.

2. My predictions have been SPOT ON.

[LeapFrog]

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2. My predictions have been SPOT ON.

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From a post of yours on 2/15:

ePassporte is just about done folks. Pull your cash out NOW if you can.

Gee do I still have time or is it too late??? Even a broken clock is right 2x a day, so I'm sure when one of your shotgun spread predictions comes true we will have to endure your celebration

[MiltonFriedman]

..... uhmmm, Leap. I wouldn't put that one up as an example. I have a nagging fear that epassporte is too exposed within the US, as WERE Full Tilt and PStars operations at one time.

FTP and PStars pulled up stakes, moved to friendly shores and retained their US market from offshore. Unfortunately, epassporte does not seem as nimble. ....

Also, epassporte may have residual Wire Act exposure, unlike a hypothetical, new poker-only processing service.

[LeapFrog]

Milton, its possible ePass may be on the way out in a few months, who knows. My point is gaboon constantly makes alarmist posts, that was almost a month and a half ago and the tone was get your money out yesterday.

[MiltonFriedman]

"US banks MUST COMPLY" ...

And, if paper checks and EFTs are exempted from the scope of their compliance responsibility, as many suggest, ... why wouldn't the online industry adapt to thosemethods for the US market.

It may not be as smooth, easy, efficient or open, but why do you think a market demand will go unmet ..... That seems downright UnAmerican of you Gaboon.

[Poker Clif]

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"US banks MUST COMPLY" ...

And, if paper checks and EFTs are exempted from the scope of their compliance responsibility, as many suggest, ... why wouldn't the online industry adapt to thosemethods for the US market.

It may not be as smooth, easy, efficient or open, but why do you think a market demand will go unmet ..... That seems downright UnAmerican of you Gaboon.

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Indeed, speaking as an economics minor, the market will adapt. There are lots of ways to store money and move it around. I use Pokerstars, which is set up offshore. Presumably whatever bank(s) they use (operating funds and customer accounts are separate) either are not subject to US pressure, or they can find overseas banks that fit that bill. On my end, I sent my deposit via Western Union. When I make a withdrawl, they can send me a paper check which does not "Pokerstars" on it, so I will have no trouble depositing or cashing it in the US. No US banks need be involved, except for the one I put my winnings in. [img]/images/graemlins/smile.gif[/img]

[MiltonFriedman]

Even for an economics minor, (a noble course of study .... did you see my Nobel on the wall by the way ?), you presume a bit too much from current structures. While I agree that the market will meet demands for services, it is clear that the stigma of illegality will raise the price for services, directly or indirectly.

You write: "On my end, I sent my deposit via Western Union".

That will not last, BetOnSports was indicted for using Western Union like that. It IS highly possible that, like fish in the sea, online gaming transfers via Western Union will slip past the flood of small transfers headed South from the US daily. However, that will not be a major factor in the flow of US deposits.

As for cashouts, which are not covered by the UIGE Act by the way, I agree with you ... "When I make a withdrawl, they can send me a paper check which does not "Pokerstars" on it, so I will have no trouble depositing or cashing it in the US."

The fact will remain that, for those US players who are willing to jump thru hoops perhaps, there will continue to be a World market of poker playing online.

Isolationists cannot defeat the relentless push for services from a worldwide market. For US players there will be ONE market, the World ... they will be able to tap into it, albeit at an increased indirect cost compared to their foreign counterparts.

[RoundGuy]

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1. When UIGEA fully kicks in the US banks MUST COMPLY.

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Maybe. Have you seen the regs?

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2. My predictions have been SPOT ON.

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No. Please review your previous 50 posts.