Why is Party Over -Reacting? A little perspective...

[Folding Pete]

Why is Party over-reacting?!

It does seem that there is no reason for Party to threaten to suspend US accounts as soon as the bill is signed.

1. The bill is about money transfers to gambling organisations (state lotteries and horse racing are specifically excluded).

It also have some clause saying it doesn't override existing legislation.

So it is not about internet Poker/Gambling persay it about the funding of.

So basically not change in the grey aray were internet Poker resides.

The bill says reasonable efforts must be made in stopping such transfer by banks etc... So the banks are going to wait for the specific rules and go from there.

If you transfer to Neteller the bank or credit card co has no way of knowing what you are using your Neteller account for. Online purchases are big business.

If banks wholesale block Neteller it would have a very good case to sue someone I'm sure (govt or banks).

If Neteller decides to cave in then there are a myriad number of similar Epayment cash accounts that can be used to fund a Party Account by US citizens. How are banks going to know what the funds are being used for?

Does Party think that US banks will block funding of all Epayment accounts?!

2. Their is till a time frame of 270 days before full compliance - why threaten to shut down US business immediately it is signed?

3. Poker is still a grey are in US law. It is a game of skill. Only Sports betting is specifically banned in US law.

4. The laws by the US against online gambling with international companys are most likely breaching WTO agreements. They are 'protectionism' as the US does allow gambling in some states and internet gambing (lottery etc..) likewise.

Antigua, home of a number of internet casinos, has already complained to the WTO last year and if the case pushed I would think they have a good chance of winning.

I know little to nothing about the WTO but that could be the breakthrough we are all looking for.

It may be a number of years down the line but winning that case would blow the whole internet gambling scene wide open and ultimately lead to the establishment of US based and taxed internet gambling giants.

So why is Party threatening to pulling out?!

A number of possible reasons:

1. A poor snap decision based on the shock passing of the bill.

2. Maybe something to do with Pay-Pro (Party's payment processor). Is it someway open to punitive measures by the US Govt?

3. Scared exectutives running Party poker.

With the recent arrest (and release on bail) of a couple execs of Gambling sites this may have frightened Party execs.

They basically seem to be looking after their own skin (however remote the chance is they may arrested and convicted) rather than the interests of their customers and shareholders.

If I was a major shareholder in Party I would be giving them such a rocket up their ass for their recent actions.

So in conlcusion all is not lost. Even if Party appears to be throwing in the towel.

A. A Party may get some sense, do an about face (soon or in a resonable timeframe) and ultimately not go ahead and kill their golden goose (US business).

B. If they do not I would think a large proportion of fish will simply migrate to another welcoming internet Poker Site who give them simple instructions how to fund a Epayment that won't be blocked.

US citizens will still want to play poker and gamble on the internet - and they will.

Always be folding

Folding Pete

[Ali shmali]

Antigua won the WTO case already. The U.S. has already been told it violates WTO laws by making it hard for Americans to gamble with over sease companies. It does not matter that NV, or CA allow gambling, it matters that they allow gambling on the internet in general, in almost every state of the U.S.

I was pretty sure the bill also targets gambling buisinesses, not just banks.

[tomdemaine]

Note : Party executives recently exercised options to buy lots of stock at rock bottom prices.

[Folding Pete]

Yes I understand that Antigua did get a ruling in their favour.

However the US hasn't addressed the issue so some sort of WTO follow up is need to either sanction the US if they persist or get them to desist in their 'protectionism'.

[Ali shmali]

[ QUOTE ]
Note : Party executives recently exercised options to buy lots of stock at rock bottom prices.

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sneaky sneaky. what does this point too?

[jb9]

[ QUOTE ]
[ QUOTE ]
Note : Party executives recently exercised options to buy lots of stock at rock bottom prices.

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sneaky sneaky. what does this point too?

[/ QUOTE ]

My guess would be it points to the fact that their option price was below market price and they like free money, but without more info it is hard to say.

[arcticfox]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Note : Party executives recently exercised options to buy lots of stock at rock bottom prices.

[/ QUOTE ]

sneaky sneaky. what does this point too?

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My guess would be it points to the fact that their option price was below market price and they like free money, but without more info it is hard to say.

[/ QUOTE ]

They were nil cost options so it actually means nothing.

[daveymck]

All the companies that have pulled the plug on US players have in common that they are listed on the stock exchange, most of them were banning players in the run up to the law being passed.

I suspect the answer to this lies in being listed on the LSE (and whatever the implications are for such companies) than any other the other bits of creativity people are coming up with.

[dibbs]

Why did they overreact? They hired lawyers to assess the situation, whatever those lawyers told the higherups at party scared the living [censored] out of them.

When a lawyer tells you theres a good possibility you're gonna be spending the next few years of your life in a cement box and sharing showers with convicts instead of reveling in champagne blow and hookers in a penthouse, you dont gamble.

[Webster]

Scared exectutives running Party poker.

Just wait - more will fall in line when they realize ANYBODY that works for the place will be arrested if they enter the U.S.

This is only the beginning! It will get worse.