Breaking the Money Flow Log Jam

[RGL]

I suspect WPEX is setting up a paradigm which will be the future for payment processing and cut the DOJ Gordian Knot.

link to post describing process

The legislation and DOJ focus is on payments that facilitate gaming. Therefore, deposit = exposure. When the depositing and withdrawal mechanisms are tied together, pressure on one side of the transaction ties up withdrawals on the other. If this is true, then formats like epassporte or any other deposit/withdrawal service remain vulnerable to having withdrawals frozen.

What's needed are:

a.) ways to make deposits that are relatively easy for impulse play and keep the receiver unidentified or identified as something other than a gaming site[;]

b.) ways to withdraw that are not tied to the deposit and where the receiver is unidentified in any third party database other than the [site's] [.]

At this stage, U.S. deposit options include credit/debit cards for some and SwiftPay/Moneygram Express for all. The wire options, available at many locations including Walmart, (24-7 access near just about everybody), use numbers to identify the sender and his account and a recipient specified by the site to make the transfer. This would seem to be impossible to block given the fluidity with which the recipient name can be changed. And it's at most 30 minutes away for anyone wishing to reload. I'm not sure if the same fluidity exists for cards, but at least wires and snail-mail seem to offer it.

On the withdrawal end, the WPEX solution does not tie the card to a specific person electronically, only to an account with funds in it accessed by the card and a password by the recipient. This account could conceivably be held at any institution because the institution and the account has not been used to facilitate deposits for online gaming. The poker site itself is the only party knowing the connection between deposits and withdrawals. And they probably do not have financial assets or personnel in U.S. if they're smart.

IMHO, this represents the shape of a secure and dependable financial world for our chosen pursuit in the short term, and maybe for the long haul as well.

Game on!

[BluffTHIS!]

RGL,

You are right that a funding vehicle for deposits being separate from that for withdrawals is the way to go, and one I touted after the UIGEA passing in a thread in the leg forum I made called "phone card in and neteller out". I was suggesting neteller be used solely for withdrawing. However note now that the neteller indictments focus on money laundering and not facilitating gambling per se. So that is how the DoJ is going to go after the 2nd step in this process, even apparently if that 2nd step took all steps in accord with KYC (know your customer) provisions that banks now have to take in setting up accounts. However it should also be noted that some legal authorities consider the money laundering charges to be baseless, because it is the customer who is or is not trying to evade taxes.