The war starts?

[JPFisher55]

If this article is true: http://www.gambling911.com/Banks-Onl...ng-012007.html
Then the DOJ is about to start a litigation war with the entire online gaming industry, including poker. It could involve UK and other countries. This will force the industry to fight some sort of litigation battle in US courts, maybe international courts.
This despite the WTO ruling and the fact that the only federal case law has held that the Wire Act only covers sports betting.
INO the DOJ is out of control. How does the DOJ subpoena PartyPoker?
Good news is that this will likely force the entire industry to fight the DOJ rather than run. And it may force the hand of Congress. Certainly the WTO may be proded to take much more immediate action than in a normal WTO case.
Of course, the article may not be accurate or may overstate matters.

[Uglyowl]

I really found this article very interesting. I will be very curious what happens going forward. Probably not too much trouble messing with Antigua, but start bullying around large foreign banks, etc. hmmm



US Gaming probe rocks top banks

I wonder if the British government will say "enough is enough".

-"THE US Department of Justice has ordered the world’s biggest investment banks, accountants and law firms to hand over all e-mails, telephone records and papers connected with internet gaming firms as part of an investigation into illegal online gambling in America.

HSBC, Dresdner Kleinwort, Credit Suisse and Deutsche Bank are known to be among the banks that have been issued with subpoenas"

-"One source said: “To say the situation is sensitive is the understatement of the decade. The problem is, even if you know you have done nothing wrong, you have no powers of resistance.”"

-"The source went on: “The Department of Justice has taken a shotgun, not a rifle approach in relation to lots of gaming companies and has just asked everyone to hand over all the information they have.”

[JoseGonzlez]

No, i think you misread the article.
I got the impression the DOJ was going to investigate the investment banks that brought the gaming companies public.

Seems odd since all the listings were done in London.

[JPFisher55]

[ QUOTE ]
No, i think you misread the article.
I got the impression the DOJ was going to investigate the investment banks that brought the gaming companies public.

Seems odd since all the listings were done in London.

[/ QUOTE ]
Maybe, but what right does the US DOJ have to investigate the foreign investment banks that assisted these companies to go public on the LSE, a foreign stock exchange?

[Rigel]

The only good news in there is these subpoenas have been flying since October according to the article. So this isn't something that broke just now- the industry has known about it for a while.

[JPFisher55]

So is the DOJ going to indict anyone who assisted in these public offerings with money laundering under US law.
My apologizes to the UK and the rest of the world. I am sorry that I voted for Bush.

[Tuco]

This is really bad if true. The DOJ is waging an impressive "shock and awe" first strike. I guess it's one thing to subpoena records and completely another to build and try a case against a foe with lots of money and a strong case of defense. Looks like they are trying to scare the sh*t out of everyone that tries to do business with Americans. Working, too.

Oh, can everyone stop spreading false hope about the WTO riding to the rescue. The USA doesn't care about it's rulings.

Tuco.

[Kneel B4 Zod]

[ QUOTE ]
[ QUOTE ]
No, i think you misread the article.
I got the impression the DOJ was going to investigate the investment banks that brought the gaming companies public.

Seems odd since all the listings were done in London.

[/ QUOTE ]
Maybe, but what right does the US DOJ have to investigate the foreign investment banks that assisted these companies to go public on the LSE, a foreign stock exchange?

[/ QUOTE ]

all of these companies have significant US operations

[blutarski]

About four-five months ago, Statcounter told me my blog got a good long look from someone from the DOJ. I don't know if they were looking for affiliate ads or what ( don't have any) or if it was just a poker player surfing during work, but I thought it was odd.

I know that players can't be prosecuted and I would be the last person they'd go after ( I had about 100 bucks online at the time) but it's made me think that the DOJ's been researching and gearing up for things for awhile and that the fallout of the UIGEA would be more towards the pessimistic side of the spectrum.

[JPFisher55]

I do not equate DOJ action with US law. The US courts decide law; not the DOJ. IMO, and several gambling law experts like Mrs. Shulman and Prof, Rose, the UIGEA does not really change US law all that much.
Just because the DOJ appears to be starting a legal was over online gambling does not mean that it will win.
Considering the WTO case, the international view and other US case law, I think that the DOJ will eventually lose this war. But it will be a very rocky road.