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Fear Stopping Online Casinos

The federal government passed the UIGEA three years ago this month and met international criticism and outrage; many in the online casino gambling industry objected to the US policies but voluntarily left the market to avoid fines. Not long after the UIGEA took effect the US Department of Justice began the fear tactics as a way to enforce the new highly flawed gambling policies. In the intervening three years there has been very little legislative progress on repealing the UIGEA or even fixing some of the Act’s blatant flaws. Instead, the DoJ has resorted to intimidation and fear tactics aimed at the US gamblers as a way to prevent gambling transactions between US gamblers and offshore online casinos.

In the past six months the US DoJ has really begun to crack down on the gambling transactions in hopes of intimidating the American gamblers themselves into compliance. Several key online casino payment processing companies in the US market have been faced with seizure warrants in which the US government has taken control of millions of dollars worth of US gambling account funds. The US gamblers are now extremely wary about depositing money at the US-facing online casinos because so many gaming sites have faced action from the DoJ.

So although many of the offshore online casinos are still safe from DoJ action, there are fewer and fewer payment processing companies still operating that are able to effectively process transactions with US gamblers. The US gamblers now see that the real danger in the market doesn’t lie within unscrupulous gaming sites, but rather losing funds to the US government.