Thursday, October 26, 2006

Gamblers may look over their shoulder now, but experts say a new Internet
gambling ban won't keep bettors from ponying up, just turn them on to
overseas payment services out of the law's reach. "It has put a terrible
scare into people," said I. Nelson Rose, who teaches gambling law at
Whittier Law School. "But it won't by any means wipe out Internet gambling."
The fright swept through the $12 billion industry on the heels of the recent
arrests of two gambling company executives and a new law President Bush
signed Oct. 13 that seeks to ban most online gambling and criminalizes funds
transfers. The law has wiped out billions of dollars in shareholder value of
British companies, leaving the industry's future in doubt as U.S. lawmakers
initially trumpeted they had found a way to halt bets coming from America.
But serious questions remain about whether the legislation can be effective
in stopping U.S. residents from playing poker or betting on sports. The
"Unlawful Internet Gambling Enforcement Act" goes after the money, not the
millions of players, which would be nearly impossible to enforce. It will
essentially try to choke off the way Americans fund their gambling habits,
hoping to prevent the transfer of dollars to the popular Internet sites.
It's also widely understood that the law has online poker in its gun sights,
identifying it as a game of chance something the poker companies dispute.
They believe poker is a game of skill and therefore not subject to the new
rules. But they're fearful nonetheless.
"Their mission is to kill the funding of online poker, and that's what this
law does," said Mike Sexton, who hosts the popular World Poker Tour and has
won millions as a professional player.

The new law comes amid an explosion in online gambling, fueled by the Texas
Hold 'em craze and widespread access to the Internet. In addition, dozens of
Web sites have sprouted up that allow any gambler with a credit card to bet
on any sport they choose, for any amount of money they want.