Andrew Beveridge, Chief Executive of eCOGRA (eCommerce and Online Gambling Regulation and Assurance), said that recent legislative developments had the potential to create a situation where players could be vulnerable to under-funded, unregulated and unprincipled gambling sites filling the space left by companies that had felt the need to exclude gamblers from certain territories.
“eCOGRA believes that the regulation of online gambling operators is far more effective and safer for the players than attempts to prohibit a form of Internet entertainment that is popular with literally tens of millions of responsible gamblers around the globe. Our concern is that prohibition rarely works and could allow unregulated operators to take advantage of decent people who have no recourse to a controlling authority,” said Beveridge.
Elsewhere, the Interactive Gaming Council said the prohibition bill does not make it a crime for the individual participant. American players can continue to play without fear of federal prosecution. However, some of their favorite sites may no longer accept their wagers, as many of the publicly traded online gambling companies announced that they would stop taking American bets following the recent action of Congress.
“This bill doesn’t do anything to protect American consumers who choose to enjoy Internet poker and other games,” said Keith Furlong, deputy director of the IGC. “But the immediate effect is to drive the industry further underground. Gambling sites will devise new methods for getting money from / to a market where players have shown a resilient demand for this type of entertainment. The sad thing is, however, that many of the largest and most responsible companies, some of whom are major public companies listed on the London Stock Exchange, are being forced to stop providing real-money games.”
“This will prove to be a classic case of unintended consequences. In the guise of protecting vulnerable Americans – minors who want to gamble and adults who can’t control their gambling – Congress has actually heightened the risk to these groups. It has driven away the operators who followed the most socially responsible practices. It has also increased the possibility of online gambling being used for money laundering, because it has outlawed the most easily tracked methods of payment.”
“With licensing and rigorous regulation of online gambling sites, rather than futile attempts at prohibition, governments can ensure that games are fair, operators are honest and solvent and vulnerable players are protected. And the governments could have reaped millions in taxes,” added Rick Smith, executive director of the IGC.
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