Justice Opinion Paves Way for Some Online Gambling, Lotteries

A 13-page U.S. Justice Department opinion on a 50-year-old federal law, known as the Wire Act, appears to allow states to provide online gambling, particularly the expansion of lotteries onto the Internet to cover budget shortfalls. The potentially far-reaching opinion could also give federal and state lawmakers the legal window to regulate online poker sites, as long as the sites do not involve sporting events.

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Internet Gambling Law: Card Networks Must Now Detect Betting

Beginning June 1, credit and debit card processors must have “reasonably designed policies and procedures” in place to detect if U.S. transactions are tied to bets placed with Internet gambling sites, according to a finalized rule by the Federal Reserve. But the intended crackdown on U.S. online wagering that was behind the 2006 law taking effect tomorrow is far from certain as its power to enforce such activity remains vague.

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Online Gambling: Credit Cards, Poker Sites Brace for June 1 Law

As a contingent of House Democrats push a framework for legalizing and taxing online gambling, Internet poker parlors and other betting sites are bracing for June 1 – the effective date of a 2006 U.S. law that restricts the use of credit cards and other payment methods for placing illegal online bets. The law was enacted by the Bush Administration with the intent of cracking down on financial transactions that enable the growing popularity of online gambling by Americans.

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Online Gambling: Ex-MasterCard Execs Bet on U.S. Regulation

Three former senior executives from MasterCard are betting that lawmakers will soon regulate legalized Internet gambling here and have set up shop to facilitate wagers as a U.S.-subsidiary for a United Kingdom payments processor. UC Group Ltd, the parent of SecureTrading, released a statement saying it is poised to provide “safe financial transactions and required consumer protections” in the United States in anticipation of federal legislation.

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Online Gambling Sites Abuzz About MasterCard's 'Blocking'

Online poker rooms and other gambling websites were buzzing today with reports that MasterCard was blocking transactions for placing bets – a move which took some by surprise since U.S. officials last year delayed the implementation of a new Internet gambling payment ban until June 1, 2010. The gambling websites also pointed to a federal appeals court ruling on Monday as a possible impetus for the blocking. “The blocking of all deposits made by U.S. citizens linked to poker sites and online casinos will be imposed immediately as MasterCard starts to comply” with the gambling payment ban, wrote online-casinos.com today.

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Fed-Treasury Move Could Re-define Online Gambling Law

The compliance deadline on rules that would limit credit card and other payment methods on some forms of Internet gambling has been extended by six months, the Federal Reserve and the U.S. Treasury said in a combined statement. Federal officials were responding to concerns from members of Congress and associations representing financial institutions, many of which process credit card payments.

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