Barclays, RBS to warn gaming clients on U.S.: sources
Thursday October 12, 7:18 am ET
By Pete Harrison and Steve Slater
LONDON (Reuters) - Barclays (London:BARC.L - News) and Royal Bank of Scotland (London:RBS.L - News) will shortly advise corporate customers to avoid taking Internet bets from the United States, banking and gaming industry sources said on Thursday.
"The two banks will be telling corporate clients they're not prepared to do business with companies that take online bets from the United States," said a gambling source. "Then they'll look at ways of stopping (U.S.) retail customers from online gambling."
Gambling companies were left in shock last week after the U.S. Congress unexpectedly passed a bill making it illegal for banks or credit card companies to process payments to online gaming firms.
The measure has been passed to President Bush to sign into law, which the industry expects on Friday.
"Once the Unlawful Internet Gambling Enforcement provision has come into force on President Bush's signature, it will be illegal for an online gaming company to accept payment in connection with unlawful Internet gambling," said a Barclays spokesman.
"We are therefore contacting our customers to ensure that they will conduct their business and operations in full compliance with the legislation," he added.
An RBS spokeswoman said: "The Royal Bank of Scotland Group will take the necessary steps to ensure that we are fully compliant with this legislation."
Gambling sources said both banks were expected to ask corporate customers to find new banking facilities if they were not closing their U.S. operations.
Sources said other major banks were likely to follow suit to avoid any legal or reputation risk.
British online money transfer firm Neteller Plc (London:NLR.L - News), which does a lot of gambling business, says it is reviewing the situation and would have a clearer view when regulations are drafted in the 270 days after the act becomes law.
RBS owns Citizens Financial Group, which is the eighth biggest commercial bank in the United States in terms of deposits. It has more than 1,600 branches operating across 13 states, and has non-branch retail and commercial offices in about 40 states.
(Reporting by Pete Harrison and Steve Slater)
Everone is running scared now..........
Thursday October 12, 7:18 am ET
By Pete Harrison and Steve Slater
LONDON (Reuters) - Barclays (London:BARC.L - News) and Royal Bank of Scotland (London:RBS.L - News) will shortly advise corporate customers to avoid taking Internet bets from the United States, banking and gaming industry sources said on Thursday.
"The two banks will be telling corporate clients they're not prepared to do business with companies that take online bets from the United States," said a gambling source. "Then they'll look at ways of stopping (U.S.) retail customers from online gambling."
Gambling companies were left in shock last week after the U.S. Congress unexpectedly passed a bill making it illegal for banks or credit card companies to process payments to online gaming firms.
The measure has been passed to President Bush to sign into law, which the industry expects on Friday.
"Once the Unlawful Internet Gambling Enforcement provision has come into force on President Bush's signature, it will be illegal for an online gaming company to accept payment in connection with unlawful Internet gambling," said a Barclays spokesman.
"We are therefore contacting our customers to ensure that they will conduct their business and operations in full compliance with the legislation," he added.
An RBS spokeswoman said: "The Royal Bank of Scotland Group will take the necessary steps to ensure that we are fully compliant with this legislation."
Gambling sources said both banks were expected to ask corporate customers to find new banking facilities if they were not closing their U.S. operations.
Sources said other major banks were likely to follow suit to avoid any legal or reputation risk.
British online money transfer firm Neteller Plc (London:NLR.L - News), which does a lot of gambling business, says it is reviewing the situation and would have a clearer view when regulations are drafted in the 270 days after the act becomes law.
RBS owns Citizens Financial Group, which is the eighth biggest commercial bank in the United States in terms of deposits. It has more than 1,600 branches operating across 13 states, and has non-branch retail and commercial offices in about 40 states.
(Reporting by Pete Harrison and Steve Slater)
Everone is running scared now..........
