Argghhh.. What a mess.
In any case, here's how I think it will all play out.
For years, the US government has wanted to stop online gambling for whatever reason. They have failed over and over.
The government has proven they will not go to other countries to arrest bookmakers, but they will arrest them if they come here.
Well with only a few bookmakers coming here, what could the government do?
You guessed it, they targetted banks. We are all correct that the new law is impossible to enforce, but guess what, the government does not have to enforce it. All they have to do is brew fear.
So what's the easiest way to brew fear? Arrest the Neteller founders and charge them with money launderers.
Could the government block EFTs or wires or checks? Impossible, but if the major banks are scared, enough will block them that players will get sick of delayed payments and missing money.
Since the arrests:
Neteller has lost its EFT processors
No bank will write checks for them in USD.
They can not send USD EFTs elsewhere since all USD transactions clear in the US.
Their ATM processor turned off their card and Betjm card.
I know of at least 5 people who have been questioned when depositing checks.
I know at least one person who had a wire rejected by a US bank and returned to the sender.
The US government can not shut down sportsbooks, but they have basically said our banks will not be used to fund these establishments.
So where does that leave us?
Bottom line is it is a real bitch for sportsbooks to move money to and from the US and a number of them are waiting on Neteller for money.
After the Superbowl, you will see some books fold. Some will pay. Some will not.
Several months later, the industry will restabilize. By March or so, you'll know who is sticking around and who is out of here.
At that point, anyone who wants will be able to safely play offshore again.
If you are a small player, you will always be able to use western union, send small/receive small checks, Fedex cash (Dont laugh), use money gram, etc. You might even see some more fly by night WU type companies open up.
If you are a large player, the above does you no good. Basically, your own option is to move your operations to another country. Thankfully, as previously discussed there are many other countries that are more than happy to oblige and neteller is more than happy to keep having you.
It is my opinion that neteller is solvent. It is also my opinion that they do not want to make any "illegal" transaction after the arrest and statement from the DOJ that they were breaking the law. Eventually, I believe someone will sue neteller and get a court order for them to be able to dispense funds. When that happens, Neteller should have little problem finding a bank under court ok happy to make the money processing them.
Anyways, those are my thoughts. I figure in mid march about 75% of the books that are operating now will be operating and those who are serious about having unrestricted banking will simply be operating elsewhere while the recreational bettor will always be able to use WU and small checks.
Good luck!
Sean
In any case, here's how I think it will all play out.
For years, the US government has wanted to stop online gambling for whatever reason. They have failed over and over.
The government has proven they will not go to other countries to arrest bookmakers, but they will arrest them if they come here.
Well with only a few bookmakers coming here, what could the government do?
You guessed it, they targetted banks. We are all correct that the new law is impossible to enforce, but guess what, the government does not have to enforce it. All they have to do is brew fear.
So what's the easiest way to brew fear? Arrest the Neteller founders and charge them with money launderers.
Could the government block EFTs or wires or checks? Impossible, but if the major banks are scared, enough will block them that players will get sick of delayed payments and missing money.
Since the arrests:
Neteller has lost its EFT processors
No bank will write checks for them in USD.
They can not send USD EFTs elsewhere since all USD transactions clear in the US.
Their ATM processor turned off their card and Betjm card.
I know of at least 5 people who have been questioned when depositing checks.
I know at least one person who had a wire rejected by a US bank and returned to the sender.
The US government can not shut down sportsbooks, but they have basically said our banks will not be used to fund these establishments.
So where does that leave us?
Bottom line is it is a real bitch for sportsbooks to move money to and from the US and a number of them are waiting on Neteller for money.
After the Superbowl, you will see some books fold. Some will pay. Some will not.
Several months later, the industry will restabilize. By March or so, you'll know who is sticking around and who is out of here.
At that point, anyone who wants will be able to safely play offshore again.
If you are a small player, you will always be able to use western union, send small/receive small checks, Fedex cash (Dont laugh), use money gram, etc. You might even see some more fly by night WU type companies open up.
If you are a large player, the above does you no good. Basically, your own option is to move your operations to another country. Thankfully, as previously discussed there are many other countries that are more than happy to oblige and neteller is more than happy to keep having you.
It is my opinion that neteller is solvent. It is also my opinion that they do not want to make any "illegal" transaction after the arrest and statement from the DOJ that they were breaking the law. Eventually, I believe someone will sue neteller and get a court order for them to be able to dispense funds. When that happens, Neteller should have little problem finding a bank under court ok happy to make the money processing them.
Anyways, those are my thoughts. I figure in mid march about 75% of the books that are operating now will be operating and those who are serious about having unrestricted banking will simply be operating elsewhere while the recreational bettor will always be able to use WU and small checks.
Good luck!
Sean
