The Congress held the hearing about online gambling and the UIGEA which currently prohibits online gaming by forcing the financial institution to block financial transactions that are going toward internet gambling. Today’s hearing, a summary of which is available in all it’s glory by PPA including videos, supporting materials and even transcript coming shortly.
We however, want to point out a small exchange deep in the middle of the discussion. If you watch this YouTube clip starting at 2:00 mark, this is what happens:
Congressman Brad Sherman: Why can’t the same procedures use to prevent money laundering be used to prevent payment for online gambling?
Roseman: Money laundering is global concern. Banks around the world work together. However, because online gambling is legal in many parts of the world, the banks in those jurisdictions have no incentive to block those transactions.
Congressman Brad Sherman: So if we deem keeping online gambling away from the United States citizens we might have to cut ties with small Caribbean countries?
Roseman: The issue goes farther beyond Caribbean countries.
Congressman Brad Sherman: What’s the largest economy that allows online gambling and would want access to the US market??
Roseman: I do not have the answer at this time.
So what we just saw is that neither Congressman Brad Sherman nor the banking industry know that the EU and UK permit online gambling and have many major casinos based there. Something tells me, US will not be cutting ties with EU or UK any time soon.
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