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Online Gambling Ban Will Burden Financial Institutions

It has been reported that the United States Chamber of Commerce has reviewed the proposed bill to ban all forms of internet gambling and online casinos, and it feels that the strict regulatory controls will place an unnaturally large and unnecessary burden on the financial institutions to control transactions that their customers make.

The bill to ban online casinos and internet gambling in the United States has already passed through the House of Representatives and is being reviewed in the Senate. The legislation aims to prohibit credit card companies and banks from allowing their customers to make payments to online casinos.

The U.S. Chamber of Commerce is contesting the online casinos ban because the changes that would have to be made to their processing system would be at a huge financial cost. The legislation would call for all non coded transactions – for example checks – to be investigated to see if they are related to online casinos and internet gambling. The Chamber of Commerce claims it is not taking a stance on internet gambling and online casinos but warns that the changes necessary to enforce the ban would put many companies under enormous financial strain.

The United States Chamber of Commerce is the world's largest business federation and numbers its members at over three million companies and organizations. The Chamber of Commerce is not the only organization to oppose online casinos and the Internet Gambling Prohibition and Enforcement Act. Many trade associations have written to the United States Senate Committee on Banking, Housing and Urban Affairs including the Independent Community Bankers of America urging the Senate to carefully review the bill and make amendments to the pending legislation. The Community Bankers of America also feel that the legislation will create an "impossible compliance burden" for uncoded transactions to the online casinos and will make the banks and electronic processors who provide facility for these transactions to online casinos liable for prosecution.

If the bill passes in the Senate the outcome will be devastating for the online casinos industry that rely on the U.S section of its business to provide more than half of the $12 billion revenue that was made last year. Some of the biggest online casinos claimed that the American market made up for almost 90% of its customers.

Online casinos are finding ways to circumvent the payment methods. It is proving difficult to use some credit cards for gambling purposes and most of the American customers do their gambling via a number of internet companies or eWallet companies. These companies provide secure payments to any number of internet merchants, not just online casinos and betting companies.

The online casinos debate is being fiercely fought in the US. Even opponents of gambling feel that it is an individuals right to choose how they spend their money. They believe that it is up to family and friends to protect vulnerable members of society not to punish the collective whole by banning internet gambling.



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