Banking Compliance Will Likely Not Be Challenged

March 21, 2008

According to experts, the online gambling hub-bub just keeps getting messier. It seems that with last week’s ruling on the iMEGA challenge to the UIGEA, that the government is probably going to let at least one of the key point pass without challenge.

Last week the US Supreme Court removed criminal liability from the banks for failing to stop transactions as they pertain to online gambling. The US had wanted the banks to be held liable if they allowed the online gambling transactions to be processed, but with the banks being so overwhelmed these days due to the housing crisis, it is no wonder that they are unable to keep up with this latest demand.

Now not only are the banks in the clear, but so are the credit card companies and the cash processors. With the challenging of the UIGEA by iMEGA, that stipulation has been removed. This is of great relief to the banks and financial institutions as they say that they have no control over the transactions as they pertain to online gambling.

They have maintained that it was impossible for them to monitor the online gambling dealings of their customers and now it seems that the government may finally see where they are coming from. The banks have long said that the regulations will damage the banking industry more than they will the online gambling industry.

With this small victory, the folks at iMEGA are calling the ruling a win, even though many in the online gambling industry thought it was a loss because they did not win everything. Those at iMEGA say that this win is actually a big win against the UIGEA, and that it is just one in a long string of wins to come.




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