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Internet gambling headed for a ban
- Thread starter B.King
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- Joined
- Nov 22, 2004
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- Joined
- Feb 28, 2004
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LONDON, England (Reuters) -- Online gaming firms faced their biggest-ever crisis on Monday after U.S. Congress unexpectedly passed legislation to ban online gaming there, threatening jobs and hitting stocks by as much as 70 percent.
Britain's PartyGaming Plc, operator of leading online poker site PartyPoker.com, and rivals Sportingbet and 888 Plc said they would likely pull out of the United States and warned on future profits.
PartyGaming's shares fell 59 percent by 0725 GMT, while Sportingbet lost 64 percent, 888 was down 45 percent and gaming software provider Playtech fell 55 percent. Austria's bwin.com Interactive Entertainment fell as much as 22 percent in the first few minutes of trading.
U.S. Congress unexpectedly approved a bill early on Saturday that would make it illegal for banks and credit-card companies to make payments to online gambling sites.
The House of Representatives and Senate approved the measure and sent it to President George W. Bush to sign into law. Most analysts think his approval is certain.
"We believe that this will have a very material impact on the long-term prospects of online gambling, and in particular poker," said analyst Julian Easthope at UBS. "This will lead to a rapid decline in the use of online poker sites."
PartyGaming generates about 78 percent of its revenue from the United States, while Sportingbet gets about 62 percent there.
PartyGaming said in a statement: "If the president signs the act into law, the company will suspend all real money gaming business with U.S. residents, and such suspension will continue indefinitely.
"Any such suspension would also result in the group's financial performance falling significantly short of consensus forecasts for 2006 and 2007," it added.
PartyGaming's smaller rival Sportingbet said the likely ban would hit trading, and said it had scrapped a planned merger with World Gaming as a result of the passing of the legislation.
888 Plc said the move would hit its results, but stressed it remained a profitable and viable business.
Any ban would also hit payment-processors like Neteller Plc and Optimal Group's FireOne subsidiary.
Neteller Plc said the legislation would have a "material adverse effect" on its U.S.-facing business.
Britain's PartyGaming Plc, operator of leading online poker site PartyPoker.com, and rivals Sportingbet and 888 Plc said they would likely pull out of the United States and warned on future profits.
PartyGaming's shares fell 59 percent by 0725 GMT, while Sportingbet lost 64 percent, 888 was down 45 percent and gaming software provider Playtech fell 55 percent. Austria's bwin.com Interactive Entertainment fell as much as 22 percent in the first few minutes of trading.
U.S. Congress unexpectedly approved a bill early on Saturday that would make it illegal for banks and credit-card companies to make payments to online gambling sites.
The House of Representatives and Senate approved the measure and sent it to President George W. Bush to sign into law. Most analysts think his approval is certain.
"We believe that this will have a very material impact on the long-term prospects of online gambling, and in particular poker," said analyst Julian Easthope at UBS. "This will lead to a rapid decline in the use of online poker sites."
PartyGaming generates about 78 percent of its revenue from the United States, while Sportingbet gets about 62 percent there.
PartyGaming said in a statement: "If the president signs the act into law, the company will suspend all real money gaming business with U.S. residents, and such suspension will continue indefinitely.
"Any such suspension would also result in the group's financial performance falling significantly short of consensus forecasts for 2006 and 2007," it added.
PartyGaming's smaller rival Sportingbet said the likely ban would hit trading, and said it had scrapped a planned merger with World Gaming as a result of the passing of the legislation.
888 Plc said the move would hit its results, but stressed it remained a profitable and viable business.
Any ban would also hit payment-processors like Neteller Plc and Optimal Group's FireOne subsidiary.
Neteller Plc said the legislation would have a "material adverse effect" on its U.S.-facing business.
- Joined
- Oct 22, 2003
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You can go to Vegas and get a cash advance and max all your
credit cards out so what is the difference?... NONE
- Joined
- Oct 22, 2003
- Messages
- 262
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You are somewhat wrong....
Games of "Skill" in places like Vegas are NOT TAXED!
If you buy $100.00 worth of casino chips and then go cash
in $100,000 they do not ask any questions and you are not taxed
If you put $3.00 in a dollar slot machine and win $100,000 you
have to show your drivers license and fill out Fed and State
tax forms and the Feds get a cut right on the spot
Sucks... dont it?
Games of "Skill" in places like Vegas are NOT TAXED!
If you buy $100.00 worth of casino chips and then go cash
in $100,000 they do not ask any questions and you are not taxed
If you put $3.00 in a dollar slot machine and win $100,000 you
have to show your drivers license and fill out Fed and State
tax forms and the Feds get a cut right on the spot
Sucks... dont it?
- Joined
- Oct 5, 2004
- Messages
- 3,298
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- 24
He obviously meant the BUSINESSES pay taxes, not winners - there are not many winners anyway, most of people lose...
Actually the taxes are withheld from the player but it only applies to US citizens. I've often seen casino tax recovery services advertise on this side of the border to help Canadians who have won at US casinos, to help get back their money from the IRS...
- Joined
- May 20, 2002
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No .. he meant the slot winners pay Fed taxes and state taxes. Here in Illinois you have to sign off on a Fed tax form for any hand pay slot win over $1200 and on the tables on any progressive wins like on Caribean stud. ( on slot wins I've not had anything larger than $9k at a time so they haven't taken taxes on the spot ... just paid lump sum and let it to me to pay myself )I have first hand knowledge of how the slot wins work with jackpots ( and I think it sucks ). Thats why its important for anybody that plays slots often to either use their players cards or keep good track of what they've spent, won and reinserted and jackpots for end of year profit/loss statement.
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- Oct 5, 2004
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So the losses are "tax deductible " ? LOL
- Joined
- May 20, 2002
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"tax deductible "? Hmm....sure with some creativity maybe but more to the point the loss' offset the big wins. For instance, last year my "loss'" came pretty close to evening out my hand pay wins. Anything below the $1200 win point is not taxable "technically" so its not reported. At the end of the year if you are a regular player that is "rated" on the tables or uses their players card regularly ... you get a profit /loss statement from the casinos you play at that you give your accountant.
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- Jul 9, 2005
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Actually it's more like the former USSR. The US of today looks very much like the Soviet Union 20 years ago with paranoid government, numerous surveillance programs, scare politics and unscrupulous leaders. Regardless of what some think, the US is seen by other nations as the Evil Empire in today's world.
The irony of History is that Russia and China have Americanized a lot, at least in the way they embraced capitalism. So much for the land of the free :cheeky:
- Joined
- Dec 13, 2002
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- 104
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- 1
Does anyone see a way US residents can still use Paypal to do online gambling? That wouldn't be from a credit card. If so, not much worse than before is it?
- Joined
- Jul 13, 2004
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Still? Paypal has never been a payment option accepted at gambling websites. This is a Paypal stipulation not a gambling website stipulation.
Neteller and Firepay are the two most commonly used payment sites for gambling.
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- Mar 11, 2003
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Seems to me this will make these two form of payments become much more popular. I bet it won't be long before those in the U.S. figure out this way around the rules and sign up for Neteller.
What do you think?
- Joined
- Aug 8, 2006
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I find it incredible that you and others could make this comparison, simply because of banning payments to online gambling, I don't think theirs a person living in the US that truly believes that, I'm for and against the bill personally, I feel that if states outlaw any form of gambling including lotto's, that the citizens of those states should not have access to online gambling, since it undermines State law, to grasp an understanding of why this bill was necessary, I suggest reading the 1961 Interstate gambling act and jump forward to 1996, when this legislation began.
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