Online casinos in US exit?

News on 22 Apr 2011

The often confusing position of major and originally Microgaming-powered online casinos in the United States market took another twist as the week ended, with players and affiliates posting on internet message boards that a mass exit from the US market appeared to be taking place.
One senior affiliate advised players:
“It is with a heavy heart that I have to tell you all that all MG US facing brands are shutting down as of 12am. I know some are concerned about withdrawing money and how this will effect payouts, the truth is right now I do not know.
“I was to told by several that the software owners (NOT THE CASINOS) have made this decision so the casinos have to do what they are told! This will put many out of business I am sure as well.
“They are going to be letting funds loose I am sure via QT but that is all I know, the do NOT have any processors in place otherwise. They may have to take a few weeks to get you paid so all I can do is suggest you be patient as of right now you know as much as I do.”
The presence of Microgaming-powered online casinos has been scaled back in the years following the imposition of the UIGEA and the attempted domain seizures by the Commonwealth of Kentucky, with new players from certain ‘illegal to gamble online’ states first being banned, then more widespread shutdowns and operators deploying different softwares in order to stay in the US market.
However, it appears that the recent Department of Justice attacks on e-processors has disrupted the financial structures in the United States to such an extent that operations are seriously hampered, and the recent serious banking charges against major online poker companies has further discouraged online casino operators from continuing to do business in such a hostile environment.
Players report an increasingly long list of casinos have stopped US players from participating, including top operations like 7 Sultans, Platinum Play, Royal Vegas, Villento, Vegas Palms, Rich Reels, Fortune Lounge, All Jackpots, River Belle Casino, Maple Casino and All Slots.
With the departure of such well-established and professional online operators, US online gamblers now face a growing risk that the online gambling vacuum thus created may be filled by less respectable and perhaps even fly-by-night operators who have little respect for responsible gambling, player privacy or professional ethics.
The same might be said for the e-processing structures that the enforcement agencies have been so industriously wrecking in the past two years. It is becoming clear that there are already serious dislocations in this area, making it ripe for exploitation by undesirable elements.
With individual state attempts at legalisation failing or stalling in a depressingly consistent style lately, hopes for some sort of sensible and reasonable approach to legal US internet gambling seem increasingly to turn on Congressman Barney Frank’s latest run at the problem with his bill HR1174.
Even that seems like a long shot in a Republican-controlled Congress.
The wild card is Washington DC and its “authorised-by-default” legalisation initiative – how long will that last?

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