Casualty of Internet regulation…

After the US Government recently banned online gambling, one must wonder what the fallout and consequences will be as a result. Well look no further, as Sportingbet PLC decided to pull out of its US operations by selling it for $1.00, thereby saving the company millions of dollars that it would have had to spend to cease operations. Although, if the law is repealed/appealed or if President Bush decides to veto the bill, then it can repurchase it for $500,000.

Sadly, that doesn’t look like a favorable outcome as MarketWatch.com reported today that President Bush did indeed sign the Anti-Internet Gambling bill. In doing so, the US Government is saying to all credit card companies and financial institutions that they are prohibited from assisting Internet Gambling sites and facilitating any financial transations from within the United States. In effect since September 30, it is also reported that 12 million to 20 million online gamblers within the United States will continue to gamble online by avoiding this restriction and setting up an overseas account.

Will this bill truly and geniunely wipe out online gambling in the United States?

By Ken Yeung

Ken Yeung is a journalist fascinated with the stories of the tech industry and internet culture. He's currently the Technology Editor at Flipboard, where he observes what's happening in the space while also identifying new topics of interest. In addition, he co-hosts the weekly internet show "The Created Economy," which focuses on what's happening to creators and influencers. Previously, he was a reporter for VentureBeat and The Next Web, covering tech startups, the industry's innovations and funding. Ken also has a newsletter you should also subscribe to called "Filed."