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Minnesota blocks gambling sites

May 24, 2009

The state of Minnesota found a way how the block its citizens to access the online gambling sites.
The state’s Department of Public Safety asked about 11 Internet service providers (ISP) to prevent the access to hundreds of websites that are associated with online gambling.

The Minnesota government explained this action by citing a federal law, which conditions service providers to deny access to any telecommunications services used for gambling.
According to John Morris, who is a general counsel at the Center for Democracy and Technology in Washington D.C., the providers of the internet service are not network operators. Probably the Minnesota action won’t stand in a court of law, because it seems to be unlikely that a court would accept an ISP to discharge with Minnesota’s request. His opinion was reported in the Associated Press.

The co-director of the Berkman Center for Internet & Society at Harvard University, John Palfrey, commented that the government can not force ISP to filter certain sites. It simply doesn’t work, because either too many or too few sites are blocked and it’s easy to circumvent the filters, so the result is kind of meaningless.
There have been already some companies that asked to block iGaming access, but now many of them are trying to rethink the request. One of those companies is also AT&T Inc.

Minnesota officials are not giving up and they are blocking even more websites, beyond the 200 they already blocked.

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UPDATE 2-Bill unveiled to reverse U.S. online gambling ban

May 7, 2009

* Rep. Frank’s bill reverses ban on online bets

* U.S. Treasury would get authority to license operators

* Online gamers’ share prices rise (Adds share prices, details)

WASHINGTON, May 6 (Reuters) - Legislation aimed at reversing a 3-year-old ban on Americans placing online bets was introduced on Wednesday by U.S. House Financial Services Committee Chairman Barney Frank.

The Internet Gambling Regulation Consumer Protection & Enforcement Act would establish a federal regulatory and enforcement framework for online gaming.

Frank said the bill would give the U.S. Treasury Department the authority to establish regulations and license Internet gambling operators.

The Treasury would also have the authority to revoke or terminate the license of any operator that violates the law. Enforcement actions could also include fines, according to the bill.

“The government should not interfere with people’s liberties,” said Frank.

The Massachusetts Democrat also told reporters he is introducing separate legislation to freeze the implementation of online gambling regulations under a Bush administration-era law.

He added that he has not spoken to members in the Senate or the White House about the issue but plans to do so soon.

Hopes that the U.S. ban would be reversed pushed stocks of online gaming companies PartyGaming (PRTY.L) and 888 (888.L) higher. Shares of 888 gained 7 percent to 104.75 pence, and PartyGaming rose 6 percent to 276 pence.

“This legislation will be politically contentious and take time to be passed or defeated. During that time online gaming shares are likely to perform well as the option value of a potential return to the U.S. market increases,” said Evolution Securities analyst Ivor Jones.

European online gambling firms lost billions of euros in value after Congress made it illegal for banks and credit card companies to make payments to online gambling sites.

Republicans controlled the White House and Congress when the Bush-era law was approved. Now, Democrats are in control in both branches of the government, but it is unclear how the Obama administration will handle the issue.

Frank’s bill quickly drew criticism from a senior Republican lawmaker opposed to gambling.

“Illegal off-shore Internet gambling sites are a criminal enterprise,” said Representative Spencer Bachus, the top Republican on the financial services committee. “Allowing them to operate unfettered in the United States would present a clear danger to our youth, who are subject to becoming addicted to gambling at an early age,” said Bachus from Alabama.

Frank said safeguards are in place to make sure wagers are of legal age, protect privacy and combat fraud and money laundering. (Reporting by John Poirier; Additional reporting by Matthew Scuffham in London; Editing by Tim Dobbyn, Richard Chang).

(via Reuters)

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