As reported by: The Seattle Times
Millions of U.S. online gamblers - and the offshore companies that take their bets over the Internet - began scrambling Monday to find ways to get around new rules meant to quash the burgeoning business of online wagering.

The new rules, which Congress approved Saturday and await President Bush's signature to become law, would ban U.S.-based banks or credit-card companies from processing payments for gambling activities that are illegal here.

Some of the estimated 12 million to 20 million U.S. online gamblers, commiserating in online forums, said they planned to set up overseas bank accounts.

Together, those gamblers contribute more than half the industry's estimated worldwide annual revenue of $12 billion, according to estimates provided by University of Pennsylvania's Annenberg Public Policy Center.

Online gambling firms, meanwhile, may respond with tactics that could include a step straight out of the Wild West - taking payment in gold or silver rather than cash.

"This is a smart industry; there'll be hundreds of workarounds," said Jay Bailey, director of development for the National Right To Online Gaming, a three-month-old entity representing 20,000 online gamblers.

Based on Monday's stock trading in London, Internet gambling firms may need to act fast to save their industry. The U.S. legislation pummeled the shares of U.K.-based Internet companies that get most of their revenue from U.S. poker and sports bettors.


Article By: The Seattle Times