Home > News > Bill Targets Online Vice Payments • Bookmark   • Newsletters   • Register Search Options


Bill Targets Online Vice Payments

Bill Targets Online Vice Payments
Get XBIZ News
XBIZ Research
Will virtual reality boost the paysite market?
Yes, it will soon
Yes, but in a few years
Out of 168 votes. Results based on votes submitted by members of XBIZ.net social network.
Oct 2, 2006 3:00 PM PDT    Text size: 
WASHINGTON — In a move that could dramatically impact some adult webmasters, lawmakers have taken a practical approach to curbing Internet vice, sending a bill to President Bush that would ban U.S. banks and credit card companies from processing transactions for online gambling sites. The bill, which many believe will be ineffective in terms of stopping Internet gambling, could have a drastic impact on payment processors.

Senate Majority Leader Bill Frist, R-Tenn., attached language to H.R. 4411, a port security bill that would prohibit credit card companies and other payment forms, such as electronic transfers, from being used to settle online wagers.

The bill also allows law enforcement officials to work with Internet service providers to block access to gambling sites.

Adult entertainment attorney Gregory Piccionelli told XBIZ the law also imposes liability on webmasters who do business with gambling sites.

"Sending traffic to gambling sites can be very problematic under this law," Piccionelli said. "Webmasters who deal in gambling and adult put themselves in multiple target zones."

Many of the companies engaged in online gambling are located in the U.K. and run out of small Caribbean nations. News of the bill triggered a selling spree for gambling stocks traded on the London exchange.

According to Frist, the decision to target the payment processors helps tackle the larger moral issue.

"Gambling is a serious addiction that undermines the family, dashes dreams and frays the fabric of society,” Frist said.

House Majority Leader John Boehner said the new law was a key advance for the Republicans' "American Values Agenda" ahead of the mid-term election.

"I am pleased that House Republicans continue to move substantive legislation upholding strong values that puts the interests of our families and children first,” he said.

Gibraltar-based sites PartyGaming and 888 Holdings said they would suspend their U.S. accounts for the time being.

Ken Weitzner, founder of Eye On Gambling, said the bill doesn’t seem enforceable because companies seeking U.S. business will simply find other ways to circumvent the law.

“This is a Republican initiative to please their religious base," Weitzner said. “It is very possible that a Democratic administration will tax it rather than prohibit it, which would be like leaving the Dark Ages for the 21st century.”

Other critics have said that the U.S. may run into trouble with the World Trade Organization over the bill. The international body ruled last year in favor of Antigua over U.S. restrictions to offshore gambling.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !


Finding the Right Payment Business Model

One consistency among nearly all paysite owners is that they are creatures of habit. After all, how else could someone tirelessly produce or procure similar content steadily in order to update their commercial... More »

What Payment Plan Suits Your Bottom Line

The most disappointing aspect of merchant processing is having to tell a merchant that all domestic options have been exhausted and that there isn’t a bank in the U.S. willing to open a merchant... More »

The Journey Toward Artificial Intelligence in Processing

Let’s be honest. If you’re running a company you spend most of your time trying figure out what the hell is going on. Then you spend the rest of your time — what’s left of it —... More »
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.

Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Subscribe to XBIZ Premiere magazine, the industry's leading adult retail trade publications, delivering the most timely and comprehensive business news and information to producers and retailers of adult products.


XBIZ 2017

Jan 09 - Jan 13
Hollywood, CA

XBIZ Awards 2017

Jan 12 - Jan 12
Los Angeles, CA

ANME Founders Show

Jan 14 - Jan 15
Los Angeles Marriott Burbank Airport

Everything To Do With Sex Show

Jan 20 - Jan 22
Montréal, Québec
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!