The ongoing drama surrounding the enforcement of US online gambling laws continued this past week, with credit card giant MasterCard
reportedly blocking transactions on bets, leaving customers stranded.
The move took many by surprise given that implementation of
the 2006 Unlawful Internet Gambling Enforcement Act, which effectively banned
Internet gambling in the United States, had been delayed until June 1, 2010.
Implementation of the ban was originally supposed to be
completed in December 2009.
It is rumored that rival credit card company Visa has also
begun to crackdown on betting-related transactions. If so, the moves would
suggest that credit card and payment companies are gearing up for
implementation of the UIGEA, which bans companies from facilitating Internet
gambling.
Mastercard's reported move came as the US Second Circuit
Court of Appeals upheld a contempt order for refusal to comply with a grand
jury subpoena against two companies owned by Canadian Douglas Rennick, who
stands accused of processing more than $350 million for online gambling
companies, and also faces charges in connection with bank fraud and money
laundering.
These latest developments will no doubt prove good news for
online payment methods such as NETeller, Neovia and Moneybookers, who will be sure
benefit if customers turn their back on the credit card companies as expected.