a different side of Israel

Online Gambling Industry’s letters from the edge

Online Gambling Letters from the Edge

As someone who knows a little about the online gaming industry (Israel being a key player in the online gaming industry), I watch with interest the events as they unfold and worry about some friend that are now going through a very rough time. The online gaming business in the US is significant, 80% would be conservative and I have already heard of mass layoffs in the industry’s SMBs. I know that the larger operations are also going to scale down and the numbers will be significant. I wish these people luck (excuse the pun..).
The Vegas political lobby is too significant and I guess they reached a critical mass that pissed off the wrong people. Let’s face it this is BS – the US has no authority over online gaming or any Internet activity. I think its having a hard enough time in the physical world and should stick to “managing” that.

These are “letters from the edge”. This first one is being sent to all webmasters by one of the larger affiliate programs (names have been changed to protect the “innocent”).

Dear Webmaster,
It is with regret that we have to inform you that in light of recent legislative changes in the United States; CASINO NAME has notified us that from tomorrow, Friday, October 13th, at 11:30 am EST no further transactions from either new or existing players residing in the States listed below, will be accepted.

As a result you will no longer be able to generate revenue from CASINO GROUP casinos or poker rooms in these States:

South Dakota
New Jersey
New York

We would like to remind you that there are exciting opportunities in other markets and we look forward to exploring these with you. If you have any queries or would like to find out more, please contact me.

This is the letter that was sent out to the players in same casino:

Dear Player,

The United States Congress has recently passed an Act affecting payments for internet gambling that is expected to be signed into law sometime on Friday, October 13th, 2006.

And so, it is with much regret that we are to cease accepting wagers and/or bets from players who are resident in relevant States in the United States of America.

Pending further consideration of this Act, your account and the gaming software will no longer be accessible as of Friday, October 13th, 2006.

Can I still play?
You are still able to play out any balances in your gaming account/s prior to it being suspended. Any winnings during this time can be withdrawn and enjoyed.

What happens after this date?
Should you still have a cash balance in your gaming account after the deadline, we will ensure that you are refunded via:
– Your preferred payment method* or the last method used to deposit

* Please note that check is no longer available as a withdrawal option, so if this is your preferred withdrawal mechanism, please select a different option from within the software before the cut off date or call our Customer Service Centre to make alternative arrangements.

As the full effect and implications of the Act will not become clear for some time, please be assured that we will keep you updated as the situation progresses.

Thank you very much for your patronage at CASINO NAME.

Should you experience any problems or need further assistance please get in touch with our Customer Services Team at support@CASINO or call them directly at 1XXXXXXXX. They’re on stand-by to assist.

Need I say more ?


  1. The change in the U.S.and the new legislation is definitly the
    result of pressure by the big sharks from Las Vegas,Atlantic city,
    New Orleans Etc,They are probably losing revenues and their States
    are losing the taxes from gambling to On-line Casinos (numbered by
    the hundreds)located somewhere on an unknown island,I am not sure
    anyone can blame the U.S.But for those who are still interested
    there are plenty of European countries where gaming is legal.

  2. Legalized gambling is almost present in every state in the US thanks
    to a legal loophole allowing Native American tribes to open casinos
    on tribal land. For example, in the state of Oklahoma alone, there
    are at least 50 or more of these places, many of them incorporated
    into plush holiday resort complexes.

    So who the hell needs online gambling (there anyway). It’s much more
    exciting to go and ‘shoot craps’, etc. with a crowd of people, as well
    as all the other anemities a large casino offers (entertainment, free
    drinks, etc.).

    Besides, if you gamble online, and give your credit card info, who’s
    to say this info isn’t sold to unscrupulous people who have ways of
    taking funds from these cards?

    Better wo know who your dealing with- wherether its in Vagas, or in
    Choctaw Nation Casino?

  3. That’s BS Ed. If that’s the case maybe you think the Internet is a fad as well. What’s the difference between buying in a brick & mortar store where an employee can take your card details and use them?

    As for “who the hell needs online gambling” – well apparently the $6 Billion that were spent showed that there is a “little” interest, don’t you think?

  4. If that’s the case, why do millions still flock to casinos all over the world?

    It has absolutely nothing to do with the increased popularity of the
    internet. People still enjoy the atmosphere and excitement of casinos, and this will never change.

  5. It’s the same as saying shopping at a book store is better then buying online. There is nothing that makes an industry improve like the online competiton. If anything it makes Brick & Mortar businesses improve their customer care and provide better services.

    When this “Prohobition” phase passes and the US authorities figure out a way to make some tax dollars you can be sure that you will have TV ads on CNN for online casinos…

  6. It’s really no problem at all for either the US IRS or other tax
    authorities to collect what they feel is due to them. Just like in the
    casinos in cities Like Los Vegas, Atlantic, etc., all winings above a
    certain sum ($ 500) will be subject to a tax at source of 15 – 20%.
    The Internet gaming company opens an ‘account’ with the player, with
    the player’s SS number or other tax I.D. number. Foreign players may be subject to both U.S. and their own country’s tax laws, resulting in double taxation.

    But that’s the price of ‘doing business’. Regarding losses, that’s
    more complicated, but some form of gaming receipt can be issued with
    a ‘hard copy’ version printable (for winnings as well), and it will be
    allowable to be used on an annual tax return.

    In the end, one can play all he/she wants, but the taxman will get his

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