So Much For Efficient Pricing: Auction-Priced NetSuite Shares Still Surge

Not Many Folks Pleased About US Paying Off EU, Japan And Canada Over Online Gambling

from the who-does-this-help? dept

Thu, Dec 20th 2007 9:46pm — Mike Masnick

On Tuesday, we wrote about how the US was paying off the EU, Japan and Canada over a trade dispute around online gambling. The real point was to get these three to back off from putting pressure on the US to abide by free trade agreements, which effectively required the US to allow online gambling as long as it was hosted in other countries. It's quite a shame that these countries basically accepted money to let the US get out of agreements it had made -- and many are beginning to point out how ridiculous the whole situation is, and how it's likely to harm future US trade agreements around the world. All for the sake of preventing people from being able to play a little online poker.

Related to this, bankers and bank lobbyists are trying to explain to US politicians that upcoming rules concerning online gambling are impossible to abide by. As you may recall, back in October, the US approved new legislation that would put the liability on banks to prevent money from being used for online gambling. Beyond the ridiculousness of trying to stop people from gambling online if they choose to do so, this particular law means that banks need to figure out what money is being used for online gambling and try to prevent such uses. How? Politicians don't bother to go that far. Meanwhile, I hear that the gov't continues to make good money from state lotteries...

Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.

Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.

While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.

–The Techdirt Team

Filed Under: antigua, canada, eu, japan, online gambling, wto

22 Comments

If you liked this post, you may also be interested in...

Reader Comments

Subscribe: RSS

View by: Time | Thread

Max Powers, 20 Dec 2007 @ 11:48pm

Any Financial Institutions
I believe this involves any type of financial institution and yes, they don't want anything to do with it. Why should they? More expense for them.

I play online poker and will never worry about finding a game or getting money to or from the website. They can't stop it.

The U.S. has shown that it considers the WTO a joke and will not abide by it's decisions. It's embarrassing to be an American when our politicians ignore the world organizations it has decided to join, reneges when they sign a resolution and all because of behind the scenes payoffs involving the Horse Racing Industry and worry of losing lottery money.
[ link to this | view in chronology ]
BoxFiesta, 21 Dec 2007 @ 1:27am

Online Gambling
Probably part of whats draging down the dollar? I mean look at how much is bet online per day and a big chunk of that is basically leaving the US every day.

And the US is paying the rest of the world on top? Doesn't seem like good economics to me, let alone politics.
[ link to this | view in chronology ]
- Platina, 21 Dec 2007 @ 2:38am
  
  Re: Online Gambling
  It´s not that. The dollar is weak, because your economy is not good. Look at how much money you have borrowed from China and other countries. To use in the iraq war. Not a very smart move. So i think that online gambling is like a mouse pissing in the ocean to get water to rise:p
  [ link to this | view in chronology ]
  - Anonymous Coward, 21 Dec 2007 @ 3:56am
    
    Re: Re: Online Gambling
    There are a lot of factors that goes into the value of the dollar. Money borrowed isn't the largest one. The biggest reason the US dollar continually declines, is that its what the federal reserve currently wants. They do after all control how much money is in circulation, the inflation rate, the interest rate as well, and they are doing nothing to stem the drop in the dollar. Why do they want that? Well, there are a lot of reasons for that as well, mostly because of import/export duties and how they drive the world economy and in turn the US economy. Thanks to OPEC, the US dollar will always be in demand, we can basicly write our own meal ticket on it, and we do. There is a reason everyone pays attention to the US dollar, and it has nothing to do with our vaulted "Most Powerful Country" status... and everything to do with the price of oil.
    [ link to this | view in chronology ]
    - comboman, 21 Dec 2007 @ 5:05am
      
      Re: Re: Re: Online Gambling
      ...until the rest of the world starts buying oil in euros, then the US is screwed.
      
      http://observer.guardian.co.uk/business/story/0,6903,900867,00.html
      [ link to this | view in chronology ]
      - Anonymous Coward, 21 Dec 2007 @ 6:10am
        
        Re: Re: Re: Re: Online Gambling
        Yep, if Opec decides to denominate in the Euro the USD is really going to tank
        [ link to this | view in chronology ]
Boris Jacobsen, 21 Dec 2007 @ 5:56am

Well how hypocriical...
The US invented globalisation, didn't it?
Quite happy to take vast quantities of money from 3rd world countries who borrowed from the US, have paid back more than they borrowed and still owe more than they borrowed, thanks to compound interest.
But OH DEAR this aspect of globalisation works against the USA.
Well rip up the treaties, the freedom, the democracy. We don't like it when these global treaties work AGAINST us.

I'm ashamed to be called American.
[ link to this | view in chronology ]
- Anonymous Coward, 21 Dec 2007 @ 10:13am
  
  Re: Well how hypocriical...
  They may have invented it but they don't know how to use it.
  [ link to this | view in chronology ]
Bob Hooper, 21 Dec 2007 @ 6:00am

Axis of evil.
"...until the rest of the world starts buying oil in euros, then the US is screwed."

Good point. Do you know which three oil-rich countries started SELLING oil in Euros not dollars?

Iraq, Iran and North Korea.

Weeks later, they were suddenly referred to as the 'axis of evil'.

America's not the only country in touch with what's going on. That was a significant event in America's downfall in popularity amongst the world.
[ link to this | view in chronology ]
Member of ROTW, 21 Dec 2007 @ 6:09am

On Line Gambling is Peanuts in the Overall, but ..
One of the points still being is that even though the US dollar is used in world economy, the value of the USD is still far lower than it used to be relative to other currencies, and which in turn means imports will cost more including gas and oil and all those Walmart items from China.

The US will soon be fighting other parts of the world for oil and gas, such as China with it's ever increasing demand for oil and gas, and yes, the US economy is directly affected by gas and oil.

The US economy is falling and the US has a lot of problems: the Iraqi war, the US workforce, the US infrastructure, just to name a few. Expect your taxes to go up and standard of living to drop.

On line gambling is just another method for money to move out of the country, but as mentioned, not a big item in the overall. The US government is pissed because it can't control it and get it's hands on any tax money from it. (It also looks like it might be a way to launder money.)
[ link to this | view in chronology ]
Anonymous Coward, 21 Dec 2007 @ 6:23am

"All for the sake of preventing people from being able to play a little online poker. "

...Or for the sake of preventing people from destroying their lives...
[ link to this | view in chronology ]
- BTR1701, 21 Dec 2007 @ 7:44pm
  
  Re: Nanny State
  It's hardly the proper function of government to hold people's hands and guide them through life protecting them from themselves.
  
  Grown adults should be free to make their own choices regarding their own personal lives, even if they're bad ones.
  
  People can be addicted to lots of things: booze, TV, sex, video games, the internet... it's not for the government to step in and either ban it or tell you how much of it your allowed to have.
  [ link to this | view in chronology ]
Palmyra, 21 Dec 2007 @ 6:32am

Gee
I think that is the same argument the Repubs used to pass the Volsted Act to inforce Prohibition. And we all know how well that worked.
[ link to this | view in chronology ]
Anonymous Coward, 21 Dec 2007 @ 6:38am

Oh, why do so many hate America? The US Government looks out for the interests of its citizens? Wow, what a surprise, what a crime.

You are actually wrong on the issue of online gambling too. There is a difference between online and in person. How do you collect taxes of winnings from online gambling. How do you ensure criminals are not using online gambling to launder money? How do you ensure the games are on the up and up? These problems are difficult with physical gambling, impossible with online gambling.

Go ahead and vote for Ron Paul, although he would get America out of all these international agreements.
[ link to this | view in chronology ]
- Chronno S. Trigger, 21 Dec 2007 @ 7:04am
  
  Re:
  How do we know anything online is on the up and up? How douse the government know that Google and/or Amazon are paying their taxes? There are plenty of things online that could go so vary horribly wrong but they don't because you can usually make more money making your customer feel safe and happy than screwing them. Same with trying to keep the government off your back.
  [ link to this | view in chronology ]
  - Left Las Vegas, 21 Dec 2007 @ 12:27pm
    
    Re: Re:
    The engineering requirements on a video poker machine are more rigorous than a computerized voting machine. In states like Nevada, gambling is big business and everyone is intent on making sure no one kills the golden goose by doing something stupid. Even reservation casinos have to make it appear that they aren't a total sham in order to be tolerated by their surrounding communities.
    
    The IRS or the FBI can easily go an punish Google if necessary. The same goes for Harrahs. Spot checks by the gaming commision are very easy to make.
    [ link to this | view in chronology ]
- BTR1701, 21 Dec 2007 @ 7:46pm
  
  Re: Nanny State
  > The US Government looks out for the interests of its citizens?
  > Wow, what a surprise, what a crime.
  
  Having some government bureaucrat taking away my freedom because he thinks it's bad for me-- as if he somehow knows how to run my life better than I do-- is hardly "looking out for my best interests".
  
  My best interests involves me deciding these things for myself. I neither need nor want a governmental nanny.
  [ link to this | view in chronology ]
Anonymous Coward, 21 Dec 2007 @ 6:51am

Bob Hooper, you are a moonbat
North Korea is oil rich? Really? Is that why they import oil from China?

I know you hate GWB and all, but get a clue, really.
[ link to this | view in chronology ]
Beerina, 21 Dec 2007 @ 7:56am

Sweet!
If only the god Yahweh wasn't such a dick, we wouldn't have to worry about the "sin" of gambling.

One can always dream He'll disappear. Or maybe we'll wake up and find this is all some bizarre simulation, and this omnipotent, "kind" freak doesn't actually plague our existence to begin with.

One can always dream...
[ link to this | view in chronology ]
Foolish Mortals, 21 Dec 2007 @ 10:39am

Retorts
"Meanwhile, I hear that the gov't continues to make good money from state lotteries..."
-State lotteries aren't gambling. It is a tax on the poor.
"The U.S. has shown that it considers the WTO a joke and will not abide by it's decisions."
-The WTO is indeed a joke. They have no real power. If the US.gov ignores them, what are they gonna do about it?
"...Or for the sake of preventing people from destroying their lives..."
-If you are dumb enough (or addicted enough) to destroy your life by playing online poker, then you reap what you sow. The US.gov can try to protect you from yourself, but you cannot cure stupid.
[ link to this | view in chronology ]
- BTR1701, 21 Dec 2007 @ 7:49pm
  
  Re: Retorts
  > Meanwhile, I hear that the gov't continues to make good
  > money from state lotteries..."
  
  > -State lotteries aren't gambling. It is a tax on the poor.
  
  Yes, it is gambling. Under the government's own definition of gambling, lotteries fit the bill.
  
  Put another way, try setting up your own lottery and see what the government charges you with when they arrest you.
  [ link to this | view in chronology ]
Allinpoker.cc, 23 Dec 2007 @ 6:55pm

Legal Online Poker
The arguments in favor on legalized online poker are tremendous. It is unbelievable that politicians would rather drag their feet in claims of prohibition instead of taking action to increase tax revenues and regulate an industry in desperate need of standardization. Legalize and Regulate Online Poker Now! CohibAA - http://www.allinpoker.cc - All You Need To Know In Poker -
[ link to this | view in chronology ]