Feds Continue Online Gambling Crackdown With Maryland Seizures

The federal government in the US is continuing their assault on the online gaming industry. On September 4th, three more bank accounts were seized by investigators for being associated with online casino payouts to US customers.

HMD, Inc. was the name used on the accounts, but the contents of the accounts have been identified as, "proceeds of an illegal gambling business...involved in money laundering transactions," as reported in the Baltimore City Paper.

federal investigators have linked the accounts to online gambling payouts much like the bank accounts that were seized back in the early summer. There may be a connection between the earlier accounts and the three that were seized in Maryland.

The accounts seized earlier belonged to Electracash, which is owned by Edward Courdy. The connection could be made because Courdy was arrested and charged with money laundering last year in Maryland.

"It certainly appears like there may be a connection between the two seizures,' said analyst Grant Blake, "Even if there is no connection, it appears obvious that these seizures will not be the end of the process. The federal government seems intent on sending a message to online casinos that are operating in the US."

Come December, it will be even harder for online casinos to pay their US customers. The rules for the Unlawful Internet Gambling Enforcement Act will go into place then, and the burden of stopping the payment processing will shift to the financial institutions.

Representative Barney Frank is hard at work trying to overturn the UIGEA. Frank has introduced legislation that would not only overturn the UIGEA, but also lay the framework for a regulated Internet gambling industry in the US.

Several states have also considered changing their Internet gambling laws. California lawmakers are considering legalizing online poker, and Senator Robert Menendez of New Jersey has introduced a Bill that would legalize online poker on a federal level.

September 12, 2009
Posted By Larry Rutherford
Staff Editor, CasinoGamblingWeb.com
Submit News!

Support Grows For Table Game Gambling At Pennsylvania Casinos
Florida Lawmakers Still Weary Of Seminole Gambling Compact
Gambling Monopoly Can Continue In Portugal, According To EU
New Hampshire Taking It Slow With Gambling Expansion
Kentucky Appeal Of Online Gambling Domain Case Set For October