The UK Independent online wrote in January about the risks connected with servicing gambling companies: At least 16 investment banks, law and accountancy firms have been subpoenaed by the US Department of Justice (DoJ) to hand over any documentation connected with the online gambling industry.

City sources said it is clear the DoJ is trying to build a case against individuals who have benefited from the industry, particularly the founders of online betting companies. But servicing companies like payment providers are targeted as well: Also in January, the Canadian founders of NETeller, a payment processor for the gambling industry, were arrested in the US and charged with laundering billions of dollars and tax evasion. London-listed NETeller was thought to be safe, as its involvement in the industry was indirect. It has now closed its US operations.

Business leaders expressed surprise at the latest developments. David Frost, director general of the British Chambers of Commerce, said there was a feeling among industry chiefs that it was getting more difficult to do business with the US. “There has been the issue of steel import tariffs, more recently the heightened security measures, and demands to hand over the details of credit card transactions,” he said. “You get the feeling that the US doesn’t want to do business, or is certainly making it more difficult to do business, with the UK. I don’t see any measures where it is actually becoming easier.”

Posted on February 9th, 2007 by lbraum
Filed under: UK, USA, Gambling, all