|iGaming Business has spoken with leading industry lawyer, David Schollenberger, about the immediate fallout from the Senate's decision to pass the Unlawful Internet Gambling Enforcement Act last Friday.|
Asked about the immediate impact of the bill, Schollenberger is clear in his analysis. 'This will force remote gaming companies and their suppliers to urgently rethink their strategy and many will pull out of the US market,' he said. 'The immediate will be further erosion of the share prices of publicly traded US facing remote betting and gaming companies.'
Schollenberger has admitted that he was surprised the bill made it through, thinking that Congress would run out of time in this session. However, with the bill now waiting to be ratified by President Bush, he does believe that it will take time before its full effects are felt.
'Before the act comes into effect it will require banks and other financial institutions to have systems in place to monitor transactions and comply with the law.'
Any companies that do violate the new law or attempt to challenge it, are unlikely to find much joy. 'The companies who continue will face increased risk of prosecution of the company and its management,' he said. 'Until congress decides to legalise and regulate remote gaming, I doubt if legal challenges to the legislation will be effective.'