Online Casino Payment Method Pays Up

Published June 8, 2008 by OCR Editor

Online Casino Payment Method Pays Up

Citadel will pay the US government over $9 million to avoid prosecution.

The US government continues its persecution of online casino and Internet gambling businesses. This time it is Citadel, Canada-based payment method, which will pay a fine and avoid further presecution.

ESI Entertainment Systems collected over $2 billion in the five years that it served American gamblers, between 2002 and early 2007. Through its Citadel subsidiary, its payment method supported online casino sites based outside the US. Citadel accounted for about 80% of ESI's business, and online gambling related payments were the majority of the web-generated income.

In an announcement made this week, the US Attorney's office in Manhattan said ESI will pay $9.1 million. If it avoids wrongdoing in the next 18 months, it will officially avoid being prosecuted on a conspiracy charge.

UIGEA prevails?
Credit card companies and payment method providers are the main venue through which the UIGEA ban on online gambling is enforced in the US.

Citadel is not the first company that complies with the US probe. Neteller has already agreed to pay $136 million in a seperate agreement.

But why?
BetOnSports of the UK has also pleaded guilty to a racketeering conspiracy. Why it has decided to do so is not entirely clear, and is looked at by the industry as suspect compliance with the US authorities, whose right to ban online gambling under international trade laws is questionable in the first place.

See also

Online Casino Payment Methods: Everything You Need to Know

New Online Casino Payment Method

Glue Pay is on the Way

Online Casino Deposit Methods

Choosing Your Online Casino Payment Method

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