The online payment company AlertPay and the vast social networking website Facebook have agreed to terminate several potentially illegal online gambling operations selling virtual poker chips for use on Facebook's “Texas HoldEm Poker” application, reports the eCommerce Journal.
According to a statement on AlertPay's official blog, the two companies negotiated the issue on the basis that: “Facebook does not permit online gambling on its platform and some sellers attempted to convert the Texas HoldEm Poker application into monetized online gambling.”
The AlertPay blog statement added: “Sites offering for sale virtual poker chips for use with Texas HoldEm Poker are in violation of AlertPay's User Agreement and in potential violation of state and United States federal law prohibiting unlicensed and/or online gambling, as well as the Unlawful Internet Gambling Enforcement Act of 2006 31 U.S.C 5362.”
