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PayPal Action Worries Online Gamblers

In a move that some observers have described as nothing short of shocking, the online banking services company PayPal has provided privileged client account information to the US Inland Revenue Service (IRS). The IRS requested details on various accounts connected with the use of offshore credit cards. As a result of PayPal's action, some online gamers have received notices from the IRS indicating that their accounts were under investigation.
The hunt for unclaimed income

The common understanding of commentators on online banking connected to the gambling industry is that such investigations are being used as a ruse by the IRS to access persons with unclaimed income. There is some suspicion that the IRS investigation may have little to do with online gambling at all, as proposed by Edward Leyden, the president of iMEGA, the Interactive Media Entertainment & Gaming Association.
Leyden states, "This appears to be part of a larger IRS investigation that commenced several years ago of tax issues involving Americans holding credit cards issued by banks located in places the Treasury Department considers to be potential 'tax havens'. 
"While i-gaming concerns certainly may become caught up in this effort, this does not mean that Internet gaming in the primary target of the investigation."
PayPal's raw nerve

PayPal had been an accepted payment conduit for online gamblers until it was fined by the now disgraced New York Attorney General Eliot Spitzer in 2002. PayPal was indicted on the count that it had supplied services to offshore gambling sites in contravention of the 18 US Code 1960 that prohibits fund transfers "derived from a criminal offense", and 18 US Code 1084 that refers to the transmission of information on wagers. 
A settlement of $10 million was paid by PayPal representing the profit it had accrued from its involvement in illegal gambling activities.
In addition to the settlement, PayPal committed to initiate an in-house corporate compliance program for at least two years. It is clear why PayPal was eager to comply with the latest IRS request for information given its previous settlement payout.

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Gambling News :

Wanajump Launches - #Wanajump Spanish online and land gambling operator Grupo R. Franco appears to be emulating the William Hill group, announcing this week that it is to begin a start-up accelerator program for innovative entrepreneurs, which it has titled Wanajump.

Coral Launches player proposition betting product - Digital Sports Tech, a business-to-business software provider of sports betting solutions, has signed a deal with UK online and land sports betting operator Coral to provide an innovative player proposition betting product.

Oshi online casino now accepts fiat currencies - The Oshi online casino, which started just a year ago as a Bitcoin-denominated operation, has described its expanded activity in a statement this week, noting that in addition to Bitcoin it now accepts fiat currencies and has added new game providers to its roster of suppliers.

New Standards for UK Online Gambling - Online gambling service and technology providers, along with operators and testing agencies will be studying the new gambling software and technical standards proposal published by the UK Gambling Commission following a public consultation.

Pennsylvania Gambling Bill 1887 returned with additions - The interaction between the Pennsylvanian House and the state Senate has become increasingly like watching a game of ping pong as the two political establishments wrestle with online gambling legalization and court-ordered tax fixes in the dying days of the current political season.

UKs Advertising Standards Authority vs Ladbrokes - A Ladbrokes Casino email promo has fallen foul of the UKs Advertising Standards Authority who deemed significant terms and conditions concerning bonusing to be unclear or misleading.

Mybet Earnings Struggle - The statement this week reveals that Mybet continued to be hampered by negative trends from historic quarters, making its original performance estimate "unrealistic".

Tom Horn Awarded Malta Gaming License - Online gambling software provider Tom Horn Gaming has been awarded a Malta Gaming Authority license that permits the company to host and manage Malta-based gaming operators.

Calvin Ayre invests in new Antigua Business Center - Ayre joined with government officials this week in a ground-breaking ceremony for a five-story centre on Antigua which will be home for the venture. The "green" building will be solar powered and provide employee-friendly services like catering, a gym and child care.

Attack of the Zombies Slot - Online gambling games developer Genesis Gaming has unveiled its latest game, with a theme based on a horror story of the undead, exploiting the current trend....and just in time for Halloween.

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