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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.
Gambling News :
Live Dealer Now At Slotocash -
Live Dealer can be found in the left navigation menu under 'Live Dealer' when you, the player is logged in to instant play.
Betradar Launches US Sports Betting Solutions -
With only a few weeks to go until the betting and gambling world descends on ICE in London, Betradar have today announced that they will be launching a comprehensive range of tools and services to any company that will be looking to provide sports betting in a post-PASPA United States.
Final 12 For MPNPT Morocco -
Sunday on the MPN Poker Tour Morocco will see several trophies awarded at the Mazagan Beach Resort, with the largest going to the Main Event champion along with a prize of MAD 400,000 (c.€35,400).
MPNPT Morocco Updates -
Leading the 104 combined survivors from both flights is still Said El-Yousfi with 272,000 chips; visit the MPN Poker Tour blog for an end-of-day recap and full chip counts.
MPN Poker Tour Morocco Day 1A -
The MPN Poker Tour has returned to Morocco this week (January 11-14), featuring the MAD 1.5 million guaranteed Main Event, accompanying side events, and the activities and parties for which this tour has now become known on two continents.
2018 MPN Poker Classic -
The MPN announces the return of The Classic tournament series this January. The series is back following its successful €350,000 guaranteed debut in 2017. This time €500,000 is guaranteed, along with a once in a lifetime trip to Monaco for the Classic Champion.
PDC and Sportradar Renew Deal -
Following this month’s hugely successful World Championship, the Professional Darts Corporation (PDC) and long-standing partners Sportradar have renewed their multi-faceted cooperation that will see the leader in sports data and content continuing in their role as official data
Poker Yaar Joins MPN -
Available through download, instant play and mobile, Pokeryaar.com is live with Omaha, Hold’em and Five-Card poker variants, alongside MPN’s Fish Party, the industry’s only progressive jackpot SNGs.
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