PokerStars To Continue Operation

The second biggest poker website in the US, PokerStars is said to be facing rebellion from its banking partner, the Royal Bank of Scotland, after the website told its customers yesterday that they intend to ignore the anti-gambling act that was expected to be signed into law by President Bush within the next few days.

A spokeswoman for RBS have said that the company notes the passing of the bill by the US senate and that they will take the necessary steps to make sure that the company is fully compliant. RBS has extensive interests in America including its Citizens subsidiary including customer accounts for PokerStars.

Another banking company, Barclays is taking similar action. Brussels though offered some hope to online gaming when it threatened legal action against Austria, Italy and France for prohibiting sports betting and gambling including foreign online gaming and casino operators.

The number of EU countries was moved to nine by the European Commission. The gambling legislation of these countries is under investigation after several leading executives of the European betting sector has been prosecuted for offering cross-border services.

A spokeswoman for PokerStars has avoided commenting on whether they have consulted RBS before announcing its plan to continue trading after the Safe Port Act is pushed through which effectively bans online gambling in the US. PokerStars though remain their ground about the US legislation advising their customers on the website that they have received extensive expert advice, within and outside of the US which in conclusion that the provisions do not alter US legal situation with respect to their offering of poker games online. Business continues as usual.

The Scheinberg family which owns at least 75% of PokerStars was believed to be looking on cashing in their holding through a new issue that values the business at 1.6 billion pounds. PokerStars which was incorporated and licensed in the Isle of Man is believed to be preparing for a stock market listing in London by early next year.

Online gaming competitors like PartyGaming and 888 have said that they will be shutting down their US websites while Sporting bet decided to sell or close its US site.

Secretary General of the European Betting Association Didier Dewyn commented on the EC legal moves and hopes that the new proceedings will put an end to the hunts against private EU licensed operators. According to Charlie McCreevy an internal market commissioner that the first step in these legal proceedings should discover whether national laws are in accordance with the EU rules on free movements of services. He has already received numerous complaints from operators.