The owner of two payment processing companies linked to online gambling websites is now out more than $13 million. Ahmad Khawaja agreed to forfeit $13.3 million that had been seized by the FBI in June of 2009 in order for his case to be settled.

Khawaja owns Allied Wallet and Allied Systems, two online payment processors that the U.S. federal government claimed were used to launder money. Specifically, the payment processors were accused of using overseas banks, mostly those in Cyprus, to funnel money back and forth between online gambling websites, such as Poker Stars, and the players.

Whether there is anything wrong with processing payments for online gambling is a gray area in the United States. UIGEA was passed in 2006, but it never defines what constitutes unlawful online gambling and no federal ban exists. Still, in the name of UIGEA, Khawaja was targeted and prosecuted for processing those payments and laundering money.

After settling the case with the authorities, Allied Wallet and Allied Systems are still accepting payments, though it is not known whether they will still be associated with online gambling sites such as Poker Stars.

Harrah’s Entertainment is really counting on the U.S. legalizing and regulating online gambling. In fact, they have a lot of money riding on that. A while back, the Las Vegas casino made headlines by partnering with 888.com to open their own online casino. Now they are upping the ante by putting advertising behind that investment.

Harrah’s Entertainment has had their online casino, which uses their “Caesars” name, for a while, but it does not currently accept American customers. They have been advertising online and in foreign markets while the casino has been open. Recently, though, the casino has started advertising in the United States.

A recent edition of USA Today, the popular nationwide newspaper, featured advertising for Harrah’s online casino. They are also advertising on television in the United States, most notably on ESPN during the World Series of Poker.

What does this all mean? Well, Harrah’s seems to be pretty confident that Congress will pass gambling legislation that repeals UIGEA this year, though the more time passes the more unlikely that seems. It’s a gamble. If the legislation currently in the House doesn’t pass and we have to wait until next year or later to get something done, then Harrah’s will have wasted a lot of money advertising to people who can’t buy their product. If, however, online gambling is legalized in the U.S. soon, Harrah’s would be in a unique situation to cash in. Harrah’s would already have a recognized brand and have a leg up on the competition.

Only time will tell whether the gamble pays off for Harrah’s. Here’s hoping it does.

Atlantic City casinos are talking to online gambling software companies, it has been reported. According to the Atlantic City Weekly, land-based casinos in New Jersey have been having talks with undisclosed companies that design software for online casinos.

It’s easy to guess the topic of conversation. The Atlantic City casinos think that UIGEA may be repealed and online gambling may be legalized and regulated in the United States. If that happens, the casinos want to join the online gambling market and preferably a deal in place with the software designers so they can immediately start offering online casinos.

Mark Juliano, President of the New Jersey Casino Association, recently testified that the casinos are “working with software programs to provide a mode for online poker rooms and casino games and we’re obviously watching the legislation on this very carefully.”

The legislation he referred to is the Internet Gambling Regulation, Consumer Protection and Enforcement Act, a bill in the U.S. House of Representatives that would repeal UIGEA and legalize and regulate online gambling. Though the bill easily passed the Financial Services Committee, for a variety of reasons many think that the bill becoming law this year would be a long-shot. However, businesses can’t afford to wait and see what happens. Plans need to be in place in the event that the bill is passed and that seems to be exactly what the Atlantic City casinos are doing.

Of the obstacles facing the passage of online gambling legislation in the United States, the largest are a quickly approaching deadline and amendments tacked onto the bill.

The issue over possibly legalizing and regulating online casinos in the United States is a complex and tricky one. People try to simply it by using stereotypes, claiming that Democrats are for it but Republicans against it for moral reasons. They say that land-based casinos are against it. Others say that the online casinos and gambling proponents don’t care about problem gambling or other issues that it could cause. None of those people are right.

The truth is that there is support and opposition on both ends of the political spectrum. Most casinos and online gambling supporters are concerned with gambling addiction and do everything they can to minimize the problem. There is surely a lot of opposition from the land-based casinos, most vocally from Steve Wynn, who owns the Mirage, Bellagio, Wynn and more. However, some of his competitors feel differently.

In an article last weekend with the New York Post, entrepreneur Donald Trump spoke out in favor of the federal government legalizing and regulating online casinos. Trump, a known conservative, is one of the best-known businessmen in America. Along with his popular reality TV show, his hair, and his tower, Trump is probably best known for owning the three largest casinos in Atlantic City. Many land-based casino owners see online gambling as a threat, as competition that would hurt them. The Donald sees things differently, though.

“Why lose all those billions of revenue?” he asked, echoing the point made by many that tax revenue from online casinos would help a struggling economy in the throes of a deep recession. Trump knows a thing or two about tax revenue. According to the Post, his three Atlantic City casinos combine to be the largest taxpayer in the city.

Expounding on his pro-online gambling stance, Trump said that “online gambling is going to happen; why not have it work to the public advantage.” As a possible harbinger of things to come, the House Financial Services Committee recently voted to pass the Internet Gambling Regulation, Consumer Protection and Enforcement Act, a bill that would repeal UIGEA and legalize and regulate online gambling in America.

Last week was a big week in the online gambling community. The biggest news – at least in the Western world – was that in the United States, the Internet Gambling Regulation, Consumer Protection and Enforcement Act passed the House Financial Services Committee, clearing the way for a full House vote.

There was another big piece of news in online gambling, though. PartyGaming and bwin accounced that they would merge. Since they are publicly traded companies, the merger has to be approved by shareholders, but if it goes through, that will make the resulting company the largest in the online gambling industry.

PartyGaming is an online casino and poker room based in the UK and bwin is an online bookmaker based in Austria. If the two merge, as has been in the works for approximately 6 months, they would offer virtually every imaginable type of game or activity for online betting. They would also have the largest revenue and most customers in the online gambling industry.

Many in the industry believe that more mergers are likely to come soon. Many also believe that the timing of this announcement, coming on the heels of the House Financial Services Committee vote, is no coincidence.

PartyGaming used to be the largest online poker room in the industry, but with approximately 70% of their customers coming from the United States, the passage of UIGEA in 2006, which amounted to a de facto ban on online gambling, they dropped to fourth-largest. One of the rules in the new American online gambling legislation is that online casinos who have violated existing U.S. laws will not be able to obtain licenses to operate in the States. For that reason, PartyGaming and other casinos need to continue to be careful when it comes to American customers, at least until the legislation is passed into law.

The United States Congress likes to get together for hearings. They like discussing things, lecturing, sharing their opinion and watching themselves on C-SPAN. Right now, the House Financial Services Committee is holding a hearing on online gambling. Representative Barney Frank, a member of that committee, wants to legalize and regulate online gambling at a federal level, repealing the Unlawful Internet Gambling Enforcement Act (UIGEA) in the process.

Yesterday, Annie Duke testified before the House committee. Annie Duke is a well-known poker player, having won a World Series of Poker bracelet and earning the nickname of the “Duchess of Poker.” For that reason, it’s not surprising that she is an advocate of online poker in the United States.

Annie Duke told the House Financial Services Committee that Congress should legalize and regulate the online gambling industry. She said that the issue is “personal freedom, the right of individual Americans to do what they want in the privacy of their homes without the intrusion of the government.”

That argument about doing what you want in your own home should carry particular weight with Frank. According to the folks at Gambling Review, Frank has a history of running an illegal gay brothel out of his home. Frank echoed Duke’s statement, saying that “unwise choices are part of freedom.” While some worry that allowing online gambling would lead to illegal gambling by minors, Duke said that it should be the job of parents, not the government, to make sure their children are not participating in dangerous activities.

Next week, the House Financial Services Committee may meet to vote on Frank’s bill to regulate and license online gambling in America. Currently there is no federal ban on online gambling in the United States. The UIGEA tasks financial institutions with blocking transactions from “unlawful” internet gambling, without making online gambling unlawful or defining what types of gambling is unlawful. Some states do ban online gambling, though, and those state laws should still be in effect even if federal regulation is passed.

This Monday, Americans will celebrate Memorial Day, the honoring of the fallen soldiers who have given the ultimate sacrifice for their country. As a result, most Americans will have nice, long 3-day weekends and then return to work on June 1 refreshed.

If you are an online poker player in the United States, though, you might be worried that when you get back from the holiday, one of your hobbies will be illegal. That would certainly be a slap in the face to have one of your freedoms taken away the day after Memorial Day.

Luckily, that is not the case. The Unlawful Internet Gambling Enforcement Act (UIGEA), which was passed in 2006, is set to take effect June 1. Many people believe that the law will make online gambling – including online poker – illegal. Luckily, that is not the case. UIGEA does not ban any online gambling, as has been confirmed by a recent Supreme Court ruling. Instead, all it does is allow the federal government to go after financial institutions that are used in transactions related to “illegal online gambling.” UIGEA never defines what types of online gambling are illegal. The most logical conclusion, since there is no federal ban on online gambling, is that it is only illegal if performed within a state that does ban online gambling (as several do).

Therefore, if you are an online poker player, relax. UIGEA can’t do anything to you; it only affects financial institutions. Also, if you want to know whether it is legal to play online poker where you live, check the laws in your particular state. If it’s legal in your state, enjoy the poker!

There are rumors within the online gambling community that Microgaming casinos will pull out of the United States market entirely. The federal Unlawful Internet Gambling Enforcement Act (UIGEA), passed in 2006, is scheduled to take effect June 1. Though the law doesn’t ban online gambling, it does allow the government to go after financial institutions involved in transactions related to “unlawful” internet gambling. The law doesn’t define what types of internet gambling are unlawful, though, and that vagueness worries many online casinos, thinking that it could result in them not getting paid by those financial institutions.

As a result of the upcoming UIGEA implementation, Microgaming had already stopped taking new customers in the United States. Existing U.S. customers could continue to play on their sites, though. With June 1 rapidly approaching, though, the rumor is that Microgaming will pull out of the U.S. entirely, meaning that even the existing customers won’t be able to use their software. The result would be an inability for players in the United States to play at any online casino that uses Microgaming’s software, which includes the popular All Slots Casino, among others.

Many believe that electronic checks, or e-checks, will become the primary deposit method for online casinos, especially those that deal with American customers. Since the passage of the Unlawful Internet Gambling Enforcement Act (UIGEA) in 2006, many financial institutions are weary of getting in trouble with the feds for being used for the transfer of funds from “illegal” online gambling. Their worry hinges in large part on the fact that UIGEA does not either make any gambling illegal or clearly define what types of online gambling are illegal. Since the law is so murky, there is the potential for abuse.

For that reason, Visa and Mastercard have both started blocking all transactions between American customers and online casinos, sports books or any other online gambling sites. Other credit card companies may follow suit and even if they don’t, Visa and Mastercard make up the vast majority of the market (with Discover and American Express a ways behind).

There are, of course, other options for making electronic payments. There are a ton of e-wallet sites out there, but some people don’t like using them and for some, they are difficult or tiresome to use. For that reason, many prefer to use electronic checks. To pay by e-check, players only need to enter their checking account number, routing number and social security number (to confirm their identity) on the website. E-checks are even often used to transfer funds on e-wallet websites, so in those cases a casino that allows e-check payment would be cutting out the middle man.

There are not currently a lot of online casinos that offer payment via e-check, though Lucky Red Casino and Aladdin’s Gold are two that do. In the near future, experts believe that a majority of online casinos that serve American customers will have e-check payment as an option in order to avoid losing business. Some sites even offer incentives, such as bonuses, for paying via e-check, since it is cheaper for the casino than a credit card payment.

Golden Casino has been one of the leaders in online casino fun and innovation for the last 10 years, but their era is coming to an end. According to SlotsGeek.com, effective December 1, 2009 the casino will not be accepting any new customers from the United States. The online casino will continue to let existing members play on their site, regardless of where they are from, and will honor all winnings, so players who win tournaments will not have to worry about whether or not they will get paid. However, anyone from the US who wants to join the casino after December 1 will not be able to do so.

No reason was given for this change in policy, though there is speculation that it has something to do with the Unlawful Internet Gambling Enforcement Act (UIGEA). The US government has lately taken to seizing funds from banks that are part of an online gambling transaction, despite the fact that there is no federal ban on online gambling and it is only illegal in 4 of the 50 states. Unless it is delayed by Congress, which is the desire by some senators and representatives in both parties, UIGEA will take full effect on December 1.

This change comes as Golden Casino comes under new ownership. Other Vegas Technology online casinos should remain unchanged in regards to their policies with American customers. Members in the House and Senate are attempting to have UIGEA repealed for the second time since its passing in 2006, and many are more optimistic the second time around. Golden Casino shutting its doors to American customers shows that, if it is related to UIGEA at all, the casino is not quite so optimistic.