Crap

UPDATE: It's done. Neteller has stopped allowing U.S. customers to transfer money to gambling sites, effective immediately.

I'm not going to rant about the idiocy of federal government regulation of the Internet gambling industry, so instead I'll make a few brief points and throw up some links.

Following the arrests of two of Neteller's founders, it is believed that the payment processor will soon close its business to U.S. customers. Neteller is the leading method of funding poker accounts, and its withdrawal from the U.S. market will decrease the enjoyment of playing online and lead to less profitable games.

For the record:

_ The Unlawful Internet Gambling Enforcement Act does not make playing poker online illegal.

_ The Wire Act does not apply to Internet poker.

_ The recent arrests relating to Neteller and other sports betting sites are not based on the UIGEA -- charges include money laundering and intent to promote illegal gambling.

_ Sites like Party Poker (and presumably Neteller) are withdrawing from the U.S. market in response to fears that their executives will face prosecution. By targeting the businessmen who run or founded these companies, the U.S. Justice Department is successfully intimidating them into making policy changes.

_ The World Trade Organization's case against the United States, led by Antigua, is still pending. It's possible that WTO sanctions against the U.S. could lead to changes in gambling laws.

Links:

What the Neteller Busts Mean

Online Poker in the US Takes Another Shot to the Kidneys

Neteller Founders Charged with Money Laundering Conspiracy

Neteller Founders Detained: New UIGEA Precedent or Old School?