Bwin

Austria's bwin online betting company blocks U.S. residents from "real money" games

VIENNA, Austria Austrian online betting company bwin will no longer give customers in the U.S. access to its "real money" games in compliance with a new law aimed at restricting Internet gambling in the United States, a statement said.

Last month, the U.S. Congress included a provision in a bill aimed at improving port security that would make it illegal for banks and credit card companies to settle payments to online gambling sites. U.S. President George W. Bush signed the bill into law Friday.

In a statement released late Friday, bwin said it had decided to comply with the new legislation "following an in-depth analysis of the situation and extensive legal consultation."

Effective immediately, the company will no longer accept new U.S.-resident customers for its "real money" games and is working on "technical arrangements" that will prevent existing customers from accessing such products, the statement said.

It added that until further notice, bwin will only be offering a "play money" lineup to the U.S. market.

"The greatly increased risk of prosecution by the U.S. authorities, the considerable pressure on banks and payment providers coupled with the requirements for publicly listed companies leave the company no other option," the statement said.

The company said it doubted whether the law would achieve its stated goals of protecting minors and preventing gaming addiction.

"Past experience with restrictive measures to prevent the abuse of alcohol has shown that such prohibition did not have the desired effect, merely driving consumers underground and contributing to the rapid growth of an entirely unregulated black market" it said.

source: The Associated Press