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New US Legislation Has Online
Sportsbook and Casino Operators
in Costa Rica Worried
It is official. On July 11,
2006, the US House of
Representatives passed new
legislation, Bill H.R. 4411,
that “prohibits the use of
certain payment instruments,
credit cards, and fund transfers
for the purpose of unlawful
Internet gambling, and for other
purposes.”
This means that any online
gaming operation that is
operating through or working
with US-based financial
institutions are in for a rude
awakening – a direct
interruption of their profits on
a devastating scale along with
increased chances of potential
indictments in cases of
violations.
What does this mean for the
Internet gaming industry? And
Costa Rica?
Ron Z. Mendelson, recognized
offshore business & online
gaming expert and director of
offshoreXplorer.com, explains,
“It is even more crucial than
ever for online gaming operators
to ensure they have properly
planned and structured their
offshore online gaming business.
This is particularly true for US
citizens who are involved in the
online gaming industry. If the
operations are not properly set
up they may be able to do
nothing except sit by and watch
their profits dry up and/or face
grand jury indictments.”
Setting up an offshore online
gaming operation properly is
important for a number of
reasons. “We knew it was a
matter of time before
sustainability would become a
challenge for businesses that
were not offshore,” says
Mendelson, “Particularly in the
gray-area businesses such as the
online gaming industry. Now it
is a reality.”
Operators who don’t reduce and
mitigate the exposure, risks,
liabilities, etc… that are
associated with the online
gaming industry will not be able
to protect their assets,
personal and corporate nor their
operations.
Offshore companies, trusts and
financial institutions do not
fall under US legislation and
are viable alternatives to their
US-based counterparts.
There are a number of countries
in which an offshore operation
can find a welcome home and
setting up a properly
structured, fully functional
offshore operation is the only
option now in light of the
legislation just passed in the
US.
Costa Rica is home to many
offshore operations and the
closing of even a few can have
negative effects on the
employment. Online casinos and
sportsbooks hire English
speaking Costa Ricans at wages
from two to three times the
normal wage offered in the
employment market.
For those involved in the online
gaming industry, there are
options. “As the foremost
experts in the offshore business
and financial field, we can
ensure they have in place the
most protection possible to
ensure they remain unscathed by
the recent legislation in the
US", said Mendelson
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