Online Betting Platform Not Intimidated by Kyl Bill

The Unlawful Internet Gambling Enforcement Act of 2005, drafted by Arizona Senator John Kyl is doing its best to wreak havoc on the American online casino market. Instead of focusing his attack directly on offshore online casino companies, however, he's targeting American internet gamblers by trying to prohibit the use of banking services for the purposes of gambling online. Though by most accounts, the Kyl bill is doomed to failure, it has still garnered a reaction from several members of the igaming sector, including

The folks at, an online P2P betting network, seem not to be the least bit fazed regarding the Unlawful Internet Gambling Enforcement Act of 2005. On the contrary, BetBug is confident that if the Kyl bill is passed, it will actually help their standing in the online gaming sector.

John O’Malia, co-founder and CEO of, claims that its betting platform is the only such platform which in no way violates the Wire Act, a piece of legislation often used to allege the illegality of online gambling. Therefore, according to BetBug, if Senator Kyl succeeds in passing the Internet Gambling Enforcement Act of 2005, it will be singled out as the only legal online betting platform. BetBug's platform allows bettors to make private wagers, and does not act as the bookmaker in any way.

O’Malia said that while passing the Kyl bill could set the online gaming industry back a year or two, "BetBug actually expects to benefit from this bill, as all transactions on BetBug are 'true peer-to-peer' transactions, and the money sits with an e-wallet provider instead of a gaming merchant. This constellation would not be affected by Kyl's bill. For this reason, we actually expect BetBug's growth to explode if the Kyl bill is passed and other forms of sports betting become more difficult to fund."

Although BetBug would expect to profit in the wake of Senator Kyl's bill, it still has the online gaming industry's interests in mind and therefore hopes for the bill's demise. "…As much as BetBug would benefit from Kyl's bill, for the good of the industry we want and expect it to fail. We're already succeeding on our own merits and don't need any help from Senator Kyl."

Generally speaking, O'Malia sees the Kyl bill and similar attempts to officially outlaw online gambling as futile. He said that "… as people realize that more and more Americans enjoy online gaming as one of many forms of entertainment, the popular opinion is just no longer behind these bills. Only the religious right keeps pushing for this, and while their congressional majorities are very strong now, it appears to us that there are more pressing things on the legislative agenda."

"Furthermore, entrenched gaming interests in the US such as lotteries and horses have noticed that in the internet they have an incredible opportunity to push their content and gaming out to a whole new customer base. These interests have massive lobbying power, and have successfully turned past bills into legislative Swiss cheese that the prohibitionists considered worse than the status quo. We think that it's unlikely that this time it will be different."

For more information about BetBug, go to - 2005-05-20 10:27:01

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