After reading posts complaining about the DOJ's attacks on foreign companies engaged in legal business overseas, I think a little dose of reality is needed.  It's not that I agree with the DOJ spending all this time and money going after online gambling (I don't).  But to say that what the DOJ is doing, if reversed (a UK court going after a US business) would cause an invasion is ridiculous.

Indeed, US companies operating overseas must obey the laws of the various countries they operate in.  Microsoft, for example, has had to face various European Union trials for anti-trust violations.  Microsoft chose to sell software in the EU, and must face the consequences.

PartyGaming chose to operate in the U.S.  True, they had no physical location in the United States, but they advertised in the U.S., marketed in the U.S., and, because of the nature of online gambling, would be considered by any U.S. court to have been running a business in the United States.  In their IPO, PartyGaming (like Neteller) acknowledged that their business was likely contrary to U.S. laws and that their business strategy had significant risks.

Whether we like it or not, online gambling is not liked **institutionally** by the DOJ.  Whether we have a Democrat or Republican administration is probably irrelevant to the current "witch hunt."  The prosecutions (to date) have not involved the UIGEA.

Back in 2005 I wrote in my blog that, "Party has come to the conclusion that [prohibition of online gambling] will happen one day, and that day is in the relatively near future.  Party has chosen to make as much money as possible before the music really dies."  Looking back, isn't that exactly what Party did over the last year--milking the US market for every last ounce of rake before the music stopped?

Today, PokerStars and FullTilt operate in the US.  Yes, they have no physical presence in the United States, but both pay individuals to promote their brands, both advertise on television, and both would be considered by US Courts to be operating in the United States.  That makes both entities subject to US laws, and their owners and employees subject to prosecution for violating those laws.

[The quote is from Ronald Reagan, btw.]

(This was also sent to the BARGE email list)