eBAY Online Gambling Hypocrisy
Published: Tuesday, May 02, 2006 Online-Casinos.com
EBAY ONLINE GAMBLING HYPOCRISY
Whilst PayPal tries to get back into the European online gambling business,
it's parent applauds US banning attempts
What must surely rate as one of the most flagrant examples of hypocrisy (unless
the right hand knows not what the left is doing) came to notice this week when
the eBay executive in charge of federal government relations, Brian
Bieron wrote congratulating Rep. Bob Goodlatte on his proposed legislation
aimed at hamstringing the online gambling industry.
Hypocritical, because eBay subsidiary PayPal has recently been trying to
generate e-cash business in Europe from the industry.
IGN reports that Bieron, a senior director sent a letter to Goodlatte on March
14, commending him and his staff for introducing "commonsense legislation"
to combat illegal Internet gambling in the United States. Among other things,
the letter states that the most effective solution to the problem is giving law
enforcement the power to prosecute citizens who participate in illegal gambling.
Despite holding these views, PayPal has made deals in recent months with two online
gambling companies to provide them with payment services. At the end of February,
PayPal's European division began permitting customers of betting exchange Betfair
to deposit and withdraw funds via its service. In March, PayPal Europe announced
the same services for Ladbrokes customers.
Prior to merging with eBay in 2002, PayPal was investigated by New York Attorney
General Eliot Spitzer for processing payments for online gaming companies
taking bets from New York citizens. In exchange for Spitzer's office dropping
the investigation, PayPal ultimately agreed to pay a US$200,000 fine and to stop
processing online gambling transactions involving consumers in New York
The company stopped processing online gambling transactions altogether (regardless
of where the merchants and/or consumers were located) in November 2002 and held
this policy until signing the deal with Betfair.
Bieron did not respond to IGN attempts to get his comments on his company's support
for the Goodlatte legislation.
