July 15 - Payment processors have shown that they will not take the US authorities` decision to seize funds earmarked for poker payouts lying down.
Account Services filed a motion this week to demand the "release and return of funds" that total around $13 million, that were taken from a Wells Fargo Bank in California. It also seeks the return of $1 million from a Union Bank branch in San Diego.
The money was seized by the US Attorney`s Office for the Southern District of New York as part of an extensive effort to cease online poker operations in the region. Up to 24,000 online players were affected by the seizure of these poker funds.
In their motion for return, Account Services noted that "the Wells Fargo funds were seized pursuant to a warrant, whereas the Union Bank Funds were seized without a warrant in the Southern District of California."
Commenting on the effect that the motion issued by Account Services may have on the outcome of this case, the Chairman of iMEGA, Joe Brennan said: "It`s going to force the government to come forward and justify why they seized funds destined for players. There`s no underlying crime here on the part of the players. The Unlawful Internet Gambling Enforcement Act (UIGEA) didn`t make it illegal to bet online. I would want to know why the Justice Department would target the funds since the players don`t seem to be at fault."
The seizing of the funds mainly affected US facing sites such as Poker Stars and Full Tilt who have since offered players alternative forms of payment. Non-US poker sites such as Party Gaming have taken full advantage of the situation and launched massive marketing campaigns to draw US players to their operations in order to avoid this type of problem occurring.
