The British newspaper The Telegraph has been giving it to the U.S. authorities real good lately over its onerous laws concerning illegal gambling. One recent headline read “These subpoenas and arrests are sheer hypocrisy.” Much of the language in the article itself is pretty in-your-face:

The US crackdown on online gaming may not be so much about morals as hard cash, Mark Choueke discovers. The Americans, suggest the cynics, want to drive foreigners out to establish their own Vegas gambling brands.

That’s food for thought. American authorities would have us all believe it’s all about morality. Even if it were - which it isn’t - it isn’t the government’s role to police every member of society and make us all living moral agents. The government’s role is to create and maintain social order. As long as gambling doesn’t cause or wreak an social havoc that disrupts the lives of most members living in society, there is no reason to police it.

But there are bigger issues even caused by the U.S. government’s illegal Unlawful Internet Gambling Enforcement Act (UIGEA), namely, that U.S. authorities believe they can just walk into any country on the planet and start taking names.

News that the US Department of Justice (DoJ) is pursuing London-based banks for information relating to online gambling companies has sparked fears that an American campaign to shut down these sites will lead to further arrests and charges.

Britain needs to end its reciprocity agreement with the U.S. until the Imperial giant backs off of its crusade of harassment against British banks and bookmakers. The Brits are not American citizens. They should not be subject to American laws while in their own country. Especially that never should have been passed in the first place.

Of course, it doesn’t help matters when gamblers themselves - whether British or American - do not even understand the magnitude of the arrogance. Witness this:

I’m still waiting for someone to elaborate where in the Constitution of the country or any state there is a right to gamble. Gambling is an activity we all take under our own volition, but its availability will never be guaranteed. If enough of us enjoy it, there will be someone willing to take on our action. It’s free commerce working its magic.

How about this, Wild Bill:

Amendment IX

The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people.

Amendment X

The powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the states respectively, or to the people.

Those are Amendments 9 and 10 of the U.S. Constitution. Notice that they say all powers not explicitly outlined in the Constitution and delegated to the Federal government are reserved to the people and the states. Furthermore, any rights not mentioned in the previous 8 Amendments are still retained by the people as long as the Federal government doesn’t have the power to prohibit them. It seems that the onus is on you, or anyone else, to prove that the Constitution gives the Federal government the right to prohibit gambling, and specifically Internet gambling. It does not.

Granted, gambling is illegal in certain states, but it isn’t illegal in most states. Since the Constitution does not grant the Federal government the power to regulate or restrict gambling in any form, that power has always been enjoyed by the states. Most states, however, have not outlawed online gambling. Even states that outlaw certain forms of gambling find it difficult to enforce their own laws with regard to online gambling.

If we approach the issue from a perspective of commerce, the Feds cannot regulate intrastate commerce. Even while interstate commerce can be regulated, there is no enumeration in the Constitution for the Federal government to prohibit international commerce except through tariffs and treaties and other such actions. Since the U.S. has entered several treaties that allow other countries to operate businesses within our borders - even gambling businesses, and specifically, in the case of Antigua and other nations, Internet gambling businesses - then the U.S. is breaking its own laws by denying financial transfers for funding Internet gambling transactions.

This is why Antigua has spent the last five years fighting the U.S. and lobbying the WTO to take action. Finally, the little island won its case. Compliments of The Telegraph:

The US later lost an appeal and the WTO ordered it to comply, either by lifting its ban on foreign operators or by withdrawing a “discriminatory” exemption for US online horse-racing betting sites, within 18 months. This move, due to be made public in March, is recognition that nothing has been done by the US.

Nevertheless, the U.S. continues to arrest foreign citizens who visit the U.S. for breaking its illegal laws. Then it goes abroad and harasses hard working citizens in other countries until they assist in bullying legal business owners for operating legal businesses in jurisdictions where they are licensed to operate. It’s not only not fair, but it’s not right. This has to stop. If the U.S. truly is a “free country,” now is the time to prove it.

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A man who made billions processing internet gambling bets the U.S. government has declared illegal was arrested Monday, January 15, on St. John, according to a statement issued by the U.S. Attorney’s Office and the Federal Bureau of Investigation.

Stephen Eric Lawrence and his business partner, John David Lefebvre, who was arrested in Malibu, California, are both charged with conspiring to transfer funds with the intent to promote illegal gambling and face a maximum sentence of 20 years in prison if convicted.

Lawrence and Lefebvre founded Neteller, an internet payment services company that began processing internet gambling transactions in July 2000, according to the U.S. Attorney’s Office and FBI press release.

Lawrence, 46, was arrested on St. John according to FBI spokesperson Neil Donovan, and appeared in federal court on St. Thomas Thursday, January 18, when his bail was set at $5 million.

Ordered To Move to New York
A Canadian citizen, Lawrence was releaed on his own recognizance and ordered to travel to New York City and establish a residence there to face charges in the jurisdiction of the Southern District Court of New York.

Donovan would not discuss the circumstances surrounding Lawrence’s apprehension, including whether the V.I. Police Department aided the FBI in the arrest.

“I cannot add anything to the press release at this time,” said Donovan.

VIPD spokesperson Shawna Richards did not answer questions regarding the department’s role in Lawrence’s arrest.
It was not clear why Lawrence was on St. John at the time he was arrested.

Transferring Money Overseas
“Internet payment services companies like Neteller allow gambling companies to transfer money collected from United States customers to bank accounts outside the United States,” according to the release. “According to Neteller’s 2005 annual report, Lawrence and Lefebvre, through Neteller, provided payment services to more than 80 percent of worldwide gaming merchants.”

The company acknowledged they were breaking the law, according to the release.

“At the time that the defendants took Neteller public, the company acknowledged in its offering documents that United States law prohibited persons from promoting certain forms of gambling, including internet gambling, and transmitting funds that are known to have been derived from criminal activity or are intended to promote criminal activity,” states the release. “The company’s directors, including Lawrence and Lefebvre, also conceded that they were risking prosecution by the government of the United States under existing or future federal laws.”

Reports Boasted of Transactions
Although the company’s directors knew that what they were doing was illegal, they issued reports boasting of their transactions, according to the government.

“In 2005, Neteller processed over $7.3 billion in financial transactions,” according to the release. “According to reports issued by Neteller, 95 percent of its revenue was derived from money transfers involving internet gambling companies.”

“On September 11, 2006, the president and chief executive officer of Neteller described the ‘online gaming market’ as Neteller’s ‘main market,’ and stated that, in the first half of 2006, Neteller processed $5.1 billion in financial transactions,” the official release continued.

The internet gambling that was serving as the company’s main market was illegal, according to the release.

“Both the operation of an internet gambling operation and the transferring of the proceeds from these businesses overseas are illegal under United States law,” the release stated.

“Online Wallet”
An internet search of Neteller on Thursday afternoon, January 18, found several online gambling sites promoting the company as a way to transfer funds online.

Poker.com refers to Neteller as an “online wallet,” while alljackpots.com calls Neteller “an efficient and secure method to make online transactions.”

Combating Internet Gambling
Both men are Canadian citizens, and Lawrence currently resides in Paradise Island, Bahamas, the release continued.
The arrest is just one of many by the United States Department of Justice, which is aiming to combat unlawful internet gambling through prosecution and statutes.

“Internet gambling is a multibillion-dollar industry,” said FBI Assistant Director Mark Mershon. “A significant portion of that is the illegal handling of Americans’ bets with offshore gaming companies, which amounts to a colossal criminal enterprise masquerading as legitimate business. There is ample indication these defendants knew the American market for their services was illegal.”

Let me get this straight. The U.S. government arrested a Canadian citizen in another country for conducting financial transactions with American citizens who entered into those transactions willfully and fully cognizant of their actions. Yet, American citizens aren’t being arrested. Non-U.S. citizens are paying penalties for laws passed by elected officials they don’t have an opportunity to influence or vote for. Let’s see … tell me that part about freedom again. I need a good laugh.

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