More domain names and gaming operations were seized on Monday May 24th 2011, which we aptly call Gray Monday. This time the industry leaders were not the only internet sites seized but smaller internet sites also. Even more important is several different sectors in the industry were seized. There were domains seized in online poker, casinos, sports books and even bingo. This may send more of a message through the industry than Black Friday.

The internet poker market was hit hard and drastically when the three biggest players in the industry had their domain names seized. This sent a shockwave through the industry and millions of poker players were left wondering what happens next. What did happen next was that the three biggest poker rooms soon left the US market and their players were left in limbo. They now had to find a new place to play and their funds were in jeopardy. Although the three poker internet sites worked out a deal with the Department of Justice to return the players money, no one we have talked to has gotten any money from them at the time this article was written.

After Black Friday, finally things started to settle down and players found a new poker home and continued to play online. Many thought the Department of Justice had made their point and were going to let things return to normal as much as could be. But with the action on Gray Monday the hammer came down on the industry as a whole. The shock this time is in the form of all sectors of the internet gaming industry. Homeland Security made the seizures this time and the industry is in disarray. No one seems to be safe whether large or small players in the industry. It is just a matter of time to see the reactions to these seizures. Unfortunately, now we may see internet gaming internet sites in all sectors start leaving the US market. We have seen some internet internet sites change their domain names to an international extension as a result of these seizures. They seem to be positioning themselves to be immune from the US government actions by having these domains outside the US.

The sense out there is that no one knows what will happen next and once again the internet players could be sent scrambling again. It a watch and see attitude nowadays, but the impact could be far more reaching than Black Friday. As a result, it doesn’t matter how big or small of an gaming operation you are or what sector of internet gaming you’re in, everyone can be touched by the government.

The results so far are that US poker players have not had to move to different internet sites as of yet, but new sign ups might have to go to a new website address to sign up. Same holds true with US casino players, there’s been no effect yet from Gray Monday other than having a new domain name to sign up.

Many in the online gambling industry were falsely made to believe that the The Unlawful Internet Gambling Enforcement Act of 2006 was all bark and no bite. Since then the department of justice has begun to take a bite out of the industry. It all begun with the seizure of Ewalletexpress, then the take over of banks in New York and Washington State followed by take over of Citadel Commerce and GlobalATM. Now the internet gaming industry is concerned the department of justice is serious about enforcing the Gambling act.

In November 2010, Ewalletexpress had their funds and accounts seized by the United States Government as part of a confidential investigation. They said that currently they have begun negotiating with the government about getting their funds back. At this time eWalletXpress is still unable to access these funds or return them to the players because the money is still not in their custody or control.. This means several Online players and online gambling sites have had their money tied up for over six months with no end in sight. Online players are furious with both the Department Of Justice and Ewalletexpress.

The take over of the bank’s in New York and Washington State are a bit of a different story. In Washington State an $8 Million Poker Fund was Seized. A number of payment processors involved, including Arrow Checks, Secure Money, Etegrity Processing, Anaya Trading Solutions and Blue Lake Capital Management. They were found to be in violation of the Federal Wire Act of 1961 because online gambling is outlawed in the state of Washington. This varies greatly from other seizures becuase it was not the result of the The Unlawful Internet Gambling Enforcement Act. Same thing in New York State, Allied Systems and Account Services found their assets seized also. Their owner was lucky enough to negotiate a settlement for less than half the seized funds and then left the country. Again where does this leave the online players and their money. Out of luck is the answer.

Next are the seizures of Citadel Commerce and GlobalATM. Citadel Commerce had their funds seized back in 2007 by the Department Of Justice. It unclear what exactly has happened in this case and if the online players ever received their money back. Recently, GlobalATM or ECHECK, an online payment processor, is now offline and is unable to be contacted. Its a mystery just what exactly happened if the Department Of Justice seized them or they just went out of business. Either way many online gamblers recieved checks that bounced and had to find other ways to obtain their funds if they could get them at all.

It’s easy to see from above that the department of justice is beginning to win many battles and possibly the war of The Unlawful Internet Gambling Enforcement Act. The gaming industry does not realize the war has started and this is why their losing so many battles. Online US Casino Sites and US Poker players could be challenged to find fund processors very soon.