Gold-Pay Exits US Market

Gold-Pay made a name for itself within the American market as an online gambling payment solution. It has become the US government’s latest online banking scalp and forced to exit the US.

The previous week Gold-pay’s clients received e-mails informing them of ensuing legal matters and Gold-Pay was compelled to suspend all gaming related transactions with immediate effect. The gist of the e-mail read as follow, “Unfortunately we can’t provide a definite date when these issues would be resolved or its outcome. We express regret for this interference in our operations; it’s unforeseen and ill-timed for all parties involved. Accounts can still be accessed but no account activity will be allowed until all the legal issues are addressed.”

Gambling forums started threads stating that players tried to correspond with Gold-Pay and did not receive any answers. Any details pertaining to”pending legal matters” were not discussed by any official of Gold-Pay. Although no one can say with absolute certainty what the reason for Gold-Pay’s exit from the U.S market is, it appears that it’s being targeted by U.S federal authorities. The Department of Justice is famous for clamping down on financial institutions used by U.S internet gamblers. The following statement is displayed on Gold-Pays web “As of the 4^th of February 2011 effective immediately, Gold-Pay will no longer process online gaming transactions.” It goes without saying that Gold-Pay is exiting the U.S online gambling market and would continue its operations in other online gambling destinations.

Gold-Pay introduced an innovative new concept which permitted players to purchase gold shares and use that gold as a mode of making internet payments for goods and services. The idea in all probability was to avoid the ban on providing a financial channel to supposedly unlawful internet casinos.

It’s the second online payment service provider to be prosecuted by the US federal authorities recently. A couple of months ago eWalletXpress followed exactly the same route. eWalletXpress had a far larger and loyal customer base and offered services to top internet casinos such as Cherry Red and Bodog Casino.

After playing cat and mouse for weeks, a statement was issued by eWalletXpress, “We are sorry to inform you that we are no longer able to continue service due to a federal warrant issued to seize our funds.” eWalletXpress notified its account holders that their cash will be transferred back into checking accounts once the “technical issues” were sorted. So far no time commitment has been made. In 2007 Neteller faced a similar situation.