Suppressed by strict anti-gambling legislatiom. The online gambling companies could not operate legally if they were based in United Stated. So most are based in countries with more lax regimes, including the Cayman Islands and The United Kingdom. Indeed, in 2007, the UK government expressed and aim to become the world’s leading centre for the online gaming industry
The US government, frustrated to a number of more indirect approaches to control these companies. Making it illegal for US-based companies operate online gaming sites simply handed the business opportunity to overseas companies that had no such restriction. But in 2007, the government sought to implement its laws through American-based banks, making it illegal for them to carry out transactions with online gambling companies. American customers of Partypokers.com suddenly found that their bank wouldn’t allow them to pay for gambling using credit card ( although, not to be outdone, the gambling companies have attempted to facilitate payment through third-party mechanisms such as Paypal). The US government has also such to extend its jurisdiction and prosecute the directors of offshore gambling companies. In 2006, the sector was shaken by arrest of David Carruthers, a UK citizen and Chief Executive officer of London stock Exchange listed BetonSports, while in transit in Dallas from the UK to Costa Rica.