Cohen conviction upheld

A federal appeals court has upheld the conviction of former World Sports Exchange president Jay Cohen under the federal Wire Act, IBLS Internet Law reports.

The ruling supports the Department of Justice's long-standing position that the Wire Act applies in Internet gambling. Gambling considered unlawful by the United States was previous possible on the Internet due to loopholes in enforcement. UIGEA aims to close some of those loopholes by obliging financial institutions to block transfers to online casinos.

Online gambling firms brace for French crackdown

French authorities say they want to interview as many as 20 executives at Internet gambling firms that do business in France, raising suspicions that a US-style crackdown may be on the way, the Guardian reports. Partygaming denied it was on the list but closed its website to French customers last week. One major shareholder has since sold 123 million shares.

The once mighty Internet gambling giant later announced a 56 percent drop in annual profits, Forbes reports, largely attributed to its forced departure from the US market in September.

Purifying the cyber environment

China is cracking down on Internet gambling websites, the state news agency Xinhua reports. "The prevalence of online gaming has ruined the online environment and harmed young people's growth, which runs against the policy of building a harmonious society," the government said in a circular.

Gambling has technically been illegal in China since 1949, although gaming enjoys wide popularity, as it does throughout Asia -- which has been tipped as the "new hot market" for online gambling companies forced from the US market.

Sites where punters can exchange virtual money for real money and properties have become a money launderer's paradise. They're top of the list of targets in the Chinese crackdown.