The Legal Status Of Online Poker In The US.

 

 

You may have heard of the Unlawful Internet Gambling Enforcement Act, or the UIGEA, which was passed by the US congress in 2006. The bill has basically prohibited the transferring of funds from banks, and other financial institutions, between their customers’ accounts and online gambling sites.

 

The UIGEA will be fully implemented in law this June (2010,) and the Justice Departments current fight against online poker sites in particular will step up a level as they attempt to freeze all money supplies to online poker sites by American citizens.

 

Although online poker has been criminalised across the USA, many Americans continue to wager an estimated $30 billion a year on poker sites, with the majority of money being wagered on those online giants, PokerStars and Full Tilt Poker, who between them take around 70% of all revenue spent on online poker from the US.

 

In 2006, PartyGaming was the largest online gambling operator in the world, this was largely due to the extensive American customer base, however, they were forced to cease their operations once the group were deemed to be violating US criminal law, this resulted in a massive loss of $105 million for their part in illegal online gambling activities.

 

The question remained however, as to how other gambling operators, such as Full Tilt Poker and PokerStars were able to take the place of PartyGaming within the American online gambling economy.

 

Frank Catania, one of New Jersey’s Gaming Enforcements previous employees, has offered one explanation, saying that: “the federal government is not going to take any action against them because they would stand a chance of losing it.”

 

Put another way, The Wire Act of 1961 was worded in an ambiguous manner making the issue unclear, additionally, the Illegal Gambling Business Act is unclear about where exactly online poker fits within gambling legislation- should it be classified as a game of chance or a game of skill?

 

Poker is also getting an unexpected boost in the form of backing from Representative Barney Frank, who is trying to ensure that the game becomes respectable so that it can be legalised and taxed.

 

However, as Ian Imrich, lawyer for Full Tilt Poker owners, Howard Ledered and Chris Furgeson, says, “there is a guerrilla war going on,” said Ian Imrich, with the US Justice Department continuing its fight with everything it has. In 2008, for example, the Department of Justice seized over $20 million from Bodog poker, and from Full Tilt, $34 million in 2009, meanwhile PokerStars had all American funds frozen. The amounts of cash seized had been set aside for payouts from payment processors, such as Account Services.

 

The poker rooms all paid up the fines themselves so that they could ensure that their reputations were not damaged by failing to payout to their winning players. When one particular individual, Douglas Rennick who worked for one of the payment processers tried to counteract the seizes he was charged with fraud, money laundering and illegal gambling, he has not returned to the US since the ruling.

 

The one thing that remains certain in the online gambling industry is that everybody is confused, as the battle to save the American online poker industry continues to be waged.

 

 

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