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06
Oct

The US Gambling Ban

Posted by PokerBarney on 8:07PM, 6th Oct 2006
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A long post today. Please note, I'm not a lawyer, and I'm not qualified to give advice. What follows is not advice, just my opinion. Take it lightly, and with plenty of salt. Thanks.

Overview Of The Bill

I won't go into detail, as a decent search of the web will provide lots of resources and probably the bill itself, but basically some members of the US government has been trying to push through a law that will prohibit gambling on the internet for US citizens.

The Safe Ports Act (H.R. 4954), which contains the Unlawful Internet Gambling Enforcement Act, is expected to be signed into law by President Bush on Friday, October 13th.

Clearly, this has some important implications - both to players, businesses and the game and it's community as a whole.

A Quick Summary Of The Bill

The act basically prohibits anyone engaged in the process of betting and wagering from knowingly accepting money associated with internet gambling. This suggests that it is designed to target the poker site operators, rather than individual players - since they're a lot easier to get hold of and prosecute.

If we can't deposit or cashout, we can't play, BUT - the bill doesn't specifically say that our actions as a player are prohibited. I'm not a lawyer though, so I'm entirely unqualified to give advice on this sort of thing. Don't sue me! :)

Poker Site Reactions

There's a decent sized list of offical responses from various poker rooms at PokerAnalysis, and (about halfway down the page), some more responses on TexasHoldem-Poker.

If you can't find the site you're after, the best thing is to search their official website, or contact their support.

Sites that are closing US accounts: William Hill, Royal Card Room, Victor Chandler, i4poker.com, B2B Poker Network, Purple Lounge, PKR Poker, Poker Champs, Party Poker, Pacific Poker, Dreampoker 7 states,BetFred, PokerBike, Piggs Casino, Mummys Gold, InterCasino, VIP Casino, InterBingo, InterPoker, Sunpoker, Titan poker 3 states, EUROBET, Betfair, Littlewoods

Sites that are keeping US accounts: Cakepoker, Absolute poker, and Poker.com amongst others. Check the official reactions for more info.

How It Affects YOU

Assuming that as players, we're still within the law - it is the payment processors that will suffer. Companies like NETTeller and WebDollar will have to choose whether or not to stop handling US players monies.

Of course, NETTeller at least isan offshore company, so technically doesn't fall under the influence of the act. They may still choose to stop working with US customers though, just to be on the safe side and to save themselves some hassle.

The best thing to do is to keep an eye on the news, and make sure you only play on European sites and move your money around using European or non-US payment companies. As long as the general consensus that has been reached by the community that the act of playing in itself is not illegal, we should be ok.

There is talk of fraudulently altering your address on poker sites, and even using IP blocking tools to mask your location. Don't go there. We will fight this silliness legally.

The Future Of Online Poker

The three major immediate implications I can see are these:

  • Disruption - there's a 270 day period where the US politicians figure out a way to enforce the act. It may end up being un-enforceable.. or too expensive. Hope springs eternal. During this time there will be lots of confusion which will lead to a loss of business by all.
  • Loss of confidence - confusion inevitably leads to suspicion and fear (and the dark side!), so expect the word "poker" to again be associated intimately with huge debts, the devil and crack addictions.
  • Backlash - the big players in the community, both pros, amateurs and providers are not going to take this lightly. Expect lots of litigation.

In the long term? Poker will simply move out of America. Companies will move to international waters where they are not subject to US law, and payment processors will do the same. Of course.. the US will then probably attempt to ban the actual playing of poker, not just the financial mechanisms.

Are Poker Sites Still Allowed?

There are still some uncertanties about whether hosting poker sites or acting as a poker affiliate is prohibited. I'm not bothered, since my site is hosted in the UK, and I'm a UK resident - but I can imagine there would be a lot of fuss if such things are banned. Keep an eye on the news, and on this blog - if something breaks, I'll try to get it up as quick as I can.

Let's Do Something About It

So, let's try to sort it out before it gets any more out of hand. The Poker Player's Alliance is fighting hard against this tyrannical abuse of law, so we should all get behind them.

Thanks to the users of PokerAnalysis, 2+2, TexasHoldem-Poker, PokerForums, and PokerJunkie.



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