Online poker is legal and regulated in many countries including several nations in and around the Caribbean Sea, and most notably the United Kingdom.
In the United States, the North Dakota House of Representatives passed a bill in February 2005 to legalize and regulate online poker and online poker cardroom operators in the state. The legislation required that online poker operations would have to physically locate their entire operations in the state. Testifying before the state Senate Judiciary committee, Nigel Payne, CEO of Sportingbet and owner of Paradise Poker, pledged to relocate to the state if the bill became law.
The measure, however, was defeated by the State Senate in March 2005 after the U. S. Department of Justice sent a letter to North Dakota attorney general Wayne Stenehjem stating that online gaming "may" be illegal, and that the pending legislation "might" violate the federal Wire Act. However, many legal experts dispute the DOJ's claim.
North Dakota Rep. Jim Kasper (R-Fargo), the author of the legalization bill, has vowed to continue his efforts. He states that he is "not putting away the idea of getting into Internet gaming licenses in North Dakota" and that the "revenue we missed is too great to pass up."
In response to this and other claims by the DOJ regarding the legality of online poker, many of the major online poker sites stopped advertising their "dot-com" sites in American media. Instead, they created "dot-net" sites that are virtually identical but offer no real money wagering. The sites advertise as poker schools or ways to learn the game for free, and feature words to the effect of "this is not a gambling website." Televised ads still feature the dot-net conceit but print ads have been trending back toward advertising the dot-coms directly.
In July 2006, United States federal agents, citing the Wire Act, arrested BetOnSports CEO David Carruthers in Dallas, Texas while he was changing planes. He was traveling between Costa Rica and the United Kingdom; in both jurisdictions online gaming and poker are legal and regulated.
Later in the year a similar event happened in France, where Norbert Teufelberger and Manfred Bodner, the CEO's of bwin, were giving a press conference. The arrest was made due to offenses against the French gambling laws.
Since many banks and credit card companies will not allow direct money transfers to online poker sites, electronic money transfer businesses provide online “e-wallets” that players can load from a bank account, then transfer the funds directly to the poker site. The advantage of these services is that it makes it easy for people to transfer money between different poker sites without the money going back to their bank accounts. Prepaid debit cards and virtual credit cards (cards issued for online use, as a card number, expiration date and CVC code) have also emerged as a method of payment for poker sites. These function much in the same way as an "e-wallet" since money deposited into the card account is not connected to the user's bank account.
On October 13, 2006, President Bush officially signed into law the Safe Port Act, a bill aimed at enhancing security at U.S. ports. Attached to the Safe Port Act was a provision known as the Unlawful Internet Gambling Enforcement Act (UIGEA). According to the UIGEA, "unlawful internet gambling" means to place, receive, or otherwise knowingly transmit a bet or wager by means of the internet where such bet is unlawful under any law in the State in which the bet is initiated, received, or otherwise made. Thus, the UIGEA prohibits online gambling sites from performing transactions with American financial institutions. As a result of the bill, several large publicly traded poker gaming sites such as PartyPoker.com, PacificPoker.com and bwin closed down their US facing operations. Some operations have not closed and it is still possible for some American players to play online for real money and even sign up for new accounts. The UIGEA has had a devastating effect on the stock value of these companies.
Following passage of UIGEA, former U.S. Senator Al D'Amato joined the Poker Players Alliance (PPA). Part of the PPA's mission is to protect and to advocate for the right of poker players to play online. Sen. D'Amato's responsibilities include Congressional lobbying. In April 2008 the PPA claimed over 1,000,000 members. The organization claimed just over 800,000 members in October 2007.
On April 26, 2007, Rep. Barney Frank (D-MA) introduced HR 2046, the Internet Gambling Regulation and Enforcement Act (IGREA). IGREA would modify the UIGEA by providing a provision for licensing of Internet gambling facilities by the Director of the Financial Crimes Enforcement Network. On June 8, 2007, the House Financial Services Committee, chaired by Rep. Frank, held a hearing entitled, "Can Internet Gambling Be Effectively Regulated to Protect Consumers and the Payments System?". Details of the meeting, including the archived webcast, are available on the House Financial Services Committee website. Expert witnesses at the hearing testified that Internet gambling can be effectively regulated for age verification, money laundering issues, facilitation of state and federal tax collection, and for issues relating to compulsive gambling. As of March 2008, IGREA has 47 cosponsors.
On May 3, 2007 Rep. Shelley Berkley (D-NV) introduced HR 2140, the Internet Gambling Study Act. This bill "provide(s) for a study by the National Academy of Sciences to identify the proper response of the United States to the growth of Internet gambling." As of December 2007, IGSA has 68 cosponsors.
On June 7, 2007, Rep. Robert Wexler (D-FL) introduced HR 2610, the Skill Game Protection Act. This act would legalize Internet poker, bridge, chess, and other games of skill. Also on June 7, 2007, Rep. Jim McDermott (D-WA) introduced H.R. 2607, the Internet Gambling Tax Act. The IGTA would legislate Internet gambling tax collection requirements.
On September 26, 2008, Sen. Robert Menendez (D-NJ) introduced S.3616, the Internet Skill Game Licensing and Control Act. This bill would amend title 31, United States Code, to provide for the licensing of Internet skill game facilities, and for other purposes. This is the first bill related to online skill games that has been introduced in the Senate.
This guide is licensed under the GNU Free Documentation License. It uses material from the Wikipedia.
Video: Poker Player and Activist on Online Gambling Legal Challenge
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