Poker News

PPA asks players to Tweet for Poker

The PPA launched "Tweet for Poker" yesterday and online poker supporters can go to the website, sign in and make an appeal for online poker to their Congressional representative in about 30 seconds.

"Poker players are online, they're active, and they're weighing in on the policy battles that impact their right to play," said PPA executive director John Pappas.

"Tweet for Poker is PPA's most instant and dynamic tool for our members to directly contact legislators in a way that engages the public in debate. We're proud of the instant success, and look forward to hearing what our elected officials think of the legislation and this new advocacy program."

The Tweets will support either Sen. Robert Menendez' pro-online poker bill in the Senate or Rep. Barney Frank's poker bill in the House. Users have the option of choosing whether they want Tweets sent to their respective Senator or House Representative.

The Twitter-based campaign is just the latest initiative the PPA has started with the intent of legalizing online poker.

This summer the PPA launched National Poker Week and collected over 375,000 signatures on a petition to President Obama asking for licensing and regulation of online poker.

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CNBC Closing Bell Tackles Internet Gambling

The Global Gaming Expo is currently unfolding from Las Vegas and, as part of its coverage of the event, CNBC’s “Closing Bell” aired a four-minute segment entitled, “Odds Favor Online Gambling?”

Two industry experts joined CNBC “Closing Bell” host Melissa Francis on Thursday, Andrew Parmentire of Height Analytics and David Katz, an Oppenheimer gaming analyst. The former began the discussion, which did not take in a debate form, but rather featured both parties agreeing that legalized internet gambling in the United States is inevitable. Parmentire explained, “Barney Frank has put a bill out there and the stars are lining up in a lot of ways. Harrah’s has shown that they have an online strategy, Congress and states are in desperate need for money, and $50 billion can offset a lot of social programs that Democrats are pushing these days.” The proposed health care initiative, for example, could come with a price tag approaching $1 trillion.

Katz told CNBC viewers, “Gambling in the U.S. has become a far more acceptable consumer product than it was five or ten years ago. That said, we really are much more focused on the publicly traded companies and that would be the brick-and-mortars like Harrah’s as well as the game providers and the technology companies that support those industries.” Katz added that Harrah’s has become a major proponent of licensing online gaming. The Las Vegas-based private company recently launched Harrah’s Interactive Entertainment (HIE), based on Montreal, to oversee its online brand, with former Party Gaming CEO Mitch Garber as its lead figure.

Harrah’s inked an agreement with 888, the parent company of Pacific Poker, to fill its online gaming needs. 888 is a publicly traded company in London, where it can be found under the same three-number acronym. Katz explained that with casinos slowly reaching their limits in the live space, the switch to the Web is inevitable: “If you go to the Bellagio, they have a couple of hundred seats to sit in, so there’s a physical constraint. If you look at the number of states out there that are considering legalizing gaming, they’re going down every year. There’s a finite opportunity for the brick-and-mortar guys to expand in the United States and at some point, they have to start thinking globally.”

The CNBC spot occurred about two weeks prior to December 1st, the date by which the financial services industry in the United States must fall into line with the Unlawful Internet Gambling Enforcement Act (UIGEA). The Poker Players Alliance (PPA), the industry’s main lobbying voice, issued a letter to Federal Reserve Chairman Ben Bernanke and U.S. Treasury Secretary Timothy Geithner to postpone the date by one year while effective legislation can be crafted. However, the two government officials have not yet responded.

The UIGEA was passed during the waning moments of the 2006 Congressional session at the direction of former Senate Majority Leader Bill Frist (D-TN). It was approved by a 3:1 margin in the House of Representatives and by unanimous consent in the Senate after being attached to the SAFE Port Act. The Third Circuit Court of Appeals recently ruled that the UIGEA did not in and of itself make any sort of internet gambling activity illegal. Instead, the legality of an online activity depends on a player’s jurisdiction. Parmentire candidly explained, “There is a lot of anger as to how this happened in 2006.” The PPA has expanded its membership from 50,000 in 2006 to over 1.2 million today.

Concurrently with the Global Gaming Expo, 2009 World Series of Poker (WSOP) Main Event champion Joe Cada, who represents the online poker room PokerStars, has spread goodwill by appearing on mainstream outlets like the “Late Show with David Letterman,” ESPN’s “SportsCenter,” and USA Today. Cada, an online poker pro, became the youngest winner of the $10,000 buy-in tournament ever at age 21, breaking Peter Eastgate’s record of 22 years-old set in 2008.

Online Poker May Be Coming to Quebec, British Columbia

Quebec, British Columbia, and the four Atlantic provinces of Canada may soon see legalized and regulated online poker headed their way, according to an article that appeared in the Montreal Gazette newspaper.

Loto-Québec has submitted a proposal to the province’s government “for an internet wagering initiative in partnership with British Columbia and the four Atlantic provinces, which already have limited online gaming,” according to the Canadian news outlet. Loto-Québec claims that Canadians are currently placating more than 2,000 offshore internet gambling outfits, sending nearly $700 million in wagers away from the country each year, a number that will likely top $1 billion in three years.

Quebec plays home to the Kahnawake Gaming Commission (KGC), which is located on the Indian reservation of the same name outside of the city. Although the KGC is not currently linked to Loto-Québec’s endeavors, the organization’s Chairman, Dean Montour, told the Montreal Gazette, “The fact that Quebec is now entering the online gaming business in partnership with the Atlantic provinces and British Columbia is an indication that the industry is thriving and is gaining wider acceptance. For over 10 years, the Kahnawake Gaming Commission has had a positive working relationship with online gaming regulators throughout the world and looks forward to sharing its knowledge and experience with the Régie des alcools des courses et des jeux.”

The KGC is fresh off completing the investigating surrounding Ultimate Bet, an online poker site that recently changed its name to UB.com. In a September report, the KGC continued to finger former World Series of Poker (WSOP) Main Event champion Russ Hamilton as the mastermind behind the scandal and noted that 31 other individuals were involved, but would not identify who they were. The KGC also issued over 100 screen names associated with the misgivings, a list that included “nvtease,” “Sleeplesss,” and the infamous “NioNio.”

Given the seemingly “Wild West” atmosphere of the internet, Canadian control of the online poker industry will likely bring a considerable amount of validity: “The integrity of the online games often is dubious, as it was for some lotteries and VLTs before Loto-Québec was mandated by the government to funnel them into controlled circuits and oversee them,” noted Loto-Québec President and CEO Alain Cousineau. Loto-Québec added $1.4 billion to the bottom line of the province during the last fiscal year.

Potentially adding to the pressure of Loto-Québec to legalize and regulate the internet version of the age-old card game is a move towards licensing in the United States, spearheaded by Congressman Barney Frank (D-MA). Back in May, the lawmaker introduced HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, which establishes a full framework for legalized internet gambling in the USA. The measure is up to 63 co-sponsors, including Anthony Weiner (D-NY), who signed on four days ago. The Poker Players Alliance (PPA) expects HR 2267 to be marked up in the House Financial Services Committee, of which Frank is the Chair, in January. Other reports signal that markup is coming in December.

On December 1st, the financial services industry in the United States must fall into full compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA), which was passed three years ago. The PPA and other organizations have been feverishly working to delay the compliance date by one year, but so far, pleas to Federal Reserve Chairman Ben Bernanke, Treasury Secretary Timothy Geithner, and the U.S. Congress have not been heeded.

Earlier this year, it was revealed that the newly-created Harrah’s Interactive Entertainment (HIE), headed by former Party Gaming CEO Mitch Garber, would be based in Montreal. Former WSOP Commissioner Jeffrey Pollack was originally slated to be HIE’s President, but recently parted ways with the Las Vegas-based gambling giant.

Joe Cada Dons PPA Logo for 2009 WSOP Main Event Final Table

When viewers tune into tonight’s broadcast of the 2009 World Series of Poker (WSOP) Main Event on ESPN, they’ll see eventual winner Joe Cada don a logo for the Poker Players Alliance (PPA), the industry’s grassroots lobbying force.

Over one million members of the PPA comprise its rank and file and the organization is based in Washington, D.C. On the level of exposure that Cada will bring the PPA when tonight’s two-hour plus broadcast airs, PPA Executive Director John Pappas told Poker News Daily, “We’re very excited that he wore our logo. Not only did he wear it, but he’s also expressed an interest in supporting the PPA and our mission. He’d bee an ideal spokesperson to reach out to the younger demographic, the young internet player who may be skeptical as to what the PPA is and what we’re trying to accomplish.”

The PPA has been working feverishly to delay the implementation of the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA). As it currently stands, the financial services industry in the United States must fall into full compliance with the muddled 2006 law by December 1st, which is now just three weeks away. Pappas noted that Cada’s presence might help bolster the organization’s legitimacy: “Someone with his poker skills and reputation is helpful to have promoting our cause.”

PPA Membership Director Bryan Spadaro roved the halls of the Rio on Saturday morning when play saw the November Nine become only two. Spadaro came armed with a handful of PPA patches, telling players and agents alike why they should be worn. In the end, Cada, Kevin Schaffel, James Akenhead, and Eric Buchman all wore PPA patches. Curiously, Akenhead obliged even though he’s British and Pappas explained, “The game itself isn’t an American game. Even in Europe, they’re starting to see some of the ideas of monopolies and protectionism. We’d like to see us being a global force at some point.”

About 1,500 fans turned out for Monday’s finale at the Penn and Teller Theater at the Rio, which saw the cards hit the air shortly after 10:00pm local time. The action from the green felt was broadcasted on two large video projection screens in the venue, meaning that all 1,500 fans were exposed to the PPA logo for hours on end. Heads-up play lasted for two hours and 21 minutes and the final table’s time of 17:16 marked the longest in WSOP Main Event history by nearly three hours. The longest WSOP table on record belongs to the 2008 WSOP Europe Main Event, which lasted 19 hours.

The PPA teamed up with the National Thoroughbred Racing Association and the American Greyhound Track Operators to author a letter to Federal Reserve Chairman Ben Bernanke and U.S. Treasury Secretary Timothy Geithner urging the delay of UIGEA regulations until December 1st, 2010. A similar outcome is the goal of Congressman Barney Frank’s (D-MA) HR 2266, the Reasonable Prudence in Regulation Act.

The industry will take a wait-and-see approach with the effects of the UIGEA’s regulations. One thing is for sure, however. The PPA is likely to receive a sizable membership boost as a result of the extended exposure on ESPN this evening. Free memberships to the lobbying organization are available.

The action begins at 9:00pm ET tonight on ESPN and will run for at least two hours. The network did not institute a “cutoff” time for programming, but the episode is not expected to last more than two and a half hours.

2009 WSOP Main Event Final Table Set to Kick Off

It’s 11:08am at the Rio All-Suite Hotel and Casino in Las Vegas. The gates to the spacious Penn and Teller Theater open, admitting a throng of screaming fans. The Rio is bustling, as the nine remaining World Series of Poker (WSOP) Main Event participants play down to two.

Among the first in the lobby were Steve Begleiter and Jeff Shulman, the latter escorted through the melee by WSOP Media Director Nolan Dalla. Meanwhile, supporters of Michigan poker player Joe Cada have donned neon yellow shirts and hats, which will surely create a memorable scene for fans and media in the audience alike. Cada’s agent told Poker News Daily that 150 friends and family are expected, while Eric Buchman will see 100 troops rally around him this afternoon.

Rock memorabilia lines the hallway of the Rio from its casino to the theater and, among those chatting with fans is ESPN announcer Lon McEachern, who will flank Norman Chad on an elevated platform set up to the right of the stage. Media inside are seated on couches with tables usually reserved for VIP guests of Penn and Teller and other acts inside the auditorium and two massive television screens relay the action from the green felt. ESPN “Inside Deal” hosts Bernard Lee and Laura Lane are also perusing the crowd, the latter taking a bundle of pictures on her iPhone.

The Poker Players Alliance’s (PPA) Bryan Spadaro is armed with patches for the one million member strong lobbying organization, soliciting each player to wear one during the broadcast, which will officially air on Tuesday night on ESPN. Cada, Kevin Schaffel, and Buchman are confirmed to be wearing them, while James Akenhead, a Brit, also walked away from Spadaro with one in his hand. The PPA is holding a function at 2:00pm down the hallway to spread goodwill about Congressman Barney Frank’s (D-MA) internet gambling legislation.

Upon arrival, Cada had online poker star Cliff “JohnnyBax” Josephy in tow, as ESPN cameras roved the hallway catching any memorable moments, including a group shot of Cada’s supporters. We headed to the front of the general admittance line, which stretches from the Penn and Teller Theater towards the Amazon Room, where Jack Watkins from Bozeman, Montana was the first to be found. He arrived at 6:00am and was quickly approached by Antoine Saout supporters, who offered him guaranteed tickets for the start of play in exchange for wearing shirts and hats touting the French poker player. Watkins and company happily obliged.

In the yellow wristband line, which was for friends and family, was David Prochik, who hails from Orlando, Florida. One of the fans supporting Cada, Prochik told Poker News Daily, “He’s a good online player. He’s good friends with my friend, Brad, and I hope he wins.” Across the hallway, Ylon Schwartz is seated at the Rio’s Starbucks in a scene reminiscent of his experience in 2008 as a member of the November Nine.

Poker pro David Singer will be rooting on Phil Ivey this afternoon. On his show of support, Singer explained, “I’ve been friends with him for a long time and he’s a good guy. I’d like to see him win; he deserves it.” Ivey holds the seventh largest chip stack entering play today and despite being on the short stack, Singer was confident: “If anyone will know what to do in that situation, Ivey will know what to do. He’s the best player at the table and I have a lot of faith in him.” If Ivey failed to emerge victorious on Monday night when play concludes, Singer commented that he’d pull for Jeff Shulman.

Stay tuned to Poker News Daily for the latest from the 2009 WSOP Main Event final table.

Online Poker is Winning the Media Battle

If winning the battle in the media is a prelude to success in Congress for the argument to license and regulate online poker, then two recent articles are sure to help. Two high-profile newspapers have spoken out on the issue over the past few...

Poker News in Brief: Oct. 26-Nov. 1, 2009

Of course not every piece of poker news makes it to the front page of PokerListings.com, which is why we've compiled a list of lesser-known stories below as part of our ongoing Poker News in Brief feature.

This week we'll take a look at yet another PokerStars heads-up style TV show, a former ladies champion suing the WSOP, new features on the CEREUS poker network and more.

PokerStars introduces new ((UK poker)) TV show

UK poker fans will get a crack at Team PokerStars Pros and sporting celebrities as part of a new poker TV show on Sky Sports 2 airing this November.

The PokerStars.com Bounty Stars of Poker will see contestants compete against each other for a chance to play a best-of-three heads-up match against a poker pro or a sporting celebrity. Contestants won't know who they are playing until they take their seat.

If a player manages to win their best-of-three match they will win a £5,000 cash prize.

Poker pros taking part include 2008 World Champion Peter Eastgate, EPT London winner Victoria Coren and the illustrious Marcel "Flying Dutchman" Luske.

The sports celebrities include ex-England test cricketer Phil Tufnell, English rugby star Mike Tindall and Welsh football legend Gary Speed.

"This is an excellent opportunity for previously unknown poker players to make a name for themselves and play against some of the best in the business," said Team PokerStars Pro Coren.

PokerStars.com sponsors several TV shows around the globe with Daniel Negreanu's Million Dollar Challenge in the U.S. and Joe Hachem's The Poker Star in Australia.

Study finds U.S. could generate $41 billion from legalizing internet gambling

A new study released by Rep. Jim McDermott this week estimates the U.S. government would generate more than $41 billion over the next decade by taxing online poker.

The study was performed by the Joint Committee on Taxation and McDermott said the revenue could go to critical social and economic recovery programs.

"I suspect that many of my colleagues, especially those on the fence, will take more interest in this issue once they see $41 billion available that they can match up with any number of worthy programs," said Rep. McDermott.

"I suspect it's only a matter of time before Congress appropriately moves to regulate the industry in order to protect consumers and reverse the flow of billions of dollars currently lost offshore as Americans gamble billions online despite attempts to prohibit the activity."

Both Rep. McDermott and Rep. Barney Frank have introduced bills that would legalize online poker. Frank's bill currently has 62 co-signers.

New features on the CEREUS poker network

UltimateBet and Absolute Poker players will benefit from synchronized tournament breaks and a new raising feature thanks to a recent software update.

Both sites run on the CEREUS poker network and the latest update will give multi-table tournament players a synchronized break at the 55th minute of every hour.

That means players involved in multiple tournaments will finally be able to step away from their computers at least once an hour.

In addition, players will be able to utilize a new "RAISE TO" button, which should significantly speed up the betting process on both Absolute and UltimateBet.

Sally Ann Boyer sues WSOP Academy

WSOP bracelet winner Sally Ann Boyer is suing the WSOP Academy for allegedly using her name and image in advertisements without her permission.

Boyer won the 2007 WSOP Ladies event for $262,077 and was subsequently featured in ads by the WSOP Academy that featured a picture of Boyer calling her a graduate of the program and a tagline that read, "The quickest way to a WSOP bracelet."

Boyer is seeking unspecified damages and recovery of the profits earned from using her name.

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Online Poker Discussed in Massachusetts Committee Hearing

On Thursday, the Massachusetts Joint Committee on Economic Development and Emerging Technologies held a hearing to review proposals to expand gambling within the Commonwealth. Speaking on behalf of the online poker industry was Poker Players Alliance (PPA) Massachusetts State Director Randy Castonguay.

The PPA representative traveled to Boston to speak at the Gardner Auditorium. The goal was to include language in any casino bill that licensed and regulated online poker, which will likely bring in over $40 million per year in revenues to the Commonwealth of Massachusetts, according to figures released by the PPA. Castonguay told Poker News Daily prior to Thursday’s hearing, “Initially, we tried getting internet poker put on this year’s ballot. We were going to have the voters decide whether it should be regulated and taxed to protect the consumer.”

The Boston Globe newspaper noted that 17 bills focused on gambling would be heard on Thursday and that lawmakers were expected to remain in the city “well into the night” listening to proposals. The PPA has 25,000 members in Massachusetts out of more than one million total.

When the Commonwealth took up the issue of gambling, a provision in the proposed casino bill made playing online poker a crime. Castonguay explained in his testimony, “While the game as evolved, the way politicians think about it has not. It is hard to believe that when gaming expansion legislation was introduced two years ago and again this year, the bills included provisions that make poker on the internet a crime punishable by two years in prison and a $25,000 fine.”

On this year’s version of the casino gambling bill, Castonguay told Poker News Daily, “We want to get the language criminalizing online poker out of the current casino bill. Essentially, they took last year’s bill, made a few changes, and put it back in. They didn’t take out the language that criminalizes internet poker. We think that’s ridiculous.” Massachusetts’ inclusion is similar to the Washington State’s stance on internet gambling. There, playing online poker constitutes a Class C felony.

Castonguay tried to submit a copy of a petition backed by the PPA that calls for the regulation of online poker in Massachusetts. He explained, “Unfortunately, our petition was not certified by the Attorney General’s office due to a disagreement with our language. Fortunately, however, this Committee and our State legislature can regulate internet gambling through the formal lawmaking process.” PPA Executive Director John Pappas explained that the disagreement was with “how the petition was drafted and whether it could be put into a sensible ballot initiative.”

Castonguay’s focus was on advocating online poker as opposed to broader initiatives like internet gambling or online wagering on sports. The Massachusetts State Director explained, “We are advocating regulation of internet poker, not internet craps or roulette. And as every member of this Committee knows, unlike craps or roulette, poker is a game of skill that has been played in the home since the dawn of the game.”

A separate Globe article noted that a new casino bill is expected in January. Proponents have argued that allowing casino gambling in Massachusetts will bring badly-needed jobs and revenue to the Commonwealth, while adversaries argue that addiction and other societal ills will increase.

Congressman Barney Frank (D-MA) has introduced a similar measure on the national level. HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, was introduced in May and has attracted 62 cosponsors. The measure outlines a complete licensing and regulatory framework for the internet gambling industry in the United States.

Read Castonguay’s online poker testimony.

Internet Gambling Revenue Analysis Released by Joint Committee on Taxation

Today, Congressman Jim McDermott (D-WA) released a study by the Joint Committee on Taxation (JCT) revealing that up to $41 billion could be generated by regulating and taxing the internet gambling industry over a 10-year period.

This is one of several studies to be released by various outfits, but is the first to be handed down by an agency of the United States Government. On the importance of the JCT’s findings, McDermott commented in a press release distributed on Thursday, “I suspect that many of my colleagues… will take more interest in this issue once they see $41 billion available that they can match up with any number of worthy programs.” Being debated on Capitol Hill is major health care reform, one social program that could conceivably be funded through internet gambling.

McDermott continued, “I would suspect it’s only a matter of time before Congress appropriately moves to regulate the industry in order to protect consumers and reverse the flow of billions of dollars currently lost offshore as Americans gamble billions online despite attempts to prohibit the activity.” In May, the Washington Congressman unveiled HR 2268, the Internet Gambling Regulation and Tax Enforcement Act. The measure imposes a fee of 2% of deposits on licensed internet gambling operators.

HR 2268 is a companion bill to Congressman Barney Frank’s HR 2267, which establishes a comprehensive framework for companies to solicit U.S. customers. The two bills were introduced on the same day and HR 2267 is up to 62 cosponsors on both sides of the political spectrum. Safe and Secure Internet Gambling Initiative (SSIGI) spokesperson Michael Waxman told Poker News Daily, “This is a very significant development in support of the push to regulate the industry. We would expect that there will be more conversation and more interest in internet gambling regulations as Congress is attempting to figure out funding for health care and other various programs.”

Today, Democrats in Congress unleashed health care reform that comes with a price tag of nearly $900 billion. While not able to cover the full amount, legalizing internet gambling could, in theory, put a dent in the price tag. The JCT’s analysis does not include online sports betting, which is barred in Frank’s legislation. Moreover, the findings assume that states will not opt out of HR 2267. A February study by the U.S.-based firm PricewaterhouseCoopers revealed that up to $52 billion could be raised by taxing internet gambling companies over a 10-year period.

On the significance of a $4 billion per year revenue stream when programs like health care run over 200 times that total, Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan explained, “It’s realistic to see it packaged with a number of revenue enhancers. As a standalone, in my opinion, it’s not enough money to be able to get people off the mark who have been against this in the near-term.”

Information released today by the SSIGI noted that Frank planned to hold a markup hearing on HR 2267, but the House Financial Services Committee has released no official information. For the balance of the week, Frank’s committee will be bogged down in discussion of systematic regulation, overdraft protection, and investor protection. The grizzly state of the U.S. economy has been the committee’s main focus since September of 2008.

Frank has also introduced HR 2266, the Reasonable Prudence in Regulation Act. The measure delays industry compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) by one year. As it stands, the financial services industry in the United States must come into full compliance with the 2006 law by December 1st, which is just five weeks away. The Poker Players Alliance (PPA), the industry’s main lobbying force, has been working feverishly to delay the deadline through other means, including appealing directly to U.S. Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke.

The JCT study assumes that wagering taxes will be levied and that HR 2267 will be amended so that internet gambling companies doing business in the United States must also be incorporated in the United States. Read the full internet gambling study.

Stay tuned to Poker News Daily for the latest news from Capitol Hill.

Should Poker Put the Skill-Game Issue Aside?

Ever since the Unlawful Internet Gambling Enforcement Act was passed by Congress three years ago, poker advocates have been trying to distinguish poker from other forms of gambling as a skill game.

Anurag Dikshit’s Sale of Party Gaming Stock Receives Mixed Reaction

One of the major poker headlines this week was the news that Party Gaming Cofounder Anurag Dikshit would divest himself of nearly 114 million shares of the company’s stock, which is traded in London under the symbol “PRTY.” Now, the industry has had a chance to react.

The internet gambling think tank sported mixed reactions to the news, as Dikshit’s departure meant that a man who admitted to violating U.S. law in a New York courtroom one year ago would no longer hold any interest in the company. Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan told Poker News Daily, “The thing to take away is that this is probably good overall for Party Gaming. When you have one of their founders pleading guilty, if and when things start to get normalized in the U.S. and Party Gaming comes into the market, they need to clear it off the books. The fact that he’s exiting the company is good for its future.”

When internet gambling will be legalized and regulated in the United States is anyone’s guess. Congressman Barney Frank (D-MA) introduced HR 2267 in May as one solution. The bill outlines a framework for the explicit legalization of the industry and, although the measure is up to 62 cosponsors, it has not yet been scheduled for markup in the House Financial Services Committee.

On how members of Congress and others outside of the industry would react to Dikshit’s exit, Brennan explained, “If Dikshit leaving Party Gaming can be a benefit to that company, I would say that it does the same broadly for the industry.” Financial analyst Nick Batram told Bloomberg that Dikshit’s departure meant that Party Gaming “may also find it easier to raise funds from institutional investors rather than the founders for large sports gambling acquisitions.” The Wire Act of 1961 has historically been interpreted to mean that online wagering on sports is not permitted in the U.S.

Dikshit will purportedly turn over the proceeds of his sale, which will likely total more than ?188 million, to his charitable foundation. On the TwoPlusTwo online poker forums, posters questioned Dikshit’s charitable motives: “If he donated to an established charity that could not be mistaken for a front, then that would be impressive,” one skeptic noted. Some have speculated that tax benefits are the real reason behind his actions. Brennan told Poker News Daily, “He wants to get out of the business and focus on his charitable endeavors.”

The sale of two-thirds of Dikshit’s stake sent shares of Party Gaming plummeting. Trading above 284 pence on October 19th, the stock dove to 240 pence in 24 hours, a dip of 15%. PRTY closed trading on Friday on the London Stock Exchange fetching 243 pence, 135 pence above its asking price one year ago.

An article in the Financial Times summed up the reaction from most of the industry: “The truth, however, is that while the distancing of Mr Dikshit can’t be bad for Party Gaming, it is still frustratingly unclear what the odds are on a successful return to the U.S. market.” In five weeks, the financial services industry in the United States must fall into full compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA). The impact of the December 1st deadline remains to be seen, but the Poker Players Alliance (PPA) recently authored a letter to U.S. Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke asking for the UIGEA’s regulations to be delayed by one year.

Party Gaming Cofounders Ruth Parasol and Russ DeLeon, a husband and wife team, have not yet announced their intentions to sell stock or formulate a plea agreement with the U.S. Government.

Anurag Dikshit Sells Remaining Stake in Party Gaming

According to an article that appeared in eGamingReview (EGR) on Tuesday and filings to the London Stock Exchange, Party Gaming Co-Founder Anurag Dikshit will sell his 28% share in the company for at least ?188 million.

It’s a curious twist on a story that began developing last December, when Dikshit appeared in the Southern District Court in New York. The Party Gaming personality pled guilty to violating the Wire Act of 1961 and agreed to fork over $300 million to the U.S. Government. He also faces up to two years behind bars, with sentencing scheduled for 2010. Dikshit’s spokesperson, Shimon Cohen, told EGR, “Anurag has paid the $300 million fine that he was asked to pay by the U.S. authorities and has decided it is time to move away from the company.” The Wire Act has traditionally applied to online wagering on sports, not online poker. Read the entire EGR Anurag Dikshit article.

Dikshit was originally rumored to be selling two-thirds of his 28% stake in Party Gaming; however, EGR later reported that the entirety of his shares would be unloaded. PartyPoker, the online poker arm of Party Gaming, withdrew from the U.S. market in 2006 shortly after the passing of the Unlawful Internet Gambling Enforcement Act (UIGEA), which was attached to the SAFE Port Act in the waning moments of that year’s Congressional session at the urging of then-Senate Majority Leader Bill Frist (R-TN). The regulations of the UIGEA were approved as midnight rules by the outgoing Bush Administration and will be fully enforced on December 1st.

In a filing to the London Stock Exchange on Tuesday, where Party Gaming is traded under the symbol “PRTY,” Anurag Dikshit, under the names BT Nominees Limited and Crystal Ventures Limited, is listed as selling 75 million shares of PRTY, or two-thirds of his original total. The filing explains, “Crystal Ventures Limited is wholly owned by BT Nominees Limited who hold shares in PartyGaming Plc under a declaration of trust in favor of Mr Dikshit.” Dikshit owned 113 million shares prior to the sale posted on Tuesday in London and retained nearly 39 million “indirect voting rights.” The sale of the remaining interest has not yet been posted.

At the close of trading on Tuesday in London, shares of PRTY were fetching 240.10p and EGR noted that Dikshit expects to pull in at least ?188 million as a result of the transaction; the sum will be donated to charity. On Monday, PRTY was trading at 284p before Dikshit’s sale, which promptly sunk the share price by 15%. All told, Dikshit’s agreement with the U.S. Government last December ballooned the firm’s stock, which sat at below 140p before quickly climbing above 200p. Exactly one year ago, shares of PRTY were valued at 123p.

Ruth Parasol and Russ DeLeon, who founded Party Gaming along with Dikshit, were not expected to follow suit, according to EGR. In the meantime, PartyPoker officials have heralded the election of its ambassador, World Poker Tour (WPT) Host Mike Sexton, to the Poker Hall of Fame. Sexton is the lone representative of the Class of 2009 and will be officially inducted in ceremonies taking place on November 7th during the World Series of Poker (WSOP) Main Event final table. Sexton is a WSOP bracelet holder and re-signed with PartyPoker in April.

In August, Party Gaming acquired the WPT for $12.3 million, outbidding a subsidiary of Playtech, which owns and operates the massive iPoker Network. Four months earlier, the company entered into a Non-Prosecution Agreement with the U.S. Attorney’s Office for the Southern District of New York, agreeing to pay the Federal Government $105 million. In the process, Party Gaming admitted that it solicited U.S. customers prior to the UIGEA’s passage and agreed not to do so in the future until the industry is licensed and regulated.

PIC Club CEO Chuck Kidd Discusses Company’s Growth, Legality

Making poker news headlines this week was word that Players Investment Company, more commonly known as PIC Club, had severed its relationship with the Merge Gaming Network. PIC Club CEO Chuck Kidd sat down with Poker News Daily to discuss the company’s formation and its compliance with U.S. law.

Poker News Daily: Thanks for joining us. For those unfamiliar with PIC Club, can you tell us what it is and how the company was formed?

Kidd: A group of players and I were customers of Hollywood Poker. I usually had a second screen up and running during my job and poker was entertainment for me. I wasn’t a movie watcher or a television watcher. Instead, poker was my form of entertainment. In October of 2006, when they came out with the Unlawful Internet Gambling Enforcement Act (UIGEA), I took offense to that. I felt like they had stepped into my business. A week after the UIGEA passed, we got thrown out of Hollywood Poker.

My friends and I who played on a social basis had nowhere to go. I’m an old software geek and so I built a forum and a chat room. It was during that time that I contacted a Congressman and asked him to send me a copy of the UIGEA. I sat down and read through it with a couple of pretty smart business guys and realized that they hadn’t outlawed gambling, just the transfer of funds. It was also up to the banks to enforce it. On the very first page of the UIGEA, in its list of exclusions, there is a reference to trading companies. That put an interesting thought into my mind: what if we had a company that traded in poker? I found an international trading company called Ledvil for sale and we went and bought it. We’re licensed to trade everything from precious medals to durable goods.

PND: How does PIC Club avoid violating the UIGEA?

Kidd: We never violate the UIGEA. When you deposit money into a PIC Club account, you have an “available shares account,” which is money you can use to purchase shares in the pooled commodities we are currently trading in. We sell at the rate of $1/share. When you say you want to send money to DoylesRoom, for example, the player is actually buying shares of the pooled commodity that we will sell to DoylesRoom on your behalf and then DoylesRoom places money in an account for you to play in. At no point does a U.S.-based financial institution ever do business with an online poker site.

PND: Has the Federal Government ever approached you?

Kidd: They gave me the permits to operate and we just filed our taxes. We’re not doing anything against the law. To quote one of my sources, the Department of Justice is scratching their heads as to what to do with us and just ignores us for the time being. Last year, we paid out 10.5% interest to people who used PIC Club through their available shares account. The year before, we did 14.25%.

PND: Explain how the transfer of funds to an online poker site works.

Kidd: It’s all an electronic transaction. We are required by law to keep a copy of the certificates for shares. At the end of the day, we are transferring money for the poker industry, but we do it in such a way that we don’t violate UIGEA because we’re not transmitting money from a player to a site. We’re not like Neteller.

PND: How does PIC Club make money?

Kidd: We make money off poker rooms, not players. The processing costs are charged to the player, so when the money goes into PIC Club, it’s breakeven. When money goes to an online poker room, they pay me a percentage of every dollar. It’s pretty much the same fee for every site and I haven’t had to do much negotiating there.

PND: How can PIC Club help you manage your bankroll?

Kidd: You can see every dollar you have online at PIC Club rooms. You just push a button and your balance will be fed back to you. You can then choose to move money around as you see fit.

PND: What does the future hold for PIC Club?

Kidd: PIC Club will keep growing like it is. I’ve let it grow at a very nice pace. I’ve refused to compromise on my customer support. I was angered as anyone when I would call poker room support and be put on hold. I decided that would never happen at PIC Club. One of the things I’m proud of is that we’ve had online support since 2007 and our support has never been down for more than six hours. Personally, I am launching PokerProsNetwork.net. We’re putting a whole new spin on the idea of playing with pro players.

Barney Frank, 18 Others Issue Letter to Geithner, Bernanke about UIGEA Rules

The fight to delay the implementation of the Unlawful Internet Gambling Enforcement Act (UIGEA) rules continues. Recently, 19 Congressmen, including Barney Frank (D-MA), issued a letter to Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke.

The news comes on the heels of a letter sent by the Poker Players Alliance (PPA) in conjunction with the National Thoroughbred Racing Association and the American Greyhound Track Operators Association to the same two government individuals. In fact, the letter sent by the Congressmen alludes to the PPA’s petition directly, encouraging Geithner and Bernanke to use the Administrative Procedure Act to delay the implementation of the UIGEA rules by one year to December 1st, 2010. As it currently stands, the financial services industry must fall into line with the 2006 law six weeks from now.

Frank’s letter explains that the UIGEA rules were officially approved on January 19th, one day before current U.S. President Barack Obama took office. It implores, “We realize this is not a task you requested. We also believe this is an unreasonable burden on regulators and the financial services industry at a time of economic crisis, and it contradicts the stated intent of the Financial Services Committee.” Last year, Frank pushed HR 6870, which would seek to clarify what activities were permissible under the UIGEA, through the Financial Services Committee. However, any action on the bill was halted, as the crisis on Wall Street began shortly thereafter. Frank has been the Chairman of the Financial Services Committee since 2007.

The letter notes, “At our hearing in April 2008, the testimony of regulators and the industry indicated that it would be particularly difficult to craft workable regulations to effectively enforce the statute without having a substantial adverse effect on the payments system.” Instead of creating a “laundry list” of activities that are allowed online, the UIGEA instead defers to a muddled web of federal, state, and local laws. As a result, credit card companies like Visa and MasterCard began “overblocking” in an attempt to comply with the measure, leading to legal online lottery purchases being denied in states like New Hampshire and North Dakota.

The letter is signed by 19 Congressmen, all of whom are members of the Financial Services Committee: Frank, Peter King (R-NY), Luis Gutierrez (D-IL), Ron Paul (R-TX), Melvin Watt (D-NC), Judy Biggert (R-IL), Gary Ackerman (D-NY), Leonard Lance (R-NJ), Michael Capuano (D-MA), William Lacy Clay (D-MO), Paul Hodes (D-NH), Ron Klein (D-FL), Ed Perlmutter (D-CO), Bill Foster (D-IL), André Carson (D-IN), Walt Minnick (D-ID), Steve Driehaus (D-OH), Jim Himes (D-CT), and Dan Maffei (D-NY). Four Republicans are among the signers, who also include two Subcommittee Chairmen.

Frank introduced HR 2266 in May. The measure, affectionately dubbed the Reasonable Prudence in Regulation Act, would delay financial services industry compliance with the rules and regulations of the UIGEA by one year until December 1st, 2010. The measure was introduced in May and has generated 51 cosponsors. However, while the letter explains that HR 2266 is “likely to move,” Frank’s committee has been bogged down with the struggling U.S. economy, which boasts near-double-digit unemployment. As of the time of writing, no discussion of the bill is scheduled.

Frank also introduced HR 2267 in May, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act. The bill establishes a complete licensing and regulatory framework for the internet gambling industry in the United States. HR 2267 blocks wagers on sports under the Professional and Amateur Sports Protection Act (PASPA) and has attracted 62 cosponsors. As its name implies, HR 2267 places a considerable amount of emphasis on providing consumer protection in an effort to placate to those in Congress who are fearful of underage and problem gambling.

Barney Frank, 18 Others Issue Letter to Geithner, Bernanke about UIGEA Rules

The fight to delay the implementation of the Unlawful Internet Gambling Enforcement Act (UIGEA) rules continues. Recently, 19 Congressmen, including Barney Frank (D-MA), issued a letter to Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke.

The news comes on the heels of a letter sent by the Poker Players Alliance (PPA) in conjunction with the National Thoroughbred Racing Association and the American Greyhound Track Operators Association to the same two government individuals. In fact, the letter sent by the Congressmen alludes to the PPA’s petition, encouraging Geithner and Bernanke to use the Administrative Procedure Act to delay the implementation of the UIGEA rules by one year to December 1st, 2010. As it currently stands, the financial services industry must fall into line with the 2006 law six weeks from now.

Frank’s letter explains that the UIGEA rules were officially approved on January 19th, one day before current U.S. President Barack Obama took office. It implores, “We realize this is not a task you requested. We also believe this is an unreasonable burden on regulators and the financial services industry at a time of economic crisis, and it contradicts the stated intent of the Financial Services Committee.” Last year, Frank pushed HR 6870, which sought to clarify what activities were permissible under the UIGEA, through the Financial Services Committee. However, any action on the bill was halted, as the crisis on Wall Street began shortly thereafter. Frank has been the Chairman of the Financial Services Committee since 2007.

The letter notes, “At our hearing in April 2008, the testimony of regulators and the industry indicated that it would be particularly difficult to craft workable regulations to effectively enforce the statute without having a substantial adverse effect on the payments system.” Instead of creating a “laundry list” of activities that are allowed online, the UIGEA instead defers to a muddled web of federal, state, and local laws. As a result, credit card companies like Visa and MasterCard began “overblocking” in an attempt to comply with the measure, leading to legal online lottery purchases being denied in states like New Hampshire and North Dakota.

The letter is signed by 19 Congressmen, all of whom are members of the Financial Services Committee: Frank, Peter King (R-NY), Luis Gutierrez (D-IL), Ron Paul (R-TX), Melvin Watt (D-NC), Judy Biggert (R-IL), Gary Ackerman (D-NY), Leonard Lance (R-NJ), Michael Capuano (D-MA), William Lacy Clay (D-MO), Paul Hodes (D-NH), Ron Klein (D-FL), Ed Perlmutter (D-CO), Bill Foster (D-IL), André Carson (D-IN), Walt Minnick (D-ID), Steve Driehaus (D-OH), Jim Himes (D-CT), and Dan Maffei (D-NY). Four Republicans are among the signers, who also include two Subcommittee Chairmen.

Frank introduced HR 2266 in May. The measure, affectionately dubbed the Reasonable Prudence in Regulation Act, would delay financial services industry compliance with the rules and regulations of the UIGEA by one year until December 1st, 2010. The measure was introduced in May and has generated 51 cosponsors. However, while the letter explains that HR 2266 is “likely to move,” Frank’s committee has been bogged down with the struggling U.S. economy, which boasts near-double-digit unemployment. As of the time of writing, no discussion of the bill has been scheduled.

Frank also introduced HR 2267 in May, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act. The bill establishes a complete licensing and regulatory framework for the internet gambling industry in the United States. HR 2267 blocks wagers on sports under the Professional and Amateur Sports Protection Act (PASPA) and has attracted 62 cosponsors. As its name implies, HR 2267 places a considerable amount of emphasis on providing consumer protection in an effort to placate to those in Congress who are fearful of underage and problem gambling.

Poker Players Alliance Issues Letter to Timothy Geithner, Ben Bernanke

With the December 1st deadline rapidly approaching for industry compliance with the Unlawful Internet Gambling Enforcement Act (UIGEA), the Poker Players Alliance (PPA) has coauthored a letter to prominent members of the Treasury and Federal Reserve.

The PPA letter is dated in September and addressed to Secretary of the Treasury Timothy Geithner and Federal Reserve Chairman Ben Bernanke. Its purpose is straightforward: encourage the postponement of the UIGEA’s regulations by one year. The letter explains, “An extension of the compliance date is necessary because a significant number of institutions subject to the Final Rule will not have in place the necessary policies and procedures mandated by the Final Rule on December 1, 2009, the current compliance date.”

In May, Congressman Barney Frank (D-MA) introduced HR 2266, the Reasonable Prudence in Regulation Act. The measure pushes back mandatory UIGEA compliance by one year to December 1st, 2010 and has generated 51 cosponsors. However, with Frank’s committee bogged down in financial reform and near double-digit unemployment, HR 2266 has not yet seen the light of day. Rich Muny, PPA State Director for Kentucky, told Poker News Daily, “The hope is that we would pass legislation or would work with the Treasury to get them to accept something like an administrative law judge to determine what is legal and illegal under the UIGEA. The judge, for example, could include the fact that the Wire Act doesn’t apply to online poker.”

The PPA authored its letter in conjunction with the National Thoroughbred Racing Association and American Greyhound Track Operators Association. The letter concludes by explaining what the three groups have in common: “Given a choice between subjecting themselves to liability under the Act for processing transactions involving unlawful internet gambling and subjecting themselves to no liability for overblocking, regulated institutions have indicated to our members that they intend to overblock.” In New Hampshire and North Dakota, overblocking by credit card companies like Visa and MasterCard of legal online lottery transactions occurred as financial institutions rushed to comply with the UIGEA.

The letter comes as the PPA scrambles to delay the UIGEA regulations by any means necessary and takes advantage of the Administrative Procedure Act, which governs the way regulations are implemented. Muny explained, “There are two laws that give the Treasury the right to make sure that regulations it implements are understandable. The UIGEA rules were a last-minute decision by the Bush Administration, so they could make a feasible case that they were created in haste.” The regulations of the UIGEA were passed as “midnight rules” by the Bush Administration and took effect on January 19th, one day before U.S. President Barack Obama took office.

The two horse racing outfits express concern in the letter over legal transactions being prohibited. It notes, “The UIGEA regulations could result in confusion among members of the financial services community, leading to a devastating impact on electronic wagering as authorized by the [Interstate Horseracing Act], which produces some $100 million in prize money for horsemen and millions of dollars of state and local tax revenue.”

Whether the UIGEA’s regulations will have any impact on the internet gambling and online poker industries in the United States after December 1st is not yet known. Noted online gambling expert Nelson Rose told Poker News Daily in a July interview, “Basically, the whole program focuses on due diligence on new accounts. If you’re crazy enough to set up a bank account with an American bank, they’ll ask if you’re involved in illegal internet gambling.” He added that payment processors have already devised ways to skirt the 2006 law.

Stay tuned to Poker News Daily for the latest PPA news.

Poker Player Alliance Files Petition to Delay UIGEA Compliance

With the date of compliance for the Unlawful Internet Gambling Enforcement Act less than two months away and legislation to push back enforcement failing to make progress in Congress, the Poker Players Alliance is trying a new method to delay the...

Online Poker Industry Nearing December 1st UIGEA Compliance Deadline

On December 1st, the financial services industry in the United States must fall into full compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA). Working to delay the deadline is the Poker Players Alliance (PPA).

In May, Congressman Barney Frank (D-MA) introduced HR 2266, more commonly known as the Reasonable Prudence in Regulation Act. Frank’s piece of legislation pushes back the looming compliance date from December 1st, 2009 to December 1st, 2010, essentially extending the status quo by one year. In the interim, lawmakers on Capitol Hill could, in theory, devise a lucrative method for taxing and regulating the internet gambling industry in the United States, potentially reaping over $60 billion in revenue in the process.

HR 2266 currently boasts 48 cosponsors, including Andre Carson (D-IN), Jerrold Nadler (D-NY), Bennie Thompson (D-MS), and Melvin Watt (D-NC), who signed on to open the month of October. Despite the outpouring of support, PPA Executive Director John Pappas told Poker News Daily that other avenues besides the legislative process are being pursued since the December 1st deadline is rapidly approaching: “We are working with Barney Frank and others for a non-legislative solution to clarifying or delaying the UIGEA regulations. Given everything on the Chairman’s plate, one thing off of it is a good thing. We’re hoping to see a delay.”

One strategy the PPA is potentially pursuing is utilizing the Administrative Procedure Act. According to About.com, the law is typically used by federal agencies to create regulations to enforce laws passed by Congress. The Administrative Procedure Act was passed in 1946 and Pappas noted that the measure “allows for individuals and organizations like the PPA to weigh in with the Department of the Treasury and ask for a delay of a proposed rule.” As many poker players remember, the regulations of the UIGEA were rubber-stamped as “midnight rules” by the outgoing Bush Administration. They were officially adopted on January 19th, one day before U.S. President Barack Obama assumed office.

Working against the industry as the December 1st deadline approaches is the precarious state of the U.S. economy, which saw unemployment rise to 9.8% in September. In addition, Obama and others on Capitol Hill have been steadfastly pushing health care reform, which has also taken center stage. Consequently, issues like internet gambling have fallen by the wayside. Pappas explained, “The reality is that our country is facing a lot of challenges. From a poker player’s perspective, the UIGEA may be the top priority, but it’s not the top priority of Congress. Until Barney Frank can solve the issues facing his Committee, ours is not going to take precedence.” Frank chairs the Financial Services Committee.

Also expected is a letter authored by Frank and two-dozen other politicians to Treasury Secretary Timothy Geithner calling for a delay of the UIGEA regulations. As of the time of writing, no such letter has come to fruition. Others, including gambling law expert Nelson Rose, question whether the industry will see any changes after the December 1st deadline passes. In a July interview, Rose told Poker News Daily, “The whole program focuses on due diligence on new accounts. If you’re crazy enough to set up a bank account with an American bank, they’ll ask if you’re involved in illegal internet gambling.”

Frank has also introduced HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act. The measure has attracted 60 cosponsors, including Shelley Berkley (D-NV), Steve Cohen (D-TN), Ron Paul (R-TX), and Robert Wexler (D-FL). HR 2267 was introduced on the same day as HR 2266 and establishes a complete licensing and regulatory framework for the internet gambling industry in the United States.

Stay tuned to Poker News Daily for the latest poker legislation headlines.

Poker Law — Barney Frank Urges Regulators to Delay UIGEA

Congressman Writes Letter to Treasury Secretary and Fed Chairman

A New Strategy for the Poker Players Alliance

With the date for banks to comply with the Unlawful Internet Gambling Enforcement Act nearly two months away, the Poker Players Alliance is turning its full attention to delaying the regulations until legislation in Congress to legalize and regulate...

Federal Officials Seize Additional Internet Gambling Funds

Recent seizures of internet gambling funds related to the payment processor Account Services do not appear to be the end of the U.S. Government’s war against the industry. This week, it was revealed that funds in six more accounts had been seized.

The six accounts, according to the Baltimore City Paper, are held by Wachovia and appear under the name Forshay Enterprises. In July and August, other funds were seized in branches of Interstate Net Bank, Bank of America, and First Premier Bank belonging to Electracash and HMD. Regina Mignogna, a Maryland State Trooper, signed the warrant affidavits for the HMD accounts, which were obtained by Poker News Daily. Each of the warrant applications was ordered seized “until further order of this court or until January 20, 2010, whichever is earlier.” The documents were filed in the U.S. District Court in Baltimore.

Richard Gunn, an Anne Arundel County Police Detective, signed the warrant applications for the Wachovia accounts, which were numbered 2000042478410, 2000042478070, 2000042478452, 2000042478300, 2000042089414, and 2000042089427. The City Paper linked Forshay Enterprises to TransactSvc.com. Meanwhile, Electracash was tied to Edward Courdy, who many might remember as one of the defendants in Maryland’s Bodog case in 2008. That news broke last July, when $24 million was seized from the popular online poker site. Funds were taken from four publicly traded U.S. banks, including Wachovia, Bank of America, SunTrust, and Regions.

Account Services, which processed payments for PokerStars and Full Tilt Poker in 2008 and 2009, filed a motion in July for return of property, namely $14 million seized by the U.S. Government. The money was held in Union Bank and Wells Fargo branches in California. In retaliation, the Government indicted Account Services’ Douglas Rennick, a Canadian, on charges of bank fraud, money laundering, and illegal gambling. He faces up to 55 years behind bars and $1.75 million in fines for his actions. As of the time of writing, he has not settled with U.S. authorities.

In August, Judge Jeffrey Miller denied Account Services’ motion for return of property, instead electing to wait for the criminal case against Rennick to pan out. The seizure was part of a larger effort by the Southern District of New York in June during which over $30 million was frozen. The funds in question were allegedly destined for more than 24,000 online poker players and not connected to online wagering on sports. Bodog operates a full online sports book, an option that does not exist on PokerStars or Full Tilt. The Poker Players Alliance (PPA) filed an amicus brief on behalf of Account Services, a decision the organization stuck by despite Rennick’s criminal indictment.

Many in the online poker community assumed that the election of U.S. President Barack Obama, a poker player, would ease the attack on the industry. However, the opposite has been true so far, with federal agencies going on the offensive. For example, FBI Special Agent Dana Conte swore to the affidavits relating to Account Services.

In the closing months of the Bush Administration’s stay in Washington, D.C., the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) were ushered into effect as “midnight rules.” Former Senate Majority Leader Bill Frist (R-TN) was instrumental in attaching the UIGEA to an unrelated port security measure in 2006. The SAFE Port Act passed through the House with ease and was approved in the Senate by unanimous consent. Speaking out during the debate in the House was Congresswoman Shelley Berkley (D-NV), who questioned why internet gambling appeared in the bill.

As a result of the June seizure, which coincided with the running of the annual World Series of Poker (WSOP) in Las Vegas, paper checks and e-checks temporarily bounced, leading to reimbursements and cash bonuses from some of the world’s largest online poker sites. What effect the latest round of seizures will have on the industry is anyone’s guess.

International Federation of Poker: Governing Body for the Industry?

Ever since the explosion of poker in the early years of the 21st century, attempts have been made to organize players, either through a governing body for the sport or an organization to impose changes in the game, with varying degrees of success.

In April, a meeting in Lausanne, Switzerland attracted seven federations - the Danish Poker Federation (Denmark), the Fédération Française des Joueurs de Poker (France), the Stichting Nederlandse PokerBond (Holland), the United Kingdom Poker Federation (U.K.), the Russian Sport Poker Federation (Russia), the Ukrainian Poker Federation (Ukraine), and the Associacao Brazileira de Poker (Brazil) - to undertake the task of creating a worldwide poker federation that would bring the game into the sporting community. From this meeting was born the International Federation of Poker.

One of the tasks that the International Federation of Poker completed was electing its leadership and, when it comes to its President, its membership couldn’t have chosen a better man. Noted author Anthony Holden, who has written “Big Deal” and “Bigger Deal” and traveled around the globe playing poker, was elected as the first President of the organization. Poker News Daily had the chance to speak with Holden and discuss some of the challenges that face him.

PND: The International Federation of Poker (IFP) is not the first attempt at starting a governing body for poker. What chances for success do you believe the IFP has and how will it make a difference beyond other attempts?

Holden: The chances for success are as promising as they are exciting. The poker industry has grown so fast in the past decade that a governing infrastructure hasn’t been able to grow at the same pace. Poker is now one of the three most participated sports in the world alongside golf and fishing. There is a great need for a properly structured governing body, as there is in all competitive sports, and the IFP is such a body.

There are several features of the IFP that differentiate it from the previous organizations. The IFP is the first governing body in poker to be properly structured as a Sports Federation. The IFP is a not-for-profit organization with its head office in Lausanne, Switzerland, the global headquarters of international sports federations and the International Olympic Committee. It is subject to the Swiss Civil Code and will be arbitrated by the Court of Arbitration for Sport, also in Lausanne. This is a major step towards securing recognition of poker’s status as a sport.

The IFP’s goals are broader than those of other poker organizations. Current organizations have very specific interests which the IFP will also be working towards: seeking recognition of poker as a skilled mind-sport and promoting a single unified set of rules to be used in card rooms across the globe. These goals are only part of the broader goal of the IFP, which is to form a comprehensive governing body comprised of national federations from around the world.

Also, the IFP has a well-qualified and dedicated staff working full-time to achieve its goals. Other organizations have been run part-time by very busy people and often fallen by the wayside. The IFP has the resources and manpower to establish itself as a major player on the international poker scene.

PND: The IFP has a strong start with seven national federations already members. Is there a goal in number of national federations to bring onboard or is it more quality-based?

Holden: One of the early missions of the IFP is to build up a strong membership base from around the world. We have identified governing bodies in more than 20 countries outside of our founding members and we are confident that our membership will grow quickly and steadily in the coming months. We hope to have 30 member nations by the end of this year.

When considering an application, the quality of the federation applying is paramount. The IFP has strict criteria for acceptance as a member: the federation in question must be a non-profit organization that truly represents the interest of poker players in that country and whose goals for the promotion of poker are aligned with those of the IFP. Applications from federations are submitted to the Board for approval by vote.

While we are working hard to secure membership of federations in key markets, the IFP is seeking member federations in all nations, no matter how small or remote. We are in advanced discussions about membership with federations from Germany, Italy, and Kyrgyzstan.

PND: What is the strongest component of the IFP, the overall governing body or the individual national federations that comprise it?

Holden: The IFP is a truly democratic body. Every member nation has one representative on the Congress, the supreme authority of the IFP. The IFP operates a “One Country, One Vote” policy, so no matter what the size of a nation, it participates in the governing of the IFP on an equal footing with all other nations.

PND: What are the challenges that the IFP faces?

AH: The greatest challenge that the IFP faces is the stigma that governments and the non-poker playing public attaches to poker. Government decision-makers see poker solely as a gambling activity and think its place is in a casino alongside craps and roulette. The IFP is seeking to educate people that poker is a skilled mind-sport and so to secure it the legal status it deserves all over the world. All the federations we have met are at different stages in the debate with their governments.

The IFP wishes to see a global coordinated approach to the issue and to provide our members with support and advice. We have had promising talks with the International Mind Sports Association in Paris, currently consisting of the international federations of Bridge, Chess, Draughts, and Go. We are optimistic about joining this organization later in the year, and, once we do, we will have official recognition as a mind-sport. Every four years, the IMSA holds the Mind-Sports Games, alongside and in the same city as the Olympics. The IFP looks forward to the chance to bring poker into this event. Once we achieve this, it will be a very useful tool in many debates.

PND: What attracted you to accept a position with the IFP?

Holden: As a lifelong author and journalist, I’ve been playing poker for 40 years and writing books about it for 20. My first visit to the World Series of Poker (WSOP) was in 1977. In recent years, I have been sponsored by PokerStars at events around Europe as well as the WSOP Main Event. That has now had to stop, alas, as the President of IFP obviously cannot accept sponsorship from any one website. I accepted the job, despite this sacrifice, because I believe the goals of the IFP are so important to the game. It enables me to spend my entire working life around poker, doing something worthwhile. Now that beats writing hands down!

PND: What would you like to see for the IFP before the end of the year?

Holden: We would like to have at least 30 member nations and to hold the first IFP team poker event. We would also like to see our member nations making progress with their national governments in the reclassification of poker from a luck-based gambling activity into a skill-based mind-sport. Finally, the IFP has had promising discussions with the International Mind Sports Association and we would be delighted to join this organization by the end of the year.

Senator Wyden Withdraws Proposal to Use Internet Gambling to Fund Health Care

The debate on Capitol Hill rages on over health care reform, which, according to Senator Orrin Hatch (R-UT), will likely come with a nearly $1 trillion price tag. Senator Ron Wyden (D-OR) proposed using internet gambling revenue to defray some of the cost, but withdrew his amendment this week.

In a column that appeared in the Deseret News, Hatch noted, “At a time when we have trillion-dollar-plus deficits and an unemployment rate reaching double digits, [this health care reform] is a colossal mistake I cannot support.” With the massive cost turning many off, Wyden suggested using tax revenue from Congressman Barney Frank’s (D-MA) Internet Gambling Regulation, Consumer Protection, and Enforcement Act (HR 2267). The bill establishes a full licensing and regulatory framework for the internet gambling industry in the United States.

Michael Waxman, spokesperson for the Safe and Secure Internet Gambling Initiative, commented in a press release shortly after the amendment was introduced, “We applaud Senator Wyden’s proposal to collect and put to good use tens of billions in internet gambling revenue that would otherwise be lost in the underground marketplace. The Senate Finance Committee should approve this resolution, finally putting to an end a failed prohibition on Internet gambling that leaves Americans unprotected and unlicensed offshore operators as the only beneficiary in a thriving marketplace.”

HR 2267 was introduced in May and has attracted 58 cosponsors, the newest of which are William Lacy Clay (D-MO), Christopher Murphy (D-CT), and Adam Schiff (D-CA). Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan told Poker News Daily, “There are not many places you can go to find ‘free money’ right now. Internet gambling is one of them. You’re not going to have many industries wanting to be taxed.” Also in Congress is HR 2268, the Internet Gambling Regulation and Tax Enforcement Act. The measure, introduced by Congressman Jim McDermott (D-WA), assesses a tax of 2% of deposits on licensed internet gambling outfits in the United States. HR 2268 was introduced on the same day as HR 2267 and has attracted four cosponsors.

A recent study by PricewaterhouseCoopers indicated that over $60 billion could be generated from taxing the internet gambling industry over a 10 year period. However, that figure includes legalized online wagering on sports. On Wednesday, “The Hill” published an article noting that Wyden had withdrawn his proposed amendment. The Senator’s Communications Director told the publication, “The last thing Senator Wyden wants to do is make it more difficult to expand subsidies for working families by introducing a new contentious issue to the debate. So when he offers the amendment, he will do it with other funding mechanisms.”

Wyden’s attempt to demonstrate tangible uses for internet gambling revenue comes on the heels of McDermott’s introduction of HR 6501 in July of 2008. McDermott’s bill, dubbed the Investing in Our Human Resources Act, provided up to $40 billion in assistance for those currently or formerly in foster care and those in declining job markets. HR 6501 was not acted on during the 110th Congress. McDermott’s proposal was not well-received, as Congresswoman Shelley Berkley (D-NV) labeled it “a classic case of putting the cart before the horse.” Former Congressman Jon Porter (R-NV) piled on, saying that HR 6501 marked “a frivolous attack on the gaming community to pay for services that local governments, states, and the federal government should already be providing.”

Last month, Senator Robert Menendez (D-NJ) introduced S 1597, the Internet Poker and Games of Skill Regulation, Consumer Protection, and Enforcement Act. The bill, as its name implies, focuses on licensing games such as poker, bridge, chess, mahjong, and backgammon “in which success is predominantly determined by the skill of the players.” Menendez’s measure has not attracted any cosponsors.

Congress is targeting October 30th as its adjournment date for the 2009 calendar year.

Bob Barr Comments on the Future of Internet Gambling

The evidence keeps mounting that Capitol Hill is going to address the issue of internet gambling head-on.  Recently, a column from noted libertarian politician Bob Barr suggested that legislation clarifying the legal standing of internet gambling is on the horizon.

On Monday, Barr published the latest installment of “The Barr Code,” his weekly column in the Atlanta Journal-Constitution.  The entry, entitled “Get ready to ante up to Congress,” predicted that Congressman Barney Frank’s (D-MA) Internet Gambling Regulation, Consumer Protection, and Enforcement Act (HR 2267) would be heard in Congress sometime this fall.  Barr pointed out that in addition to Frank’s bill, which seeks to reverse the Unlawful Internet Gambling Enforcement Act (UIGEA) and implement a government-run system to tax and license online gaming venues, there are at least two other pieces of legislation designed to reverse the actions of the UIGEA.  In addition to Frank’s aforementioned bill, Frank also authored the Reasonable Prudence in Regulation Act, (HR 2266) which, if passed, would delay the December compliance date for U.S. financial institutions to meet UIGEA standards by one year.

Barr went on to discuss one of the major causes behind the growing support for regulated online gambling: the economy.  When discussing the possible hearings on the Frank bill, Barr noted, “It is likely that testimony in support of the legislation will be based as much on economics as on the principle that individuals should be able to gamble online if they want to.”  The former Presidential candidate then went on to add what many online gambling supporters have been saying for some time: “The economics of taxing Internet gambling are indeed impressive.”

According to Barr’s calculations, which are based on a PricewaterhouseCoopers study, the U.S. Government stands to gain $51 billion during the first decade online casinos are in operation, a sum that has many in Washington suddenly taking interest in the issue.  Even some of the traditional opponents of online gambling, like brick-and-mortar casinos, are coming onboard.  Barr cited Poker Players Alliance (PPA) Executive Director John Pappas when discussing the growing support from these land-based institutions.  Pappas pointed out that in countries in which online gambling has a less murky legal standing, many players take their gambling interests into nearby casinos as well.

The piece concluded with a reminder that even though there are a growing number of converts to the pro-online gambling movement, those who morally oppose gambling and institutions like the National Football League will continue to fight in opposition.  However, considering the country’s economic situation, Barr warned those who oppose internet gambling that the fight would only be getting tougher in the coming months.

Here is the conclusion of his article: “Moralists and business that see online gambling as competition can be expected to continue to oppose efforts to resuscitate the Internet gambling industry. The poor economy and profligate government spending may have become their most serious adversaries.”

A former Republican, Barr ran for President in 2008 on the Libertarian ticket along with Vice Presidential candidate Wayne Allyn Root.  A former sports handicapper, Root made appearances at last year’s World Series of Poker (WSOP) to promote the ticket’s pro-online gambling stance.

National Council on Problem Gambling Holds HR 2906 Press Conference

Last Thursday, the National Council on Problem Gambling held a press conference in the Canon House Office Building to debrief media and Congressional staffers on HR 2906, the Comprehensive Problem Gambling Act.

Congressmen Jim Moran (D-VA), Lee Terry (R-NE), and Frank Wolf (R-VA) introduced the bill back in June. Since then, a dozen cosponsors have signed on, including Congressman Barney Frank (D-MA), who is pushing bills to delay the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) by one year to December 1st, 2010 (HR 2266) and to establish a comprehensive licensing and regulatory framework for internet gambling in the United States (HR 2267).

Congressmen Moran and Wolf turned out for the press conference and issued opening remarks. Also in attendance was Congressman Patrick Kennedy (D-RI). A total of 25 interested parties were present, including members of the media and staffers from offices around Capitol Hill. National Council on Problem Gambling Executive Director Keith Whyte told Poker News Daily, “It was bigger than we thought. It seems that there is a heightened level of interest in problem gambling and gambling in general. Part of it is people thinking about Frank’s internet gambling bills. We want to talk about the hope and help around this problem rather than just about the negatives. Hopefully, that’s a message that Congress will hear a lot more.”

Whyte spoke during Thursday’s proceedings, as did Tim Christensen, President of the Association of Problem Gambling Service Administrators, and Chuck Maurer, President-Elect of the National Council on Problem Gambling. Two problem gamblers also took to the podium. In the wake of the successful turnout, National Council on Problem Gambling officials are seeking a Senate sponsor of HR 2906. Whyte explained, “We may be within a couple of weeks of taking it on in the Senate. It’s been referred to the Energy and Commerce Committee, which is currently working on health care reform. Everything else is competing for scarce time. The more cosponsors we get, the more likely we’ll be able to get committee time.”

Two films were shown last week following the one-hour long affair. “Shake ‘M Up Break ‘M” told the story of gambling addiction through song, while “Game Over” served as a promotional vehicle for the Washington State Problem Gambling Helpline. HR 2906 allocates up to $14.2 million per year for problem gambling public awareness, research, and treatment for the fiscal years 2010 to 2014. Its language was used in Senator Robert Menendez’s S 1597, the Internet Poker and Games of Skill Regulation, Consumer Protection, and Enforcement Act.

HR 2906 notes that over six million adults in the United States met the criteria for problem gambling last year. The estimated “social cost” from legal proceedings and financial distress as a result of problem gambling was $6.7 billion in 2008, and “there are no agencies or individuals in the Federal Government with a formal responsibility for problem gambling.” The organization characterizes problem gambling as a health disorder.

Several individuals, including Joseph Dunne and Robert Custer, founded the National Council on Problem Gambling 37 years ago. According to its website, the Council seeks “to increase public awareness of pathological gambling, ensure the widespread availability of treatment for problem gamblers and their families, and to encourage research and programs for prevention and education.” Each March, the organization hosts the National Problem Gambling Awareness Week and, in 2009, utilized social media outlets like Facebook and YouTube for the first time in order to disseminate its message.

Read the text of HR 2906 on the Library of Congress website for more information.

Poker News in Brief: Sept. 14-20, 2009

The tournament series dominated the news with Annette_15 turning 21, J.P. Kelly taking the early lead in the first event and Anestis Metsas winning $1 million in a Betfair freeroll.

Of course, there's always more going on behind the scenes that doesn't necessary make it to the front page of PL.com.

As part of our ongoing Poker News in Brief feature we've compiled a list of these stories below. This week we'll take a look at a man taking first in a female event, an online player taking down his second WCOOP event, record numbers at the Commerce Casino and more.

Man wins women's poker tournament

It's story that is becoming more and more frequent in the poker world. Men are entering women-only poker tournaments.

This week, Abraham Korotki of New Jersey entered the Ladies Event at the Borgata Poker Open and, after outlasting 268 women, took down the event for $20,982.

Korotki was able to enter the tournament because organizers are not allowed to exclude players based on gender.

Nicole Rowe finished in second place for $11,889 to become the last woman standing in a ladies event. Rowe was recently diagnosed with breast cancer.

Korotki allegedly offered to donate some of the money to a breast cancer foundation, but an exact amount wasn't given.

In 2007, former baseball player Jose Canseco entered a ladies event at the Bicycle Casino and recently a man filed a discriminatory lawsuit against Hollywood Park Casino because its poker room offered a ladies-only event.

g0lfa drives his way to two WCOOP titles

Ryan "g0lfa" D'Angelo proved that lightning can strike twice by winning his second WCOOP title this week.

D'Angelo outlasted 1,406 players to take first place and $69,245 in the $320 PLH/PLO event on Tuesday.

In winning his second bracelet of the online series, D'Angelo rocketed to the top of the 2009 WCOOP leaderboards with 220 points. George Danzer is the closest competition with 190 points.

D'Angelo also upped his total winnings in the 2009 WCOOP up to $120,782.

Commerce Casino event draws nearly 4,000

Say what you will about the economy, but poker tournaments are still booming in California.

A total of 3,967 bought into the $220 No-Limit Hold'em event at Commerce Casino this week, the first tournament of its Hold'em series. It was enough to create the largest land-based poker tournament in history outside of the WSOP.

Los Angeles-based player Moshe Mashiah outlasted everyone to take down a $164,627 first-place prize. But according to tournament director Matt Savage, the last 10 players actually chopped for $45,000 each.

The Commerce Casino Hold'em Series is currently in full swing with the $2,580 main event scheduled to take place this coming Friday.

SSIGI introduces new pro-online gambling ads

The Safe and Secure Internet Gambling Initiative went on the offensive this week with a new ad campaign aimed at legalizing online poker.

One of the ads featured a photograph of the prohibition era in the U.S. with the tagline, "End Prohibition! Again."

The ads were in support of Rep. Barney Frank's Internet Gambling Regulation Consumer Protection and Enforcement Act of 2009 (H.R. 2267).

"As Congress searches for ways to pay for health care reform and other worthy programs, it should end the unsuccessful prohibition of Internet gambling and start collecting taxes on the billions in revenue currently lost to unlicensed, offshore gambling operators," said Jeffrey Sandman, spokesperson for the Safe and Secure Internet Gambling Initiative.

((Full Tilt)) goes with new data expert

Full Tilt Poker is already known as one of the most secure poker sites on the web, but this week it added to that reputation.

FTP announced it would be using Aster Data for fraud detection and analytics. The goal is to provide better customer service to players, more security and manage increasing data volumes.

Full Tilt will also use Aster to fuel customer access to hand history data, meaning players will be able to learn more about how they play.

Visit PokerListings.com

What’s Next? The Future of Online Poker in the United States — Part 2

Intrastate poker. It’s a term that’s been thrown around quite a bit in recent months, especially since Rep. Barney Frank’s poker-related bills have stalled in Congress. Individual states are starting to wonder — can’t we just do this on our own? The short answer — yes. But that doesn’t mean there aren’t significant obstacles

Legal Online Poker’s Biggest Obstacle: Nanny Democrats

One might think that when Republicans suffered much-deserved humiliation in the last general election, the notorious Unlawful Internet Gambling Enforcement Act (UIEGA) would soon be history.  Remember, it was back in 2006 that Senate Republican leadership effectively guillotined the “Moneymaker Effect.”  Whatever one’s views are on other worldly issues, the popular perception within the poker community was that Democratic political gains would be very good for players.

With Democrats now in complete control of all branches of the Federal Government, we can no longer limit our anger and disappointment to those musty old Republicans.  Indeed, trampling on the rights of poker players now appears to cut across party lines.  While Senator Jon Kyl (R-AZ), Representative Bob Goodlatte (R-VA), and Representative Frank Wolfe (R-VA) continue to merit our universal contempt, the sad fact is that the “out-of-touch brigade” now has plenty of company on the other side of the partisan aisle.

Consider the positions of many powerful Democrats.  The fact is that many national Democratic leaders happen to be women from western states.  Virtually all of these influential Democratic women are opposed to overturning the UIEGA.  In other words, these proud liberals march lock and step with the most repulsive elements of the religious right.  These same Democratic women champion countless progressive causes and wouldn’t agree with the likes of Kyl, Goodlatte, or Wolfe on anything except, peculiarly enough, smothering the freedoms of millions of American citizens who want to play online poker.  These Democrats are just as bad as the Republicans.

For your displeasure, here’s a list of the guilty:

Representative Nancy Pelosi (D-CA) – The Speaker of the House has repeatedly stated that she is dead-set against any expansion of gambling.  She remains stubbornly opposed to legalizing poker on the internet because a family member reportedly once had a gambling problem.  Pelosi may be the worst House Speaker in my lifetime (note that this opinion comes from an avowed political liberal), but her powerful influence on introducing bills and the legislative process unquestionably remains the biggest obstacle to overturning the UIEGA.

Senator Diane Feinstein (D-CA) – The senior U.S. Senator from California recently demonstrated her appalling confusion on the issue of internet gambling.  Consider her response to a constituent in a published letter.  She wrote, “Internet gambling has become too easily accessible to minors, subject to fraud and criminal misuse, and too easily used as a tool to evade State gambling laws.” Aren’t these the very reasons we desperately need legalization, licensing, and regulation of online gambling?

Senator Barbara Boxer (D-CA) – It’s unclear precisely why Senator Boxer remains strictly opposed to online poker.  Unlike her contemporaries Pelosi and Feinstein, Boxer has not widely expressed her views on the subject other than making her opposition known.  However, California’s junior Senator has backed major initiatives on behalf of tribal resorts.  Perhaps tribal opposition to legalized online poker (the Pachanga Tribe, for example) has influenced her position.

Representative Maxine Waters (D-CA) – Oddly enough, Representative Waters represents a Congressional district in Los Angeles that has reaped enormous financial rewards for various municipal projects directly from casino tax revenues.  Hollywood Park is located within her district.  Waters’ opposition to online poker and internet gambling appears to be based on her view that gambling activities disproportionally harm poor people.  That said, to date there has been no word from Waters’ office as to when she plans to start fighting to dismantle the California State Lottery.

Governor Christine Gregoire (D-WA) – This politician is guilty of supporting and ultimately signing into law the most draconian sanctions against poker in more than a century.  It’s eerily reminiscent of what many Southern states did in the 1830s when gamblers were rounded up and hanged publicly.  Gregoire made Washington the first state in the nation to make gambling on the internet a Class C felony (contrary to the opinion of many courts, poker is considered gambling in Washington state).  A poker player living in Seattle or Tacoma is risking far more than a few dollars when he or she plays online.  Thanks to the Governor, the poker playing vermin could very well receive the same punishment doled out to child molesters and drunk drivers.

For far too long, groups like the Poker Players Alliance (PPA) believe they can win the political debate with simple logic.  Sure, our argument is better than their argument and most rational people would agree after listing to a five-minute exchange, but this isn’t a high school debate class.  It’s a political street fight versus powerful forces camped out on both the right and the left.  Until the PPA rolls up its sleeves and dives into the trenches with an all-out media bombardment aimed directly at the oblivious mainstream voter, nothing is going to change.  Sure, we might sway a few Ivy League professors and political columnists from time to time.  A few poker players might get five minutes of airtime on MSNBC or FOX.  That’s all good, but online poker is not going to be legalized and regulated in the United States until some significant changes in strategy take place.

The first rule of politics is that “right” and “wrong” have little to do with any issue of significance.  The debate you see on C-SPAN is pretty much scripted and irrelevant.  No Congressman or Senator is swayed one way or the other on any legislation without either coercion or compromise.

Indeed, Washington is nothing more than a gigantic power plant fueled by the only lubricant of any real action – money.  Lots of money.  Whatever your political views may be, I strongly advise against poker players donating money to national party organizations.  If you support a political candidate, donate to the person directly and not to the Democratic National Committee or to the Republican National Committee.  If you make a donation to either of these organizations, there’s a good chance some of your money is going to be funneled into the re-election campaigns of Kyl and Pelosi.  Just say no.

An Important Few Months for Online Poker Legislation

Congress returns to session today for what figures to be an important few months in determining the future of online poker. The most interesting bill to watch will be Barney Frank's Internet Gambling Regulation, Consumer Protection, and...

iMEGA, Poker Players Alliance React to UIGEA Ruling

Twenty-four hours ago, the Interactive Media Entertainment and Gaming Association (iMEGA) came up short in its bid to overturn the Unlawful Internet Gambling Enforcement Act (UIGEA). In the process, internet gambling may now become an industry governed by state law.

The Third Circuit Court of Appeals emphasized that the legality of internet gambling transactions may ultimately depend on where the bettor and operator are located. If the industry is permitted in both jurisdictions, then online poker players may be able to return to the felts in droves. The opinion, which was penned by Judge Dolores Sloviter, read in part, “Whether the transaction…constitutes unlawful internet gambling turns on how the law of the state from which the bettor initiates the bet would treat that bet, i.e. if it is illegal under that state’s law, it constitutes ‘unlawful internet gambling’ under the Act.”

In a press release distributed by iMEGA following Tuesday’s historic ruling, Chairman Joe Brennan noted, “The court made it clear - gambling on the internet is unlawful where state law says so. But there are only a half-dozen states which have laws against Internet gambling, leaving 44 states where it is potentially lawful. It’s not perfect, but it’s a good start.” Internet gambling law varies by state based on the type of transaction, number of times the consumer is raked, and game type, among other factors. Several states allow online lottery transactions and wagering on horse racing, while others like Utah and Hawaii ban all forms of commercial gambling.

What happens next is anyone’s guess. States may soon find it prudent to clarify laws and statutes related to internet gambling. In the meantime, a push by the Poker Players Alliance (PPA) on Capitol Hill for legalized and regulated online poker may come to fruition through future passage of a bill by Congressman Barney Frank (D-MA). PPA Executive Director John Pappas told Poker News Daily, “While I am disappointed that iMEGA’s full arguments did not prevail, it was encouraging to see the courts reaffirm that the UIGEA does not make playing internet poker illegal. The PPA and our legal team have long argued that the UIGEA should not force banks to block poker transactions in a vast majority of states. This decision might very well help as banks make those determinations on what to block; simply follow state law.”

On handing over the determination of whether internet gambling is permissible to the states, Brennan commented in the same press release, “States have always held the power to regulate gambling in this country, not the Federal government. The court’s ruling seems to say ‘back to the future’ when it comes to regulating internet gambling, so we will turn our attention to the states to make the case that this industry can be properly regulated and produce badly needed tax revenue.” Land-based gambling is already governed at the state level, with Nevada, New Jersey, and Mississippi leading the way. A bevy of riverboat casinos have also sprung up in states like Illinois, Indiana, and Missouri.

Brennan told Poker News Daily that the organization has not yet decided whether it will appeal the three-judge panel’s decision. The magistrates dismissed iMEGA’s claims that the UIGEA violated the First Amendment, Tenth Amendment, privacy rights, and treaty obligations over the course of its 10-page ruling. In the end, the cloudy law, which was passed during the waning moments of the 2006 Congressional session, was not declared unconstitutional, as iMEGA had hoped. However, the court’s ruling may have ultimately led to the same endgame, clarification of the legality of internet gambling and online poker in the United States.

Stay tuned to Poker News Daily for the latest reaction to iMEGA’s UIGEA challenge.