Poker News

Poker News in Brief: Jan. 4-10, 2010

The 2010 PokerStars Caribbean Adventure drew a record 1,529 players to generate a $14.8 million prize pool – the seventh biggest in poker history.

Plus, there was some poker news that happened outside of the Bahamas and we’re breaking it down for you below in our ongoing Poker News in Brief feature.

This week we’ll look at a new poker film coming to DVD, Pennsylvania legalizing live poker and table games, Belgium moving to nationalize online poker and Bodog making a big brag.

Legal Poker for Pennsylvania

Pennsylvania legalized poker, blackjack and other table games at Casinos this week in an attempt to generate extra revenue for the State.

Previously, casinos in Pennsylvania had been restricted to slot machines only.

It will be six months before games start being dealt in Pennsylvania, but the State stands to make millions in licensing fees.

Several neighboring states are taking notice and Indiana is considering allowing riverboat gambling in Lake Michigan and the Ohio River. Back in November, Ohio voters passed a law that will see four casinos constructed in four cities.

The Pennsylvania law change could have a potentially negative effect on neighboring Atlantic City if Pennsylvania residents opt to gamble closer to home.

Poker Film “Shark City” to See DVD Release

Indie poker flick Shark City is scheduled to be released on DVD on Feb. 16 though Morningstar Entertainment and Stardust Pictures.

The film stars Vivica A. Fox, Carlo Rota, Jefferson Brown and David J. Phillips and it centers around around the story of two friends who get mixed up with the daughter of a gangster. The two attempt to con a group of gangsters through a poker game and the plan goes awry.

High stakes poker, both live and online, is central to the theme of the film.

Shark City won the John Muir award at the Yosemite Film Festival.

To learn more go to the film’s website.

Belgium Attempts to “Nationalize” Online Poker

Belgium appears to be the latest country that is trying to restrict its citizens to only playing on local online poker rooms.

A recent story in Belgian newspaper Da Standaard claims the government has plans to demand Internet Service Providers block any foreign online poker sites.

This could potentially have huge ramifications for sites like PokerStars, Full Tilt or PartyPoker as they would have to set up regional offices in the country to continue operations.

The changes are scheduled to become law before the end of the year.

Meanwhile, the European Commission is reportedly not pleased with Belgium’s decision claiming it goes against the free trade agreement made by members of the European Union.

Despite the European Commission’s objections, Italy currently restricts its online poker market to rooms that have a presence in the country.

Study Shows Bodog Best Brand

Bodog may not have the most players, but according to a recent independent study it carries the strongest brand recognition.

The report was conducted by gaming consultant Josh Apiafi using Google to understand the brand strength of the top 10 online poker websites including PokerStars, William Hill, 888.com, Bet365, Betfair, bwin, Ladbrokes, Paddy Power, PartyPoker and Bodog.

“We had a hunch since I first rolled out the Bodog brand and business model that we are considered interesting,” said Bodog founder Calvin Ayre. “But that’s only part of the story – we also stand for having fun and that’s what all people want, especially ones that like to gamble."

The survey was conducted by looking at the number of Google alerts generated daily during December. Apiafi recorded every time a document was published that contained a mention of the brands listed above.

In the end, Bodog narrowly edged PokerStars by a score of 510 to 493.

Huge Growth for HeadsUp Entertainment

HeadsUp Entertainment, a poker media company out of Canada, posted its most recent quarterly statement this week and the company showed massive expansion in 2009.

The company sanctioned 362 events under its Canadian Poker Tour (CPT) brand this year, up from the 71 since it acquired the tour in 2008. HeadsUp Entertainment is aiming to host more than 560 events in 2010.

Also in 2009, HeadsUp Entertainment helped produce the CPT Finals in the Dominican Republic and Canadian Open Poker Championships in Calgary for television.  The Canadian Open Poker Championship drew big-name poker players like Gavin Smith, Jennifer Tilly and Huck Seed.

HeadsUp Entertainment also currently runs www.canadianpokertour.tv and Canadian Poker Magazine.

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Three Kansas City Men Jailed for Contempt Regarding Internet Gaming and Poker

When it comes to laws regarding Internet gaming and poker, there has never been an attempt to prosecute any violators. Even the state of Washington, with the most draconian laws there are, has yet to arrest, try and convict someone of what the state considers a felony equal to that of child molesting – even though many have tried to get arrested. The federal courts in Kansas City, however, could be making the first steps in the prosecution of a case regarding online gaming and poker.

Last week, Tom Cascone (the owner of a popular local restaurant), Dominic Cervello and an unidentified third man, were sent to jail on contempt of court charges in the Federal Court of the Western District of Missouri in Kansas City. The trio have refused to testify before a grand jury in the court regarding a subject that, to this point, had not been disclosed. Local newspapers such as the Kansas City Star and television stations such as KMBC, after discussions with Cascone’s family, have found out that the case is about internet gaming and poker.

According to media reports, the beginning of the case goes back to March of this year. On March 31st, several homes, supposedly belonging to people tied into multiple previous investigations of organized crime from previous years in Kansas City, were raided by police allegedly investigating Internet gaming around the city. Although Cascone’s home was not one of the homes raided, he was called in to testify in the case as a witness, as he allegedly knew some of the people under question.

In July, Cascone, Cervello, and the unnamed third person were called in front of a grand jury to testify in the case and all three refused. The prosecution offered up immunity from prosecution to the trio, which was accepted, and they returned to court last week to begin what was thought to be their testimony in the case. Once on the stand, however, Cascone, Cervello, and the third party again refused to testify and were held in contempt of court by the unidentified judge overseeing the proceedings.

Unless they testify at the grand jury hearing, the trio could sit as long as 18 months in jail. There is the possibility of an earlier release if the grand jury completes its investigation into the shadowy charges or the grand jury’s term expires. The U. S. Attorney’s Office, through a spokesman, refused to answer questions from Kansas City media and the only reason that Cascone and Cervello’s names were exposed was because they requested public hearings.

Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan told Poker News Daily that he believes the issue is a local one and not related to other internet gaming cases. In June, the Southern District of New York seized over $30 million in online poker players’ funds from banks in California.

Previous court attempts to stop online gaming and poker have gone after the providers rather than the citizens. The now infamous case in Kentucky, where Governor Steve Beshear attempted to seize online gaming domain names, is currently on its way to the state’s Supreme Court. Minnesota, who attempted to force Internet Service Providers (ISPs) to block gaming domains from access, dropped their challenges after legal action from the Poker Players Alliance and iMEGA. The case in Kansas City looks to be the first time that the U. S. Attorneys Office has brought a case to a federal court regarding online gaming and poker.

Italian Poker Players Shuttled From Regular PokerStars To Italian Version

After changes in their country’s online gaming laws went into effect on Monday, Italian poker players woke up to find that they could not play on the international version of PokerStars, leaving many in a state of confusion as to what forced this change.

Italian online gaming regulations have constantly been changing since the middle of this decade. Back in 2006, the government enacted laws that ordered Italian Internet Service Providers (ISPs) to block all access by its citizens from gaming outlets located outside of the country. The Italian government determined that approximately 600 outlets fell into that category and, for some time, the only action that Italians could participate in was through the state-run companies. After the European Union threatened sizeable fines and sanctions, the Italian government backed off the regulation and dropped the partial ban, allowing for open competition from all of the world‘s online poker rooms, casinos and sports books.

Over the last couple of years, Italy has been in discussions with the EU as to what their online gaming laws could and couldn’t do. In the meantime, PokerStars continued to operate in Italy, started a dedicated site for Italian players and even created the Italian Poker Tour, which kicked off its inaugural tournament in June of this year but has yet to announce a second date. After a critical decision made by the EU in February, which passed under the radar of most in the online gaming industry, the recent changes for Italian poker players were put into effect.

Back on February 20th, the European Union agreed to changes to Italy’s online gaming regulations that effectively altered where and how Italians can play poker online. The changes that were requested by Italy’s State Monopolies Autonomous Administration (AAMS), the governmental agency that regulates the Italian online gaming industry, were quite odd but were eventually accepted by the EU. These changes included such idiosyncrasies as only tournament play being permitted; sites operating in Italy can only accept Italian taxpayers as players; the operating site’s servers must be located in Italy; and every single tournament must be pre-approved in real-time by the AAMS.

In addition to these regulations, there are also “time of play” qualifiers, which monitor how long a player has been on the site and will restrict players from participating if they have been playing too long, and no cash games on the Italian-facing sites. These as well as the other regulations were implemented on July 27th.

PokerStars has attempted to explain the changeover to the affected players, stating that they are trying to protect themselves from prosecution in Italy. In an e-mail message from the site, a spokesman told Poker News Daily, “We have no choice in this matter. The law that was passed recently by the Italian Parliament has made it very clear that offering real money online poker games to Italian residents can only be done by the sites that hold an AAMS license, like our PokerStars.it site, and the operators that breach this provision are committing a criminal offense. Note that this new law has been submitted for approval to the European Union, and the approval was granted.”

“Furthermore”, the spokesman continued, “the Italian Government has directly requested PokerStars to stop providing services to Italian customers on its “.com” site after the new law comes into effect on the 29th of July 2009, and we have agreed to comply with this request as required by law.”

“Starting from the 27th of July 2009, Italian players will not be able to play at PokerStars.com tables any longer, but they will be able to either transfer the assets to PokerStars.it or convert their PokerStars.com account into a PokerStars.it account if they do not have one already”, he concluded.

It is possible that the European Union allowed the changes to Italy’s online gaming laws to promote the autonomy that Member Nations have as a part of the EU. It is also possible that the EU’s own inability to enact EU-wide regulation of the online gaming industry had an impact on the February decision. Regardless of why the new gaming laws are in place in Italy, PokerStars is attempting to be a responsible company in complying with the new regulations.

The change will have an effect across many different aspects of the online world. Several popular Italian professionals such as Dario Minieri, Luca Pagano and others will not be able to participate in the international online scene unless they are outside of their home nation. After the changes in the Russian poker community, the adjustments to the Italian online scene and the continued battle in the United States, poker is in a state of flux around the globe.

Judges for iMEGA UIGEA Challenge Announced

The three judge panel from the Third Circuit Court of Appeals that will hear the Interactive Media Entertainment and Gaming Association (iMEGA) argue why the Unlawful Internet Gambling Enforcement Act (UIGEA) is unconstitutional has been named. The Third Circuit will hear the case on July 7th at 10:00am ET.

At the District Court level, Judge Mary L. Cooper disagreed with many of iMEGA’s reasons why the UIGEA should be declared unconstitutional. However, she granted the trade organization standing to sue, prompting an appeal to the Third Circuit. Now, over a year later, lawyers for iMEGA will receive their day in court. Democratic Presidents appointed two of the three judges named to the Court of Appeals panel, leaving many in the industry optimistic that the UIGEA challenge may be successful.

President Jimmy Carter appointed Judge Dolores Sloviter to the Third Circuit in 1979. She is the veteran of the panel and served as the Third Circuit’s Chief Judge from 1991 to 1998. iMEGA Executive Director Joe Brennan told Poker News Daily, “I think this is an interesting panel. Judge Sloviter was part of the panel that blocked the Communications Decency Act, which is a landmark case in internet law.” The panel in question ruled that the Act, which dealt with internet pornography, was unconstitutional under the First Amendment.

President Bill Clinton appointed Judge Thomas Ambro to the Third Circuit in 1999 and Congress approved him one year later. Brennan noted, “Judge Ambro’s best known decisions have consistently upheld First Amendment rights and civil liberties.” Besides First Amendment rights, iMEGA notes that the UIGEA should be “void for vagueness.” Online poker players know all too well that the UIGEA failed to identify what activities are permissible. In response, credit card companies such as Visa and MasterCard have blocked legal online lottery purchases in New Hampshire and North Dakota. To iMEGA, this “over-blocking” is an example of the shortcomings of the 2006 law.

The third and final judge to make up the panel that will hear lawyers for iMEGA and the U.S. Department of Justice debate the constitutionality of the UIGEA is Kent Jordan, appointed by George W. Bush. On whether any residual influence from the Bush Administration will affect Jordan’s views, Brennan commented, “Even Judge Jordan, with his extensive corporate law background, may potentially recognize the undue burden that UIGEA places on banks and credit card companies. Despite assumptions the industry may make on his being nominated by President Bush, who signed the UIGEA, or his religious background, I think this is a good panel.”

Taking the case on behalf of iMEGA is Eric Bernstein, who argued the case in front of Judge Cooper, and Stephen Saltzburg, former Deputy Attorney General of the United States. Nicholas Bagley and Jacqueline Coleman will represent the U.S. Department of Justice, Federal Trade Commission, and Federal Reserve, who collectively serve as the defendants in the case. In a press release distributed by iMEGA, Brennan noted that he is looking forward to an objective panel: “This law will finally have to stand on its own two feet in court, free from politics and all other outside influences. We feel very confident that when the judges take a look at the law, they will see just how defective it is and they will overturn it.”

The organization is fresh off a victory in Minnesota, where the state’s Department of Public Safety rescinded orders to 11 of the world’s largest internet service providers that called for the blockage of 200 internet gambling domain names. iMEGA filed suit to stop the action, effectively ending the Department of Public Safety’s attempts at censorship. If successful, USA-friendly sites like Bodog, Full Tilt Poker, and Players Only would have been inaccessible by Minnesota residents. In addition, a host of online poker rooms that do not accept U.S. customers would also have been blocked.

Stay tuned to Poker News Daily for the latest from the iMEGA legal challenge.

Utah Transit Authority Cracks Down on Internet Gambling

According to a story that appeared on Fox 13 in Salt Lake City, the Utah Transit Authority (UTA) is cracking down on its riders’ internet usage. Now, viewing pornography or gambling online will result in a $300 fine.

Fox 13’s Arikka Von broke the story, which appeared last week. When asked why UTA management implemented the new rules, Von explained, “UTA says it’s not because they had a bunch of complaints. The old ordinances are just that: old, at least 10 years old, so they have some new policies that include some of the new services like free WiFi.” On a national scale, online poker players have faced the same difficulties interpreting age-old laws like the Wire Act, which was enacted in 1961, nearly 50 years ago. The Wire Act, although passed before the advent of the internet, has been largely extended by the U.S. Department of Justice to include many forms of internet gambling.

Von noted, “A train ticket gets you free internet once you agree to the Terms of Service. That means no online gambling or viewing pornography. The UTA now has a new ordinance that fines passengers for illegal or offensive internet use on the train. The first violation is $300. Do it again and it could cost you $500.” The UTA is one of a growing number of transit systems to include internet onboard. American Airlines recently debuted Gogo Inflight Internet on cross-country trips. The service is available for a fee.

Enforcement of the UTA’s ban on internet gambling and pornography is done by the organization’s police force. Fox 13 noted, “These are real police officers,” and explained, “An officer will always try to educate first and foremost. Riders say they’ve never seen anyone watching porn on the train.” UTA has enacted a full appeals process if riders feel they were targeted unfairly. A representative of the transit system admitted that identifying what is acceptable and what is not can be a complicated process: “The definition can be very difficult to pin down for everyone.”

Interactive Media Entertainment and Gaming Association (iMEGA) Executive Director Joe Brennan told Poker News Daily, “I’m surprised that they’re going to waste anyone’s time enforcing internet gambling. I’m also disturbed with the constant association with pornography. Our opponents try to make that linkage constantly between gambling and pornography. All you have to do is look at the acceptance of all things gambling. There is no comparison between the two activities.” The term “internet gambling” is mentioned in the Fox 13 story just once, while references to pornography pervade the rest of the two and a half minute piece.

With regards to enforcement of the UTA’s guidelines through law enforcement personnel roving the trains, Brennan commented, “They’ll have police officers looking over the shoulders of riders. This announcement is someone grandstanding politically. The claim on internet gambling is dubious. The claim on pornography is also misguided.” Brennan added that viewing pornography is typically done in private, not in the middle of a commuter train in a major metropolitan area.

According to text found on the UTA’s website, the internet service provided by the transit system filters content automatically: “UTA’s service providers use content-filtering software that attempts to restrict access to offensive sites; however, no content-filtering software is totally effective. Please use the same precautions you would use accessing any public wireless network.” The service is available for riders age 18 and over.

iMEGA is fresh off filing a lawsuit against the Minnesota Department of Public Safety (DPS), which attempted to force the censorship of 200 internet gambling domains by its residents. The DPS served notice to 11 of the world’s largest internet service providers (ISPs) calling for the blockage. However, after iMEGA’s suit, it rescinded its notice.

Update on Internet Gambling Legal Battles in Kentucky and Minnesota

With the 2009 World Series of Poker (WSOP) now just one week away, Poker News Daily sat down with Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan to discuss the future of online poker in Kentucky and Minnesota.

iMEGA must file its brief in the Kentucky case by June 1st. The squabble surrounds the seizure and potential forfeiture of 141 internet gambling domain names, including those belonging to industry giants PokerStars and Full Tilt Poker. Brennan told Poker News Daily that iMEGA’s brief will likely be filed before the June 1st deadline and hit the Kentucky Supreme Court’s desk sometime next week. A bevy of amicus briefs have also been submitted from organizations like eBay, the Electronic Frontier Foundation, the Center for Democracy and Technology, the American Civil Liberties Union, Network Solutions, and the Poker Players Alliance. iMEGA’s brief has been completed for two months. Brennan explained the logic in waiting to submit it: “We sat on it because we didn’t feel the need to give Commonwealth attorneys more time than necessary. They’ll get a chance to submit a rebuttal brief.”

In January, the Kentucky Court of Appeals overturned a lower court’s ruling and found that the Commonwealth did not have jurisdiction to seize the 141 domain names in question. The case has the potential to set considerable precedence regardless of how the Kentucky Supreme Court rules. On the State’s brief to its highest court, Brennan told Poker News Daily, “In our mind, they’ve broken no new ground. They haven’t strengthened their case at all. They are falling back on same arguments that were unsuccessful at the appellate level: We are bad people, we don’t deserve to be here, and sites don’t deserve to be represented by groups like iMEGA, which is simply an illegal internet gambling association.” If the State’s seizure and forfeiture are successful, the domain names in jeopardy would be inaccessible not only in Kentucky, but also around the world.

In Minnesota, the deadline is looming for 11 internet service providers (ISPs) to respond to the Minnesota Department of Public Safety. The government entity mandated that ISPs block access to 200 internet gambling domains, although not all of the sites in question accept customers from the United States. Brennan updated Poker News Daily readers on whether any ISP has responded: “Every one we’ve spoken to agrees that Minnesota lacks jurisdiction and authority under the Wire Act. At this time, they’re not going to reply.” iMEGA’s legal team has had extensive conversations with the Minnesota Attorney General’s office, which has agreed not to force responses from ISPs in the near future.

Brennan noted that discussions with the Attorney General’s office and Department of Public Safety in Minnesota have been anything but hostile: “They’ve acknowledged that there is some contention and they seem to be interested in getting things right. While we’re still on the other side of a contentious issue, they’ve behaved reasonably and professionally.” Brennan noted that John Willems, Director of the Department of Public Safety’s Alcohol and Gambling Enforcement Division, has likely never handled a high-profile internet case before. However, upon hearing that 200 sites may be censored, “the opposition moved at internet speed.”

No strict timeline has been given as to when we may see further developments in Minnesota. Two weeks ago, iMEGA filed a lawsuit against Willems in his capacity as head of the Alcohol and Gambling Enforcement Division. However, the organization is not rushing to seek a court order preventing a potential blockage from going into effect. Brennan explained, “We’re not all running to get in front of a Federal judge. Both sides will take a look at this and act in a reasonable timeline.”

Stay tuned to Poker News Daily for the latest from Kentucky and Minnesota.

Gambling Research Facilities Launched at Yale and University of Minnesota

The National Center for Responsible Gaming (NCRG) has announced the formation of two Centers of Excellence in Gambling Research at Yale University in New Haven, Connecticut and the University of Minnesota in the Twin Cities.

According to a press release distributed by the NCRG, the two new facilities “will employ a long-term, institutional approach to conducting innovative and multidisciplinary research and education programs about gambling disorders.” Research grants for the Centers were doled out by the Institute for Research on Gambling Disorders. The Institute’s Executive Director, Christine Reilly, told Poker News Daily why the organization selected Yale and the University of Minnesota: “We sent the proposals to an independent committee that looked at scientific merits of each location’s study. The leaders at Yale and the University of Minnesota are two of the most successful researchers in the field, so it wasn’t a surprise.”

Each center will receive a three year grant for research worth just over $400,000. At the conclusion of that time period, researchers can reapply for additional support. Reilly discussed the challenges of gambling-related studies: “Both of these Centers are working with human subjects. It takes a while to find participants, collect data, and publish data. In general, it’s a slow process and we need to be supportive of them.” A principle investigator will head up the research at each facility and studies will address multiple fields.

At the Ivy League institution, Dr. Marc Potenza “will examine the various factors that influence treatment of gambling disorders,” according to the organization’s press statement. Clinical trials involving the drug naltrexone, which is typically used to treat alcohol dependence, will take center stage. At the University of Minnesota, Dr. Jon Grant will “develop a model of impulsivity that will enable the identification of young adults at risk for developing pathological gambling.” The results of both studies are expected to be released in major publications, although no time frame was given for completion. The NCRG has given out over $7 million in grant money since it was established in 1996 and makes its home in Washington, D.C.

A separate study focusing on the effects of taking naltrexone appeared in “Biological Psychiatry and International Clinical Psychopharmacology” in 2001. In the NCRG-funded trial led by Dr. Suck Won Kim at the University of Minnesota, 30 participants engaged in 13 weeks’ worth of treatment. In the end, results showed that “naltrexone was effective in stopping cravings and, therefore, stopping gambling urges.” Other studies have centered on gambling among youth, gambling’s effects on the brain, and gambling among college students. Reilly noted that the Institute for Research on Gambling Disorders has funded numerous short-term studies. However, the establishment of two Centers represents the increased importance of long-term investigations. The NCRG’s very first study, which was conducted by the Harvard Medical School, found that between 1.14% and 1.60% of the “adult population could be classified as having pathological problems incident to gambling.”

Glenn Christenson, Chairman of the NCRG, explained in the same press release how the Centers of Excellence in Gambling Research fit in with his organization’s long-term mission: “In 1996, the NCRG launched the first competitive grants program in the U.S. to fund research into gambling disorders, so the creation of the new Centers of Excellence is consistent with the organization’s pioneering legacy of supporting the highest-quality research in this field.” Gambling research has taken center stage in Congressional committee hearings on bills to clarify the Unlawful Internet Gambling Enforcement Act (UIGEA). Last July, Congressman Spencer Bachus (R-AL) erroneously quoted a McGill University study stating that one-third of college students who gambled online ultimately attempted suicide. In reality, no such study had ever taken place.

In Minnesota, internet gambling has come under fire by the state’s Department of Public Safety, which issued notices to 11 internet service providers (ISPs) calling for the blockage of 200 gaming sites. The targets included USA-friendly rooms like Bodog and Full Tilt Poker as well as numerous sites that do not accept action from the United States. The Interactive Media Entertainment and Gaming Association (iMEGA) has filed a lawsuit challenging the Department of Public Safety’s actions.

Don Cheadle Signs with Full Tilt Poker

Ante Up for Africa co-founder Don Cheadle has signed on to be a Friend of Full Tilt Poker. Cheadle is one of the world’s leading actors and has appeared in the hit movie “Crash” as well as the “Oceans Eleven” trilogy.

Cheadle founded Ante Up for Africa along with Celebrity Apprentice candidate Annie Duke and Norman Epstein. The organization will be featured prominently during ESPN’s coverage of the 2009 World Series of Poker (WSOP) in Las Vegas. The $5,000 buy-in Ante Up for Africa tournament starts on Thursday, July 2nd and is one of three events that compose the television network’s coverage. According to a press release distributed by Full Tilt Poker this week, participants are asked to donate 50% of their winnings to charity. In many cases, the tournament’s winners give their entire payday to the organization, which raises money and awareness for victims of the crisis in Darfur.

Cheadle is no stranger to the poker spotlight. Besides his work with Ante Up for Africa, he has also appeared on NBC’s National Heads-Up Poker Championship, a tournament most recently won by Huck Seed, who boasts the best record in the series’ history. In 2007, Cheadle defeated Full Tilt Poker pro Phil Ivey in the opening round of the National Heads-Up Championship before falling to Scott Fischman in the second round. Fischman, in turn, lost to poker pro Kristy Gazes in the round of 16. In 2008, Cheadle squared off against Gus Hansen in the first round, but was bested by the three-time World Poker Tour (WPT) champion.

In 2009, Cheadle defeated David “The Dragon” Pham in the first round at Caesars Palace, but fell to 2006 WSOP Main Event runner up Paul Wasicka when 32 players remained. The acclaimed actor has appeared on Poker After Dark, which also airs on NBC. He commented in a press release, “I’ve done alright in the televised tourneys I’ve participated in and I’ve won several tournaments around town. I have yet to play in the WSOP events, but I hope my schedule will permit me to do so in the future.” Other films that the newest Friend of Full Tilt has appeared in include “Hotel Rwanda,” “Traffic,” “Reign Over Me,” and “Traitor.” He will also appear in next year’s follow up to “Iron Man,” which stars Robert Downey, Jr.

Other Friends of Full Tilt include Bruce Buffer, who currently works with the Ultimate Fighting Championship (UFC). Buffer appeared at the final table of the WPT Invitational during Season III, finishing sixth and earning $5,000. Poker author Michael Craig is a Friend of Full Tilt, as is All-In and Bluff Magazine columnist Jay Greenspan. Others include Niklas Heinecker, Gabriela Hill, Matt Hughes, Gary Jones, Stephan Kalhamer, Brian Koppelman, Maxi Muller, Ali Nejad, Jeremiah Smith, Mike Swick, Johnathan Wendel, and Yueqi Zhu.

Full Tilt Poker is kicking off its relationship with Cheadle by hosting a $5 + $5 private charity tournament online to benefit Ante Up for Africa. The date for the event has not yet been announced, but is expected to take place prior to the $5,000 buy-in contest in Las Vegas at the Rio. A bevy of Team Full Tilt pros will also be in attendance during the 10 week-long WSOP festivities, including Chris Ferguson, reigning WSOP Europe Main Event Champion John Juanda, Jennifer Harman, Phil Gordon, Erik Seidel, Andy Bloch, and Durrrr Challenge participant Patrik Antonius.

Full Tilt Poker is the second largest site worldwide with a seven day running average of 11,400 real money ring game players. Its 24 hour peak is over 16,000 and the site happily accepts customers from the United States. It is one of only a handful of online poker rooms that appears on the list of 200 sites distributed for censorship by the Minnesota Department of Public Safety to 11 of the world’s largest internet service providers (ISPs). Other USA-friendly sites on the list, which was generated randomly and made public last week, include Bodog and Players Only.

iMEGA fights Minnesota block

The first part of the attack is informing ISPs that they don't have to comply with Minnesota's request to block sites.

On Tuesday iMEGA said it sent letter to the 11 Internet service providers that the Minnesota Department of Public Safety had ordered to block access to 200 online gambling Web sites alerting the ISPs that they don't have to comply with the order.

iMEGA followed that up by filing a lawsuit in the U.S. District Court in Minneapolis to prevent the DPS from enforcing an order to block state residents' access to the nearly 200 online gambling Web sites.

The lawsuit was filed against John Willems, director of the DPS Alcohol and Gambling Enforcement division, who initiated the move to have the online gambling sites blocked.

According to iMEGA, Minnesota lacks the authority to compel the ISPs to block residents' access to the sites. The association believes those actions are a violation of free speech rights guaranteed by the First Amendment of the U.S. Constitution.

"It's our hope that Minnesota will recognize their error and drop their blocking order," said Joe Brennan Jr., iMEGA chairman. "Censoring Internet access for Minnesota residents would establish a troubling precedent of government intrusion into the online world, and we just can't allow that to happen."

iMEGA also pointed out in its letters to the ISPs that the state had erred in its application of a federal law from the 1960s regarding the use of telephone and telegraph wires for the transmission of illegal wagers.

iMEGA believes that Minnesota has neither the authority or the jurisdiction to order the ISPs to block Minnesota residents access to sites that are not located within the state.

"Because Web site operators are not subscribers of yours, have no contracts with you and are not provided facilities by you, you should be aware the MN DPS is attempting to mislead (either intentionally or inadvertently) you into believing that you are bound by federal law to do what the MN DPS asks," iMEGA's letter stated.

"In fact, [the Wire Act] simply does not apply to the Web site operators and imposes no duty upon you and provides no authority to you to comply with the MN DPS request."

iMEGA isn't the only one fighting against the DPS. State Representative Pat Garofalo introduced legislation in the state Congress this week that would bar the DPS from forcing ISPs to block access to Internet gaming sites.

"The Department of Public Safety has to have better things to do with their time than to go after a college kid in his dorm room or some guy sitting in his basement spending a couple of hours playing online poker," Garofalo said.

"Demanding that a private-sector Internet service provider block access to Web sites is not a proper function of our state government."

The legislation would require prior legislative approval before the DPS could ask companies to block access to Web sites.

"I'm certainly not condoning online gambling, but I have serious concerns about government banning access to Web sites" Garofalo said.

Related Articles:

• Poker sites on Minnesota block list
• Minnesota attacks online gambling

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iMEGA Files Lawsuit Against Minnesota Department of Public Safety

In the wake of the order by the Minnesota Department of Public Safety calling for the blockage of 200 internet gambling websites, the Interactive Media Entertainment and Gaming Association (iMEGA) has filed a lawsuit.

The legal action was filed in the United States District Court in Minneapolis and lists John Willems, the Director of the Alcohol and Gambling Enforcement Division, as its defendant. Letters were sent by the Department of Public Safety to 11 of the country’s largest internet service providers (ISPs), including Charter, Comcast, and Qwest. Several of the ISPs in question offer multiple products, such as residential home telephone service, cell service, high-speed internet, and cable television; notably absent from those served was Time Warner. iMEGA’s lawsuit was officially entered on Wednesday and weighs in at 20 pages.

iMEGA Chairman Joe Brennan told Poker News Daily what the organization’s reasoning was for seeking legal action in the wake of the notices sent out by the Minnesota Department of Public Safety: “We’ve told the ISPs that the Department of Public Safety doesn’t have the authority to do this. The choke point is the Department of Public Safety. They have, in our opinion, exceeded their authority and jurisdiction. It makes sense to go to the source rather than betting on the goodwill of the ISPs.” In an interview with PocketFives.com, Poker Players Alliance Executive Director John Pappas noted that if an ISP complied with Minnesota’s censorship, they would be promptly sued by his organization. Brennan explained, “At this point, we’re not inclined to take any legal action against ISPs because they have not yet responded.”

The lawsuit filed on Wednesday notes that the internet permeates more than 150 countries worldwide. It also reminds readers that the Department of Public Safety generated the list of 200 sites randomly. Along with the domain name, the Department of Public Safety included each site’s IP address and telephone number in its letter to ISPs. Bodog, Full Tilt Poker, and Players Only headlined the list, which also included a bevy of rooms that do not accept U.S. players, including Titan Poker, Everest Poker, and Action Poker. Meanwhile, PokerStars, the largest online poker site in the world, was noticeably absent from prosecution.

iMEGA’s lawsuit notes that the State of Minnesota did not have jurisdiction to act because “none of the sites identified in the Defendant’s list are owned by entities within the jurisdiction of, or subject to prosecution by, the State of Minnesota.” The organization also claims that the Department of Public Safety’s actions constitute a breach of First Amendment rights under the United States Constitution. In the same count, iMEGA charges that the list of 200 sites “is under-inclusive because the Defendant has attempted to block access to only an ‘initial sample’ of about 200 sites even though, by his own admission… ‘thousands’ of such sites exist.”

The lawsuit adds that the State of Minnesota is in violation of the Commerce Clause of the United States Constitution. This portion of the legal action notes that areas outside of Minnesota will likely be affected. It asserts that censorship will “have a significant and irreparable harmful effect on interstate commerce by interfering with commercial and other speech of both Internet speakers and listeners, including Plaintiff and its members and their customers, beyond the borders of Minnesota.” iMEGA has used similar arguments in Kentucky, where the organization is seeking to overturn the actions of Governor Steve Beshear, who ordered the seizure of 141 internet gambling domain names, including those belonging to PokerStars, Full Tilt Poker, Ultimate Bet, and Doyle’s Room. iMEGA has until June 1st to file its brief with the Kentucky Supreme Court.

Brennan noted that significant monetary costs might deter the Department of Public Safety from pushing forward with its actions. He explained, “When we start including things like recouping legal fees into our lawsuit, it puts a dollar figure on it not only in repaying us, but also in defending the suit. It’s going to force them to make a decision on whether to commit resources to this effort. If they decide it’s not worth it, they might cut their order.”

We’ll have more for you on the Minnesota internet gambling battle right here on Poker News Daily.

iMEGA Sends Letters to Minnesota Internet Service Providers

In the wake of the order by the Minnesota Department of Public Safety to 11 internet service providers (ISPs) calling for the blockage of 200 internet gaming domain names, the Interactive Media Entertainment and Gaming Association (iMEGA) has struck back.

iMEGA sent a letter of its own to ISPs, which states, “iMEGA wants you to know that it believes that the Notice lacks any legitimate foundation in the law and requests that you not block access to the websites identified.” The Department of Public Safety charged that ISPs were in violation of the Wire Act of 1961, which has traditionally applied to online sports betting. Nevertheless, USA-friendly online poker sites such as Bodog, Full Tilt Poker, and Players Only were among the 200 affected. Also coming under fire were a number of online poker rooms that do not accept U.S. customers, such as Everest Poker, Titan Poker, and CD Poker. The former is even the on-felt sponsor of the 2009 World Series of Poker (WSOP) in Las Vegas, which begins later this month from the Rio.

iMEGA asserts that the Wire Act “simply does not apply to website operators and imposes no duty upon you to comply with the Minnesota Department of Public Safety’s request.” The question of whether multi-faceted companies such as Verizon and Comcast, which offer residential home telephone service, high-speed internet, and cable television, constitute “common carriers” as outlined by the Wire Act was also addressed. To answer it, iMEGA quoted a Congressional statement: “It is the policy of the United States… to preserve the vibrant and competitive free market that presently exists for the internet and other interactive computer services, unfettered by Federal or State regulation.”

iMEGA charges that the Minnesota Department of Public Safety is overstepping its bounds, noting that ISPs have been asked to “block access to certain websites by your Minnesota end-users even though these websites are not located within Minnesota.” The trade organization also warns that, prior to blocking a site, ISPs must provide written notice to their customers of any service changes. The letter questions whether the Department of Public Safety’s request entails a violation of the Commerce Clause of the United States Constitution or a “blatant” trampling of First Amendment rights.

For ISPs that are unfamiliar with the internet gambling industry in the United States, iMEGA’s letter points out, “The Notice shows evidence of selective enforcement insofar as the list of websites identified is not exhaustive. The website list is also inaccurate insofar as it lists some websites that are not accessible by Minnesota end-users and other websites that are defunct.” In addition, it questions why Time Warner Cable, which provides internet services to Minnesota residents, was not among the 11 companies that received notices.

John Fleischaker of Dinsmore and Shohl LLP’s Louisville office sign the letter. ISPs were expected to respond within two to three weeks of receiving the Minnesota Department of Public Safety’s notice. In addition to the aforementioned online poker sites, the casino arms of Ladbrokes and Party Gaming are also listed; publicly traded companies on the London Stock Exchange own both sites. Party Gaming yanked its online poker site, Party Poker, from the U.S. market shortly after the 2006 passage of the Unlawful Internet Gambling Enforcement Act (UIGEA). The company has even signed a non-prosecution agreement with the U.S. Government. One of its co-founders, Anurag Dikshit, admitted to violating Federal law and is in the midst of paying a $300 million fine.

Today, Congressman Barney Frank (D-MA) introduced legislation outlining a comprehensive licensing and regulatory framework for the internet gambling industry that focuses on consumer protections. In addition, the Massachusetts lawmaker and Chairman of the House Financial Services Industry introduced legislation to delay the implementation of UIGEA regulations by one year to December 1st, 2010.

Barney Frank to Introduce Internet Gambling Legislation on Wednesday

According to a statement released by the office of Congressman Barney Frank (D-MA), legislation to exempt licensed internet gaming companies from the Unlawful Internet Gambling Enforcement Act (UIGEA) will be introduced on Wednesday.

The legislation is expected to establish a comprehensive licensing and regulatory framework for the internet gambling industry in the United States. In essence, it will likely be similar in scope to last session’s HR 2046, the Internet Gambling Regulation and Enforcement Act. The press statement sent out on Tuesday morning reads, “Tomorrow, Financial Services Committee Chairman Barney Frank (D-MA) will hold a press conference to unveil legislation that will enable Americans to bet online and put an end to an inappropriate interference with their personal freedom.” The bill would “create an exemption to the UIGEA for operators that are licensed and regulated. UIGEA, which was enacted in 2006, restricts the use of the payments system for Americans who seek the freedom to gamble online.”

The new legislation does not repeal the UIGEA. Also, according to the Safe and Secure Internet Gambling Initiative, it may not include a provision to tax the industry. During the last Congress, which concluded in December, Congressman Jim McDermott (D-WA) introduced HR 2607, which called for the taxation of 2% of all funds deposited onto regulated internet gambling sites by U.S. customers. The money would then be “deposited in the general fund of the Treasury and treated as revenue,” according to the legislation’s text. Similar companion legislation may be needed once again. A study released by PricewaterhouseCoopers revealed that similar legislation to McDermott’s combined with Frank’s HR 2046 could generate up to $52 billion in revenue over a 10 year period.

The press conference is scheduled for 10:00am ET on Wednesday morning in Room 2220 of the Rayburn House Office Building. The Safe and Secure Internet Gambling Initiative added, “The legislation is expected to include a number of significant consumer protections, including safeguards against compulsive and underage gambling, money laundering, fraud, and identity theft.” HR 2046 was officially introduced to the world on April 30th, 2007 and attracted 48 co-sponsors. However, it was not passed into law during the 110th Congress, leading to Wednesday’s re-introduction of what appears to be similar legislation.

The UIGEA was passed during the waning moments of the 2006 Congressional session and was attached to an unrelated security measure called the SAFE Port Act. Then-Senate Majority Leader Bill Frist (R-TN) was instrumental in its passage. The UIGEA deemed financial transactions between U.S. customers and illegal online gambling operations to be against the law, although no clarification was given as to what constituted “illegal gambling.” The UIGEA’s vagueness has led to a lawsuit by the Interactive Media Entertainment and Gaming Association (iMEGA) to declare it unconstitutional. The Third Circuit Court of Appeals will hear the case on July 6th following a decision by District Court Judge Mary L. Cooper last March, who granted iMEGA standing, but disagreed with many of the organization’s core arguments.

Last week, internet gambling came under fire in Minnesota, where the state’s Department of Public Safety issued written notice to 11 internet service providers (ISPs) calling for blocking access to 200 websites. The list of sites affected by the order includes USA-friendly rooms Bodog, Full Tilt Poker, and Players Only. It also features a bevy of sites that do not accept players from the United States, including World Series of Poker presenting sponsor Everest Poker, iPoker Network flagship site Titan Poker, and Party Gaming’s casino arm, Party Casino. Party Gaming, a publicly traded company on the London Stock Exchange, pulled out of the U.S. market after passage of the UIGEA in 2006. Its online poker room, Party Poker, is not among the 200 sites.

We’ll have a full breakdown of the bill when it is released on Wednesday right here on Poker News Daily.

Chris Wallace (Fox) Calls out Minnesota over Internet Gambling Ban

In the fight for the rights of online poker players in Minnesota, PokerXFactor.com instructor and St. Paul resident Chris “Fox” Wallace has taken a stand, calling for the Justice Department to arrest him if playing online poker is illegal.

Wallace’s actions follow written notice served to some of the country’s largest internet service providers (ISPs) such as Comcast, Charter, Qwest, and AT&T. The notices, which were authored by the Minnesota Department of Public Safety and received on Monday, call for 200 internet gambling websites to be inaccessible by the state’s residents. Appearing on the list of affected sites were U.S.-friendly rooms Bodog and Full Tilt Poker along with a bevy of online poker establishments that do not accept customers from the United States. The latter group includes Action Poker, CD Poker, Noble Poker, Mansion Poker, and Titan Poker. It also includes the title sponsor of the 2009 World Series of Poker (WSOP), Everest Poker, whose logos will don tables in the Amazon Room at the Rio for the second straight year. The Department of Public Safety is also calling for companies to block telephone access to the sites’ support numbers.

Wallace told his hometown newspaper, the Minneapolis Star-Tribune, last week, "I have e-mailed the Justice Department and I've volunteered to be arrested. I play online poker. Come and get it." He revealed that he faces a potential loss of $2,000 per week. If the ISPs successfully block the sites in question, he not only would potentially be unable to play online, but also would be barred from browsing any of the domain’s pages. David Axtell, an attorney at Leonard Street and Deinard in Minnesota, told the Star-Tribune, "This is an old law put in place before the Internet and there may be an argument that it doesn't cover Internet service providers.”

The law in question is the Wire Act, which was passed in 1961 and has historically applied only to online sports betting. Many question whether the age-old law is applicable to online poker, casino, and Bingo games; each genre of internet gambling had sites appear on the list of 200 released last week. Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan questioned the Government’s professionalism in generating its list. According to a statement found on iMEGA’s website, Brennan explained, “We question how much thought was put into the selection of these sites. To propose censoring Minnesota residents’ Web access and not to know which sites are even in the U.S. market makes me wonder just how seriously the Department of Public Safety is taking this action. It comes off as a half-baked attempt at intimidation rather than thoughtful enforcement.” The list of 200 was generated randomly without regard to what type of internet gambling each site was engaged in.

Other websites that are affected include Betfred, Betway, Bet U.S., Crazy Poker, Euro Poker, Gnuf’s online casino arm, Hollywood Poker, Intertops Casino, Players Only, Total Poker, Ladbrokes Casino, and Party Casino. Publicly traded companies on the London Stock Exchange own the latter two sites. At the time of writing, neither had written statements about the Minnesota internet gaming issue given to the Exchange. Party Gaming entered into a non-prosecution agreement with the U.S. Government last month and agreed to pay a $105 million fine. In the process, it admitted to processing transactions from U.S. customers using third parties, which was “contrary to certain U.S. laws.” Upon passage of the Unlawful Internet Gambling Enforcement Act (UIGEA) in 2006, Party Gaming exited the market.

ISPs have up to three weeks to respond to the Minnesota Department of Public Safety. The state has legalized Indian casinos, card rooms at horse racing tracks, and a lottery that features second chance drawings online. Next week may see Congressman Barney Frank (D-MA) introduce legislation to clarify or overturn the UIGEA. The bill, which was originally scheduled to be introduced in March, may outline a complete licensing and regulatory framework for the industry similar to last Congressional session’s HR 2046, the Internet Gambling Regulation and Enforcement Act.

Online Poker Sites Confirmed on Minnesota Censorship List

A complete list of the 199 Internet domains ordered to be blocked by Internet service providers doing business in the state of Minnesota...

Minnesota Department of Public Safety Discusses Internet Gambling Ban

John Willems, Director of the Minnesota Department of Public Safety’s Alcohol and Gambling Enforcement Division, is leading the effort to compel internet service providers (ISP) to block state residents' access to at least 200 websites. He sat down with Poker News Daily to discuss the written notice served to ISPs this week.

Poker News Daily: The basis for the blockage is that internet gaming sites are illegal under the Wire Act, which has traditionally applied to online sports betting. In addition, the list of 200 websites has not yet been made public. What can you share with us about what sites will be affected?

Willems: The Wire Act has been used in other arenas as well. The list, which is only 200 out of literally thousands of websites, was selected at random without regards to what type of internet gambling each site is engaged in. Online poker would fall within that possibility.

This is a new process for everyone involved. There are differing opinions on the issue and we respect that. We initiated a civil notice. We haven’t seized property or discontinued service. We requested that the telecom companies not allow Minnesota customers, and only Minnesota customers, to be able to access them. Online gambling has been held to be illegal by the past three Attorney Generals and Minnesota is one of the first states to take action.

PND: Do you plan to pursue any of the internet gamblers directly or just use ISP blockage to stunt the industry?

Willems: We’re not pursuing any of the bettors and we’re not keeping people from accessing their money. We wanted to let everyone in the world know what we were up to in order to be transparent. We wanted to let them know that if we were successful, it might impact their ability to get funds they may have online. The last thing that we wanted to do was surprise everyone. Our actions have also increased the level of conversation on this topic.

PND: Minnesota has tribal casinos, card rooms at racetracks, and a state lottery, among other forms of gambling. Is the move, at least in part, due to wanting to protect the explicitly legal versions?

Willems: The motive is to deal with sizable illegal gambling activity and to use the most reasonable tool we can to deal with it. We are an enforcement agency that has very few tools available. As the contraction of the telecom industry has occurred, this statute seems much more viable today than it was before.

PND: What feedback has the Department of Public Safety received so far?

Willems: I hope we’ll have a mutually satisfying outcome to whatever occurs and I hope we’ll get good public policy because of it. It appears to me, based on voice messages and phone conversations, that the Poker Players Alliance must have contacted their membership because I’ve gotten a lot of feedback. I respect their viewpoint and understand it. As much as I can, I try to take the calls, but there are too many of them. I do understand their concerns and I’m not disrespectful of that, but there is a difference of opinion. If they want to make their case, they should also do so to the state’s policy makers.

PND: The press release notes, “U.S. code cited [for] first time in effort to halt illegal online gambling.” Talk about being the first such state to take action.

Willems: We can’t find any precedent elsewhere and we are doing it in a different way, on a different scale, and with a different attitude than has been done in the past. We understand there is a controversial aspect to it and we’re sorry for that. We’re enforcing the laws. If there is illegal gambling, we have to do our best to deal with it. That’s created some pushback by some people. Even in our own state, we have social card games, which are given direct instructions as to how they can operate, but they have not yet expanded online. The policy makers of Minnesota may want to dive into it.

Americans for Tax Reform Sides with Internet Gambling in Minnesota

The Americans for Tax Reform (ATR) has come out in support of the internet gaming industry in Minnesota. The state’s Department of Public Safety has served written notice to 11 major internet service providers (ISPs) calling for blocking access to 200 internet gambling websites.

Written notice was served on Monday. However, it was made public on Wednesday in a press release issued by the State. Siding with the internet gambling industry shortly thereafter was the ATR, which is based in Washington, D.C. and headed by Grover Norquist. The organization has been intricately involved in the battle for control of 141 internet gambling and online poker domain names in Kentucky and is one of the first to support the industry in Minnesota.

Norquist told Poker News Daily that the actions by the Department of Public Safety parallel a growing nationwide trend for control of the internet: “The State of New York wants to tax people who download movies. There is an effort throughout the states to tax internet sales on sites like eBay. One of the reasons that the internet is so helpful is that it allows competition. The best way to keep taxes low is to allow people to be able to access other jurisdictions.” If successful, 200 websites would be completely inaccessible by Minnesota residents. The affected ISPs, which have up to three weeks to respond, include AT&T, Charter, Comcast, and Qwest.

Poker players in Minnesota may be left with legal card rooms at racetracks and the state’s tribal casinos as the only options if the action to block 200 websites is successful. Norquist explained, “You can’t always pick up and move, but on the internet, you can buy things in other states and other countries. That’s one of the reasons why the internet is so helpful. It’s none of the government’s business what you do online. We just went through this in Kentucky.” In the Bluegrass State, the Kentucky Court of Appeals overturned the seizure of 141 internet gambling domain names, including those belonging to massive industry staples like PokerStars and Full Tilt Poker. The case now moves on to the Kentucky Supreme Court.

Norquist explained his ideal vision for the future of the internet: “We want to keep the internet deregulated and untaxed because it’s so important in terms of protecting individual liberties. It’s not helpful to have politicians pushing people around.” The ATR was founded in 1985 at the request of President Ronald Reagan. It has pioneered the Taxpayer Protection Pledge, which it describes as “a written promise by legislators and candidates for office that commits them to oppose any effort to increase income taxes on individuals and businesses.” In the current Congress, which convened in January, a total of 172 Representatives and 34 Senators have subscribed to it. Last year, the ATR created the Center for Fiscal Accountability. It also organizes an annual Cost of Government Day.

The ATR may now work hand in hand with industry organizations like the Interactive Media Entertainment and Gaming Association (iMEGA) and the Poker Players Alliance (PPA), which have already dispatched legal teams to Minnesota. In Kentucky, a broad coalition was formed to counter the Justice and Public Safety Cabinet. Rich Muny, the PPA’s State Director for Kentucky and member of the organization’s Board of Directors, told Poker News Daily, “Poker players throughout America should be very concerned, as should internet freedom lovers regardless of where they stand on gambling. Once we establish a process of government regulating the internet, where does it stop?”

Other organizations that stood by the internet gambling industry in Kentucky included the Center for Democracy and Technology, eBay, the Bluegrass Institute, and the American Civil Liberties Union. Stay tuned to Poker News Daily for the latest from Minnesota.

Minnesota attacks online gambling

The State's Department of Public Safety served notice on 11 national and regional telephone and Internet service providers this week telling them to prohibit access of all Minnesota-based computers to those gambling sites.

The DPS contends that online gambling is illegal in all U.S. states.

Under a federal statute enacted in 1961 that recognized the states' need to control illegal gambling, the state has the authority to use its law enforcement agencies to stop illegal online gambling activity.

The DPS said it believes this is the first attempt by a state to employ the federal statute to restrict access to online gambling sites.

"In Minnesota, and for Minnesotans, the primary issues are legality, state self-governance and accountability," said John Willems, director of the DPS Alcohol and Gambling Enforcement Division.

"In broader context, the long-running debate on online gambling continues to raise significant issues, including absence of policy and regulation, individual rights, societal impact, international fair-trade practices, and funding for criminal and terrorist organizations."

Not only will Internet Service Providers be asked to block computers in Minnesota from the list of online gambling sites, the written notice also provides the sites' telephone numbers so Minnesotans can't call those numbers either.

"We are putting site operators and Minnesota online gamblers on notice," Willems said

"Disruption of these sites' cash flow will negatively impact their business models. State residents with online escrow accounts should be aware that access to their accounts may be jeopardized and their funds in peril."

According to the DPS, a response from the notified ISPs is expected within two to three weeks, at which time issues of non-compliance will be referred to the Federal Communications Commission.

The list of specific online gambling sites isn't being made available until the DPS confirms it is legal to release it.

However, Willems told PokerListings the list is not defined by type of gambling.

"Staff prepared a sample list at my request, so it may or may not include poker," Willems said. "Please keep in mind this is about 200 sites, which is a small representation of the larger number that operate."

Willems anticipates the program will expand to address thousands of online gambling sites depending on the compliance of the telephone companies and ISPs. He said the required technology to restrict geographic access to particular sites is a relatively straightforward procedure for service providers.

"The state of Minnesota has not to this point explored regulating this business. Perhaps that will happen in the future," Willems said.

"However, as of now, this form of gambling is unlawful in our state."

Matt Werden, the Minnesota state director of the Poker Player Alliance, has already stepped up to defend online poker.

"This isn't simply a heavy-handed tactic by the government; this is a clear misrepresentation of federal law, as well as Minnesota law, used in an unprecedented way to try and censor the Internet," Werden said.

"I don't know what U.S. Code they're reading, but it is not illegal to play this great American pastime online, and we're calling their bluff."

Werden claims online poker isn't illegal, is not criminal, and can't be forcibly blocked by "a state authority looking to score some political points."

"We see headlines like this coming from communist China but never expect that it could happen here in Minnesota," Werden said. "The good news is groups like the Poker Players Alliance are here to protect the rights of poker players and set the record straight when government reaches too far."

Werden said the issue is more than just about protecting poker. It is about keeping the Internet free of censorship and ensuring that law-abiding citizens can enjoy a game of Texas Hold'em in the comfort of their own home, either online or with a group of friends.

"The PPA will take any action necessary to make sure our members and the general public are aware of these oppressive and illegal actions, and to make sure the game of poker - in all it's forms - is protected in the state of Minnesota," he said.

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Minnesota Seeks to Block Internet Gambling Sites

Fresh off a similar incident that has been appealed to the Kentucky Supreme Court, the Minnesota Department of Public Safety has notified internet service providers (ISPs) that they must prevent access by the state’s residents to 200 internet gambling sites.

The total number of sites to be blocked currently stands at 200. However, at press time, the affected domain names are not yet known. According to the internet gaming press release, Written notice was given by the Minnesota Department of Public Safety’s Alcohol and Gambling Enforcement Division to AT&T, Charter, Comcast, Direct TV, Dish Network, Embarq, Sprint, Frontier Communications, Qwest, Verizon, and Wildblue Communications. John Willems, Director of the Division, commented in a press release distributed on Wednesday, “We are putting site operators and Minnesota online gamblers on notice and in advance. Disruption of these sites’ cash flow will negatively impact their business models. State residents with online escrow accounts should be aware that access to their accounts may be jeopardized and their funds in peril.”

The press release cites the Wire Act of 1961 and overtly charges, “Online gambling is illegal in all U.S. states.” The Interactive Media Entertainment and Gaming Association (iMEGA) has already dispatched a legal team specializing in First Amendment rights to Minnesota to combat the Department of Public Safety. Its Chairman, Joe Brennan, told Poker News Daily, “I'm somewhat troubled by the shaky legal premise on which Minnesota has based this order. They are asserting that there is some blanket Federal prohibition against gambling on the internet, when in fact none exists. In a similar fashion to Kentucky, you have the aggressor citing assertions that are not supported by the laws that are on the books.”

The letters to ISPs were delivered on Monday. The companies have “two to three” weeks to respond. Then, the Department of Public Safety has pledged to take the complaint to the Federal Communications Commission. In addition to the 200 sites whose access may be at risk in the immediate future, the Division expects further expansion: “Willems anticipates the program expanding to address thousands of sites, depending on compliance.” In Kentucky, a total of 141 domain names are in limbo as part of a forfeiture hearing that may be heard by the Kentucky Supreme Court. In Minnesota, no such seizure occurred. Instead, the Department of Public Safety is merely seeking that ISPs block access. Internet gambling is identified specifically.

In addition to their websites being inaccessible, the Department of Public Safety is also calling for the 200 companies’ phone numbers to be blocked. It explained, “For more than two decades, telecoms have shut down telephone numbers at the request of law enforcement agencies when believed to be involved in illegal activities, such as sports book-making telephone numbers.” iMEGA and the 1.2 million member strong Poker Players Alliance (PPA) are among those seeking to prevent the blockage from becoming a reality. In Kentucky, the American Civil Liberties Union (ACLU) and Bluegrass Institute rallied behind the internet gambling industry. In January, the Kentucky Court of Appeals in Louisville overturned a lower court ruling that upheld the seizure order by a two to one margin. The Commonwealth, led by Justice and Public Safety Cabinet J. Michael Brown, immediately appealed.

Matt Werden, the PPA’s State Director for Minnesota, commented in a press release on Wednesday, “This isn’t simply a heavy-handed tactic by the government; this is a clear misrepresentation of Federal law, as well as Minnesota law, used in an unprecedented way to try and censor the Internet. I don’t know what U.S. Code they’re reading, but it is not illegal to play this great American pastime online and we’re calling their bluff.”

Grover Norquist, President of the Americans for Tax Reform, added, “This is nanny-statism at its worst – the government barging into a private matter because people are supposedly too stupid to make decisions and take care of themselves. Individual liberty should not be supplanted by the whims of politicians looking to soak even more money from an over-taxed, over-regulated population while feigning concern over safety issues.” Brennan told Poker News Daily that early speculation revealed that pressure from Indian casinos may be behind the move, although this was not verified. PokerXFactor.com instructor and Minnesota resident Chris “Fox” Wallace speculated that fledgling legal card rooms at racetracks may be to blame.

Willems admitted to the Minneapolis Star Tribune that he did not know how many Minnesota residents gambled online nor provided an estimate. Instead, he stated that he has had gamblers claim they lost $200,000 and needed to borrow money. The Department of Public Safety’s press releases closes by asserting that the internet gambling industry may provide “funding for criminal and terrorist organizations.”

A call placed to press release author Dennis Smith of the Minnesota Department of Public Safety was not returned as of press time. Stay tuned to Poker News Daily for the latest on this developing story.

PPA Slams Minnesota Order to Block Poker Websites

It's a dark day in Minnesota for online poker players. The Minnesota Star-Tribune reported today that state officials have notified 11 national and regional Internet service providers and told them to block access to nearly 200 online gaming sites for all Minnesota-based computers. The Poker...

Aussie Senator Admits Error in Internet Censorship Policy

A blacklist authored by the Australian Communications and Media Authority (ACMA) aiming to censor various “indecent” websites, including online poker sites, leaked last month with the help of anonymous sources. Now, Communications Minister Stephen Conroy is beginning to own up to errors within his controversial internet censorship policy following an uproar from the Australian community.

Among the more than 2,000 blacklisted sites were numerous online poker sites, including PokerStars and Full Tilt Poker, as well as sites with hyperlinks to such banned sites. These websites were scheduled to be secretly blocked by Australia’s Internet service providers (ISPs). The list was leaked by wikileaks.com, a leading online antagonist of government censorship and a supporter of freedom of information made up of anonymous submissions.

ABC TV’s “Q&A” program that aired on March 26 was Senator Conroy’s first major media appearance to discuss the government's internet censorship plans. The response from viewers was substantial as more than 2,000 people sent in web and video questions regarding the government’s censorship proposals.

“We’ve never seen anything like the avalanche Stephen Conroy has generated,” said the show’s host, Tony Jones, when introducing Conroy.

Conroy’s admissions during the broadcast created even more of a stir and left considerable doubt regarding the government’s ability to filter the internet without unintentionally blocking legitimate websites. He acknowledged that images taken by artist/photographer Bill Henson were added to the prohibited websites list in error, and cast blame on the “Russian Mob” for the addition of a dentist’s site to the list, saying that the Mob hacked into the dentist’s site. Several other sites were on the blacklist even though they changed hosting providers and cleaned up their sites several years ago.

“The classification board looked at (Bill Henson’s) website and actually said it’s PG,” Conroy said.  “A technical error inside ACMA I’m advised included it, but it was actually cleared by the Classification Board, so it shouldn’t be on the list.”

“I’ve asked ACMA in the last few hours to go through their entire list again to see if there are any other examples of this.”

Conroy’s comments raised concerns from Australians about freedom of speech issues. Because the community doesn’t have access to the blacklist they’re unaware of the criteria used in the banning process.

Such a ban on poker websites would have a huge effect in Australia, where the industry has been thriving even despite recent restrictions enforced by ACMA. The Internet Gambling Act 2001, which has been around for years, makes it unlawful to provide an interactive gambling service to a customer physically present in Australia. Only recently has ACMA become more determined in restricting such illegal material.

Some of the biggest poker tournaments in the world take place in Australia, including the multi-million dollar Aussie Millions as well as the Asia Pacific Poker Tour, Asian Poker Tour, and Australia-New Zealand Poker Tour.