Sunday 20 February 2011

Legality

From a legal perspective, online poker may differ in some ways from online casino gambling. However, many of the same issues do apply. For a discussion of the legality of online gambling in general, see online gambling.

Online poker is legal and regulated in many countries including several nations in and around the Caribbean Sea, and most notably the United Kingdom.

In the United States, the North Dakota House of Representatives passed a bill in February 2005 to legalize and regulate online poker and online poker cardroom operators in the state. The legislation required that online poker operations would have to physically locate their entire operations in the state. Testifying before the state Senate Judiciary committee, Nigel Payne, CEO of Sportingbet and owner of Paradise Poker, pledged to relocate to the state if the bill became law.[9]

The measure, however, was defeated by the State Senate in March 2005 after the U.S. Department of Justice sent a letter to North Dakota attorney general Wayne Stenehjem stating that online gaming "may" be illegal, and that the pending legislation "might" violate the federal Wire Act. However, many legal experts dispute the DOJ's claim.

In response to this and other claims by the DOJ regarding the legality of online poker, many of the major online poker sites stopped advertising their "dot-com" sites in American media. Instead, they created "dot-net" sites that are virtually identical but offer no real money wagering. The sites advertise as poker schools or ways to learn the game for free, and feature words to the effect of "this is not a gambling website."

On October 13, 2006, President Bush officially signed into law the Safe Port Act, a bill aimed at enhancing security at U.S. ports.[10] Attached to the Safe Port Act was a provision known as the Unlawful Internet Gambling Enforcement Act (UIGEA). According to the UIGEA, "unlawful internet gambling" means to place, receive, or otherwise knowingly transmit a bet or wager by means of the internet where such bet is unlawful under any law in the State in which the bet is initiated, received, or otherwise made. Thus, the UIGEA prohibits online gambling sites from performing transactions with American financial institutions. As a result of the bill, several large publicly traded poker gaming sites such as PartyPoker.com, PacificPoker.com and bwin closed down their US facing operations. Some operations have not closed and it is still possible for some American players to play online for real money and even sign up for new accounts. The UIGEA has had a devastating effect on the stock value of these companies.[11]

Following passage of UIGEA, former U.S. Senator Al D'Amato joined the Poker Players Alliance (PPA). Part of the PPA's mission is to protect and to advocate for the right of poker players to play online. Sen. D'Amato's responsibilities include Congressional lobbying. In April 2008 the PPA claimed over 1,000,000 members.[12][13] The organization claimed just over 800,000 members in October 2007.[14]

Other grassroots organizations, including the Safe and Secure Internet Gambling Initiative, have formed in opposition to UIGEA, to promote the freedom of individuals to gamble online with the proper safeguards to protect consumers and ensure the integrity of financial transactions.

On November 27, 2009, Department of the Treasury Secretary Timothy F. Geithner and Federal Reserve Chairman Ben S. Bernanke announced a six month delay, until June 1, 2010, for required compliance with the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA). The move blocks regulations to implement the legislation which requires the financial services sector to comply with ambiguous and burdensome rules in an attempt to prevent unlawful Internet gambling transactions.

On July 28, 2010, the House Financial Services Committee passed H.R. 2267 by a vote of 41-22-1. The bill would legalize and regulate online poker in the United States.[15][16]

In September 2010, the Washington State Supreme Court upheld a law making playing poker online a felony

1 comment:

  1. Poker legality would be one of the perspective to look forward. Through the passed rules regulation and legalize issue come to an end. As they will provide more legitimate operation for their customer players.

    online casino player

    ReplyDelete