1. The PPA (Poker Player Alliance) is not aware of any Federal law that restricts your right to play poker online. For many years, the DOJ has attempted a very broad interpretation of the Wire Act (18 USC §1084), a bill first passed in 1948 and revised in 1961. The Wire Act was passed in order to control the transmission of sports bets and sports betting information. The Wire Act does not affect or control online gaming of any type, including poker. This was affirmed in the US Fifth Circuit Court’s landmark 2002 ruling affirming that the Wire Act pertains only to sports betting. [see re In MasterCard]
The Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) also does not restrict your right to play poker online. The UIGEA is a very specific piece of legislation designed to restrict the transfer of money among between online gaming sites and players by putting the enforcement burden on banks. While the regulations covering the UIGEA were supposed to be in place 9 months after its passage, they have just recently been finalized, but are not yet in effect. Unless something changes (and the PPA is seeking to make that change happen), they will go into effect on December 1, 2009
We have been advised that the action taken by the Department of Justice was NOT an enforcement action based on the UIGEA. Since the regulations have not yet taken effect, the DOJ could not use them as a basis for action. It is important to note that the UIGEA regulations do not try to restrict payouts only deposits to “unlawful Internet gambling” sites. Further, we do not believe that online poker is unlawful under this Act.
2.We have been advised that the seizure attempt was, at the least, technically incorrect and at worst was a serious violation of the rights of the payment processors and you, the poker player. It is our understanding that some of the seizures were done without the benefit of proper warrants and represent an almost shocking trampling of due process. Further, we have been advised that vis a vis online poker, the SDNY does not have the legal authority to act under the two laws they cite in their action, the 1961 WIRE Act and the Illegal Gambling Business Act.
3.The funds that were seized were not the property of any online site – it was YOUR MONEY that was seized. All of the sites involved have made good on any checks that bounced or transfers that were not properly completed, but the Department of Justice seized your money here.
4.This action in no way means that online poker is finished in the United States. There have been many actions like this in the past – the NETeller seizures, cease-and-desist orders against ePassporte, the arrest of SportingBet executives and others. Online poker has weathered those actions, which appeared in several cases to be significantly worse than this one. The PPA has been in contact with several of the leading poker sites on a near daily basis since these events began to unfold, and I can tell you that they are all completely committed to staying the course and remaining in the US market.
5.Your money is safe at the major poker sites. I cannot speak for all the poker sites, but several have assured me that your money is safe and secure; however you should check with whatever site you play on. In most instances the poker sites have a procedure in which they segregate player funds, your assets and not theirs, and keep them in bank accounts that are completely separate from their operating funds – in fact, player accounts are kept in different banks.
