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Will Online Poker Be Legalized in the US?

by Mike Kam on June 7, 2011

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It’s been over a month since the Department of Justice seized five domain names and more than 75 bank accounts in 14 countries utilized by the biggest companies in online poker: Full Tilt Poker, Absolute Poker and PokerStars. This was only the beginning.

Still reeling from the loss of the Big Three, the online poker world recently received another bad beat. On Monday, May 23rd, the Department of Justice seized ten more domains and issued three indictments. Players are referring to this day as “Blue Monday.” One wonders how many more colors will be used before the DoJ is finished with the crackdown.

The DoJ seized a combination of poker, sportsbook and bingo domains, effectively touching the entire gambling community, from yuppies to grandmothers and everyone in between. Their targets included TruePoker.com, Bookmaker.com, 2Betd1.com, Funtimebingo.com, Goldenarchcasino.com, Betmaker.com, Betgrandesports.com, Betehorse.com, Beted.com and DoylesRoom.com.

Texas Dolly proved he is still one step ahead of the competition, as he cut ties with the website just days earlier: “Reluctantly, I have decided to terminate my endorsement contract with Doylesroom.com. It pains me to leave at this time. I have aspirations of reentering the online poker business when the United States Government passes legislation, that officially legalize online poker sites.”

A New Hope

The key to saving online poker lies in regulation. Online poker will never operate in the same facet that it did before Black Friday. The latest attempt comes from Rep. Joe Barton (R-Texas), who is planning to introduce legislation that would legalize and regulate online poker.

Barton hopes to move the bill through the House Energy and Commerce Committee in the near future. Barton is working closely with the Poker Players Alliance (PPA) to draw up provisions that would grant online players the ability to play online poker, while still adhering to the government regulations and safety restrictions for underage gambling.

Barton believes the current law is unenforceable, and he condemned the government for targeting the deposits made by players. Players’ funds have been locked in their online poker accounts during the ordeal until recently, when PokerStars began allowing American players to withdraw their money following an agreement with the federal government to return its dot-com domain. Players must withdraw their entire balance. Full Tilt Poker and Absolute Poker are still in negotiations with the Justice Department.

Senate Majority Leader Harry Read (D-Nev.) is said to be very interested in crafting legislation with PPA executive director John Pappas. The PPA has met with more than 100 House members to round up support for a bill.

Republican John Campbell argues that legalizing and regulating online poker would create jobs in the U.S. while protecting players at the same time.

However, it’s not so much that online poker itself is targeted; it is the illegal payment processors used by the companies. The always-crafty Department of Homeland Security created a fake payment processing company called Linwood Payment Solutions. In 2009, they processed more than 300,000 transactions totaling more than $33 million. Linwood processed payments for the companies named in the indictment, as well for the Cereus Poker Network, which includes Absolute Poker and UB Poker.

Poker players struggling to make ends meet

In the wake of the online poker crackdown, many online poker players who depend on the game for their livelihood and that of their families face a harsh reality.

Although the grand majority of Americans saw this as a prohibition on their casual pastime, players like Brian Mogelefsky, who two years earlier left the mortgage company he ran with his dad, now must find a way to make ends meet for his wife and two children. Mogelefsky was enjoying a profitable year in online poker, and was on pace to make $80,000 to $90,000.

“If I was single and on my own it would be a lot easier to deal with, or if it was just like a hobby. But it’s my wife and my kids who depended on me – that’s why it really hurts,” Mogelefsky said.

According to John Pappas of the PPA, roughly 50,000 full-time poker players depend on online play as a major source of income, and they are still wondering if they will ever get the thousands of dollars that are stored in their online accounts.

Players like Mogelefsky understand the risks and condemnation that come with online gambling. Opponents argue that poker can’t possibly be termed a “job,” as the possibility exists to lose hundreds or even thousands of dollars in a day. This is made even scarier by the fact that these players have families to support.

Conclusion

But any full-time poker player will attest that poker is a game of skill, not luck, and that making a steady income is the result of years of study. Now it’s up to legislators if these players will ever be able to make a living from online poker. What are your thoughts? Do you think online poker will be legalized in the United States?

{ 3 trackbacks }

online poker bill
June 18, 2011 at 7:31 AM
Cadmais Gambling Blog » Blog Archive » Doing Poker Online
September 1, 2011 at 10:21 AM
CradleKing » Full Tilt is on Damage Control
September 1, 2011 at 10:30 AM

{ 9 comments… read them below or add one }

Kelly Stanonik June 9, 2011 at 2:18 AM

Nice story–well said.

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David Groover June 9, 2011 at 6:08 AM

I think the DOJ’s actions are a slap at our Civil Liberties and we should all stand up and threaten to vote out those law makers who support this kind of actions by the DOJ.

I think every US Citizen should write there lawmakers and threaten to vote them out if they do not stand up for the rights of US Poker Players.

If they can do this to poker players what will be next?
If you would like to send your Lawmakers a letter, go to the PPA website. They have already made up emails that you can send. David Groover.. Townsend Tennessee

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Ryan August 9, 2011 at 5:11 PM

This is total bullshit, how about tax the companies and make profit out of online poker in the US. Im sure online poker sites can set a deal with congress.

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Mike Kam August 10, 2011 at 7:43 PM

I couldn’t agree with you more. It’s a win win situation.

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Robert Nami November 27, 2011 at 8:35 PM

Like it or not, on line poker now has a tarnished reputation. To legalize on line poker without first legitimizing it is a big mistake.

The first step towards legitimization is to separate the functions performed by an on line site such that control and dealing of the cards is done by a totally separate and unrelated entity.

Can you imagine playing poker in a brick and mortar casino where all actions performed on the deck of cards by the dealer is done away from your eyes in a black box? I thoughts so.
However, this is exactly whats happening in on line poker.

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Rodney7777 December 13, 2011 at 12:38 PM

What are we? Childern? We can’t play poker online, we can’t grow industrial hemp even though every other first world nation allows it, we can’t grow or use high THC hemp (marijuana). even for medical purposes, we can’t be trusted to pay our taxes on April 15, so money is withheld from our paychecks, we can’t make alcohol at home, even though carmakers are producing lots of cars that burn alcohol (google E85), in some states (Ca) we can’t home school our kids. Readers please feel free to list the other ways that we are treated as childern, that I have not listed.

A taxpayer should never be treated as a child, but we are being treated as such and we are paying the perpetrators to threaten assault and to imprision us in our own homes

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Frank January 25, 2012 at 9:14 AM

The country is in a big mess because of the morons running it. Wall Street and Banks are fool of crooks…The only reason Henry Paulso joined the fed was to help HIS CROOKS AT GOLDMAN SACHS…learn about it. China owns the US.
Now they deprive poeple a living at Poker and they lose tax dollars. This is really messed up.

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WT January 5, 2012 at 5:32 PM

This reminds me of Communism.

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Frank January 25, 2012 at 9:08 AM

Of course it should be legalize. Look how well England is doing with it legalization and extra tax dollars. The way it is now the scams are the one taking in the business. This set up does not protect oneway it hurts the players. What is wrong with this government? Are they simply too stupid too know that if you work hard it, study, and put the time that you can make steady money. This is a gain of skill int he long run. The goverment would surely get tax revenue from the operators and the public. WHAT IS WRONG WITH AMERICA…ONLY WALL STREET CROOKS AND BANK CROOKS CAN MAKE MONEY. They steal our money and nothing is done.
THE USA IS NOT A CIVILIZED NATION ANYMORE…LOOK AT EUROPE AND AUSTRALIA FOR ANSWERS.

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