In an act that seems more like extending US economic colonialism into cyberspace than eliminating the country’s moral turpitude, the US Congress succeeded in confusing the heck out of a lot of online poker players in the US. Let’s examine how and why this recent legislation affects a US citizen’s right to play Online Poker.

With the recent explosion of  Texas Holdem Poker it would seem that awareness and education about the sport would increase, thus fostering acceptance. How then did the US Congress pass The Unlawful Online Gambling Bill?

The Unlawful Online Gambling Bill – was attached as “pork” to the Safe Port Act (remember the Dubai Port Security Rights uproar?) at the last minute of a late night congress session.
Bush is expected to sign the Port Security Bill, and thus the Unlawful Online Gambling Bill which is actually an amendment to the Wire Act, 18 U.S.C. § 1084.

The bill does not make it unlawful for US citizens to play online poker. Rather, it makes it illegal for banks and credit card companies to pay foreign gambling sites. In short, banks and credit card companies aren’t allowed to process transactions from US citizens to foreign online gaming sites. A financial institution’s reputation and integrity are extremely crucial, so following the law is in their best interest.

There are international payment methods which circumvent this problem. Even so, some poker rooms such as Party Poker and Empire Poker, both owned by UK based Party Gaming, announced they will no longer accept U.S. players for the time being.

It is estimated that US players account for 60% of Party Poker’s revenue. Party Poker operates as any public corporation must, (or should) with a responsibility to shareholders. This puts Party Poker in the same situation as the US banks and credit card companies regarding integrity and corporate responsibility.

The US government publicly states morality as the reason for the bill although there has been virtually no demand for the legislation on a moral basis. The only group whom it would appease is the religious right, who had in many cases, withdrawn support in the upcoming election for the current administration and congress which they helped to put into office.

There is a lot more to the behind the legislation than the means used to pass and enforce it. Every internet poker player should be aware of these facts related to the Unlawful Online Gambling Bill:

• It is estimated that there are 50 million poker players in the US

• Chris Moneymaker's 2003 World Series of Poker (WSOP) Victory is credited with igniting the Internet Poker and Texas Holdem explosion

• Moneymaker bought into an inexpensive online poker tournament and played all the way to win the WSOP, this ideal is one reason for the popularity of online poker

• The huge increase and interest in televised texas holdem tournaments is expected to wane as the number of players who can qualify for the tournaments drops

• Large numbers of internet poker tournaments have provided inexpensive entries into live tournaments and new talent to fill the seats

• The US is the gambling hub in the world. In 2001, spending in US Brick and Mortar Casinos (B & M) reached nearly $26 billion and has continued to grow

• The American Gaming Association has expressed clear interest to operate online gambling sites for US citizens

• Some US Casinos did so, but without being able to sell to US customers, they were not profitable & shut down their online operation

• US Casino numbers are on the rise and there is no bill in Congress to close them on any moral basis

• Jon Porter (Rep Nevada) introduced a bill in 4/05 to study the possibility for regulation of online gambling sites if they were US owned

• The study above was paid for by US Casino Lobbyists

• The National Thoroughbred Racing Association (NTRA) has historically spent lavish amounts of money on Lobbyists when compared to other types of racing such as auto racing

• This bill (The Unlawful Internet Gambling Enforcement Act) amends the Wire Act, 18 U.S.C. § 1084

• Betting on horses (online & offline) is explicitly permitted in the existing wire act as well as the new amendment

• Legal bets on the internet specified in the amendment include: US horse racing, US internet lotteries, games of skill, and US fantasy sports

• Illegal Bets on the internet specified in the amendment include all "games of chance" like poker, blackjack, backgammon, bingo, and other such casino games 

• The publicly stated reason for the bill is negated and irrelevant as the amendment allows:

(1) Online Gambling on horse racing under the Interstate Horseracing Act (IHA),

(2) Gambling that takes place on a Indian reservation or between two reservations

(3) Internet gambling that occurs solely within a state’s own borders, referred to as Intra-state gambling.

• Quote from Virginia Congressman Bob Goodlatte (the bill would stop) "$6 billion from being sucked out of the economy" (annually)

• The proposed amendment violates the General Agreement on Trade in Services (GATS). In GATS, the US agrees to provide market access and national treatment to the cross-border supply of foreign services (which includes gambling and betting services)

• The government of Antigua, home to a large number of offshore gaming companies, has successfully challenged the US on the trade issue in the past. They are reportedly considering taking the US to the World Trade Organization, (WTO) on the grounds that the purpose of the new law equates to protectionism for the US gambling industry rather than the stated moral purpose

Now, how does this affect you, the US Internet Poker Player? Because the Unlawful Gambling Bill does not make it unlawful for United States citizens to play online poker, US citizens are free to play provided they can find an online casino and a money transfer service that will serve them.

For an up to date list of Poker Rooms which accept US players, money transfer options, a comprehensive review of each room, player feedback, forum posts, and bonus codes for free play, visit the Internet Poker Room Bonus and Review Guide.

If you would like to E-Mail Your Congressman or Senator to voice your opinion:

E-mail your Congressman   http://www.house.gov/writerep/

E-mail your Senator  http://www.senate.gov/general/contact_information/senators_cfm.cfm