Online Poker, Legal, WTO, UIGEA, Unlawful Internet Gambling Enforcement Act

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Online Poker

Online poker is quite simply the game of poker played over the internet. It suits beginners largely because they would likely be intimidated by playing at brick and mortar and novice players are less likely to travel large distances to play. That said it is not only novices that it suits due to the ease at which you can be playing online from the comfort of your own home.

Brick and Mortar casinos also don't heavily promote poker in comparison to other casino games as it is considerably more difficult to make a profit from it. Casino games such as blackjack, craps and roulette are far more profitable. For this reason Casinos are often more inclined not to have poker rooms but instead add more gaming tables or slot machines.

In contrast, the online game does away with these issues. Poker rooms can add 100 new tables through sophisticated software which means less overheads (doesn't take up any more space). By playing online, poker rooms can offer an array of poker games and differing stakes (high stakes right through to micro stakes) as well as offer a good range of tournaments, from freeroll tournaments for beginners, satellites to land based tournaments to regular tournaments to accommodate players at all games and levels (buy ins). The burning debate in recent times has been is online poker any different from other casino games, and what's more is online poker legal?

Is Online Poker Legal?

Online Poker is legal in some countries and illegal in others. If you are in any doubt over the legality in your neck of the woods, i would recommend that you do a little research to see whether it is safe for you to play. It doesn't just concern the black and white of the question as legislation that has been passed to make it illegal in certain parts of the world is wooly to say the least. For the most online poker is perfectly legal and if you are for instance based in the UK, you are free to play as much as you want. The United States on the other hand is a totally different kettle of fish.

On October 13, 2006, President Bush signed the Unlawful Internet Gambling Enforcement Act (UIGEA), which restricts the acceptance of certain financial transactions pertaining to illegal online gambling, and imposes requirements on banks and other financial service providers to identify and block illegal financial transactions (with the exceptions of fantasy sports, online lotteries, and horse/harness racing). So where did that leave poker players in America - well the answer is high and dry. Poker rooms started following suit and banning US players from playing cash games one after the other.

WTO Dispute

Antigua and the United States have been involved in a World Trade Organization dispute over U.S. restrictions on the subject of online gambling for some time. On January 25, 2007, the WTO rules that the U.S. was in violation of its treaty obligations by not granting full market access to online gambling companies based in the island nation. On March 30, 2007 the WTO confirmed the U.S. loss in the case.

On June 19, Antigua filed a claim for USD $3.4 billion in trade sanctions against the United States, along with a request for authorization to ignore U.S. patent and copyright laws. This claim was filed a day after similar demands for compensation were made by the European Union.

More recently, in April, US Congressman Barney Frank introduced a further bill to overturn the gambling related parts of the UIGEA and was quoted as saying, "existing legislation is an inappropriate interference on the personal freedom of Americans and this interference should be undone".

Online Poker in the US - On the Way Back?

Well it is a little early to say that online poker is on the way back but it looks a lot more likely. There has been real pressure from the Poker Players Alliance to get things reversed. During a recent keynote address at Global Gaming Expo (G2E) former senator Alfonse D'Amato, currently the chairman of the PPA, said he expects legalization of online poker in the United States within the next 18 months. This could have something to do with the $100 billion suit being filed by the European Union against the restrictions not to mention the 10 Billion in extra revenue in taxation that it would generate given the Credit Crunch.

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