Poker News and Poker Gossip

All the talk, these days, is about politics. Guesses and accusations are made regularly about who will make changes and who won’t change a thing. Everyone has an argument both in favor and against all parties and all of their representatives. Amidst all of the chatter are the politicians, who know what they want to do but can only do so if they are heard and empowered by votes.

This is why PocketFives.com has been, for the past several weeks, welcoming politicians to the PocketFives.com Podcast. Congressman Frank joined the group in early April discussing the legislation he and Ron Paul introduced to the House on the 11^th. And on the 17^th, Congressman Wexler spoke with the PocketFives crew.

Wexler is attempting to pass legislation that would exempt poker, mah jong, chess and similar games from the current Internet gambling laws. It would keep games of skill played man to man rather than player to house from being subject to the strict regulations and bans that are currently infuriating poker players throughout the country. Wexler also favors groups such as the Poker Players Alliance, which fights for the rights of online poker players. He believes that the poker world is one that should not be ignored, and that makes him a man you don’t want to ignore.

To hear the Podcast, check out PocketFives.com. You’ll be glad you did, and come November, you’ll be even more so when you make the wise vote.

How the United States government is currently handling online gambling is a hot topic of conversation for poker players as well as congress’ members. Hardly a week goes by without a new proposal or theorized amendment to the current restrictions. Just last week, Representatives Barney Frank (D-Mass) and Ron Paul (R-Texas) introduced a bill that would limit enforcement of the 2006 online gambling ban, and Shelley Berkley (D-Nev) suggested a one year study of internet gambling. But both proposals were just talk, and poker players don’t think it will progress much further than that any time soon.

Jay Lakin, the vice president of Poker Source Online, publicly stated his opinion, saying that anything and everything takes a very long time to get through Congress. Even with a mound of proposals, it could be years until the ban is anywhere near being lifted. At the very least, poker players as well as gamblers will have to wait for the presidential election to end before action can occur, and even then, the next steps will depend on who is elected and who has control of the House. If it’s the wrong party or the wrong group, poker could be doomed for some time to come.

So until that is determined, the only thing online poker players can do is to play it safe. Go to the big sites, keep your dealings legitimate, vote for your benefit and hope that when we move the next round of officials to Washington, they are more than just talk. They’re action, at a hare’s pace.

In 2006 the gambling world was altered by the SAFE Port Act, which brought with it the Unlawful Internet Gambling Enforcement Act (UIGEA). Suddenly, the Federal government, rather than the states, was in charge of every bet offered and hand dealt online. Internet poker players and the like met with a wall of restrictions - restrictions that could disappear after the 2008 Presidential Election or could remain as strong and permanent as ever. It all depends on who gets elected.

If John McCain or Hilary Clinton is put into office, the same thing will happen: nothing. The Republicans have no interest in altering the UIGEA’s parameters. In fact, they are quite content with the current situation. Therefore, if McCain is elected and his party reclaims control, the UIGEA will remain as it is. Similarly, if Clinton is elected, it is predicted that the Republicans will then, too, take the majority in the Senate, rendering the Democrats powerless.

            But what if Barack Obama is elected?

If Obama is elected, the Democrats will likely remain in control of the Senate. Republicans won’t rally together to keep him out of office, and Democrats will not vote against their party out of distaste for the nominee. There will be the ability to change the UIGEA. Online gamblers and online poker players could see ease in restrictions as soon as 2009. Is it any question then which candidate should have your vote?

It’s finally here. The European Union is seeing the impact of the US application of the Unlawful Internet Gaming Enforcement Act, and they are taking action. An investigation has begun into the impact of the UIGEA on the 27 nations who are a part of the European Union.  The industry brings in 10.05 billion Euro’s annually, which translates into 15.5 billion US Dollars. Not a small sum of pocket change. There is an anticipated level of financial injury to the economies of the international states, once that specific amount is ascertained there will be international implications.

The possible implications of the investigation include further claims through the WTO that were believed to be previously settled. The UIGEA is a violation of the World Trade Organization’s Free Trade Agreement, and it has subsequently lead to billions of dollars in claims against the US, and has resulted in the small island nation of Antigua  and Barbados balking at US copyright laws. Additionally as many as 7 separate claims are being filed or have been, with the WTO regarding significant amounts of money being lost to other nations by the US withdrawing themselves from this portion of the trade agreement.

Time will tell where the EU stands, but it is obvious it is not on the side of the UIGEA.

The Pocket Five’s forum is abuzz with players who are wondering if change is about to come within the US online poker industry. Many hold out hope that within the upcoming elections, our newly elected leaders will see the unconstitutionality of the UIGEA and make some long overdue changes. While this would be a huge win for US poker players, whether the outcome of the election will affect the legalities and formalities that complicate the current online poker situation in this country, only time will tell.As the document stands, the UIGEA (Unlawful Internet Gambling Enforcement Act) has very strategically worded clauses that seem to unfairly target the online poker industry within this country. Should the wording be only slightly altered or amended, it would be fairly simple to establish a US-based online poker room, completely in line with all federal guidelines. However, the individual laws of the states are where the real issues come into play. Some of these laws are subject to excessive fines and even felony charges.

Some of the wording that leaves poker players so exasperated is the references to the legality of entry and other fees on a game of skills, rather than a game of chance. As the current classification stands, the UIGEA considers poker to be in the latter category. However, other card games, such as Spades or Hearts, are considered games of skill. How is the deal of cards a chance within poker, yet a skill in other card games? Why would it be legal to pay to play in a Spades tournament, but illegal to pay to play in a poker tournament? Seems to be a bit unfair in the reasoning and biased against the poker world.

Evidently the banks are once again speaking out against the enforcement of the Unlawful Internet Gambling Enforcement Act (UIGEA). In the past, and during a recent round table discussion published about in the Financial Times, the banking industry has verbalized many concerns pertaining to the development and enforcement of the UIGEA as it stands now, even pointing out the fact the current descriptive wording would force the banking industry to mimic law enforcement officers. This newly attached responsibility would force the banking officials not only to be aware of the often conflicting state vs. federal laws pertaining to online gambling, but to become intuitive of the person who is moving the banking funds, and their motivation. This would become one of the costliest laws on the books for the industry as a whole. Not to mention it would create a level of chaos that would reverberate down through their customer base.

The Department of the Treasury has published the entire report at Financial Services Roundtable.

On a side note - if the banks have doubt in the enforceability of this law, why are the politicians so confident of it’s viability?