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By Sean Gibson
As online poker players, we all were shocked to hear the news that the United States Attorney's Office based in New York decided to freeze funds in excess of $30,000,000 inside bank accounts from
known payment processors for Full Tilt Poker, PokerStars and Absolute Poker. Citing violations of the Wire Act of 1961 and the Illegal Gambling Act, the seizure of funds came (according to the
Poker Players Alliance) from a prosecutor who acted with banks responding without a warrant being issued.
None of the actions seem to come as a result of the UIGEA which was passed at a last second 2006 Congressional session. Through the PPA, the poker sites in question have assured players that their
frozen checks will be reimbursed and have made strides in the last 10 days to allow the popular eChecks and Instant eChecks deposit and withdrawal methods to resume without incident.
According to the Associated Press, a federal prosecutor claimed that the funds in question were seized "because they constitute property involved in money laundering transactions and illegal
gambling offenses." The European Commission has found the United States to be in violation of its World Trade Organization (WTO) obligations due to its stance on internet gambling.
Whether the WTO moves forward with sanctions against the United States or an agreement with the Obama Administration remains to be seen.
What sent off the entire controversy was started in the last few days of May as checks received from the major poker rooms started bouncing with regular consistency. Some checks went through,
while others were bounced and put players in serious financial straits as days went by without word what was happening. During the first week of June, the PPA announced that indeed the United
States Government was behind the bounced checks as they had frozen some of the bank accounts used by the payment processors, some of which are shared amongst the poker rooms.
As players look for more reliable ways to receive funds from their poker rooms, many are finding alternative methods of getting money that have proven to be successful. All the sites have, at
this point in time, assured customers that checks issued from payment processors will be good and come from accounts in the free and clear - often times coming from foreign bank accounts
outside of the United States. Others, most specifically on Full Tilt Poker and PokerStars, have turned to direct money wires to get their money out of the poker room and into their bank
accounts. The downside of a money wire is that there are often extra fees associated with the transaction from the bank in the neighborhood of $50 per wire.
Poker players upset by the actions of the United States Attorney's Office are highly encouraged to join the Poker Players Alliance which can be done by clicking
here. Beyond that there is an online petition being signed by online poker players being sent directly to President Obama that has been filled out by over 100,000 people. More are
encouraged to fill out the poker petition to let the President know that online poker is something that should be legal and regulated. There is also a
new grassroots website project launched called MyPokerStory.com which shows 2-minute video testimonials of real life people in America speaking out about their love for poker and how it's been a
positive thing for their lives. Again, online poker players are encouraged to share their personal stories which will be shared with the internet public.
Recently announced on June 25 th were the three judges from the Third Circuit Court of Appeals which will hear the Interactive Media Entertainment and Gaming Association (iMEGA) argue why
the UIGEA is unconstitutional. The case will be heard on July 27 th, 2009. The organization is coming off a victory in the state of Minnesota against the state's Department of
Public Safety. The department was forced to rescind orders to 11 of the world's internet service providers that demanded blockage of 200 internet gambling domain names.
For now, many wait to hear the results of the iMEGA case in the Third Circuit Court of Appeals to find out whether the UIGEA will be deemed unconstitutional or if it will hold up under law.
There are also rumors that the PPA is preparing litigation against the United States Attorney's Office in a potential case to see if internet poker is even considered gambling in the eyes of law in
addition to the Wire Act of 1961 even being applicable to the actions taken by the Attorney's Office.
Fortunately, between the PPA and iMEGA, the online poker rooms have not seen a dip in traffic and player requests for funds are once again being satisfied. Those players that did have bounced
checks were often immediately reimbursed within their online poker room account plus granted a 10% bonus for their trouble.It seems the legal crossroads for internet poker and legality have finally
crossed, and by the end of the year (potentially) clearly written law regarding online poker in the United States will be set into motion.
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