Online Poker: Misconceptions

Last Friday, the FBI seized the domains for the top online poker sites PokerStars, FullTiltPoker, and AbsolutePoker. Although secondary to the immediate response and information pouring out from Twitter on the subject, the seizure received considerable media attention from both national (Fox, CNN, MSNBC) and local media outlets. Dubbed “Black Friday” by many in the poker community, this avid poker player and fan considers the FBI seizure to be an opportunity to finally make something positive out of an extremely misrepresented and misunderstood process.

Misconception #1: It is illegal to play poker online

Poker has never explicitly been outlawed by the US Federal government. Why, then, are these poker sites under fire? The FBI is enforcing the UIGEA, a poorly written law attached to an important security bill in a 2006. In short, the UIGEA prohibited online gambling sites to operate in the United States and financial institutions from transferring money to or from any online gambling operation. The legality of whether or not YOU can play poker depends on your local and state laws. The only state, thus far, that has actually enforced any laws pertaining to online poker is Washington. Both Poker Stars and Full Tilt denied real money poker to Washington residents shortly after the state Supreme Court affirmed the illegality of playing online poker. Although many states have laws preventing the operation of a poker room or casino, very few, if any, actually outlaw the playing of poker. Check your local listings.
Although Poker Stars, Full Tilt, and Absolute Poker all operate offshore, they do accept deposits from US players. If you’ve ever deposited money on these sites, then you’ve seen the deposits show up on your statement from “Al’s Fish Barn” in Nova Scotia (not a real example, but along the same lines of randomness). It will be hard for these sites to deny that they have facilitated this money transfer, and they may not have to at all.
The UIGEA never spells out poker as game falling under its jurisdiction. Thus, the argument is made, that poker does not apply the UIGEA. Poker is considered by many as a game of skill. Thus, as a game of skill and not as gambling, poker should be exempt from the laws of the UIGEA. This legal argument has been made and affirmed in various other legal decisions, and will assuredly be one of the defenses the poker sites take.

Misconception #2: Online poker is full of cheaters

It should be a noted that anytime money is being exchanged, there will be people who do everything they can to manipulate the situation and take money they do not otherwise deserve. Thus, home poker games, poker clubs, and poker in casinos are never 100% free from cheating. That being said, however, online poker does carry with it a stigma of “cheating”. To set the record completely straight, there have been BILLIONS of online poker hands dealt (60 billion by Poker Stars alone), and only two verified incidents of cheating have occurred. One of those incidents involved Absolute Poker, while the other, more serious violation, involved Ultimate Bet. In both situations, considerable amounts of money have been refunded to the affected players.

Misconception #3: Online poker is used to launder money for terrorists/other really bad people

This statement is simply false, and no proof of any kind has ever been provided to suggest otherwise. In fact, both Poker Stars and Full Tilt spend considerable sums on money producing entertaining poker television, amazing tournaments, and make considerable charitable donations. Considering that these offshore poker sites do not have to do anything other than rake in billions of dollars a year, they go the extra effort to ensure poker players have a safe and enjoyable experience playing online poker while giving back to the poker community and the global community as a whole.

Misconception #4: Online poker is now dead

The FBI may have just awoken a sleeping giant. Although the poker industry itself has been awake and active, the poker community itself could drive legislation forward to finally allow and regulate online poker. The only things that poker players are guilty of is laziness. Although many have been actively in support of the Poker Players Alliance, it is unlikely that many went much farther than sending in supplied canned messages to our government representatives (in which equally generic canned responses were sent back). Poker players outside the confines of a “local” casino or poker room will be experiencing a wealth of free time. What these poker players do with their free time will greatly impact how things proceed, and social media is already playing a huge part in this via Facebook Pages and Twitter. Let’s hope this trend continues with additional action, and not resort to this.