You no doubt remember your grade school government lessons that explained how the Congressional branch makes the laws while the Judicial branch interprets them. After the passing of the UIGEA, many people expected a legal frenzy to begin, with each challenger trying to strike out the true intent of the law.
Here comes their chance. We now have the first post-UIGEA arrests. The Associated Press is reporting that New York prosecutors have brought charges against 27 people connected with an online sports betting operation. The site, Playwithal.com was run by poker player James Giordano, however there was no poker being played on the site. Also nabbed was MLB scout Frank Falzarano, though the why is not yet known.
Assets totalling $500 million were seized, such as condos, jewelry, art and Bellagio casino chips. The DA's office has scheduled a news conference for today where they will show off the assets and hopefully shed more light on the charges, which include "enterprise corruption" [what the hell?], money laundering [those chips laying around don't help that defense much], and promoting gambling [gasp!].
It's dismaying to see an arrest coming already, before banks have even received instructions on how to comply with the new law. It's also disappointing that the "ringleader" is identified as a poker player. While it may be accurate, it just makes it that much easier for people to associate poker players with all that is unholy and evil online. Clearly if one of us is breaking the law, we all are. Not knowing a lot of details about the charges and evidence at this time, I can't offer a conjecture as to the defense. I do think this case will be watched closely and that many people in the online gaming world will use it as a benchmark for any legal challenges they might wish to make.
We'll keep you updated on this case as it develops.










