Uigea

If you are either a U.S. poker player or a non-U.S. poker player who would like to play against the rich and fishy U.S. players again, then you need to take a minute to read this blog. I will keep it short and precise because there is something you need to do.

There is a lot of angry noise about the outgoing Bush administration passing a lot of regulations in their final days in office, including finally coming out with the rules for the 2006 Unlawful Internet Gaming Enforcement Act.

Well, first the facts, this happens every time a U.S. President leaves office. This is not unusual and there will literally be hundreds of new regulations put in place in the next two months. Just another dirty side of American politics.

However, the UIGEA is already law, what has been offered up, as of yesterday, are the first "proposed" implementation guidelines. But here is the important thing to know: These are proposed rules and are now open to public comment by anyone. All you have to do is take a minute or five and write that you are opposed.

To be sure the American financial industry is opposed and they will say so loudly and publicly. But you are against these rules too and you have the right to be heard and you don't need to be a U.S. citizen. Below are the means to forward your comments and an additional link to the Obama Transition Team to let them know of your concern.

Probably the easiest way to communicate your thoughts is via email to regs.comments@federalreserve.gov, be sure to include the docket number in the subject of your email, it is R-1298.

There are also two websites for offering your comments either the Federal Reserve or the Federal RuleMaking Portal. Just follow the instructions to "comment".

To copy the Obama people, use this link.

And finally, if you would actually like to read the proposed rules, here is the site.

The federal elections in the United States are less than 45 days away. This is the time, once every four years, when elected officials actually listen to voters. If you are a poker player and you want the right to play poker online, then you need to take two minutes to go to the Poker Player Alliance website and fill out this form, which will be sent to your Congress person and both of your Senators. This is a new legislative notice, if you have written in the past, please do it again today. Might I suggest that you add a line or two at the beginning of the pre-packaged message. Here is what I wrote:

"This year, I am a single issue voter. You either fully support my right to play poker online or you are against me. No half-ass political double-speak. If you fully support the right of all Americans to do with their money and time whatever they see fit, then you have my vote. If you don't, then your opponent gets my vote. I wanted to keep it simple, so you understand. You are for us or against us and my vote will reflect your position. If I do not hear from you before the election or if you send some non-committal bullshit about further studies, I am voting for the other guy. I hope we are clear on this issue."

Congressman Barney Frank's Payments Systems Protection Act has passed the U.S. Congress House Financial Services Committee on a vote of 30-19. In June, the first version of the bill failed in a 22-22 tie vote but changes in the language and some serious political arm-twisting will now lead to a vote of the full House of Representatives. When this will take place is in question, as the Congress is scheduled to adjourn to allow members to go home and campaign for the November elections.

Congressman Frank said,

“We made some changes to [HR 5767] to try to get a majority of the votes as well as a broader agreement. First, it had always been our intention to allow pro sports leagues to opt out. They asked to be opted out of the bill and we’ve done that. The bill will protect sports from being included. It also asks that a list be prepared by the Treasury of what is and isn’t acceptable. You have a right to know what the law is and this would give people the right to know what is and isn’t covered under the UIGEA.”

An amendment to the bill, also introduced by Congressman Frank, calls for professional sports leagues to be able to be exempt from the bill as well as what Safe and Secure Internet Gambling Initiative spokesperson Michael Waxman called a “black list” to be developed to determine what activities are permitted under the UIGEA. Also in this time of financial crisis for the banks and other third party transfer sites, the onus of a poorly written law would be removed or at least clarified.

The chief architect of the Internet gambling ban on Tuesday said he is losing patience with the Federal Reserve and the Department of Treasury as they struggle to craft regulations to enforce the ban.

Senator Jon Kyl, R-Ariz., said the regulations are a year overdue, according to the 2006 prohibition statute. Kyle is quoted as mumbling:

"The longer it goes the less certainty there is. I mean, the people who are violating the law need to know that they're not going to be able the get away with it, and I think that the failure to get these regulations promulgated on time has perhaps given some hope, and it's given life even to an idea over in the House of Representatives to put a moratorium on the regulations."

Kyl was referring to a bill introduced April 11 by Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, and Rep. Ron Paul, R-Texas. The Frank-Paul bill would block the Federal Reserve and Treasury Department from completing regulations to enforce the ban.

The legislation followed a financial services subcommittee hearing April 2 in which Federal Reserve and Treasury Department officials said the regulations are difficult to complete, partly because the 2006 ban does not define unlawful Internet gambling.

Louise Roseman, director of bank operations and payment systems for the Federal Reserve, also testified that the prohibition of Internet gambling cannot be "ironclad."

Another bill, which Frank introduced last year, would repeal the Internet gambling ban and require the Treasury Department to regulate Internet gambling in the United States .

Despite his frustration with the Federal Reserve and the Treasury Department, Kyl said he is not worried about efforts to block the regulations and roll back the online wagering ban.

"I would be concerned if something like that were to be adopted by the House ... I'm not sure that the momentum is there to actually get it done."

Jay Lakin, vice president of Poker Source Online and an opponent of the Internet gambling ban, said he reluctantly agrees.

"While many efforts have been made on behalf of overturning (the ban), so far it's just been bills and words on paper," Lakin said. "Nothing has moved forward. Until there's a change in Washington , I don't think we'll see much of a change."

"It looks as if the poker boom is surely here to stay."

No that quote and that picture do not go together. I found that optimistic quote while reading my "B" roll of poker blogs and realized it might be time to comment on the growing divide between those who believe the poker boom is still booming and those who are observing what they believe are the ripples after the shark has already reentered the water. [For the purists, I am aware that it was Fonzi what jumped the shark and the shark never jumped anything but Henry Winkler on skis is just not as compelling a picture as Carcharodon carcharias in mid-air.]

So, is interest in poker still going up or is it on the downslide? Well first, it depends. In the United States the trend is definitely on the downside. TV ratings are down; sponsors are bailing from poker shows; tournament buy-ins are off and yes, there are some poker rooms closing. There is, of course, the profound effects of the UIGEA limiting the online access of new players. But in the States the signs are still mixed, new casinos are putting in poker rooms; old rooms are still being remodeled with more space and more staff and some of the smaller tours are doing well. The problem in the U.S. is at the top of the food chain with the World Poker Tour in particular.

In Europe the boom is in full swing, despite the attempts of nearly ever national government to greedily slow down the expansion. The European Union members have been fencing over online poker rights in general and brick and mortar licensing in many instances too. Still the numbers are up on the European Poker Tour but not without some problems regarding size. The card rooms on the continent are not ready to handle 1,000 player tournaments and regional gaming regulators are clearly not as flexible as they are in the States. Remember the World Series of Poker is run in a large convention hall, far from the security of the day-to-day casino operations. Tournaments all over the United States run in big convention halls that few, if any, European casinos have access to without slow moving bureaucratic gaming commission oversight. When it comes to a poker boom; size does matter.

The Latin America Poker Tour (there were two, now one) requires the cooperation and approval of various countries and whatever governmental machinations they might wish to create, invent or impose. Same goes for the various Asian Poker Tours and the melange of countries in Asia that either oppose gambling or wish to restrict gaming within cultural and social boundaries. The boom may well be history in one part of the globe before a single hand of Hold'em is dealt in another.

What does it all mean? We are not completely sure, but we will keep on eye on the various factors pushing, pulling, and eroding the poker boom. One observation is clearly true: Insider's in the poker world have a very different view of the future of poker then does the average player. Not saying the insiders are right, perhaps they are too close to the subject but clearly, things they are a'changin'.

Just when all the cynics were lined up to disregard, dismiss and trash talk the U.S. Congressional hearings from last week; it appears there is new legislation has been introduced in the United States Congress that would effectively prohibit the enforcement of the Unlawful Internet Gaming Enforcement Act.

The new legislation, H.R.5767, would prohibit the Department of the Treasury and Federal Reserve System from "proposing, prescribing or implementing any regulations related to the current ban on Internet gambling, as required by the Unlawful Internet Gambling Enforcement Act of 2006" (UIGEA). The bill was introduced April 10th by Reps. Barney Frank (D-Mass.) and Ron Paul (R-Texas).

The new legislation appears to be in direct response to the testimony heard before Congress last week that "financial services institutions would face serious regulatory burdens in attempting to enforce UIGEA and related regulations" and the unmistakable fact that the UIGEA has not prevented millions of Americans from engaging in internet gaming.

Once again U.S. poker players (and other interested parties) are reminded to let your voice be heard either by directly contacting Congress or by using the Poker Player's Alliance directed action letters.

Let us suppose that the United States Government abandoned the Unlawful Internet Gaming Enforcement Act tomorrow. There would be world wide web complications of enormous potential:

What does the World Trade Organization do with the Antigua/US dispute?

Does anyone care about the UK "White List" if the US opens its cyber-doors to everyone?

Of course, the U.S. is not going to abandon the UIGEA anytime soon but the Congress did hold hearings yesterday and listening in might be of some educational benefit, but congressional hearings are boring, so let's just go for the high and low points:

“The UIGEA and the Proposed Rules do not provide a rational path towards halting unlawful Internet gambling,” said Wayne Abernathy, American Bankers Association’s executive vice president. “The path leads to an increased cost and administrative burden to the banks and an erosion in the performance of the payments system, but it will not result in stopping illegal Internet gambling transactions. Imposing this enormous unfunded law enforcement mandate on banks in place of the government’s law enforcement agencies is not likely to be a successful public policy.”

To be fair, not everyone agrees that internet gaming is harmless:

Spencer Bachus (R-AL) shared his never changing position that

“illegal internet gambling ruins lives and tears families apart.”

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He once again cited his favorite statistic

“74% of those who have used the internet to gamble have become addicted to gambling, and many of these gambling addicts have turned to crime to support their habit.”

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Both the Treasury Department and the Federal Reserve had statements, you can read them here if you like. The condensed versions are: "The law cannot be enforced the way it was written without imposing a heavy financial burden on banks and slowing the commercial processing of payments and credits with the U.S. cyber economy."

The Poker Players Alliance offered up this statement:

“We commend the House Financial Services Committee for holding today’s hearing to better understand the burdens UIGEA places on the banking industry. As many banks have commented, UIGEA is completely unworkable and puts undue strain on the financial industry’s relationship with its customers. Banks should not be deputized by the federal government to enforce unclear laws that prevent their customers from enjoying lawful Internet poker. Even the Federal Reserve in its testimony agrees that the myriad of gambling laws are ‘not well-settled and can be subject to varying interpretations.’ If the regulators don’t know what an ‘unlawful internet gambling’ transaction is how can the banks be expected to know?

“The proposed UIGEA regulations are troublesome but the trouble started with the statute. It is not practical, nor is it sound federal policy to try to prohibit adults from engaging in games of skill on the Internet. We urge members of Congress to reconsider this legislation and move towards regulation of online poker that will protect children and problem gamblers, fight fraud and abuse and collect billions in federal and state tax revenue."

Here is the "Summary Quote" many pro-gaming articles have used:

“Testimony from the federal regulators and representatives of the financial services community made clear today that the prohibition on Internet gambling isn’t working now and will not work in the future,” said Jeffrey Sandman, spokesman for the Safe and Secure Internet Gambling Initiative. “U.S. banks and credit card companies, along with every other type of U.S. company involved in payment systems, would be forced spend substantial resources to force compliance with a ban on Internet gambling that can be easily circumvented by anyone in the U.S. that wants to continue to gamble online.

“Rather than trying to implement a ban that is unclear, burdensome and doomed to fail, Congress should instead look to regulate Internet gambling in order to protect consumers and collect billions of dollars that is being lost to offshore Internet gambling operators.”

I am traveling today and at some hub airport out there somewhere I picked up a used copy of the International Edition of the Wall Street Journal and saw a full page ad about poker! The ad is linked to hearings today in Washington D.C. I am still traveling so I will give you what I have.

The ad was run by Prime Table Games, a Las Vegas company; the headline is Who Will Face the Issues? Here is a summary of the highights of the ad:

"It is well known that there are off-shore based Internet gaming operators who are engaged in deceptive practices with American consumers and international players, and there is no adequate system in place to ensure full and appropriate regulation," said Derek Webb, founder of Prime Table Games. "Congress needs to take action soon, or these practices will only get worse."

The House Subcommittee on Domestic and International Monetary Policy, Trade and Technology will be addressing issues involving Internet gaming on April 2 at 10 a.m. EDT. Prime Table Games' published statement encourages Congress to adopt specific regulatory strategies for consumer protection in Internet gaming.

These regulatory strategies include limitations on solicitations and incentives to gamble, such as bonuses and cash backs; prohibition of affiliate relationships; standard player verification procedures. Players also should be able to self-exclude from Internet gambling sites, and those requests should automatically apply to all sites.

In addition, Internet gambling debts should not be legally recoverable, and the site operator should bear the responsibility to ensure identity verification and that the player can afford to gamble at the level played. A player not paying gambling debts should automatically be placed on an exclusion list from all Internet gambling sites.

"Internet gaming, by its very nature, has great potential for abuse," said Webb. "Site operators also should pay fees towards problem gambling treatment and research."

We all know that the United States government has been making trade concessions right and left to compensate various countries to the ban on internet gaming imposed by the Unlawful Internet Gaming Enforcement Act. One might wish to know how much has this semi-law cost the U.S. taxpayers. Unfortunately, like so much done in a free and open society like the U.S., those numbers are not available from the government.

Well one U.S. Congressman has asked: How Much? and perhaps we will eventually get those numbers.

Congressman Peter DeFazio, a demomcrat from Oregon, has requested the U.S. Trade Representative (USTR) disclose trade concessions made to foreign trading partners without Congressional approval. DeFazio's inquiry raises the possibility of Congressional intervention to void new market access commitments granted by USTR to the European Union and other complainants as compensation for a United States trade violation regarding Internet gambling.

In a letter circulated to all members of Congress last week, DeFazio encouraged his colleagues to join him in calling for the USTR to provide a copy of the concession agreement between the United States and the European Union. The USTR had recently rejected a Freedom of Information Act request for the same document, claiming the agreement was classified for national security reasons.

"There is a concern that the USTR may have been ambitious in its use of a ‘national security' classification to avoid any publicity of which new business sectors are to be subject to the GATS (General Agreement on Trade in Services) treaty."

"The issue will be whether the USTR abused its authority by granting new market access to the EU without first securing the consent of the trade committees in Congress,"

said Nao Matsukata, formerly Director of Policy Planning for USTR Robert Zoellick.

"Ultimately, this could invalidate the deal with the EU and cause various WTO Members to revisit the issue of fair compensation from the United States."

Congressman DeFazio's request is an indication that the Administration's unilateral action to attempt to resolve the WTO Internet gambling dispute is in jeopardy.

"Congress should have been consulted before the US agreed to these trade concessions,"

said Jeffrey Sandman, spokesperson for the Safe and Secure Internet Gambling Initiative.

"We hope that Mr. DeFazio's colleagues will join him in demanding more transparency, communication, and consultation from the Administration on Internet gambling. A non-discriminatory market for Internet gambling in the United States will restore integrity to the international trading system."

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The DeFazio request comes following a contentious trade dispute over Internet gambling, in which the Caribbean nation of Antigua successfully challenged the regulation of Internet gambling in the United States. The European Union announced earlier this week that it will open an investigation into a possible international trade violation by the US on this issue. The investigation is the result of a Trade Barriers Regulation complaint filed by the Remote Gambling Association (RGA), which represents the largest remote gambling companies in Europe. The RGA claims the US is in violation of international trade law by threatening and pursuing criminal prosecutions, forfeitures and other enforcement actions against foreign Internet gaming operators, while allowing domestic U.S. online gaming operators, primarily horse betting, to flourish.

Legislation introduced by Representative Barney Frank (D-MA), the Internet Gambling Regulation and Enforcement Act (H.R. 2046), would regulate Internet gambling and resolve the international trade dispute.

"Rather than paying out millions in trade concessions, which would have an adverse impact on the American economy, the US should embrace the legislative solution presented by the Frank bill, which brings the U.S. into compliance by regulating Internet gambling and creating a level playing field among domestic and foreign Internet gambling operators,"

said Jeffrey Sandman, spokesperson of the Safe and Secure Internet Gambling Initiative.

In the ongoing saga of David vs. Goliath (Antigua vs. U.S.), it appears the big, bad United States government seems to think they can violate World Trade Organization rules and still dictate the actions of other countries. Afterall, several countries have settled with the U.S. over the banning of online gaming by the Unlawful Internet Gaming Enforcement Act. It would seem only natural that the behemoth U.S. should think that other nations would take the meager settlements and move on. Taking on the U.S. in any legal action can have dire consequences in other areas.

Antigua & Barbuda was the first country to step up and demand the U.S. honor WTO regulations and allow online gaming access to the U.S. market. The U.S. trade commission ignored the WTO suit filed by Antigua and lost the hearing and subsequent appeals. Finally, after a massive reduction in the original award, the U.S. semi-agreed to the $3.2 million compensation offered to Antigua. The U.S. further went on to attempt to specify how Antigua could collect such compensation.

Well it appears David is not listening again Goliath and now it appears that Antigua may be leading the way in an all out assault on the arrogant position of the United States.

As reported by the leading U.S. entertainment newspaper, Variety:

"The government of Antigua is likely to abrogate intellectual property treaties with the U.S. by the end of March and authorize wholesale copying of American movies, music and other 'soft targets' if the Bush administration fails to respond to proposals for settling a trade dispute between the two counties.

"The Motion Picture Assn. of America has been closely following the case with tremendous concern fearing that the copying could be extensively damaging and that -- worse -- a dangerous precedent could be set for other small countries angry at U.S. trade policy."

"It is not our preferred option to punish the MPAA or others for the U.S. government's intransigence, but the U.S. has refused to negotiate fairly,"

said Mark E. Mendel, who represents Antigua. Goods and materials that would be copied include

"virtually everything from pharmaceuticals to music, anything with IP protection that can be duplicated, though we'll go for softer targets first."

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All of this because some right wing politicians don't want us to play a little online poker. Makes you want to run right out and participate in the politial process, doesn't it?

I have been reading all of the year end poker articles and blogs the past several days. You don't need me to give you another recap of the year in poker, so I thought I would look for the one single event or change that has taken place in poker that was the most significant happening in 2007. My pick:

Around the world, wherever governments have attempted to limit access or prevent access to online poker; wherever this has happened, the games have gotten harder to beat.

Sweden, Turkey, France, United States and the list goes on. Whether the government is attempting to set up there own state controlled gaming site or limiting access to 'foreign' sites or seeking to prohibit gaming completely; the effect is the same. If new players cannot easily establish an account the deposit funds the player pool shrinks and the remaining players get better.

This analysis does not even consider the billions of potential players in Southeast Asia and China, who are effectively prevented from accessing online gaming sites, at least until the governmental agencies (Vietnam for instance) are in place to allowed state controlled poker.

With all the noise about "Free Markets" from the various western governments, the facts demonstrate that morality and greed dominate the various restrictions and, so far, none of them are even 50% effective in stopping players from playing. The real effect has been to prevent new players from joining poker sites and therefore depriving them of their basic human right to be free from governmental interference in their private lives.

Of course part of the learning curve of any game involves some losses, without new players the games get tougher and although that may help you take your game to a higher level. It will also stress your bankroll at times.

The bottom line? Prohibition does not work. It never has, it never will and there are certainly better endeavors for Parliaments, Congresses, Legislatures, Commissions, Agencies and Churches to spend time and taxes on.

On the same day (Friday) the the World Trade Organization affirmed a small (21 Million Dollars) trade award to Antigua-Barbuda, the United States Friday urged Antigua to hold off on imposing sanctions authorized by the WTO in a dispute over online gambling, saying Washington was "revising its WTO commitments."

US Trade Representative spokesman Sean Spicer advised Antigua to delay any action after an arbitrator for the Geneva-based World Trade Organization allowed the Caribbean nation to impose sanctions worth 21 million dollars a year. Spicer said Washington has initiated a formal process at the WTO to revise its commitments and is in talks with Antigua and six other WTO members that have claimed to be affected.

"Once the process of clarifying the US schedule of commitments is complete, any issues in our bilateral dispute with Antigua will be moot, and there will no longer be any basis for suspending WTO commitments."

The action marked the latest byzantine twist in a dispute with Antigua and Barbuda, a tiny Caribbean nation that complained in 2003 that the US ban on Internet gambling violated WTO rules. Antigua has repeatedly prevailed in its bid at the WTO to have the US ban declared improper. But US officials said earlier this year that Washington was not bound to change its laws to open its borders to the Internet gambling industry because of an "oversight" in a decade-old trade agreement.

It would seem that the more action taken by individual national governments the less clear the legality of the online poker industry becomes. Take a look at a few of these comments made over the last several days.

"The US trade representative said press reports had 'misrepresented' an agreement with the European Commission this week to resolve a trade dispute over the US ban on online gambling. A spokeswoman said the agreement, in which the US offered concessions on the postal, courier and other sectors, would not involve "any change" in US law or practice and was simply intended to provide greater legal certainty to some sectors."

One wonders how 'concessions' do not involve 'change'?

This week the United Kingdom and the United States have escalated their previously simmering war over online poker.

The UK has the 2005 Gambling Act that regulates where companies must be in order to do business in the UK. These are the famous "White Zones". Well now the UK regulators have decided that it is illegal to offer online qualifiers for live tournaments unless the live tournament is also held in a venue that resides inside of the white zones.

The U.K. Gambling Commission issued an advisory on Friday that says gambling companies that offer seats to foreign tournaments are violating the 'current advertising rules set out in the Gambling Act 2005'.

"It has come to the Commission's attention that a number of operators are offering places at overseas poker tournaments as prizes in U.K.-based competitions."

Several UK regulated online poker sites and even some of the live casinos in the United Kingdom have been offering seats in a cash-prize tournament hosted outside the United Kingdom as prizes in their events. The offering of such prize in a regulated tournament amounts to 'advertising of non-U.K. gambling, as defined by section 327 of the Gambling Act 2005'.

"Unless the overseas tournament is based in the European Economic Area, Gibraltar, or in white-listed jurisdictions, the advert is likely to amount to the advertising of 'foreign gambling,' which constitutes an offence under Section 331 of the Gambling Act 2005."

When translated into a language that can be understood on both sides of the pond:

"The World Series of Poker takes place in Las Vegas and Las Vegas is definitely not white! Nor are Macau, Sydney or Melbourne."

Leave it to the US trade negotiators to pull a stunt even more brazen. The US has agreed to give up billions of trade dollars to keep all EU gaming sites out of the US market. So the war is on and the citizens on both sides will pay for the conflict in higher taxes and less access to leisure cyber activities because the politicians are more interested in legislating conduct than serving their constituents.

This is my favorite time of year because this is the only time of the year when my favorite fictional character gets any honest acknowledgment by the media.

I mean who doesn't love a guy who makes the spirit of the holidays evident to everyone?

Now to all the poker players in the United States, it is well past time that you gave someone a lump of coal in their stocking; so take a look at the following list, if you do not find the name of your Congressperson on that list, then it is well past time to act.

Just click the link below the list and take five minutes to get your poker rights restored.

Oh and I guess if your representative is on the list, you could write them a nice note of thanks but that is so not in my nature.

LIST: 45 co-sponsors of the Frank Bill to repeal the Unlawful Internet Gaming Enforcement Act, these are the good guys:

I went to the Global Gaming Expo in Las Vegas yesterday to catch the speech by former US Senator Alfonse D'Amato, chairman of the Poker Players' Alliance lobbying organization. The highlight of the good Senator's presentation came when he actually said that he expects the legalization of online poker in the United States within 18 months.

Quite frankly I was surprised to hear this because as a long-time Washington insider, D'Amato knows that unringing the bell on a law is a lot more difficult than passing the bill in the first place. Most serious watchers of the DC scene do not feel that their is anywhere near critical mass support to overturn the Unlawful Internet Gaming Enforcement Act. But several sources have sounded hopeful notes in the last several weeks. So back to the good Senator and others, who are closer to the issue than I.

Joining D'Amato on theState of the Industry: Internet Gambling at the Crossroads panel were: J. Terrence Lanni, chairman and CEO of MGM MIRAGE; Gary Loveman, chairman, CEO and president of Harrah's Entertainment, Inc.; and Andre Wilsenach, CEO of the Alderney Gambling Control Commission.

The Guardian Unlimited ran a unique and comprehensive discussion on the state of online poker in the United States, several sections are excerpted below with added links for those who might like a fuller view of the entire legal and international trade process unfolding.

More than 100 of America's top poker players descended on Washington earlier this week to lobby politicians to rescind the controversial law that aims to prohibit online gambling.

Earlier this week the World Trade Organisation and the US announced that they needed more time to work out the envisaged billions of dollars worth of compensation, as the ban (Unlawful Internet Gaming Enforcement Act) breaks global trade rules.

At the same time, American legal and banking experts are attempting to decipher just how the ban will work when the law is finally implemented.

It was last October the then Senate majority leader Bill Frist, a Republican, pushed though the Unlawful Internet Gambling Enforcement Act (UIGEA), almost his last accomplishment before he retired, to protect children and problems gamblers from going astray.

The UIGEA does not ban online gambling per se but, when implemented, makes it illegal for banks and credit card companies to facilitate payments to and from gambling businesses.

For all the poker players in California, who want to know what they can do to support online poker freedom. Here is the latest letter I received from Senator Feinstein of California. After reading this if you would like to contact the Senator (whether you live in California or not) here is her email contact information.

Dear Poker Shrink,

Dianne Feinstein
United States Senator

OK, so I said just the other day that the United States governmental agencies had not yet come up with any rules for the Unlawful Internet Gaming Enforcement Act. Well now they have and so the online gaming picture in the States is now murkier than ever before. Here are some highlights of the proposed regulations.

*Interested parties (the banks, credit card companies and third party clearing houses) have until December 12, 2007 to comment on the proposed rules.

*The rules say absolutely nothing about the individual poker player; only the financial institutions facilitating the transfer of money are regulated.

*Nothing is said about what gaming activities are legal or for that matter illegal.

*It appears that only your bank and the poker websites bank are subject to any legal issues. The whole interwoven system of financial transfers are considered intermediaries and not subject to sanction.

*The exact procedures for implementing the Act are not in the new rules and apparently are going to be left to the financial institutions involved.

The comments about the proposed rules should be very interesting, particularly since the passage of the bill over a year ago, the banks have made it clear that they simply do not have the internal mechanisms in place to enforce the law.

Reminds me of the phrase: What if they wrote a law and nobody enforced it? Not much chance of that with the right wing political climate across the pond.

It has been a year since the US Congress passed the Unlawful Internet Gaming Enforcement Act. In that year there has been zero enforcement because there are no actually rules or procedures for enforcement. Sure many companies have left the US market out of fear and business necessity but why exactly would a country like the US want or need to enforce it's laws based on fear and intimidation.

But this is a poker blog not a political forum, so let me just add. I have not been affected by the US ban, except that there are fewer players on several of my favorite sites and I play for seats in poker tournaments not in the US. I like the US but you never know when they will decide to start arresting poker players for using online sites in defiance of their law that has no rules.

Strange way to run a country?

A very good article in the Newsday this week came to the conclusion that the United States may have backed itself into a legal corner where either it must:

"Allow Americans to wager online with offshore casinos or ban all Internet gambling - including popular pastimes like fantasy sports leagues and off-track betting on horses."

The problem, of course, is the interlatedness of the US ban and the international trade agreements that, in theory, open markets to everyone in every potential product arena.

The key to this dispute remains Antigua and Barbuda:

"the tiny twin-island nation of 80,000 people in the Caribbean, which could force the United States to reconsider laws prohibiting online wagering with offshore casinos."

The WTO case is essentially over and only a penalty decision is left on the table.

"The organization's credibility is on the line. It can't risk the rap that it aggressively enforces trade rules against small nations but timidly allows the world's economic powerhouse to skate."

Rep. Barney Frank has said of his bill that would basically rescind the Unlawful Internet Gaming Enforcement Act:

"It's not dead. It's not very active, it depends on whether or not there's support. I don't think there's support for it yet."

Surprisingly, he went added:

"I take it back. If the European Union gets into this Word Trade Organization dispute, that's a lot more pressure."

The last two WSOP champions have come from the state of California.

California has more card rooms than any other state in the USA, including Nevada.

California has had legalized poker longer than anywhere else in the USA and has sustained the game when even the Las Vegas casinos had little interest in spreading a poker game.

You might say Texas Hold'em came out of the backrooms of the Southwest but it has been California that has sustained poker during all of the dark times when the government sought to limit our ability to play our favorite game.

So it should come as a shock to all Californians, all Americans and all poker players around the world that one of California's liberal United States Senators is opposed to poker and online poker in particular.

For those not familiar with California politics. The state of California is the first state in the history of the United States to send two women to the U.S. Senate at the same time and these two Senators are both very liberal democrats.

One would assume that such politicians would be for personal freedom and personal responsibility but in the case of Senator Dianne Feinstein this is not the case. Take a look at this form letter that she sends to anyone who writes her about the online poker ban:

Well the 270 day period for the Department of Justice to promulgate enforcement procedures for the Unlawful Internet Gaming Enforcement Act has come and gone with no regulations whatsoever. Even though dozens of online sites have closed their portals to U.S. citizens and several dozen individuals have been arrested and charged under long dormant gaming laws. Nothing, repeat nothing is as yet on the books

That sign is very effective and somewhat necessary on one-way streets and toxic waste dumps but how would you like to see it on your computer screen or on the doors of your local card room?

Yes once more it is time to talk about poker in the real world. Rather than give you my normal rant about what other people are doing to take away your right to play poker, rather than that, I want you to participate in a short test. The test is simply, first you click on this LINK. Then you read and note how many sentences it takes for you to be labeled:

A) a degenerate gambler;
B) a corrupter of children;
C) a tax dodger;
D) a terrorist or at least a supporter of terrorism;
e) UnPatriotic, UnThinking, UnFeeling;
f) evil;
g) too damn stupid to make decisions about your own life.

Wait! Before you stop reading because the Poker Shrink is on "that" topic again... Answer one question. Did you enjoy yourself the last time you played poker?

Now click this LINK and take a look at the people who want to take that pleasure away from you.

I again make the point that this is not just a problem in the United States or France or Turkey or Thailand; similiar legal measures are in force and in discussion in countries around the world and in many countries the situation is worse with internet providers being banned from access to the population for engaging in legtimate commerce.

I am not going to give you my usual commentary on personal freedom and your right to do what you wish with your life, your time and your money but here is a source that says a lot of what I would have said.

What I will say is simply this:

"Your silence in the face of these people means government officials might well think these crazy fanatics are in the majority and if they are then you should take up a pasttime other than poker because they are coming for you. And if you think they are stopping with online poker then you need a history lesson."

Anyone may directly access the US Congress HERE

"Why anyone thinks it is any of my business why some adult wants to gamble is absolutely beyond me."

......Congressman and Friend of Poker.

Rep. Barney Frank (D-MA) today introduced the Internet Gambling Regulation and Enforcement Act of 2007 that would create an exemption to the ban on online gambling for properly licensed operators, allowing Americans to access financial services online for gaming purposes.

Congressman Frank spoke about his new bill that would look to repeal the Unlawful Internet Gaming Enforcement Act (UIGEA). The law requires banks to monitor credit card transactions that could be used for the purpose of betting online, which does open the door the the Internal Revenue Service.

Representative Frank, the chairman of the Financial Services Committee, is seeking to raise billions of dollars with this bill. Congressman Frank said:

“It’s a terrible idea and there are a large number of people who think it is a terrible idea. I don’t know how it ends. The worst that happens is that enough anti-gambling busybodies will be less inclined to interfere in people’s lives.”

The new bill establishes a federal regulatory and enforcement framework to license companies to accept bets and wagers online from individuals in the U.S., to the extent permitted by individual states, Indian tribes and sport leagues. All such licenses could include statutory protections against underage gambling, compulsive gambling (questionable goal legally), money laundering and operator fraud.

“The existing legislation (UIGEA) is an inappropriate interference on the personal freedom of Americans and this interference should be undone.”

In October of 2006, under questionable legislative circumstances, the US Congress passed the Unlawful Internet Gambling Enforcement Act, restricting the handling of payments by U.S. financial institutions for unlawful forms of Internet gambling. That law prohibits the use of payment instruments by such institutions to handle the processing of any form of Internet gambling that is quasi-illegal under U.S. federal or state law. The actual regulatory enforcement of this law has yet to commence, although the Justice Department has been making random arrests and seizures.

Traditional forms of legalized gambling have existed in the United States for over two hundred years. The prohibition of online gaming has left American citizens and legal financial institutions in a legal quagmire. The proposed new legislation would institute standards for consumer protection, as well as give the US government access to records for taxation purposes.

I want to ask every US poker player a question:

"What have you done lately to repeal the Unlawful Interent Gaming Enforcement Act?"

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I want to ask all non-US players a slightly different question:

"Are you aware that emails to government officials are effective no matter who they come from?" and "Wouldn't you like the US fish back in the online poker pond?"

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Below is a very clear statement (OK, so its a lot more clear with my added comments) of what you can do today in five minutes to get the US Government to back off on the UIGEA. I will work! Take the time to do something to defend your poker freedom today.

This comes from the Antigua Online Gaming Association, who are of course in this for the money. Hey everyone is! But in this case they happen to be on our side.

As you may be aware, online gaming has been under attack by the United States for the last decade. The Government of Antigua and Barbuda has successfully challenged the malicious prosecution of Antiguan operators in the World Trade Organization. The WTO has found that the US's application of its laws against Antiguan entities is protectionist and in violation of the General Agreement on Trade in Services.

This is absolutely true but the US government is attempting to ignore this ruling even though it may cause severe trade problems with the European Union and several other major trading partners. The issue here is not gaming, the WTO rule that was used to make this decision has a wide range of applications on a whole variety of trade issues.

Now that Antigua has won the legal battle, it can use political support in Congress. Here's how you can help. Please email and phone your Representative in the House of Representatives and your two Senators. Remind them that the United States needs to abide by the decision in the Antigua-Gaming matter if they expect other countries to comply with WTO decisions in favor of the United States.

Literally Billions of dollars of trade rulings in favor the the United States could be in peril if the US ignores the Antigua decision.

Here is a link to a letter to the USTR from Representative Ros-Lehtinen, the ranking Republican on the House Committee on Foreign Affairs:

Rep. Ros-Lehtinen eloquently noted, "...our failure to resolve this dispute may harm our credibility as we seek to press countries like China regarding their violations on a range of issues, including intellectual property protection, subsidies, and currency manipulation." She further warned, "In the event the United States fails to reach a satisfactory resolution of the Antigua dispute, it could provide China with an argument to ignore a WTO decision favorable to the United States."

Please send the link above to your Representative and Senators. Ask them to send similar letters to the United States Trade Representative. Let them know you vote, you pay taxes, and you think the United States should comply with the decision in the Antigua-Gaming matter.

Don't assume anyone in Congress knows this information, further don't assume they know you know. Its a bluff, call them on it now, with a quick email.

To contact your Representative and two Senators, follow the links below or call the Capitol switchboard at (202) 224-3121 and give them your zip code. Make sure you call three times.

US House of Representatives
US Senate

Take a Stand! You can do it while playing a Sit-n-Go, which is something they want to take away from you.

There are times when we need to act together and there are times when we have to stand alone. Poker Players in the United States and in particular in the state of Arizona need to act.

Back in March, Arizona Senator Jon Kyl sent the President a public letter (meaning a publicity release) thanking the Honorable George Bush for his protection of family values and urging him to act immediately in ensuring that the Unlawful Internet Gambling Enforcement Act (UIGEA) was strictly enforced. Now you may remember that the passage of the UIGEA last October gave a 270 day window for the various US Government agencies involved to put together some rules and guidelines for the enforcement of the law. You see in the United States a bill can be passed by Congress and it becomes a law but that does not mean the bill or the law has any way to actually be enforced. Interesting way to run a country, huh?

Well anyways as you may have noticed Rep. Barney Frank of Massachusetts is going to introduce a bill to overturn the UIGEA, which means Senator Kyl and his minions are going to gear up to keep the directionless law in place, you know for the protection of children and the morality of the country.

So once again, it is up to all poker players and other lovers of freedom and responsibility to stand up and let even the most right wing of Senators and Congress members know that you are opposed the the UIGEA. You folks in Arizona, well you have a target and you are voters (you are registered aren't you?) read on.

Kyl's first letter came a day after chairman of the House Financial Services Committee, Barney Frank, announced he will submit legislation to repeal the UIGEA. Today Rep. Frank again renewed his decision to repeal the UIGEA and you can be sure Senator Kyl will respond once more.

Let him know how you feel. Ask him just how big were his campaign contributions from the casinos in Arizona and the fantasy sports operations, he supported the exemption for those opertations in the UIGEA. Ask him to produce some of these families his "family values" stance has protected.

Oh one more item for you Arizona poker players. Senator Kyl has compared online poker playing to the use of crack cocaine. He basically said you were no better than a drug user and called you a felon.

Care to contact the good and honorable Senator Kyl.

For everyone else..... isn't it time to remind your Senators and Congress members of your feelings about UIGEA. You don't have to be a US citizen nor a register voter to send an email.

Like the mythic Phoenix rising from the ashes, PokerBlog rises from the smouldering pyrrhic pile of the UIGEA. Yes, I do take note that this is happening on April Fool's Day but this is no joke, well wait a second, perhaps I should rephrase.

Three congressmen walk into a cathouse; the madam says: "Sorry, no professional discounts."

So where have we been?

Well like so many of the online poker sites, outlets and blogs; we were hurt, hammered and hampered by the Unlawful Internet Gaming Enforcement Act and the cowboy enforcement of the still unclear regulations of that bill. I say "still unclear" because the 270 day period for the Secretary of the Treasury and the Board of Governors of the Federal Reserve System to issue the regulations they are required to prescribe... Well that 270 days has yet to expire and there have been no statutory rules or guidelines issued. Instead the Justice Department of the United States government has randomly sought to intimidate various officers of online sites and seize $55 million dollars of US citizens funds tied up in Neteller. As you can imagine, making business decisions about how to proceed in this reactionary enforcement environment is very difficult for everyone involved. Operations in the United States is clearly not the only problem with Canadian, French and Turkish regulators to name just a few, taking legal and illegal shots at our beloved game.

One of the saddest short term results has been the lost of many good bloggers and writers who were involved in the world of poker. We regret that loss and hope a reasoned solution to any viable governmental concerns about online gaming, will allow our missing collegues to return to covering all things poker.

Anyway, PokerBlog is back and the Poker Shrink is back to yack at you about anything & everything poker. I will try to maintain a reasonable mix of light poker news, a little deeper insight when the muse moves me and an always constant eye out for the ever present overabundance of smarmy press release "news" items that come out of the bowels of the poker public relations bargain basement.

Speaking of smarmy.... tomorrow's first item will cover the lastest on 2006 WSOP Main Event Champion Jamie Gold. Stay tuned and Welcome Back My Friends to the Show that Periodically Ends.

Phoenix image by Enayla.

Dear Santa,

When making your list this year please hold out a special lump of coal for that former Tennessee United States Senator, who with his righteous zeal inspired by a god only he can hear, has accomplished the perfect holiday goal of putting tens of thousands of his fellow citizens out of work for the holidays.

P.S. Forget the coal that was mean; besides he will burn eventually for his self righteous bigotry.

"As a result of the U.S. ban, PartyGaming has cut 945 jobs, or 41 percent of its workforce."

Commentary continues on the effects of the Unlawful Internet Gaming Enforcement Act. It appears that the law is here to stay and only some backroom pressure to limited its enforcement will head off the demise of even more websites come the end of the 270 day enforcement period in June.

Some commentary is worth reading in detail and between the lines, the latest comes from one of the best sources Dr. Pauly. Regular readers might want to take a careful and close read of his latest comments.