The Morning After

By: April Kyle – September 30, 2006

All around the nation today, degenerate gamblers are waking up, logging on, and finding out that their entertainment options have just become severely limited. I'm curious as to what everyone's thoughts are, and how you think your poker-playing will change.

I half-joked with my roommate last night that we needed to install a security camera over the front door and set up a poker club in our empty front room. Being a law-abiding citizen, he quickly shot down the idea, but you can rest assured there will be many many others who won't. For most of us, it's illegal to play in these games, but that's where the action is going. Just like Prohibition forced drinkers to the underground, poker players are now going to have to put on some pants and actually leave the house in order to get a game.

And just like Prohibition lead to increased crime, so will this ban on online poker. New poker rooms will spring up across the country, and they won't all be running safe, secure, clean games. Already we hear tales of armed robbers busting in on games, and of players being assulted on their way home. I would expect we'll hear more and more of these in the coming months. I doubt they will prompt any effort to repeal the ban; at least not until there is a major high profile case (i.e., some Senator himself gets robbed).

I know many would disagree with me, but I do think there is a chance for repeal. I don't think it will happen soon, and no, I don't think Democrats taking over the House and Senate will be the panacea we're all looking for. [But full disclosure - I will always encourage you to vote Dem, so by all means, give it a shot.] What I think will make the biggest impact is the money train. Harrah's, for example, has a lot of it laying around (as we know), and if this ban even remotely hurts their profit margin (which I expect it will), the next step would be to use that cash for some Congressional influence. Though again, I don't see that happening soon.

I would also expect to see more people making trips to Las Vegas, if not moving there. We'll have to see if we get an influx of fish or if a proportional number of sharks swim in too. And knowing that we have no other options available, are we going to get better service? There's even more motivation to cut corners and perks now.

I think many of the big name online sites are taking a wait-and-see approach, giving their legal teams time to review the legislation and come up with options. I won't be surprised to see more sites closing U.S. accounts. I also won't be surprised when we start seeing ads on Craiglist offering to set up a foreign address and bank account for would-be online gamblers.

So what are your thoughts? Do you think the ban will last? Do you plan on altering your playing habits as a result of it, making more trips to Vegas or other local casinos, or playing in more home-run card rooms? Do you think more states will legalize gaming in an effort to pick up some of the lost revenue? Or do you think the fish will give up the game forever now that it's not so easy to play it, and poker as we know it has come to an end?

 

The law is one thing. Actually enforcing it is something altogether different. It's unlikely that the Feds will knock down the doors of millions of online-poker-playing Americans. Logistically, it's next to impossible. Not to mention the PR hit they’d take for locking up a 1-2 limit player.

Think of it in terms of a parallel to illegal immigration. Despite the government’s bluster, there’s little it can do to boot millions of people out of the country. They don't have the manpower or the resources to execute such a staggering operation. Nor do I suspect they have the will. Sure, the gambling lobby will put pressure on the Feds to enforce the law, and they might make a few examples of people here and there, but the vast majority of players, like the vast majority of illegal immigrants, will likely be left unmolested. If there is any appreciable fallout from this legislation, it will be a shock.

I now invite the Batfaces to make INS jokes at my expense.

Gonz – September 30, 2006 – 3:39pm

Like prohibition, like immigration, like any other gray area, people will find a work-around. Offshore bank accounts and the like. I imagine the online sites are scrambling at this very moment to come up with new solutions to funding U.S. accounts. It's just too much money to take off the table, so to speak.

And as Gonz points out-- it's a totally unenforceable law. I don't plan on emptying my accounts anytime soon.

change100 – September 30, 2006 – 5:08pm

Any discussion of a "repeal" is just plain dumb, in my opinion. Congress barely wastes it's "valuable" time passing laws that matter, let alone going back to revisit laws that don't.

The issue here is whether or not it will ever be effectively enforced. Since our gun laws currently have little effect and our immigration laws have little effect... we can only hope that this stupid law will go the same way.

UpForPoker – September 30, 2006 – 6:05pm

You guys are forgetting ... while it may not mean much to individual players ... it means a lot to the big multibillion dollar companies who are operating as legitimate enterprises. THEY will run into huge problems because of this ... and of course the players will be left with operations that go out of their way to make it easy for you to circumvent the law.

ALT HED: Coathanger Poker

Dan Michalski – September 30, 2006 – 7:37pm

Perhaps reading the legislation might focus the conversation a bit, it seems to me the law is aimed at the means of tranferring money to the online sites and more importantly getting any winnings out and since online gaming is about 0.00000000000001% of banking profitability we should assume that banks will just cut us off period.

Poker Shrink – September 30, 2006 – 7:45pm

actually, the banking industry was one of the biggest opponents of this law. (backers of it included Major League Baseball, the NFL, and Indian casinos.) Let's face it ... poker simply got outplayed in the political game by a "legend." It's a shame the online sites with so much to lose didn't put a few million bucks in the right lobbyists' pockets to counteract.

But still ... it's just a bad beat. We're still alive, with far more than a chip and a chair.

Dan Michalski – September 30, 2006 – 10:18pm

Were I a resident of Antigua, I'd think about launching a business that offered exchanges --- in and out --- using plain old international money orders drawable in American currency.

Of course, then there'd be a new addition to the Axis of Evil...

Haley – October 1, 2006 – 1:40am

I agree with most other comments in that this is about enforceability, and how much there is.

In my opinion, the biggest parallel you can draw is the whole illegal downloads thing of a few years back. It was illegal the whole time but not enforced, its supposedly now more illegal and there were some higher profile busting of people doing it, but despite iTunes and Napster's paying options that are now available, you can still download pretty much anything you want for free. Bottom line, the thinkers are always one step ahead of the law, and there's too much of it going on to be able to stop.

I think some sites will pull out, but some will figure out a workaround. There's always a workaround. Had they made the actual act of gambling online illegal, it may be a different story, but based on my understanding, its more about making the funding options illegal. So we may see some high profile enforcement to scare us, and some companies appear to be willing to comply. Otherwise, I'm sure we'll see most continuing on as usual, and some trying to stay one step ahead and figure out a workaround.

WindBreak247 – October 2, 2006 – 1:06pm

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