Be sure to follow the Poker Affiliate Solutions Twitter feed for the latest up-to-the minute updates. In today’s Black Friday update, we take a look at a possible new policy shift from Arizona Senator and anti-gambling advocate Jon Kyl as well as a new update from Players Only and Sportsbook.com. Jon Kyl: Poker “may be considered later this year”: One of online gambling’s leading opponents MAY be coming around to online poker. On his website, listed with opinions on various other topics, he states the following about online poker: “I have opposed efforts to legalize Internet gambling in the past because evidence suggests that it fosters problems unlike any other forms of gambling. Online players can gamble 24 hours a day from home; children can play without sufficient age verification; and betting with a credit card can undercut a player’s perception of the value of cash — leading to possible addiction and, in turn, bankruptcy, crime, and even suicide. Efforts to carve out an exception for games like poker, which many believe is a game of skill, may be considered later this year. Until I have the chance to review them, I cannot make a judgment about their merits; but I will consider them carefully as long as they leave in place the broader proscriptions against online betting.” Players Only/Sportsbook Not Accepting US players: Both Merge Gaming sites, with affiliate programs run by CommissionAccount, will no longer accept new US players after May 1st. Existing players will continue to be allowed to play, however. PokerAffiliateSolutions has been told the move is temporary while the site catches up with demand. At this time, the move does not appear to affect the rest of the Merge Gaming Network. Traffic Update: PokerScout has reported that the Merge Gaming Network is now of the top 10 largest online poker sites in the world and has broken another traffic record Monday night (2,496 peak players) and again on Tuesday night (2,643). The streak of new daily traffic records was stopped Wednesday night when the network saw *only* 2,575 players at the tables. The number still marks the second highest number in Merge Gaming’s history. PPA’s Message to Take Action: The leading poker play advocacy group, the PPA, has posted a list of ten actions citizens can take to stand up for online poker. Among the list of steps players can take: call/email/Facebook the DOJ, email the president, contact your local Congressional representative and write a letter to your local paper. A New Arrest: Bloomberg News reported yesterday that the latest arrest has been made in the Black Friday indictments. Ira Rubin was arrested in Guatemala on April 25th and appeared in a Miami court on Wednesday with no lawyer. He is charged with nine counts, including conspiracy to violate the UIGEA, conspiracy to commit bank fraud and money laundering. Ira Rubin will appear at an April 29th hearing to determine if he can acquire new representation. Jottings: Legal expert explains that state legislation is most likely, not federal (check 15:20 mark)…. Washington Post says online poker raids were a waste of resources….online high stakes action still thriving….Conservative Andrew Breitbart’s Big Government weighs in. Feel like you’re behind on the developments?: You can also check out our Twitter feed where we provide you with the latest up-to-the minute developments. For your convenience we have also provided an archive of previous updates: PAS Statement on DOJ Announcement 4/15 4/16 Cliff Notes: Details of indictment, when US players were shut out, Player funds, canceling of B&M partnerships, Initial statements from PokerStars, Full Tilt and the PPA DOJ Domain Name Agreement 4/20 4/21 Cliff Notes: DOJ agreement, A new not guilty plea, AP/UB.com new message for US players, statements from gaming commissions of Kahnawake, Isle of Man and Alderney Incredible Black Friday Promotions: We lay out the best of the best 4/22 Cliff Notes: Online poker traffic update, Antigua weighs in, Absolute Poker statements, collection of statements since 4/15 4/25 Cliff Notes: Merge gaming Breaking traffic records, Arizona credit union shut down, comments from Steve Wynn. 4/26 Cliff Notes: PokerStars Making US Cashouts, Merge Gaming now up 60%.
Be sure to follow the Poker Affiliate Solutions Twitter feed for the latest up-to-the minute updates. April 15th, 2011 will surely be a day US poker players will never forget. Mid-day Friday, players started to report of an ominous FBI message on the sites of PokerStars.com, Fulltiltpoker.com, UltimateBet.com, UB.com and AbsolutePoker.com. The domain names had been seized by the US Attorney’s office in the Southern District of New York. Shortly after, the Department of Justice released a press release confirming the seizures along with detailing the points of the case. PAS has released a statement on the news concerning publishers. Be assured, that we will be following any new developments very closely. If you want to stay on top of the developments as they happen check out the PAS Twitter feed. For now, lets take a look at the facts as we currently know them: Brief Details of the case: --11 individuals were named in the suit, including the owner of Poker Stars, Isai Scheinberg, and Full Tilt Poker Chief executive, Raymond Bitar. Also included are other founders and individuals who helped facilitate payment processing for US players. --Restraining orders were issued against 75 bank accounts utilized by the poker sites. --According to the press release, the firms were involved in massive money laundering and bank fraud, which included disguising payments and partnering with banks located in the US. --The indictment seeks at least $3 billion in penalties. Domain Names: All the domain names involved in the seizure are not operational. However, PokerStars can now be accessed via PokerStars.eu. Full Tilt Poker can be reached by going to FullTiltPoker.co.uk. US players: Within a couple hours of the domain seizures, US players were unable to sit down at real money tables at Poker Stars. Full Tilt Poker banned US players as of Saturday morning. At the time of this writing, Absolute Poker and UB.com have not released statements or their future intentions. Players can currently play and log on. Player Funds: Cashouts are expected to be held up for a significant amount of time for US players (delays were already many weeks). Depositing and withdrawing by US players has been suspended. Non-US players are also experiencing issues. PokerStars has released this statement about player funds: "Despite the expected delays, Poker Rooms are starting to release statements that player balances will be honored - Please be assured player balances are safe. There is no cause for concern." Brick and Mortar partnerships: Wynn Resorts and Fertitta Interactive have canceled their US-based partnerships with Poker Stars and Full Tilt Poker, respectively. Traffic: PokerStars traffic was down 37% from last Friday, according to PokerScout. Full Tilt Poker and the Cereus Network were both down 20% week over week. This is even before Full Tilt Poker barred US players from playing. Party Poker was up 2%. Bodog Poker and Merge Gaming are seeing 10%+ increases while Cake Poker remains stable. Statements: Full Tilt Poker: Mr. Bitar and Full Tilt Poker believe online poker is legal - a position also taken by some of the best legal minds in the United States. Full Tilt Poker is, and has always been committed to preserving the integrity of the game and abiding by the law. "I am surprised and disappointed by the government's decision to bring these charges. I look forward to Mr. Burtnick's and my exoneration", said Mr. Bitar. Unfortunately, as a result of this action, Full Tilt Poker has decided that it must suspend "real money" play in the United States until this case is resolved. However, Full Tilt Poker will continue to provide peer-to-peer online poker services outside of the United States. Poker Stars: As you may have heard, we have had to suspend real money poker services to people based in the US due to legal developments there. These developments are confined to US and not have any impact on your ability to continue our services. Please be assured player balances are safe. There is no cause for concern. For all customers outside the US it is business as usual. The PokerStars website has been moved to pokerstars.eu, and our Support Email address is now support@pokerstars.eu. We apologize to our players for any inconvenience caused by this disruption. PPA On behalf of the millions of poker players across the country, we are shocked at the action taken by the U.S. Department of Justice today against online poker companies and will continue to fight for Americans’ right to participate in the game they enjoy. Online poker is not a crime and should not be treated as such. We are currently gathering all of the information around today’s announcement and will offer detailed analysis when the full facts become available
Congressmen Barney Frank and John Campbell introduced a new bipartisan online gambling bill in the House of Representatives on March 17th. HR 1174, or The Internet Gambling Regulation, Consumer Protection and Enforcement Act, is apparently identical to the bill that passed in the House Financial Services Committee by a vote of 41-22-1 in July of 2010, but different than the bill Harry Reid tried to pass last December. The bill is being introduced on the heels of a bill that was vetoed in New Jersey and at a time when intrastate bills in a handful of other states are gaining traction. According to a press release issued by Barney Frank, the new federal bill “would establish a federal regulatory and enforcement framework under which Internet gambling operators could obtain licenses authorizing them to accept bets and wagers from individuals in the United States.” The Frank bill differs from intrastate bills in that players would be able to play poker across state lines rather than being restricted within a state’s borders. The bill would require companies offering internet gambling to be licensed in the United States. Companies that have participated in “illegal gambling” would not be eligible for a license -- although the argument could be raised on what is legal/illegal. States would automatically be opted in to the legislation unless the state opted out through legislative measures. The bill would become law 90 days after regulations are issued, which have to be done within 120 days after the bill has been signed. A press release from the PPA (Poker Players Alliance) supported the introduction of the new legislation saying “we look forward to supporting this vital legislation as it moves through the legislative process.” In addition to highlighting the benefits of US players’ poker rights, the PPA noted positive changes to the processes of preventing tax avoidance, money laundering, fraud, underage gambling and adding requirements on responsible gambling. Barney Frank has been at the forefront of online gambling regulation ever since the passage of the anti-gambling UIGEA was passed. Despite the success of last year’s committee vote and increasing support from legislators previously against regulation, the bill faces hard challenges ahead. Spencer Bachus is now chairman of the House Financial Services Committee, where the bill may have to originate. The bill seen today could also be quite different than any bill that eventually processes through committee.
Yes, I've come to terms with the fact that this post may be outdated by the time I submit this for public viewing, but here goes: the Harry Reid Internet Poker bill is dead. For now. Credible reports were first released late last week from ESPN and then from other news outlets that the bill was effectively killed, which was then subsequently followed up by a PPA statement on Friday saying that “Congress has failed to regulate poker and protect consumers.” The options for attaching the bill to “must-pass” or other important legislation have dwindled. It had its best chance of being attached to the tax bill; then Jon Kyl insisted it be left off (it passed late last week). Then the Omnibus spending package died in the Senate. And despite the fact that there are homosexual and Russian poker players, there just isn’t enough synergy to get it attached to something like Don’t Ask, Don’t Tell (which also passed over the weekend) or the START Arms treaty. It’s been said that anything can happen in Congress, but barring a "Christmas miracle" a regulated poker bill will not go through in 2010. Congress So what does this mean for online poker going forward? Recent history has shown us that Democrats support our cause far more than Republicans, despite the GOP’s traditional platform of less government. Far too many congressmen and women either oppose online poker on moral grounds or believe it should be an issue for the states to regulate, exclusively. As an aside, it should be noted that the Reid Bill does, in fact, give the states all the power to decide the fate of iPoker in their state. On January 4th, the new congress will be sworn in. On this day, the House of Representatives will swing from a Democratic majority of 75 seats to a 49 seat Republican majority. Elections have consequences and as result of the House moving to the Republican side, all House committees will now be chaired by Republicans instead of Democrats. This includes the House Financial Services Committee, currently headed by Barney Frank, who has been extremely favorable to online poker interests. His leadership was instrumental in helping pass an online gambling bill through the committee in July by a margin of 41-22, an impressive victory considering the House four years earlier had approved an anti-gambling bill (with more teeth than UIGEA) by a landslide vote of 317-93. The committee will now be chaired by Spencer Bachus, one of online poker’s staunchest opponents. There is better news in the Senate. Democrats maintained their majority in the upper chamber of Congress by a slim margin of 51-47 with 2 independents (who will caucus with Democrats). This means Harry Reid will still be Senate majority leader and can still conceivably introduce a similar bill in the next year or so. There does seem to be some optimism from the PPA and others that this is not a longshot of happening in 2011, despite less favorable conditions. Maybe, just maybe, if it were to be attached to the right bill at the right time, with arguments that resonate with the right people, something could get done. The industry has one thing going for it: it wants to be regulated. Putting this on top of the fact that the US government and states need revenue really does make this seem like a no-brainer, especially with the industry trucking along without it. States One thing you can be sure about in 2011: states will make serious efforts to regulate online poker within their borders. We could easily see one or two states offering online poker by the end of the year. New Jersey is on the fast-track to be the first state to regulate, with a final vote taking place as early as January 6th. Operators must be physically located in Atlantic City in order to offer games to New Jersey players. In Florida, there is a bill circulating that is less eminent to pass. The Florida bill currently allows for one network, with each operator – which is required to be located in Florida-- effectively acting as a skin on the network. Poker legislation on the state level could also come from unexpected places. The District of Columbia surprised everyone with a proposed amendment to their budget to allow online poker through the D.C. lottery. Online poker in DC is currently seen as a long-shot, but it does illustrate that some states that would otherwise be surprising participants, could join the online poker regulation bandwagon in light of budget issues. Other states such as California, with their large population, are often seen as being a top candidate to run successful intrastate poker. You have to think that if a state like New Jersey is successful with iPoker that others will quickly follow. By definition, players in intrastate markets would have to play poker against players in their state. These states would also ban operators from offering games outside of their state. Playing on PokerStars and Full Tilt would clearly be illegal in these states, likely meaning both sites –and possibly others—would leave these markets. Players also have legitimate concerns about player pools, competition, and taxes, among others. Final Thoughts I think it’s safe to say some affiliates will breathe a sigh of relief at news of this bill failing. Despite the potential benefits down the road, the uncertainty heavily US-focused affiliates would need to confront -- both during the blackout period (how would revenue be replaced?) and once the blackout period ended (will affiliates be allowed?) -- could be difficult to come to terms with. I do think it illustrates an important lesson that can be applied to any business, and especially one in this industry: diversify, prepare and don’t worry about what you can’t control. Remember: even if a similar bill does not pass within the next couple years, there is a real chance that all but the most hard-core USA players will have stopped playing due to payment processing issues. I think it makes good sense to prepare for something like that. If it doesn’t happen, great, but at least you were prepared. If you had any stake in the outcome of this legislation, regardless of where you stand on the bill, it’s likely your emotions were tested. I bounced between reluctantly supporting it to not supporting it, especially with the final draft (at least the copy that was released last), since it didn’t include language to force intrastate poker to become interstate. I feel a bit guilty for my feelings since it is probably our best chance of ever lifting the grey, but even PPA reps came out with lukewarm to slightly negative views on final versions. Let’s hope that the positive momentum gained over the last four years continues and maybe, just maybe, we can finally get an honest, educated debate on the merits of regulated poker in the US during the new year. Maybe this even translates to a better bill. The big B&Ms now appear to be on board, we have a powerful Senator on our side and government needs cash. Maybe 2011 is the year logic prevails. Until that time, here’s to hoping that everyone has a carefree holiday season with their loved ones.
Updated 12-21-2010 at 03:08 PM by TimPAS
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