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Rep. Barney Frank (D-Mass.) is expected to make a statement Friday that U.S. Treasury Secretary Timothy Geithner granted the Poker Players Alliance's petition to delay the compliance date for the Unlawful Internet Gambling Enforcement Act. The six months would be a compromise to the year requested by the PPA and Frank.

Word of the delay comes just days before the December 1 date when banks and financial institutions were to be held responsible for making sure no outgoing transactions were made to web sites related to what was termed as "illegal Internet gambling."

The six-month delay, while not a victory in itself, sets the stage for future victories by giving Frank time to address his other bill, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act.

It remains to be seen how the banks and credit card companies will respond to a delay. The situation likely will remain similar to recent months, where some are blocking transactions and some are not. But the six-month stay should prevent blocking from getting worse.

PokerNews

Posted in Online Poker News

Lots of people who follow Online Poker have been concerned about what will happen when the calendar hits December 1, 2010. That is the day the financial services industry in the United States must fall into full compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA). In its simplest form the law prohibits the transfer of funds from a financial institution to an illegal Internet gambling site, specifically excluding fantasy sports, online lotteries, and horse/harness racing. The initial passing of this legislation in 2006 was the cause of many Poker sites (and online casino sites) to pull out from the United States market.

So, will Online Poker grind to a halt December 1st? At the moment it does not appear so. The legislation and its implementation are under attack on several fronts, although it seems doubtful any of these attempts will succeed prior to December 1. In any case, Barney Frank (D) Mass, and the Poker Players Alliance have been working hard to prevent the UIGEA from taking effect.

For those wondering what will happen if they are not successful by December 1, the good news is it appears Financial Institutions will not be working hard to universally prohibit your poker transfers. A recent, excellent article titled "U.S. Banks Offer "Due Diligence" as UIGEA Deadline approaches", states that for now the extent most banks are willing to go is to send all Account Holders "due diligence" notices with their bank statements similar to this:

"As a (fill in the blank) customer, we'd like to inform you that in accordance with the requirements of the Unlawful Gambling Enforcement Act of 2006 and Regulation GG, certain transactions are prohibited from being processed through your account

Prohibited transactions include those in which a person accepts credit, funds, or other proceeds from another person in connection with unlawful internet gambling. If you have any questions or concerns regarding this regulation, please contact us."

The UIGEA achieved one of its initial objectives of scaring off potential newcomers, along with publicly traded companies who didn't want to challenge the government on the legislation, but in the end the legislation was so poorly thought out that when it came time to write the regulations for it the Treasury threw up its hands and essentially said it wasn't possible, so they wrote a set of rules that demanded that the financial institutions do their dirty work for them.

If poker players are lucky, the initial indications are that banks are going to send out these letters to all customers telling them that the UIGEA is now law and please don't bet online. Anything beyond that isn't the banks problem. We can only hope this is the case, and that all the people fighting for online poker in the United States will eventually allow Americans to play poker online in their own homes.

Posted in Online Poker News

A report on online poker was authorized and ordered by the Florida state legislature this past sping. This report has been completed. It contains a detailed summation of the legal status of online poker on the international, federal and state level, from the government viewpoint.  Everyone should read this report to understand how our lawmakers, both federal and state, view the legal status of online poker (and online gambling).  This report is expected to play a very important role in how legislators on both the federal and states level proceed.

Interesting Excerpts:

Poker is played, legally and illegally, in Florida every day. Legal forms of poker include penny-ante games played by individuals in private homes and authorized games played in regulated cardrooms located in pari-mutuel facilities. Illegal poker includes Internet games and those that occur in sports bars or other venues where unlicensed operators offer poker games.

In the United States, the Department of Justice interprets federal statutes to prohibit all forms of Internet gambling; however, the department’s interpretation relies upon some federal laws that predate the Internet. Florida law does not specifically address Internet poker or other forms of online gambling.

The Nevada Legislature passed legislation in 2001 allowing its gaming commission to adopt regulations governing the licensing and operation of Internet gaming. In 2002, the U.S. Department of Justice advised Nevada that federal law prohibits gambling over the Internet. More recently, the North Dakota Legislature considered bills in 2005 to regulate, license, and tax Internet poker. The state Senate rejected the bill after receipt of a letter from the U.S. Department of Justice indicating that federal law prohibits Internet gambling.

Link to Actual Report

Link to 2+2 Thread Discussion

Posted in Online Poker News