| First let me qualify myself as an ordinary poker player. | | | | The Appeals Court specifically cites Duval's statement: |
| I am not an attorney, justice department official, nor a | | | | "[A] plain reading of the statutory language [of the |
| Supreme Court Justice. I am not giving legal advice nor | | | | Wire Act] clearly requires that the object of the |
| will I draw any conclusions. What I have compiled is a | | | | gambling be a sporting event or contest." This is very |
| collection of the best information I can find on the | | | | explicit language. You would have to jump through a lot |
| subject of "Is Online Poker legal?". | | | | of mental hoops to consider the playing of online poker |
| Several recent events in congress has brought | | | | to be "a sporting event". |
| attention to the legal standing of online wagering in | | | | So, while the US Justice Department recently stated |
| general. The first thing to understand is the skill game | | | | that the Wire Act covers casino games in addition to |
| of poker is not the same as sports betting nor even | | | | sports wagering, the Federal Appeals Court has |
| "random chance" casino games like craps and roulette. | | | | directly ruled that that interpretation is not correct. This |
| It may be treated the same eventually, or it may not. | | | | is not a small disagreement. It is a direct contradiction |
| Legal precedent for a lot of this simply does not exist. | | | | that could well spur the creation of new, 21st Century |
| As of this article, no person has been charged, brought | | | | Federal legislation that actually deals with these issues. |
| to trial, convicted, or sentenced for playing online poker. | | | | One bill introduced by James Leach of Iowa, aims to |
| But this does not guarantee that if will not happen in | | | | inhibit the ability of citizens to gamble online. It however |
| the future. | | | | does nothing to criminalize actual gambling online. But |
| In my research I found that Professor I. Nelson Rose, | | | | other bills may be introduced in the future with that |
| Professor of Law, Whittier Law School Costa Mesa, | | | | goal. |
| Ca, is one of the world's leading authorities on gambling | | | | Gambling regulation traditionally has been the |
| law. He states that "no United States federal statute | | | | responsibility of individual states. For instance, New |
| or regulation explicitly prohibits Internet gambling, either | | | | York State Attorney General Eliot Spitzer reached a |
| domestically or abroad." Still, the US government has | | | | settlement with Citibank and PayPal regarding their |
| taken the position that certain things are illegal, and | | | | involvement with online gaming. Some individual states |
| more importantly, certain things are worthy of | | | | have laws prohibiting any form of gambling online (or |
| prosecution. The Wire Act is the statute most often | | | | any gambling for that matter). That is a different issue |
| cited as making on-line gambling a federal offense. He | | | | from whether it is legal on a US Federal level. |
| notes that the operative subsection reads: "Whoever | | | | A key distinction exists on a Federal level between |
| being engaged in the business of betting or wagering | | | | bettors and those operators whose business is to |
| knowingly uses a wire communication facility for the | | | | benefit from the actual making of wagers: "engaged in |
| transmission in interstate or foreign commerce of bets | | | | the business of betting or wagering... which entitles the |
| or wagers or information assisting in the placing of | | | | recipient to receive money or credit as a result of bets |
| bets or wagers on any sporting event or contest, or | | | | or wagers, or for information assisting in the placing of |
| for the transmission of a wire communication which | | | | bets or wagers..." As long as players stay in the |
| entitles the recipient to receive money or credit as a | | | | "players" category and not in the |
| result of bets or wagers, or for information assisting in | | | | in-the-business-of-wagering owners/bookies/runners |
| the placing of bets or wagers, shall be fined under this | | | | agents categories, a significant difference in status |
| title or imprisoned not more than two years, or both." | | | | exists. |
| Rose goes on to say: "The first element of the Wire | | | | There are many ways to read the Wire Act, but only |
| Act, says that the statute applies only to an individual | | | | under the broadest interpretation could playing online |
| involved in the 'business of betting or wagering' (not to | | | | poker be deemed illegal in terms of the Wire Act. In |
| a common player)." | | | | my opinion (which isn't worth a hill of beans... only the |
| The question of whether Internet sportsbetting is | | | | US Supreme Court's view will matter unless new |
| covered by the Wire Act seems to have been | | | | legislation passes) playing online poker is not illegal for |
| answered by the US Supreme Court's refusal to | | | | US citizens, in regards to Federal Law -- unless it is a |
| review the conviction of Jay Cohen. Whether online | | | | crime in an individual state, in which case the Federal |
| casinos and online poker cardrooms are covered | | | | Organized Crime Control Act of 1970 may apply. The |
| under the aimed-at-sportsbetting Wire Act is a | | | | Act makes it a federal crime for five or more persons |
| different question. In February 2001, Judge Stanwood | | | | to engage in a gambling business illegal under state |
| Duval of the US District Court in New Orleans ruled | | | | law. Gambling online is definitely illegal in some states, |
| that it did not: "'in plain language' [the Wire Act] does | | | | but the Crime Control Act of 1970 does not apply to |
| not prohibit Internet gambling 'on a game of chance.'" | | | | players. In addition, since the Crime Control Act does |
| On November 21, 2002, the US Fifth Circuit Federal | | | | not refer to foreign commerce, it is hard to see how a |
| Appeals Court upheld Duval's ruling, stating: "The district | | | | case could be made that it applies to Internet gaming |
| court concluded that the Wire Act concerns gambling | | | | across multiple international borders. |
| on sporting events or contests... We agree with the | | | | Finally, in November 2004, the Caribbean island nation |
| district court's statutory interpretation, its reading of the | | | | of Antigua and Barbuda won a World Trade |
| relevant case law, its summary of the relevant | | | | Organization ruling that United States legislation |
| legislative history, and its conclusion." | | | | criminalizing online betting violates global laws. In April |
| The Appeals Court further states: "Because we find | | | | 2005, the WTO Appellate Body affirmed the principal |
| neither the Wire Act nor the mail and wire fraud | | | | conclusions involved. |
| statutes may serve as predicates here, we need not | | | | So, as long as online poker players do not participate in |
| consider the other federal statutes identified by the | | | | owning a share of the house rake; as long as players |
| Plaintiffs... As the district court correctly explained, | | | | only wager against each other; as long as players |
| these sections may not serve as predicates here | | | | participate in the skill game of poker and do not bet |
| because the Defendants did not violate any applicable | | | | sports; as long as players obey state laws... draw your |
| federal or state law." | | | | own conclusions. |