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