“This domain name has been seized by the F.B.I. pursuant to an Arrest Warrant.” — www.pokerstars.com

Lance has been a full-time professional poker player for six years. This has included some live play at local home games and a few casino trips, but 99% of his time has been spent playing poker online at PokerStars.com. PokerStars is currently the largest online poker site, and Lance plays there because they have an excellent interface and top-notch customer service.
Yesterday around 2 pm, real-money games were suspended for U.S. players after news of an indictment from the Department of Justice of the top three online poker sites (PokerStars, FullTilt, UltimateBet). The charges are bank fraud and money laundering.
The online poker community is rocked. No one was expecting this. The true legality of online poker has always been a little bit gray, but there has been pending legislation for the official legalization of online poker in last fall’s session of Congress (it was never voted on). In recent weeks, the brick-and-mortar casinos began talks of lining up with the online poker sites. All signs looked quite positive. Until yesterday.
We’re a pro-poker household, obviously. Poker is a game of skill, and that is how Lance is able to consistently make enough money to live on. He has up days and down days but the long term provides a profit. Much like investing in the stock market, the gains occur over the long-term. Poker is a game of math and probabilistic edges.
We also have strongly libertarian leanings when it comes to personal freedoms. Why would the government interfere in any activity where consenting adults willingly engage with each other? Millions of people in the U.S. currently use online poker services. Online poker is legal and regulated in many other countries.
What would regulation do for the industry? Not to mention for the country. Think of the tax revenues – one estimate said the online poker industry had revenues of $2.4 billion in 2005, and it has only grown in popularity since then. Don’t we have a war to pay for?
Sometimes people ask “what about the moral issue of poker and gambling?” To that i will reply, if it’s really a moral issue, then i expect to see the state lotteries and the horse race betting shut down. I checked the lottery website, and it has not been seized by the government. And that will never happen. Despite the fact that the lottery and horse betting have no skill whatsoever, and poker is actually a skill game. So i don’t really want to hear about the moral issue of gambling.
While some may applaud the government for taking action here, i wonder why the government was not more proactive with Wall Street during the financial meltdown. Where was the hard line then, when the financial security of the entire nation was at risk? Was that industry penalized at all for their elaborate heist of the American people’s money? Was there even an investigation, or a single indictment handed down? No.
The accusations of bank fraud and money laundering for the online poker sites are pretty bogus. All the poker sites were trying as best they could to cooperate with existing laws.
PokerStars, FullTilt and UltimateBet are the three sites that have been indicted. The inclusion of UltimateBet in the company of the other two is rather questionable and perhaps even sleazy. UltimateBet is not popular, nor ever was particularly so, and is in fact avoided due to a cheating scandal that happened a few years ago. An employee was feeding information about opponents’ hole cards to a 3rd party, and a lot of fraud was committed in this way before someone caught on. Any online player who has been around for any length of time at all avoids UltimateBet. However, the inclusion of UltimateBet will allow prosecutors to say “this group of sites is responsible for numerous cheating scandals and fraud” that will taint the image of the other two sites. FullTilt and PokerStars both have excellent reputations within the poker community.
It is unclear whether legislation to officially legalize and regulate online poker will be able to be brought to the attention of Congress. Certainly many in the poker community hope so, but there is also speculation that support will fly away from the movement in light of the indictments.
And so, it is a dark day here. Imagine you had just been told your job did not exist. Some people reading know exactly what the feels like. Lance and i are trying to figure out what’s next.




