c. 2006 Religion News Service
WASHINGTON _ The party’s over at PartyPoker, but PokerStars is still open for action.
Dozens of online casinos and millions of American gamblers, confronting a new federal law that makes what they do illegal for the first time, are angry, sad and reassessing their options.
President Bush turned what had been at worst a legal gray area into a criminal enterprise when he signed legislation Oct. 13 that bans financial institutions from making payments on behalf of Americans to offshore online casinos.
The law bans players from using credit cards, direct deposit, online transfers, physical checks and virtually any other means to pony up funds for online gambling.
Before the new law, the legality of online betting was a matter of opinion, and banks and credit card companies were free to send funds through operations such as Neteller and Firepay, which would then convert the money into the digital equivalent of casino chips.
Rep. Bob Goodlatte, R-Va., who sponsored the legislation, said the new law would “help to cut off the money supply to these illegal outfits.”
Goodlatte’s critics concede that he is partially right: The change will help cut off cash heading to some gambling outfits. But it was the legal ones that were the first to shut their doors to American players.
The ink was barely dry on the bill when industry leaders PartyPoker, 888.com and BetonSports said American deposits would no longer be welcome on their sites. All three are legitimate British companies that are publicly traded on the London Stock Exchange.
As they pondered their options, American gamblers posting messages on several online forums said they were particularly angered by the fact that the measure was inserted quietly into a port security bill by congressional Republicans eager to reach out to religious conservatives who oppose all forms of gambling.
“We’re going to protect our ports. We’re going to defend this homeland. And we’re going to win the war on terror,” President Bush said during a White House signing ceremony. Not a word about online poker or slots.
Goodlatte said he’s just getting started. For his next move, he said, he will try to rewrite the federal Wire Act to clarify that it applies to all forms of online gambling, making it “crystal clear” that millions of American online gamblers are felons.
Michael Bolcerek, president of the Poker Players Alliance, said his group is not giving up the fight. His next move will be to try to persuade Congress to carve out an exemption for poker as a game of skill, not a game of chance.
Such an exemption would not be unique. The law already contains exemptions for betting on horseracing, intrastate lotteries, intrastate gaming where it is legal, American Indian reservations, and fantasy sports play.
“We think undoubtedly that poker is a game of skill and they have set precedents in this legislation by creating exemptions for other types of online wagering. We intend to keep pushing for an exemption for poker,” Bolcerek said in an interview.
While some online casinos were quick to shutter themselves to Americans, many others plan to remain open _ at least during the 270-day period the law sets for the Justice Department to establish enforcement procedures. Most of those casinos that are closing are blocking only new U.S. deposits, so players with money in their overseas casino accounts can continue to play.
Here’s what some online casinos said about their plans in e-mails and Web postings last week:
PokerStars.com (With bases in England and Cypress, it offers poker competition): “PokerStars will continue to offer its services to players from the U.S. Players may continue to play on our site as they did prior to the recent developments.”
PartyPoker.com (Based in England, it offers poker, casino, backgammon and bingo): “On October 13, 2006, President Bush signed into law a bill passed by the United States Congress that prevents you from playing cash poker online. This means many of your favorite sites have ceased taking deposits and wagers from American players, including your very favorite _ PartyPoker.com.”
Bodog.com (Based in England, it offers sports book, casino and poker): “There is a 9-month window before these changes take effect. Our company is currently looking into ways to adjust our business model to meet these new possible policies. … Bodog.com considers online gambling to be legal under international law and complies with the laws within all of its jurisdictions where it carries out its operations. We have currently not made any changes to our business and will continue to provide our customers with the best gaming experience we can offer.”
PokerRoom.com (Based in England, it offers poker): “Following an in-depth analysis of the situation and extensive legal consultation, we have decided to comply with the new legislation and will no longer accept any new U.S.-resident customers for our real money gaming products, effective immediately. Until further notice, we will only be offering a `play money’ line-up to the U.S. market. We apologize for any inconvenience this decision may have caused.”
HollywoodPoker.com (Based in St. Kitts, it offers poker _ including games with Hollywood celebrities): “Normal play will continue for approximately 30 days while we monitor any new developments surrounding this new legislation. During this time you will continue to have the ability to access your account as well as play HollywoodPoker games as you normally would, with the exception of making deposits. U.S. Free money play will not be affected.”
(J. Scott Orr can be contacted at scott.orr(at)newhouse.com)
KRE/JL END ORR
