June 8, 2011

Internet Poker: Unclear Present, Uncertain Future

According to some estimates, up to 10 million Americans, play online poker, but its legal status is unclear. On April 15, 2011, the U.S. Department of Justice (DOJ) seized the domain names of the three largest companies offering online poker games to U.S. residents, including PokerStars and Full Tilt Poker, alleging conspiracy, illegal gambling offenses, and bank and wire fraud. On April 20, the DOJ reached an agreement with these two companies, which agreed not to “allow for, facilitate, or provide the ability for players located in the United States to engage in playing online poker for money or any other thing of value.” The agreement allows players to access any money they had deposited in personal accounts on the companies’ websites. But it prohibits U.S. players from depositing new funds in them, and it expressly allows players outside of the U.S. to engage in playing poker online for money.