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Is playing casino poker online legal?
The direct answer to the title question is: I don't know. I'm not an attorney, a Justice Department official, nor a Supreme Court Justice. Nothing here should be seen as legal advice. What is here is a collection of court rulings and the best information on this subject that I have been able to find. Use it as you will. (Scroll down for information on the Unlawful Internet Gambling Enforcement Act of 2006.)
Many recent events have brought attention to the legal standing of online wagering in general. The first thing to understand is the skill game of casino poker is not the same as sports betting nor even "random chance" casino games like craps and roulette. It may be treated the same eventually, but it may not. Legal precedent for a lot of this simply does not exist. As of this writing, no person has been charged, let alone brought to trial, let alone convicted, let alone sentenced for playing online casino poker. But this does not guarantee one or more of these things will not happen in the future.
According to Professor I. Nelson Rose, one of the world's leading gambling law authorities: "no United States federal statute or regulation explicitly prohibits Internet gambling, either domestically or abroad." Still, the US government has taken the position that certain things are illegal, and more importantly, certain things are worthy of prosecution. The Wire Act is the statute most often cited as making on-line gambling a federal offense. The operative subsection reads: "Whoever being engaged in the business of betting or wagering knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers, shall be fined under this title or imprisoned not more than two years, or both."
Rose goes on: "The first element of the Wire Act, says that the statute applies only to an individual involved in the 'business of betting or wagering' (not to a common player)."
The question of whether Internet sportsbetting is covered by the Wire Act seems to have been answered by the US Supreme Court's refusal to review the conviction of Jay Cohen. Whether online casinos and online casino poker cardrooms are covered under the aimed-at-sportsbetting Wire Act is a different question. In February 2001, Judge Stanwood Duval of the US District Court in New Orleans ruled that it did not: "'in plain language' [the Wire Act] does not prohibit Internet gambling 'on a game of chance.'" (Text of Judge Duval's ruling, plus a news story, and Nelson Rose's view.)
On November 21, 2002, the US Fifth Circuit Federal Appeals Court upheld Duval's ruling, stating: "The district court concluded that the Wire Act concerns gambling on sporting events or contests... We agree with the district court's statutory interpretation, its reading of the relevant case law, its summary of the relevant legislative history, and its conclusion." (Text of Appeals Court ruling)
The Appeals Court further states: "Because we find neither the Wire Act nor the mail and wire fraud statutes may serve as predicates here, we need not consider the other federal statutes identified by the Plaintiffs... As the district court correctly explained, these sections may not serve as predicates here because the Defendants did not violate any applicable federal or state law."
The Appeals Court specifically cites Duval's statement: "[A] plain reading of the statutory language [of the Wire Act] clearly requires that the object of the gambling be a sporting event or contest." This is very explicit language. You would have to jump through a lot of mental hoops to consider the playing of online casino poker to be "a sporting event".
So, while the US Justice Department recently stated that the Wire Act covers casino games in addition to sports wagering, the Federal Appeals Court has directly ruled that that interpretation is not correct. This is not a small disagreement. It is a direct contradiction that could well spur the creation of new, 21st Century Federal legislation that actually deals with these issues. The UIGEA aims to inhibit the ability of citizens to gamble online. It however does not criminalize actual gambling online. But other bills may be introduced in the future with that goal.
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Gambling regulation traditionally has been the responsibility of individual states. For instance, New York State Attorney General (now Governor) Eliot Spitzer reached a settlement with Citibank and PayPal regarding their involvement with online gaming. Some individual states have laws prohibiting any form of gambling, a different issue from whether it is legal on a Federal level.
A key distinction exists on a Federal level between bettors and those operators whose business is to benefit from the actual making of wagers: "engaged in the business of betting or wagering... which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers..." As long as players stay in the "players" category and not in the in-the-business-of-wagering owners/bookies/runners/agents categories, a significant difference in status exists.
There are many ways to read the Wire Act, but only under the broadest interpretation could playing online casino poker be deemed illegal in terms of the Wire Act. In my opinion (which isn't worth a hill of beans... only the US Supreme Court's view will matter unless new legislation passes) playing online casino poker is not illegal for US citizens, in regards to Federal Law -- unless it is a crime in an individual state, in which case the Federal Organized Crime Control Act of 1970 may apply. The Act makes it a federal crime for five or more persons to engage in a gambling business illegal under state law. Gambling online is definitely illegal in some states, but the Crime Control Act of 1970 does not apply to players. In addition, since the Crime Control Act does not refer to foreign commerce, it is hard to see how a case could be made that it applies to Internet gaming across multiple international borders.
In November 2004, the Caribbean island nation of Antigua and Barbuda won a World Trade Organization ruling that United States legislation criminalizing online betting violates global laws. In April 2005, the WTO Appellate Body affirmed the principal conclusions involved. (The resources link below will take you to a page with links to the WTO ruling, news stories about it, and further resources on online casino poker / online gambling and US law.)
Finally, in September 2006, the Congress passed legislation that makes it a crime for a bank or financial institution to transfer money to an online gambling site. The bill that was passed did not include language about the Wire Act that was in previous versions. The bill does not appear to address playing online in any way.
So, as long as online casino poker players do not participate in owning a share of the house rake; as long as players only wager against each other; as long as players participate in the skill game of casino poker and do not bet sports; as long as players obey state laws... draw your own conclusions.
Is It A Crime To Play casino poker On-line
The biggest event in the world of Internet casino poker took place not online, but in a casino in downtown Las Vegas.
As most casino poker players already know, on May 23, 2003, Chris Moneymaker won the World Series of casino poker, and its $2.5 million top prize, at Binion's Horseshoe Hotel & Casino. You could not write a script like this. Well, you could, but no one would believe it.
Start with the winner's name. It really is Chris Moneymaker. To get the money to travel from his home in Tennessee, he sold a 20% stake to his father for $2,000. But in the movies heroes need not just a loving dad, but also a buddy. Let's see... Moneymaker... I know, have him sell a second 20% share to his friend, named... David Gamble.
So Moneymaker senior and Mr. Gamble get $500,000 each. That leaves $1.5 million for Chris. Sounds good. But now let's make this totally fantastic.
It costs $10,000 to enter the WSOP. Some players pay cash. But let's have Chris put up only $40 and win his entry fee through satellite tournaments.
The final kicker is Chris never before played in a live casino poker tournament, where you can see the other players' faces. Chris, like dozens of others at the WSOP, won his entry fee through casino poker games played entirely online.
This naturally raises the question of whether Chris was breaking the law. I get more email asking me whether it is legal to bet online than on any other subject.
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The answer is, it depends.
It depends mostly on where you live. It depends also on how the game is being run. And, in the real world, it depends on whether anyone is going to do anything about it.
Federal law is clear. The federal government's interest in online casino is pretty much limited to organized crime. Federal statutes are written with phrases like, "Whoever being engaged in the business of betting or wagering... "or "Whoever conducts, finances, manages, supervises, directs, or owns all or part of an illegal online casino business... "
A regular player cannot get into trouble with the federal government even if the online casino operation is blatantly illegal, unless he does something to help the business. Prosecutors have charged players with being part of the online casino business when they helped operators collect debts from other players. But the very few times the federal Department of Justice has gone after regular players, judges have thrown the cases out.
What about state laws? Here the question is more difficult, because many states long ago passed anti-online casino laws, which are still on the books. There was a time when state governments wanted to protect not only the health, safety and welfare of their citizens, but their souls as well.
All states make it a crime to conduct some forms of unauthorized online casino. But about half the states also make it a crime to make a bet under some circumstances, even though nobody is ever charged any more.
There are obvious exceptions to the anti-online casino laws. It would not make sense for a state to run a State Lottery and make it a misdemeanor to buy a ticket.
Many states also make excepts for social online casino. For example, the Oregon Legislature passed a statute expressly exempting players in social games, like casino poker, from the prohibition on online casino, as long as the players do not help set up the game and the only money they make is from winning. But a player at a commercial casino poker website is not so clearly protected.
The only way to know for sure is to check the laws of your state. I do not know of any state which has passed a law stating that players can play casino poker online. The best you can hope to find is that the state simply has never made this form of online casino illegal.
California, for example, makes it a crime to play 11 named games, including "21," and any "banking or percentage game." (Calif. Penal Code §330). In the rest of the world, a "percentage game" means the house participates and has a percentage advantage. Due to bad case law, in California the term means a game, including a casino poker game, where the operator takes a percentage of the amounts bet or won, even even if the operator does not play a hand. So, participating in a casino poker game where the house rakes the pot is a crime in California. The situation gets even more complicated, because the California Legislature, by statute, allows licensed card clubs to take up to three levels from a pot, four if the house takes nothing if the pot is too small. (Calif. Penal Code §337j). For example, an operator can take nothing for a pot less than $10, $1 from a pot with more than $10 and less than $20, $2 from a pot between $20 and $30, and $3 from a pot over $30. This is defined as not being a percentage game.
The California Penal Code also makes it a misdemeanor to make sports bets. (Calif. Penal Code §337a). But other wagers are not forbidden. It is not a crime to buy a lottery ticket, even in an illegal numbers game.
So, at least in California, it seems it is not a crime to play casino poker online for money, if the game is not a percentage game.
This does not mean it is necessarily legal to run such a game and take bets from California. Penal Code section 337j states that it is illegal "To deal, operate, carry on, conduct, maintain, or expose for play in this state any controlled game," which specifically includes casino poker.
Of course, this opens the question of whether an Internet operator is dealing a game in California if the operator and maybe other players are no in that state. But that is a topic for another column.
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Online Poker
Online poker: A Sense of Where You Are Published on Wednesday, May 16, 2007 12:23:00 PM online poker often yields many life metaphors. Sometimes life offers us a online poker metaphor. Today I want to discuss how someone from basketball history and political present can teach us all some important online poker lessons. Long before Bill Bradley was a U.S. senator and oft-mentioned presidential hopeful, he attracted the public eye because he was arguably the greatest “student athlete” (a phrase that in the 21st century is almost an oxymoron) of all time. While at Princeton, he not only won a Rhodes Scholarship, but he led a bunch of hopelessly overmatched regular Ivy League “student athletes” to the 1965 NCAA tournament’s final four.
Princeton didn’t win the title, falling to Michigan (and future New York Knicks teammate Cazzie Russell) in the semis, but Bradley did manage to score 58 points in the third-place game.
The only other comparable feat in recent memory occurred in 1987 when David Robinson led a bunch of Navy guys who looked like quality opposition for an intramural basketball league into the NCAA tournament (oddly enough, it was Michigan that ended Navy’s NCAA run, too; although playing virtually two-on-five — he had one useful teammate — Robinson made it a game).
Given more talented teammates, both Bradley and Robinson won at least one championship in the NBA. By the time you read this, Robinson might have his second.
Bradley Succeeded Through Awareness
In 1965, Bradley became the subject of a John McPhee book, A Sense of Where You Are. The title stemmed in part from Bradley’s belief that awareness of what’s going on in whatever the present moment is enables people to succeed, both on and off the basketball court.
The basketball meaning is probably easier for those who remember Bradley’s play (especially professionally). He was a great pure shooter, but as they say these days, he wasn’t one of those guys who could create his own shot. Relative to his opposition, he wasn’t strong, couldn’t jump, and wasn’t particularly fast or quick.
Bradley scored all those points because he and his teammates played team basketball, not individual basketball, and he knew where everyone was at all times — both his teammates and the opposition.
By combining his awareness with a style that involved staying in near-constant motion, Bradley was able to flow to the least defensible point on a basketball court and secure wide-open shots, even though his opposition knew how dangerous he was if he could get a wide-open shot.
You Can’t Stop an Aware poker player
Think about it: In college, Bradley was the sole focus of his opposition’s defensive game plan, and even with at least two poker poker players assigned to him at virtually every moment, he still found open shot after open shot. As a professional, he benefited from one-on-one coverage, but his opposition knew the only thing they had to worry about was Bradley spotting up for an open shot — and he still earned innumerable opportunities.
How could this happen? Because Bradley had a sense of where he was — and, of course, a sense of where everyone else was.
If you hang around top-level online poker poker poker players long enough, you are certain to hear multiple variations of this concept. “I couldn’t figure out where he was at, so I folded.” “I knew exactly where he was, so I raised with garbage.” “I wasn’t sure where I was, so I just flat-called.”
When top poker poker players utter these phrases, they’re not confused about whether they’re playing at the Commerce or the Bike. They are talking about their attempts to absorb the total sum of everything going on at the moment in order to make their decisions.
The following is a dreadfully incomplete list of the factors these poker poker players try to include in their thought processes:
1. Opponent’s prior reputation
2. How opponent has been playing the current session
3. How opponent has been playing the last few minutes of the current session
4. Any physical or auditory clues (tells, if you will) available not just from the opponent but from everyone at the table; for example, if someone who folded preflop looks like he wants to fall over and die when the flop comes K-3-3, it’s a pretty reasonable bet that he folded pocket threes.
5. Their own image, in general
6. Their own current image
7. Whether the opponent is someone who considers image, and if so, what the opponent is likely to think right now
8. What they think the opponent thinks they think, and all of the “I know that you know that I know” levels that follow
9. Bankroll considerations for everyone involved
10. Strength of their own hand
This is why so few online poker questions can be answered in the abstract, or in a vacuum. As I’m fond of saying, “Context is king.” The right play against poker player A is the wrong play against poker player B, and it could easily be the wrong play against poker player A under other game circumstances.
Free TV is Expensive
This is why poker poker players who read the newspaper or watch basketball games on TV monitors when they are not involved in hands face a losing struggle against equally talented poker poker players who are remaining focused, or throw away much (if not all) of their edge against lesser poker poker players.
The importance of remaining focused on where you are doesn’t need some kind of dramatic current example to become worthy of discussion. Good poker poker players have been thinking and talking about it for many, many years.
Nonetheless, at the recently completed 2003 World Series of online poker, I ran into (if you’ll pardon the expression) four rather dramatic examples of it, and only one of them involved a hand. The example with the hand was a mistake I made against Patti Beadles, and it came solely from a momentary loss of focus, because almost immediately after I’d pushed my stack forward — even before Patti called with the better hand and well before I got lucky on the river — I suddenly asked myself, “What in the world did you do that for?”
One moment’s loss of focus could have knocked me out right then and there, but I did get lucky. The other three moments are related, too much so to be brushed off as a coincidence. You’ve already read about them if you read my “Welcome to ‘The House of Pain’” column.
Second Verse, Same as the First
For those who missed it, here’s the setup: I hurt my back (for the first time since 1995) just minutes before I was supposed to leave for the Series. This problem kept me from entering as many events as I’d planned, and also cut down on the number I was able to cover. Nonetheless, about three days before the “Big One,” my back finally started feeling better, so I entered.
Ten minutes before the event began, someone came flying out of Binion’s gift shop in a full run, and I literally had to jump out of the way to avoid a collision. This set off the back troubles again, as did two actual collisions on Day Two when, while seated, I got slammed into, once early in the day by someone who was in a big hurry to see his hand, and once late in the day by someone who had a bit more of an excuse, because with the antes and blinds as large as they were at that point, missing a hand was more critical.
I’ve frequently noted that Las Vegas is probably the hardest place in the world to walk quickly, because the gaming patrons seem to be walking about in a kind of daze, not quite sure which bright light, buzzer, or seemingly hot table is next calling to them. Slot poker poker players and pit gamblers are amongst the least aware people I’ve ever known, at least when they are not actually involved in their games (and, of course, if they were truly aware when playing, they probably wouldn’t be playing).
Nonetheless, in 34 years of going to Las Vegas (I started at 13), I’d actually been slammed into only once. Oddly enough, that was when I was 13. A guy who had just won a ton of green ($25) chips was hurrying away from his blackjack table and ran into me. His chips went flying. He picked them up and hurried away. (As an aside, I found two of them behind a platform and tracked him across the casino to return them. He accepted without so much as a “thanks,” never mind a tip.)
The Math Defies the “Coincidence” Theory
That makes one collision on my first-ever trip, and three (believe me, if I hadn’t had a good sense of where I was, the near miss would have been a collision; the other two I couldn’t have seen coming without eyes in the back of my head) on my most recent one. Three in a two-day span is no coincidence. What was happening?
The answer is pretty easy: the buzz and electricity associated with an 839 poker player, $2.5 million-to-the-winner championship. You’ve no doubt heard various announcers talk about “the electricity in the air” at big sporting events, and if you’ve ever been to an NCAA title game or a deciding game of a professional championship, you understand exactly what they mean. There really is something created by all of that anticipation and excitement, something that when multiplied by hundreds or thousands of people becomes palpable and almost measurable.
If these running people had been more aware of what was going on around them, they probably wouldn’t have been running, or if running would have realized how possible a collision was with so many people in the room. Perhaps they all had been saving their focus and awareness for the tables themselves.
I submit, though, that for most people, awareness isn’t something that can be turned on and off like a light switch (you don’t know how much I wanted to write “light saber” instead of light switch … hmm, maybe now you do).
Does One Kind of Impatience Foreshadow Another?
If you’re feeling out of control or focus 10 minutes before a game or tournament starts, how long will it take you to settle down once it has begun? If you’re hugely worried about missing one hand when there aren’t even antes yet, will you have the patience to make it through a five-day event?
My third collision came from a friend, Phil Hellmuth. Unlike the first two runners, Phil stopped to apologize, and perhaps just as important, Phil has been playing long enough, and had enough success in no-limit tournaments, to be able to gauge whether racing out of a room when out of a hand will cause too much adrenaline when he returns.
Heck, even in Phil’s case, it might be interesting to see if he performs better when walking or running on his breaks. He has nine bracelets: Maybe he could have 15. Regardless, there are only two other poker poker players with nine bracelets, so it’s pretty hard to argue with his results. You don’t have nine bracelets. You probably don’t have the long-established track (no pun intended) record that Phil does. That means you will almost certainly benefit from putting more effort into having a sense of where you are, both when at the tables and when approaching them.
A true sense of where you are requires assimilating the totality of your circumstances. If you stop, even for a few minutes, that means that when you start back, you’re missing data about the time when you lost your focus.
I might be making winning online poker seem a lot more like work than fun, but if you’re not prepared to work, come prepared to lose. After working on your awareness for a while, you might find it bringing an entirely different kind of fun. You might need to have someone else tell you what kind of game David Robinson had against the Nets, but he’ll be able to. He won’t need to be focusing on carrying all those racks of chips to the cage without running into anyone.
Online poker is insanely well-liked these days. The ease of being able to basically turn on your computer and boast the option to be able to sit down at any number of virtual poker table is tremendously appealing to all types of poker company. Although playing the game of poker is very expedient, you do need to set aside adequate time for yourself when you make strategy to play.
The omission to this rule is if you choose to play a sit and go which really should not take more then an hour or so to the end. When you are playing for cash though or taking part in a multi table tournament you require to make sure that you have put aside sufficient time to play so that you can fully deliberate.
Think of it this approach: Perhaps you would want to go into an online multi table poker tournament. These poker games can be an actual experiment of fortitude and can last as long as eight hours. This is of course very well if it is the type of game that you would like to play in except if the game starts at 9pm and you need to go to work at 6am it’s most likely not a good idea.
The point of playing online poker is of course to prevail money so you want to be able to dedicate your total attention to playing. So if you think you are going to be playing for an unlimited period of time you need to make sure that you can play without being worried with anything. Since multi table tournaments can be not easy to win you need to be able to dedicate all of your time and concentration to playing the most excellent game of poker you can.
This will be educated over time but you require to keep up the same level of game play all during the poker tournament. If you begin to play weakly and start to make poor decisions because of this you will end up result yourself not only out of the tournament but out of your valuable time and money as well.
The same key applies when you are sitting down to a uncomplicated cash game of online poker. If you do not have the time to sit and apply your time to the game you are very possible to end up divided from your money.
If you are playing with time constraints weighing a great deal on your mind then you are not going to be able to actually settle in and get a sense for the table that you are playing at which will make it a tricky task to size up your fight properly. You will truly find that you be likely to play more insecurely with your money when you are not able to appropriately focus your concentration. While this approach does have the impending to pay out satisfactorily it can also lead you down the road to catastrophe.
So give yourself some time to park yourself down at your computer and entirely enjoy playing a few rounds of poker. It will not only facilitate you enjoy your gave more, it will really boost the chances of you walking away with a nice count to your wallet.
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