Online gambling succumbs to politics
Chris Burrows
Issue date: 11/3/06 Section: Sports
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On October 13 President Bush signed into law the Security Accountability for Every Port Act (SAFE) designed to direct money at beefing up security at American ports and preventing dangerous weapons from entering the country. Yet when this bill became law, poker players everywhere were enraged.
This is because hidden within the SAFE Act is the Unlawful Internet Gambling Act which targets the millions of Americans who play online poker. The law doesn't ban the websites or even seek out the poker players themselves. Rather, it prohibits banks, credit card companies, and other financial intermediaries from transferring funds to the sites.
The $12 billion online gambling industry isn't packing its bags just yet though. The new policy won't be effective for 270 days and in the meantime loopholes are already popping up for this lucrative business. Offshore electronic money services such as Neteller - which is based in England - already account for many online gambling transactions and are not subject to the new law.
The explosion of Texas hold 'em poker in 2003 created a booming industry both as a spectator sport and an online gambling hit. But the game is nothing new, and was first played in Las Vegas at the Golden Nugget Casino in the late 60's. In 1970 Binion's Horseshoe Casino in Las Vegas hosted the first ever World Series of Poker, and after just one year, the main event was changed to no-limit Texas hold 'em
In 2003, there were 839 entrants in the World Series main event. By 2004 that number had tripled, and in 2006, it rose still, to 8,773 entrants - many qualifying through online poker sites
The new ban on internet gambling is expected to stunt the growth of the World Series of Poker and other similar tournaments in addition to the online sites
PokerStars.com, the largest poker tournament site in the world, released a statement on their website stating, "Our business continues as before - open to players worldwide including the US. You may play on our site as you did prior to the Act." The company, based in Costa Rica, is continuing to accept money transfers just as before.
Online giant PartyPoker.com, however, has already decided to suspend all money wagers with US customers. The PartyPoker site even offers visitors the ability to contact their representative in congress on their behalf. The form message which PartyPoker has written for angry poker players begins with, "I am a voter, I am a poker player and I am mad.
The act does provide exemptions for internet wagers on horse racing, state lotteries, and fantasy sports. But Poker, according to the act, is a game of chance - something highly disputed by both players and companies alike.
This is because hidden within the SAFE Act is the Unlawful Internet Gambling Act which targets the millions of Americans who play online poker. The law doesn't ban the websites or even seek out the poker players themselves. Rather, it prohibits banks, credit card companies, and other financial intermediaries from transferring funds to the sites.
The $12 billion online gambling industry isn't packing its bags just yet though. The new policy won't be effective for 270 days and in the meantime loopholes are already popping up for this lucrative business. Offshore electronic money services such as Neteller - which is based in England - already account for many online gambling transactions and are not subject to the new law.
The explosion of Texas hold 'em poker in 2003 created a booming industry both as a spectator sport and an online gambling hit. But the game is nothing new, and was first played in Las Vegas at the Golden Nugget Casino in the late 60's. In 1970 Binion's Horseshoe Casino in Las Vegas hosted the first ever World Series of Poker, and after just one year, the main event was changed to no-limit Texas hold 'em
In 2003, there were 839 entrants in the World Series main event. By 2004 that number had tripled, and in 2006, it rose still, to 8,773 entrants - many qualifying through online poker sites
The new ban on internet gambling is expected to stunt the growth of the World Series of Poker and other similar tournaments in addition to the online sites
PokerStars.com, the largest poker tournament site in the world, released a statement on their website stating, "Our business continues as before - open to players worldwide including the US. You may play on our site as you did prior to the Act." The company, based in Costa Rica, is continuing to accept money transfers just as before.
Online giant PartyPoker.com, however, has already decided to suspend all money wagers with US customers. The PartyPoker site even offers visitors the ability to contact their representative in congress on their behalf. The form message which PartyPoker has written for angry poker players begins with, "I am a voter, I am a poker player and I am mad.
The act does provide exemptions for internet wagers on horse racing, state lotteries, and fantasy sports. But Poker, according to the act, is a game of chance - something highly disputed by both players and companies alike.
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