Status of Online Poker in the U.S.
People are free to gamble in Las Vegas and Atlantic City, but what is the situation when it comes to online poker and gambling in the U.S.? In 2005 the island nation of Antigua (which licenses several gambling sites) filed a complaint with the WTO (World Trade Organization) stating that the U.S. government was restricting online gaming. Antigua won the WTO ruling, but that was not the end of the battle. The WTO maintains that the U.S. prohibition of Antigua's services was in violation of the WTO's GATS (General Agreement on Trade and Service). The U.S., on the other hand, insisted the prohibition was for the good of the American people's health and morals. So what exactly is the legal status of playing online poker in the U.S.?
There is much confusion surrounding the legality of online casinos in the U.S. In 2006 the U.S.A. passed the UIGEA (Unlawful Internet Gambling Enforcement Act). This bill passed by legislature addressed the financial aspect of online gambling and made it illegal to move money from banks to online gambling sites. This effort was said to prevent money laundering. The passing of this law caused big online casino sites like Party Poker and Paradise Poker to close down their operations in the U.S. and move overseas.
According to federal law, online casinos are not exactly illegal in the U.S. and the legality of online gambling depends upon the law of the individual states. Where gambling is illegal as determined by the state, it is final. Those who take a risk and gamble where it is forbidden by the state are breaking the law and are not protected. Some companies are working around the UIGEA by using different means of money transaction and by operating outside of the American borders.
Legislation is ongoing within the U.S. government and as of September 2008, the Internet Skill Game Licensing and Control Act provided licensing of internet games of skill only (it was the first bill to define such games in the Senate). Supporters of online poker are hoping that this is a signal of a new dialogue to come in the future. The Poker Players Alliance is an organization that has raised $3 million to repeal the law. Where it will go from here is yet to be seen.