Has the UIGEA Affected You?
The initial purpose of the Unlawful Internet Gambling Enforcement Act (UIGEA) was to restrain the ability of Americans from playing poker online. In order to hinder US online poker play, the act forbids financial institutions, such as banks, from allowing money transfers that are for the purpose of illegal online gambling. The act instructs these institutions to block any such transfers of funds.
The act worked with sites like PartyPoker.com, one of the largest online poker sites. This site, almost overnight, banned US players, which accounted for 80-90% of their revenue. They were obviously scared by the UIGEA, but have managed to stay afloat as online and live poker have been forced outside of the US and have taken stake all over the world.
The reason these sites decided to drop US players almost immediately was because they are publicly-traded companies or utilize software from companies that are traded publicly. These companies had a responsibility to their shareholders to no act illegally, even though their shares dropped by 50+% after the bill was passed.
It seems a shame that the new glory of poker, both live and online, was cut short by the UIGEA, but poker isn’t dead yet. There are people fighting the bill (pokerplayersalliance.org) and the last online hand has not been played on US cyber soil.
One loophole in the UIGEA is that the bill does not make it illegal for players to exchange money (send or receive) from online poker websites. What it does make illegal is for a person involved in the business of betting to accept funds to be used for the purpose of illegal internet gambling.
Online poker sites, like CakePoker.com, weren’t scared by the UIGEA and never turned their backs on US players. CakePoker.com calls itself a “global poker room” that welcomes US players. Other sites like Poker Stars, Players Only Poker, Full Tilt Poker, and Bet US are swimming with US players. It’s a little harder to deposit money into your bankroll and a lot harder to cash out funds, but hardcore US poker players are not scared.
The law doesn’t make it illegal for US players to play, but holds the poker site liable. The player is however, privy to the local state and tribal laws where he is located. The sites that allow US players give the responsibility to the player to find out whether or not they are within legal limits. Most players already know this but simply just don’t care. They have jobs, they make money, if they want to play poker with that money, they feel they have a right to. They have the right to spend it on tobacco and alcohol, or even go bowling, so why can’t they participate in a hobby/sport that they enjoy?
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NichePoker.net recommends playing poker at FullTilt Poker.