Millions of poker players were sent into panic on Friday as the three major US poker sites, Poker Stars, Full Tilt and Absolute Poker went offline as they were targeted by FBI
Restraining orders were issued against five internet domain names and 75 bank accounts used by the online poker companies.
The founders of PokerStars, Full Tilt Poker, and Absolute Poker were indicted on charges of bank fraud, money laundering, and illegal gambling.
Online poker has been illegal in the US since 2006 following the Unlawful Internet Gambling Enforcement Act and some sites such as party poker closed down their US operations. However the majority of big sites including Poker Stars and Full Tilt continued to operate by getting players to deposit into offshore bank accounts. Poker Stars and Full Tilt have been now been charged with money laundering (amongst other things) accused of cleaning money via transactions with fake businessess (selling golf balls, flowers and jewelery.)
Currently US players are unable to play or withdraw any funds and they are extremely worried as to whether they will be able get their money back. The amounts frozen range from a few dollars to hundreds of thousands.
Famous young poker player Tom Dwann only added to the panic by speculating on his twitter that absolute poker accounts were only worth 40 cents on the dollar and Cake poker accounts were worth 70cents. Although he did later add that he felt Pokerstars and Full Tilt accounts should be safe, he is however a member of the Full Tilt Poker team.
Some players have frantically been trying to sell their accounts. Theoretically PokerStars accounts should be safe since under Isle of Man law (where they are based) players accounts are required to be held in a trust. Whether this will prove to be the case is open to debate.
The Department of Justice is seeking 3 billion dollars in fines from the major sites. The DOJ’s statement also stated that it would seize all assets from the owners of the company, so this includes the companies themselves.
The 3 billion dollar fine has worried poker players as to whether the 3 companies will be able to remain solvent, particularly when combined with a huge spate of withdrawals, similar to that of a run on a bank. All the sites involved state that player’s money is safe.
Poker Stars stated, ‘Please be assured player balances are safe. There is no cause for concern about loss of funds in your PokerStars account. For all customers outside the US it is business as usual.
The PokerStars website has been moved to www.pokerstars.eu, and the PokerStars Support email address is now support@pokerstars.eu. PokerStars apologises to all players for any inconvenience caused by this disruption.’
The situation regarding non-US players is very unclear. Many players are still able to play as well as withdraw funds although some are not.
One panicked forum member said,
I don’t get why people are even asking if it’s only going to affect US players. If you’re outside the US you can still play but you’re basically playing for play chips because tilt and stars don’t have any money to give you if you cash out.
According to @GamblingComp, all the indicted sites, around the world, will be down within 48 hours. So far this has not proven to be the case. Non-US players are currently able to play.
Full Tilt said, ‘We assure all players on Full Tilt Poker that your online playing experience will not change and that you will be able to both deposit and withdraw funds as needed. Your money remains safe, secure, and accessible at all times.’
The Poker Players Alliance stated, “On behalf of the millions of poker players across the country, we are shocked at the action taken by the U.S. Department of Justice today against online poker companies and will continue to fight for Americans’ right to participate in the game they enjoy,” said former Senator Alfonse D’Amato, chairman of the Poker Players Alliance. “Online poker is not a crime and should not be treated as such. We are currently gathering all of the information around today’s announcement and will offer detailed analysis when the full facts become available.”
Some have speculated that the recent crackdown by the US government may be about to pave the way for a government approved site. A D.C. Internet gambling law cleared Congress just a few days ago. The law allows the D.C Lottery to create online poker and other “games of chance”.
Many US States have been calling for the legalisation of online poker so that it might be used to raise additional tax revenues that might be used to help balance struggling state budgets.
http://washingtonexaminer.com/local/dc/2011/04/dc-internet-gambling-law-clears-congress