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Copyright © 2007 ZDNet Government
HEADLINE: Making America safe for online
poker
Body:
If you play
poker on the Internet, you already know about the squeeze
the U.S. government is putting on Internet gambling. Wired News
reports that a law passed last September, which just went into
effect, makes financial transactions between online casinos and
American banks and credit card companies illegal.
The Unlawful Internet Gambling Enforcement Act (UIGEA) has forced
Internet gambling to come to a grinding halt in the States. But,
like Prohibition in the 20’s, people have found ways to
get around the laws.
“There was mass panic when the legislation came out,”
says “Boy Wonder,” a inveterate online gambler who
asked to be identified only by his screen name because he fears
the IRS might target him. “(The Act) scared away the novice.”
There are some major gambling sites that have banned American
players, but others accept pre-paid VISA debit cards or phone
cards sold through foreign middlemen that allow Americans to pay
online casinos. Some players open offshore bank accounts, leaving
some to wonder if the law is useful.
“You’ve created a whole criminal culture,”
says former New York Sen. Al D’Amato, who is the chairman
of the Poker Player’s Alliance, a 500,000-member grassroots
group of poker enthusiasts working to overturn last year’s
law. Instead of controlling and licensing the industry, D’Amato
believes, UIGEA has only created the conditions for shady operators
to flourish outside the reach of law. “Just like Prohibition,”
he says.
There is concern among some members of Congress that the UIGEA
gives the government too much control over the personal liberties
of citizens in a digital age.
In response to this law, Rep. Barney Frank (D-Mass.) has recently
introduced a bill that would re-legalize
online poker and gambling and regulate the industry. Frank’s
proposal could save face for the U.S., as the UIGEA come under
criticism from the international community.
The World Trade Organization ruled that America’s online
gambling ban has unfairly closed U.S. markets to offshore casinos.
The WTO said that the U.S. allows online betting on horse racing,
which has an exemption from UIGEA. The ruling by the WTO paves
the way for future lawsuits. Stay tuned.
Bodog
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