FBI Shuts down Online Poker

[Matt1970]

Well some of them anyways.

Since last Friday, the biggest poker room in the world, PokerStars has been reeling after having to pull out of the US market.

Along with Full Tilt and Absolute/UB Poker, PokerStars now stands accused of charges relating to bank fraud, illegal gambling and money laundering.

Focussing on the situation at PokerStars, the FBI seized the company’s domain name and have issued arrest warrants for PokerStars founder Isai Scheinberg and director Paul Tate.

Preet Bharara, United States Attorney for the Southern District of New York, along with Janice Fedarcyk, Assistant-Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation, unsealed an indictment charging the founders and payment processors of the above poker sites with a variety of offenses.

I play some here and there but this is sure to effect a lot of professional gambles right in the wallets.

 

[PokerGuy]

This seems like another misguided attempt to reign in gambling when we all know it won't stop anything. I prefer real world playing anyway, never been a big fan of the online stuff, too many ways to get cheated.....

 

[dmcowen674]

I am so glad I turned them down. I was offered a lot of money to have them on my website.

 

[spidey07]

And yet I can gamble on horses across state lines and on the internet. Hell I can even call in bets over the phone. There is simply no reason why we can't have online wagering/gambling. Because we already do have it with horse racing. This is nothing more than the federal government picking winners and losers again, sticking their nose where it doesn't belong.

 

[xj0hnx]

And yet I can gamble on horses across state lines and on the internet. Hell I can even call in bets over the phone. There is simply no reason why we can't have online wagering/gambling. Because we already do have it with horse racing. This is nothing more than the federal government picking winners and losers again, sticking their nose where it doesn't belong.

Seems as though you missed the gist of the article ...

Along with Full Tilt and Absolute/UB Poker, PokerStars now stands accused of charges relating to bank fraud, illegal gambling and money laundering.

They aren't stopping online gambling, they are stopping criminals.

 

[Schadenfroh]

The ban on online gambling is a win for the land-based Casino lobby and politicians that falsely believe you cannot tax online gambling as well as land-based casinos.

But, from what I have read, the people they shutdown were pretty shady.

 

[IceBergSLiM]

Sucks for the tens of thousands of people making their living with online poker. Add them to the unemployment foodstamp crew.

 

[brandonbull]

The ban on online gambling is a win for the land-based Casino lobby and politicians that falsely believe you cannot tax online gambling as well as land-based casinos.

But, from what I have read, the people they shutdown were pretty shady.

But you can still Etrade yourself silly and they call the online poker sites shady.

 

[PokerGuy]

Seems as though you missed the gist of the article ...

They aren't stopping online gambling, they are stopping criminals.

That's circular logic. They are criminals because online poker was made illegal. Their activities did not become criminal until the government as usual tried to pick winners and losers in the marketplace and the casino lobby got their legislation. Of course, it's all pointless since it won't stop anything anyway.

 

[fskimospy]

That's circular logic. They are criminals because online poker was made illegal. Their activities did not become criminal until the government as usual tried to pick winners and losers in the marketplace and the casino lobby got their legislation. Of course, it's all pointless since it won't stop anything anyway.

I'm pretty sure bank fraud and money laundering are crimes regardless of whether or not online poker is legal.

That being said, I hate these stupid vice laws that we still have on the books. If you want to gamble, you should be able to gamble.

 

[xj0hnx]

That's circular logic. They are criminals because online poker was made illegal. Their activities did not become criminal until the government as usual tried to pick winners and losers in the marketplace and the casino lobby got their legislation. Of course, it's all pointless since it won't stop anything anyway.

It's not circular, they didn't shut them down because they were gambling, they shut them down because they are under investigation for criminal activity. According to the article it doesn't have anything to do with them trying to stop people from gambling online.

 

[spidey07]

It's not circular, they didn't shut them down because they were gambling, they shut them down because they are under investigation for criminal activity. According to the article it doesn't have anything to do with them trying to stop people from gambling online.

They would have to do some tricky banking to do online gaming. If gaming online weren't outlawed they could run a legitimate business like the horse racing industry does today with TVG, xpressbet and twinspires.com in the US. Oh, and all your wager history, profit/loss is kept and W2Gs generated and sent to the IRS, just like it could/would be for poker or other gaming.

Not that I'm excusing the charges or behavior, but they wouldn't have to do that except for the federal government making online gaming illegal.

 

[crownjules]

I'm pretty sure bank fraud and money laundering are crimes regardless of whether or not online poker is legal.

That being said, I hate these stupid vice laws that we still have on the books. If you want to gamble, you should be able to gamble.

He's saying they resorted to fraud because the US passed laws making it illegal for banks and CC companies to accept or send payments to online gambling sites/companies. If the laws weren't passed, there'd be no wrong doing here. Obviously they circumvented law and should be punished.

But it's much like the MJ debate: why is it illegal in the first place? Why do we need government spending time and money on this? It's both another example of the nanny state and an industry successfully lobbying to get a law enacted the directly benefits it and only it.

 

[PokerGuy]

It's not circular, they didn't shut them down because they were gambling, they shut them down because they are under investigation for criminal activity.

... and the only reason what they were doing was considered "criminal activity" is because it was money from the poker / gambling sites. Circular reference.

They went after the 4 or 5 biggest poker sites at the same time, so the argument that they were just going after criminals is ridiculous. They clearly intended to specifically go after online poker.

 

[Fear No Evil]

I wonder how many millions dmcowen turned down not to take their advertising on his site.. LOL.

 

[jackstar7]

That's circular logic. They are criminals because online poker was made illegal. Their activities did not become criminal until the government as usual tried to pick winners and losers in the marketplace and the casino lobby got their legislation. Of course, it's all pointless since it won't stop anything anyway.

Bank Fraud and Money Laundering were a-okay before this?

You sure about that?

 

[CPA]

I am so glad I turned them down. I was offered a lot of money to have them on my website.

Sure you did.

 

[The-Noid]

Sure you did.

Apparently internet poker players and conspiracy theorists go hand in hand.

 

[xj0hnx]

... and the only reason what they were doing was considered "criminal activity" is because it was money from the poker / gambling sites. Circular reference.

They went after the 4 or 5 biggest poker sites at the same time, so the argument that they were just going after criminals is ridiculous. They clearly intended to specifically go after online poker.

Is it? Or are they targeting online those online gambling sites because they are money laundering, and committing bank fraud? Seems to me that would be a great racket to funnel millions through, nothing but electronic transactions, and accounts. If you were going to be laundering money from your "illegal" online gambling site, seems it'd be pretty stupid to do it ...through your online gambling site.

 

[PokerGuy]

Bank Fraud and Money Laundering were a-okay before this?

You sure about that?

Prior to the law updates in 2006, their activity was no different than any other company. Then, when the law changed to make online poker illegal, the same activity that was previously OK was all of a sudden made "money laundering". At least that's my understanding. If that's not correct, someone provide a clearer view.

 

[VirtualLarry]

This is nothing more than the federal government picking winners and losers again, sticking their nose where it doesn't belong.

Amen! There a youtube video, of this young guy, that has made over 2Mil dollars playing online poker. He does it for a job, literally. He's buying his own house. Now he's going to be out of a job. Great work federal gov't, putting people out of work. It's almost like that's what they want, everyone to be on welfare, rather than using their own unique talents to make money how they can (and want).

 

[Infohawk]

Like all other vices, this should be allowed and taxed heavily.

 

[senseamp]

Sounds like FBI is acting as a rent-a-cop for Vegas casinos, except it's the taxpayers paying the rent.

 

[Capt Caveman]

Like all other vices, this should be allowed and taxed heavily.

I agree. Before the transferring of money became illegal, I played online and paid taxes on profits I transferred back to my US bank accounts annually.

 

[GuitarDaddy]

I personally don't believe in legeslating morality and therefore don't agree with gambling, prostitution or drug laws. But that doesn't change the fact that except for in a couple of states these have been deemed illegal for a long, long time.

Anyone who believes that online gambling was just made illegal in 2006 is either seriously uninformed or just being dishonest to support their position. These companies have openly and flagrantly subverted the laws for a long time, and because until now the government has choosen not to pursue them doesn't mean what they have been doing isn't illegal.

Don't blame the evil government for enforcing laws on the books, change the laws. Vote out all the bible bangin prudes that want to control your sexuality, habits and consumption.


And I find it quite hilarious that the majority of the posters in here bemoaning the loss of your right to gamble online are the same liberul hattin GOP lovin folks that continue to vote for the two faced bible bangers that support these puritanical laws.