Feds Freezing Online Poker Payouts

Although gambling is illegal throughout much of the United States, online poker has exploded in popularity and managed, for the most part, to avoid government interference. Online casinos are typically operated from overseas, safe from prosecution, and can also be considered a "peer-to-peer" activity, not a transaction between a bettor and a casino.
Despite the gray poker area, the U.S. Attorney for the Southern District of New York has begun instructing financial institutions to freeze the accounts of payment processors who dole out online casino winnings. So far, those assets include $33 million owed to 27,000 players on four prominent Web sites, including PokerStars.com and FullTiltPoker.com. (They could just tax those earnings to bolster depleted government coffers, but what do we know?)
I. Nelson Rose, a law professor at Whittier Law School in California, told the New York Times the move is a "gamble on the part of the prosecutors" due to the person-to-person nature of poker. In their own words, prosecutors are basing their case on the argument that the frozen monies "constitute property involved in money laundering transactions and illegal gambling offenses," since the casinos take a fraction of the winnings.
We're not sure of the legality of online poker, or the validity of this case, but this has gotten us thinking. Could the government order the online casinos and payment processors to provide restitution (a bailout?) to the people who lost money? Hey, it's worth a shot. [From: MercuryNews.com and The New York Times]



Reader Comments (Page 1 of 1)
michael caruso said 3:41PM on 6-11-2009
The government is quite able to commit legal robbery of its citizens,as the general populous will be paying for the last 8yrs of out and out thievery by banks,brokers,appraisers,and the last President and all his thieves.Like I have said many times George W Bush the biggest Commander and Thief in the history of our nation.
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Mike said 7:09PM on 6-11-2009
Last 8 years? that is nothing compared to how much Obama is going to take and borrow this year...or even on his next bill.
I wonder if we need an online czar to watch over this... or maybe a online gambling czar as the online czar will be busy telling everyone other obama online comandments to follow.
You thought cable companies were bad with bandwith caps....wait till obama has time to find a way to make money from internet to pay for socialized health care or limit internet use to solve world energy problem.
MyKisa said 5:09AM on 6-12-2009
....thankyou mommie/daddy government
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Mikee said 3:22PM on 6-17-2009
Hey Mike, does it hurt to be as stupid as you?
Obama had to do what we he did because of the last 8 years of theft.
Pull your head out of your ass, please.
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