not me peter loshak good article in poker articles with interveiws
On that day the U.S. Department of Justice seized the web domains and shut down the domestic operations of the three biggest online poker sites that were serving U.S. customers at the time – PokersStars, Full Tilt Poker, and Absolute Poker. The D.O.J. unsealed indictments which included both criminal and civil charges, and froze dozens of bank accounts associated with the sites. But as with many things related to the legalities of online gambling, the reality of what exactly did and didn’t happen and why, and the ramifications of it all, are a bit unclear.
What exactally happened?
Eleven people were named in the indictment, and the charges have primarily to do with bank fraud and money laundering, focusing on various activities of the three sites that facilitated payment processing from U.S. citizens after the passing of the controversial 2006 UIGEA Act.
The timing of the indictments and seizures did raise some eyebrows in internet poker circles as well as the general gambling world. The momentum regarding the legality of online gambling in the U.S., and specifically online poker, had recently begun to swing in favor of legalization, and this was particularly true in certain states.
Washington D.C. itself, ironically, had just recently legalized online poker within the confines of its district. And Wynn Resorts, which had retained state lobbyists in Nevada to work on the issue of online poker, had only a few weeks earlier announced an intended partnership with PokerStars. That partnership was hastily cancelled on news of the indictments.
What does this mean?
What’s on the immediate horizon at this point is not entirely clear. The Prohibition-like efforts of the DOJ has left a vacuum where a strong demand for internet poker still exists. There will, of course, be natural market pressure to fill the vacuum very quickly, and a number of smaller untouched online poker operators are still operational and taking U.S. players. These sites do have, at least temporarily, the opportunity to expand in the U.S. market as much as they dare to with little to no competition.
Some have speculated that lobbying by parties that would stand to gain long-term from a shutdown of the three big sites had influence in how and when everything went down.
The charges
One issue central to the indictments - and likely a critical misjudgment by the sites that were shut down - was their decision to actually invest in a small U.S.-based bank, to use for payment processing. The sites bought 30% of a bank in the state of Utah, and executed payment processing through that bank. An executive from the bank is one of people charged with money laundering in the indictment. Regardless of any arguments that can be made regarding the UIGEA and the former, current or future legal status of online poker in the U.S., the money laundering charges as a result of those banking activities are pretty clear cut.
Greatly enhancing the FBI’s ability to nail the targeted sites was the involvement of 28-year-old Australian Daniel Tzvetkoff, who reportedly processed over $500 million for various poker sites over a 2-year period. Mr. Tzvetkoff is rumored to have begun embezzling funds from the sites he was working with, which led them to turn him in to U.S. authorities, perhaps an ultimately ill-advised move by the poker sites for the long-term. Mr. Tzvetkoff began providing the investigators with a wealth of essential insight and information that allowed the FBI to prepare a thorough and relatively “easy” case against the three poker sites.
What does this mean for Online Poker?
In the end, the momentum towards legalization for online poker lumbers on, and most people in the online gambling world believe that relatively soon online poker will be legalized, taxed and regulated in the U.S., at least on the state level in various jurisdictions. Land-based casinos, existing compliant overseas poker sites, and possibly even other large mainstream business entities in the U.S. may try to get a piece of whatever pies become legitimately available.
As for the fate of the 11 named in the indictment, however, 8 are not presently in the U.S., and they have likely already disappeared to locales without extradition treaties with the U.S. They may permanently escape criminal charges, as long as they are careful to never accidentally set foot in the U.S. or any other jurisdiction with an extradition treaty.
The U.S. government will likely wind up with some money from the seized accounts, although far less than the $3 billion it is seeking from the poker sites in the civil suits. The DOJ recently released a statement indicating all player funds on deposit by U.S. citizens will be fully returned as soon as possible.
U.S. poker players now have the option to wait for legalization in the U.S., move out of the U.S., play at brick and mortar casinos with card rooms, or take a shot with playing at the lesser sites that are still operational in the U.S. But one thing that is clear is that the U.S. government has no interest in taking any action whatsoever against individual U.S. poker players, only against businesses they see as in violation of U.S. law.
On that day the U.S. Department of Justice seized the web domains and shut down the domestic operations of the three biggest online poker sites that were serving U.S. customers at the time – PokersStars, Full Tilt Poker, and Absolute Poker. The D.O.J. unsealed indictments which included both criminal and civil charges, and froze dozens of bank accounts associated with the sites. But as with many things related to the legalities of online gambling, the reality of what exactly did and didn’t happen and why, and the ramifications of it all, are a bit unclear.
What exactally happened?
Eleven people were named in the indictment, and the charges have primarily to do with bank fraud and money laundering, focusing on various activities of the three sites that facilitated payment processing from U.S. citizens after the passing of the controversial 2006 UIGEA Act.
The timing of the indictments and seizures did raise some eyebrows in internet poker circles as well as the general gambling world. The momentum regarding the legality of online gambling in the U.S., and specifically online poker, had recently begun to swing in favor of legalization, and this was particularly true in certain states.
Washington D.C. itself, ironically, had just recently legalized online poker within the confines of its district. And Wynn Resorts, which had retained state lobbyists in Nevada to work on the issue of online poker, had only a few weeks earlier announced an intended partnership with PokerStars. That partnership was hastily cancelled on news of the indictments.
What does this mean?
What’s on the immediate horizon at this point is not entirely clear. The Prohibition-like efforts of the DOJ has left a vacuum where a strong demand for internet poker still exists. There will, of course, be natural market pressure to fill the vacuum very quickly, and a number of smaller untouched online poker operators are still operational and taking U.S. players. These sites do have, at least temporarily, the opportunity to expand in the U.S. market as much as they dare to with little to no competition.
Some have speculated that lobbying by parties that would stand to gain long-term from a shutdown of the three big sites had influence in how and when everything went down.
The charges
One issue central to the indictments - and likely a critical misjudgment by the sites that were shut down - was their decision to actually invest in a small U.S.-based bank, to use for payment processing. The sites bought 30% of a bank in the state of Utah, and executed payment processing through that bank. An executive from the bank is one of people charged with money laundering in the indictment. Regardless of any arguments that can be made regarding the UIGEA and the former, current or future legal status of online poker in the U.S., the money laundering charges as a result of those banking activities are pretty clear cut.
Greatly enhancing the FBI’s ability to nail the targeted sites was the involvement of 28-year-old Australian Daniel Tzvetkoff, who reportedly processed over $500 million for various poker sites over a 2-year period. Mr. Tzvetkoff is rumored to have begun embezzling funds from the sites he was working with, which led them to turn him in to U.S. authorities, perhaps an ultimately ill-advised move by the poker sites for the long-term. Mr. Tzvetkoff began providing the investigators with a wealth of essential insight and information that allowed the FBI to prepare a thorough and relatively “easy” case against the three poker sites.
What does this mean for Online Poker?
In the end, the momentum towards legalization for online poker lumbers on, and most people in the online gambling world believe that relatively soon online poker will be legalized, taxed and regulated in the U.S., at least on the state level in various jurisdictions. Land-based casinos, existing compliant overseas poker sites, and possibly even other large mainstream business entities in the U.S. may try to get a piece of whatever pies become legitimately available.
As for the fate of the 11 named in the indictment, however, 8 are not presently in the U.S., and they have likely already disappeared to locales without extradition treaties with the U.S. They may permanently escape criminal charges, as long as they are careful to never accidentally set foot in the U.S. or any other jurisdiction with an extradition treaty.
The U.S. government will likely wind up with some money from the seized accounts, although far less than the $3 billion it is seeking from the poker sites in the civil suits. The DOJ recently released a statement indicating all player funds on deposit by U.S. citizens will be fully returned as soon as possible.
U.S. poker players now have the option to wait for legalization in the U.S., move out of the U.S., play at brick and mortar casinos with card rooms, or take a shot with playing at the lesser sites that are still operational in the U.S. But one thing that is clear is that the U.S. government has no interest in taking any action whatsoever against individual U.S. poker players, only against businesses they see as in violation of U.S. law.
good stuff, thanks.
philly get a goalie
blew it late
add in mma and boxing 
I like the kid froma dealer in the clink to being a champ
not final stats yet
