Sunday, June 14, 2009

Poker & Pay-Go: An "All In" Bet

I’m a degenerate! At least, that’s what they tell me.

Why am I a degenerate? I’m a degenerate because I like to play games. Not just any games…but one particular game. A game that is as American as apple pie and cowboys. I’m a poker player. I’m one of an estimated 15 million Americans who regularly play poker online.

People who don’t play will tell you that poker is game of luck played in smoke-filled rooms by old men who curse as they lose their life savings on the turn of a bad card. People who don’t play will tell you tales of children who steal their parent’s credit card to run up enormous charges that cost them the family home. People who don’t play will tell you that it’s a sin to gamble because soldiers threw dice during the Crucifixion. (And any poker player will tell you that it’s one thing to figure odds on making a flush….but only crazy people bet dice!)

But the people I play with on line will tell you other stories. They will tell you how they work in remote locations and online poker is how they relax in the middle of nowhere. They will tell you that they are disabled vets from Iraq & Afghanistan and this is a sport they can still play like a man. They will tell you they live on a fixed income and the lower stakes tables available online (some as low as $0.01/$0.05) are affordable where a live casino is not. They will tell you they are college math majors who buy their books off of their winnings. They will tell you that if I am a degenerate for playing poker….there’s currently 35,980 fellow degenerates online with me on my favorite site as I type this!

There is a difference between games of chance and games of skill. When you walk into a casino you have many opportunities to try your luck. Slot machines, roulette, craps tables and even Blackjack are games that are played against the house. These house games have certain rules that can affect the outcome of the wager. Like the dealer stands on 17 in Blackjack or the slot machine is designed to pay out a certain percentage of the time. Poker is unique in that it is played against other players…not the house. You can win with a bad hand by betting large amounts at a player you know is too scared to call you. You can control your destiny on a poker table with a few good “reads” on your fellow players and rudimentary math knowledge. Because that’s what poker is all about…math and people. As the saying goes, “Play the people, not the cards!”

But in 2006, George Bush signed into law the Unlawful Internet Gaming Enforcement Act (UIGEA) which the government insists prohibits my rights to play a game online that all participants entered willingly into.

The UIGEA was attached to the Safe Ports Act to satisfy the conservative religious base of the GOP. Its’ passage was justified because prohibition of internet gambling would keep minors from playing, prevent problem gamblers from gambling and poker sites could not be used to launder terrorist money! (Seriously that’s what it’s supposed to do!)

So let’s examine these claims of the benefits of prohibition. (Remember prohibition has such a wonderful track record of success in America.) Even with the passage of UIGEA, the U.S. still represents the largest percentage of Internet poker players world wide. And since the UIGEA offers no enforcement on mandatory age limits or limits players with gambling addictions, its’ usefulness is highly questionable. Its’ success relies on keeping people from participating. (Good luck with that!) Even Department of Justice attorneys will admit that the law they are trying to enforce is so poorly written that it creates more problems than it solves. For instance, while it differentiates between games of “skill” and games of “chance”, it doesn’t define either term. The lack of definition leaves poker in a legal limbo. But the religious right wants to make sure that I (and millions of Americans like myself) follow their personal religious beliefs in lockstep! And they don’t believe in Poker!

Now the only real issue that should be of concern to Americans as a whole (as opposed to issues of concern to those of us who actually play poker) is the aspect of money laundering for terrorists. This was actually what got the UIGEA passed originally. What politician up for re-election wants to vote against a law that keeps terrorists from getting funding? It never matters during a heated election that the law was a bad law, what matters is you are on the record as supporting Muslim terrorists if you vote against UIGEA. But again, success depends upon people not playing poker online….and millions do every day! (Sadly, the poker sites themselves can easily monitor games for discrepancies that would indicate money laundering, but UIGEA doesn’t require them to do that.)


During his confirmation hearing, Attorney General Holder was asked if he would enforce the UIGEA. His reply was that he would because it was the law of the land. And last week, the Justice Department seized an estimated $34-36 million dollars in online poker payouts.

Now I’m not complaining about that. It was to be expected. A court battle will help clear up the issue. Poker sites have replaced the money in the accounts of the recipients and alternate ways to distribute winnings will be made available. But this does bring to light one very important aspect of online poker that could have an impact on ALL Americans. That $36 million dollars was only one week of payouts. It is estimated that over $16 billion dollars is held in the accounts of online poker sites. That’s a lot of money being taxed overseas and not here at home. In fact, it is estimated that over $3 billion dollars a year in tax revenues could be gained by legalizing online poker. (And that’s a conservative estimate!) With our country running record deficits, it only seems prudent to make use of this additional source of federal and state revenue.

Currently there is legislation pending in the House that would establish clear guidelines for internet poker. The Internet Gambling Regulation Consumer Protection and Enforcement Act of 2009 (H.R. 2267) would:
“establish a federal regulatory and enforcement framework under which Internet gambling operators could obtain licenses authorizing them to accept bets and wagers from individuals in the U.S., on the condition that they maintain effective protections against underage gambling, compulsive gambling, money laundering and fraud, and enforce prohibitions or restrictions on types of gambling prohibited by states, and Indian Tribes.”


Basically, this proposed law would not only provide protection to internet gamblers, it would also tax and regulate the industry providing much needed revenue for the Obama administrations many new programs. With the current push to “pay as you go” on all new programs, legalizing poker could be a definite win/win for all concerned.

So even if you are not a poker player, pick your favorite proposed program requiring funding. Then call your Congressman and tell them that you want your favorite program funded with poker money. All they need to do is to support H.R. 2267!

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