Is Legal Online Poker on President Obama's Radar? by Russ Scott on Creators.com

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Is Legal Online Poker on President Obama's Radar?

An Illinois reader — John S. of Moline — wants to know: "Is legalized online poker coming soon in the United States now that Barack Obama, who likes to play poker himself, is taking over as president?"

The answer is unclear, John.

Most online poker players in the United States probably were relieved this week when the administration that backed the Unlawful Internet Gambling Enforcement Act (UIGEA) gave way to one that might be willing to help them play.

High-ranking Republicans pushed the UIGEA through Congress with scant debate in the final moments of the 2006 congressional session. President Bush signed the bill into law about a month later.

Two years of confusion and controversy followed, but in November the president fast-tracked UIGEA rules and those for several dozen other last-minute laws as part of his administration's "midnight rule-making." He ordered the regulations to take effect Jan. 19, his last day in office.

The UIGEA takes dead aim at stopping deposits by prospective players to online gambling sites. However, the legislation was choosy. To appease certain states politically, it exempted online horse-race betting, fantasy-sports leagues and state-run lotteries, but didn't exclude poker.

Banks and payment processors, who have complained that being forced to act as the front line of UIGEA enforcement will be difficult and costly (an estimated $88 million to $100 million), must comply with the law by Dec. 1, 2009.

John, the fight between those who want to eliminate online poker and those who want the government to legalize and tax it has played out like a series of raises and re-raises at a poker table. The latest moves are significant:

— On Jan. 6, the first day of this 111th Congress, U.S. Rep. Jerrold Nadler, D-N.Y., introduced the Midnight Rule Act (H.R. 34). His bill would allow incoming Obama Cabinet secretaries 90 days to review and amend last-minute rules adopted by the Bush administration on or after Oct. 22, 2008.

This includes the UIGEA because its regulations were finalized on Nov. 12. Controversial rules on abortion and environmental issues are among dozens of other laws that also would be subject to review under H.R.

34.

The thing is, even if H.R. 34 passes, there's no guarantee the UIGEA will be reviewed or altered upon review.

— Meanwhile, President Obama's transition team last week asked for public online feedback on which issues the new president should tackle, promising to present the top vote-getting ideas to him directly. Citizens can submit an idea or vote and comment on hundreds of ideas already posted to the "Citizen's Briefing Book" section of the Website Change.gov.

Poker players were rushing to comment. The entry "Boost America's Economy With Legal Online Poker" quickly jumped to the first page of ideas ranked by popularity. By the weekend, it had received more than 1,600 supporting comments, second highest on the list.

The entry reads:

"Let online poker players in the United States play legally and without fear of prosecution. Reform the Unlawful Internet Gambling Enforcement Act to exempt poker, a game of skill, from the law. Boost the economy by letting American companies and American players make money and pay taxes instead of sending online poker businesses offshore. Protect online poker players by regulating the industry to ensure that no one is ever cheated."

Many comments were about the erosion of privacy and individual rights under the UIGEA.

— In a legal decision Friday with major positive implications for online poker, Columbia County Judge Thomas A. James Jr. in Pennsylvania ruled that Texas hold 'em is a game of skill. The decision wiped away charges against a man arrested for running a no-limit cash game in his garage that featured dealer tips but no house rake.

Citing extensive literature on winning poker strategies, the judge concluded that hold 'em "is not gambling" because "it is apparent that skill predominates over chance in Texas hold 'em poker." Thus, under Pennsylvania law, the defendant was not guilty of unlawful gambling.

John Pappas, executive director of the Poker Players Alliance, quickly cheered the ruling. He told PokerNewsDaily.com: "Clearly, the judge had an understanding of how poker is played. The decision sets an excellent bar" for future poker litigation.

We'll just have to wait and see how this all plays out.

E-mail your poker questions and comments to russ@luckydogpoker.com for use in future columns. To find out more about Russ Scott and read previous LuckyDog Poker columns, visit www.creators.com or www.luckydogpoker.com.

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