Legality - Pokertown.org

Welcome to the ‘legality’ portion of our Online Poker section. The following pages and information represent in no way a definitive or comprehensive analysis of the subject, but provide instead a useful and introductory overview of the main topics, issues, and concerns regarding the legality of online poker. The links below will take you to separate pages which focus on the legal issues concerning online poker in the EU and the US. Each region’s laws are not only different but can at times, especially in the case of the US, be relatively unclear. As a citizen of either region and/or a potential or current online poker player, it’s important to understand and be aware of what laws may or may not exist that could affect you the player! Generally speaking, there hasn’t been any specific legislation made in the US or the EU which regards participation in an online poker game as illegal. In fact, the issue really comes down to how online poker is classified – the US government, those of its States, as well as the EU and its member countries have laws prohibiting certain forms of online gambling but more often than not, participation in online poker falls outside of these categories. Below you will find important information dealing with the laws and regulations that have been passed, proposed, or interpreted which concern online poker in different jurisdictions. As we’ve already said, the following information should neither be regarded as definitive nor as representing any form of formal legal advice. Enjoy it for what it’s worth and we hope you find what follows to be helpful!

Disclaimer: Play-online-poker-now.info is not a legal authority. In no way should the information presented here be regarded as formal legal advice. All of the information given on these pages has been taken from several assorted news releases and articles and its accuracy is not guaranteed. For more accurate and formal information considering the legality of online poker, consult the specific laws of the area in which you reside or jurisdiction in which you are playing.

Online Poker & EU law

Playing online poker in the EU is generally accepted as legal for all citizens residing in European Union countries. In fact, poker is becoming increasingly popular across Europe with new poker clubs being frequently established in Scandinavian countries and Germany, Austria, France and Ireland. In Eastern European countries as well, poker is finding an ever-growing base of fans and support. In terms of online poker, however, the UK still accounts for around 80% of the market but the popularity of such games is increasing across the continent. While no laws are currently in place at the EU level which prohibit or deal with online poker specifically, there have been recent arguments and discussions concerning previous directives by the European Court of Justice regarding the prohibition of foreign (EU-based) betting services. These laws and regulations, however, do not specifically deal with online poker, and as its popularity increases most people believe that even the majority of these old barriers will slowly disappear.

Similar to the situation in the US where different states have different laws, countries in the EU also employ different rules and regulations affecting their respective citizens. Most of the laws, however, do not prohibit citizens from taking part in online poker games but instead, regulate which types of games are accepted. In the UK, for example, online gambling and thus, online poker, is explicitly legalized and recent legislation has been introduced to encourage companies to designate the UK as a base for their operations. In the Netherlands, online poker is legal as well and citizens are allowed to take part in offshore games. However, providing an example of the different laws made in different EU countries, the Dutch Gaming Act does not allow citizens to participate in games led by an operator without a Dutch gaming license. Nevertheless, aside from examples such as this, most European countries in general permit citizens to take part in online poker games so long as the games originate or are led by companies operating in areas or countries where such sites and practices are legal. The lack of specific legislation in the EU and its member-states regarding online poker and the relatively little attention given to the issue by policy-makers make it difficult to establish a common rule or observation regarding the legality of online poker in this region. As said before, generally speaking participating in online poker games in the EU is legal for citizens but no guarantees about its legality can be made and Play-online-poker-now.info strongly suggests you examine the laws and regulations of the country and province in which you reside before playing.

Online Poker & US law

Laws in the US regarding online gambling, and in our case, online poker, are very unclear. There is little agreement as to which laws already in place even apply to online poker and whether or not online poker even constitutes the type of gambling some federal and state laws do indeed prohibit. Furthermore, Professor I. Nelson Rose, the oft-quoted ‘expert’ on the legal issues surrounding internet gambling goes so far as to say that “no United States federal statute or regulation explicitly prohibits Internet gambling, either domestically or abroad.” There are, however, some federal laws which many people interpret as applying to online poker and there exists as well different State laws on the subject which can affect citizens attempting to play in those regions.

The Federal Wire Act of 1961 (18 U.S.C. § 1084) is the most often cited federal statute which could possibly be said to deal with online poker. Laws exist in certain states as well, such as California, Massachusetts, South Dakota, and Utah, which prohibit several forms of gambling. In all of the cases and especially those concerning State law(s), determining whether or not the law(s) apply to online poker depends on how the game is classified. Many people argue, quite convincingly, that online poker, unlike several of its illegal counterparts, is a game of skill rather than chance and thus, does not fall under the category of prohibited activities. The Federal Wire Act that so many people point to as covering online gambling only specifically mentions and prohibits ‘sports betting’. On top of that, the legislation is targeted more at the organizers of gambling activities and was designed initially with the intent of combating organized crime. In fact, in the only case in which the legality of online poker was challenged under the Wire Act, the presiding judge ruled that, indeed, the Act applied only to ‘sports betting’ and his dismissal of the lawsuit was upheld by the Fifth U.S. Circuit Court of Appeals in 2002. In terms of the State level, laws exist in several states which prohibit certain types of gambling but the question, once again, of the legality of online poker depends on whether the activity is judged to fit into this category of illegal behaviour or whether such laws apply to citizens playing in games originating outside of the jurisdiction where it may be illegal.

Even though the legality of online poker in the US remains relatively unclear for the moment and depends upon several factors including interpretation, jurisdiction, state law, etc.. Americans still account for more than half of all the activity occurring in online poker rooms throughout the world. Furthermore, no American has thus far ever been charged, brought to trial, convicted or sentenced for participating in an online poker game. As we’ve said, most US laws aimed at gambling were designed to target organized crime and the operators of gambling schemes and activities. In other words, a regular player, even playing in an illegal game, would find it very difficult, if not impossible, to get in trouble with the government unless he/she were to do something that directly helped the business. Other evidence illustrating the difficulty of satisfactorily answering the question of online poker legality in the States comes from the recent WTO ruling (April 2005) that upheld the conclusions from a previous case in which it ruled that US legislation prohibiting online betting violated international laws. Some states as well, such as North Dakota, have even tried to pass legislation which would explicitly legalize online poker in the region and encourage operators to relocate to the state. While such legislation didn’t pass, neither has other federal legislation which has been aimed at prohibiting online gambling. So, for the moment, as has been the case in the US, there is no specific federal law prohibiting online poker and even many state laws are very unclear, open to interpretation, and/or have made no reference to the legality of online poker one way or another. Play-online-poker-now.info highly recommends that in any case you check with the local laws in your state or region to be sure of that jurisdiction’s policies before you enjoy playing online poker.