What will poker crackdown mean for online sports betting?

Online gaming companies with U.S. customers, including offshore sportsbooks, are paying close attention to the federal crackdown on major poker sites announced Friday.

"Any U.S.-facing online gaming or betting enterprise is watching this with great interest," Toronto-based gaming attorney Stuart Hoegner told Covers.com late Friday afternoon.

He said it was too soon to gauge the effect on sports wagering.

However, many U.S. residents fund their online poker and sports betting accounts the same way.

Banking transactions are at the heart of the indictments handed down. The government alleges the poker firms used fraudulent methods to circumvent the 2006 Unlawful Internet Gambling Enforcement Act, tricking financial institutions into processing payments on their behalf.

The U.S. attorney for the southern district of New York indicted 11 people associated with PokerStars, Full Tilt Poker and Absolute Poker, the three largest online poker companies operating in the United States.

Charges include bank fraud, money laundering and illegal gambling.

"These defendants, knowing full well that their business with US customers and US banks was illegal, tried to stack the deck," FBI assistant director Janice Fedarcyk said in a statement. "They lied to banks about the true nature of their business. Then, some of the defendants found banks willing to flout the law for a fee.

"The defendants bet the house they could continue their scheme, and they lost."

Hoegner told Covers.com the indictments detail specific mechanisms used by the poker companies "to fund their sites and carry on their business, and I don't know if those same mechanisms were in place" at offshore sportsbooks.

"That said, if they were in place, there's nothing conceptually that would bar sportsbooks from being caught up in the same thing."

In addition to the indictments, authorities issued restraining orders against 76 bank accounts in 14 countries used by the firms and their payment processors.

Former U.S. Sen. Alfonse D’Amato, chairman of the Poker Players Alliance (PPA), the leading poker grassroots advocacy group with more than one million members nationwide, had this reaction to the federal action taken Friday:

“On behalf of the millions of poker players across the country, we are shocked at the action taken by the U.S. Department of Justice today against online poker companies and will continue to fight for Americans’ right to participate in the game they enjoy. Online poker is not a crime and should not be treated as such. We are currently gathering all of the information around today’s announcement and will offer detailed analysis when the full facts become available.”

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Posted by TiltRepeater
2 years ago

"The defendants bet the house they could continue their scheme, and they lost." Just like every movie where some thoughtless, square cop make some lame-ass use of the defendant's slang as they press their head against the ground... FBI WHY DON'T U INVESTIGATE CORPORATIONS THAT VIOLATE HUMAN RIGHTS WORLDWIDE??
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Posted by showtime9
2 years ago

nice job madmax great threads....AND FUCKIN AMERICA IS GREAT......OUR GOVERMENT IS CORRUPT AND CANADA IS OUR BITCH ...THE ONLY THING I LIKE ABOUT CANADA IS THERE WEED.....AMREICAN AND PROUD OF IT.....PUNK ASS CANADAINS....
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Posted by jerseyjohnny77
3 years ago

hope you freeze your smug ass off!!
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Posted by RissyGold
3 years ago

I'm not sayin;, I'm just sayin'... The government pulls this shit...but the following list goes on... We can't find Asshole Bin Laden Underage porno is out of control over the internet (shut down those payment porcessors too) Housing market and job markets are still spiriling downward Our troops are at risk in too many Countries that does give a shit about their own lives The public school system is in dire need of help across the US Our government says I can't play a $5 SnG once a night becasue I am funding terriorism, really?? Excuse me, but the TRILLIONS wasted by the government ($700 hammers, uber-inflated contrcts for services to "friends" of officials, the government getting paid if it would have shutdown last week...) is more of joke that ever before. Not because of Obama, but becasue our government is so corrupt no one know where to start to de-corrupt it. Oh, and where is the WTO (World Trade Organization) on all this...I mean the US still ISN'T compliment with any of those ruling...may those weasles will come out of their hole and help... Covers had a great following...how about a list of all the things that government should address before targeting on-line gambling as a major concern for the government... keep it legit so we can be taken seriously (yeah, I know its posting board - but you never know who is reading it)
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Posted by madulamaximus
3 years ago

exactly.....you are proof that people are more informed and connected than they fathom. Their speeches now seems to only rally the retarded and the media has no credibility with anybody that is able to log on and do their own research on any topic. Internet is becoming the silent killer of propaganda.........rissygold.....ive read your write up completly......and i share your opinion of current state of affairs,.....madmax
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Posted by madulamaximus
3 years ago

Ive said.....when the patriot act came into effect that circumvented constitional privacy and protection laws. Thats the fallout from the terrorism threats Bush was spookin Americans with and sellin the Patriotic bullshit to the uninformed public............all the while hauling money by the tons out of foriegn countries destroying all american communities with bogus bundled mortgages and need I mention that China got ripped off with the phony paper ............now they workin on nueclear missle projects and daring a depleted and cash strapped ground force to even attempt to play that... weapons of mass destruction crap with them. And it is all our tech corporation feedin them MORE money by cuttin out our own people by out sourcing tech labor. Perfect example how greed leading to self destruction. Yeah they frontline the white females and they get 50-100 million bonuses.....by laying off 1000s saving the company billions and if they get 5% of what they save the company.....their commission @5% comes up to 100million+......Right now individuals are getting rich at the cost and demise of the masses. Which means big corporations are sellin their soul and selling out America. The feds and Vegas and broke ass Reno are relics of the true creative minded gangsters that started it all .......like Bugsy Segal inventing a gambling oasis in the desert which is now Las Vegas. The beneficiaries of his life work have not caught up with the times. They rather be in cahoots with the Feds to crack down on the internet gaming when they should innovate and expand their operation beyond those over priced rooms and ripoff slots. Dont hate .....participate.........you catch more flys with honey......the time you spend hatin .......is time better utilized if that time is spent ....makin money.......madmax
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Posted by Super_Dave
3 years ago

It;s good to be Canadian. Sorry Yankees.
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Posted by jerseyjohnny77
3 years ago

don't be smug--jerkoff!
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Posted by madulamaximus
3 years ago

Cool, enjoy your knock off version of the NFL...and all other American sports.....that CANT be duplicated. Yall workin with all the scrubs and cast offs that cant cut it in AMERICA!!!!!!!!!!!you gets NO APPLE PIE!!!....FUCK YOU!!!!....Only family can bash family.....if we choose to....we will invade your country and make a fuckin withdrawl and zero out your entire fucking BANKING INDUSTRY....THEN!!!give your leader a fair trial....and....EXECUTE YOUR FUCKIN PRESIDENT ON WHATEVER FUCK WE CAN THINK OF!!!......AMERICA IS CANADAS FUCKIN BODYGAURD.....I DISAGREE WITH ALOT OF SHIT WITH MY GOVERNMENT.......BUT I AM LOYAL TO MY FUCKING SOIL!!!!!!!...........MADMAX ON SOME PATRIOTIC.....NON IDIOTIC SHIT!!!!!............AMERICA FO LIFE OR EAT A DICK AND DIE!!!!!!!!!!
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Posted by dbear808
3 years ago

Imagine how much money the US government would make if they allowed their citizens to deposit monies into the online poker account of their choice and took 1% of their deposit off the top. The deficit would vanish and every-day life for American people would change for the better.
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Posted by madulamaximus
3 years ago

DBEAR FOR FUCKIN PRESIDENT!!!!!!!!EXACTLY!!!!!
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Posted by 666LES
3 years ago

Now that the Justice Dept. has spent $10M protecting from BarryBonds lies they now turn attention to protect me from card play. I can't believe this is driven by a moral/religious contigent this has to be a set-up for a pay-off somehow for the Feds.
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Posted by jerseyjohnny77
3 years ago

he flew bin laden's family out the day before 9-11.
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Posted by BetToWin
3 years ago

I think this is good news, in an overall sense. Yesterday's action tells me that the Feds are about to legalize online poker, from legitimate companies that have been obeying the rules so far. There are online poker laws being debated in at least 15 states right now. It's gonna happen one way or another. These three companies, in particular, have flouted the law for the better part of a decade, while the American gaming companies have been forced to stay out, along with most of the UK companies. And PartyPoker paid some ridiculous fines as well to get back in good graces with the Feds. What happened yesterday was a power play by the American government reminding everybody that you don't flout their laws and get away with it. And you sure as well don't expect to do it and then walk into the newly opened market unbruised. Legal, unobstructed online poker is coming, but these three companies will miss out until they pay up too.
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Posted by madulamaximus
3 years ago

wow .....thats very true. When you are clear about the realities of the powers that be and dont act as if angels run our government. Then you will exist as the well informed navigating through all the bullshit and maximizing your freedoms to the fullest.....winners know the rules of the game.......and win....madmax
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Posted by sean2114
3 years ago

i blame bush
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Posted by jerseyjohnny77
3 years ago

if you think obama is any different-wake the hell up!!
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Posted by ctrlaltdel
3 years ago

"These defendants, knowing full well that their business with US customers and US banks was illegal, tried to stack the deck," FBI assistant director Janice Fedarcyk said in a statement. "They lied to banks about the true nature of their business. Then, some of the defendants found banks willing to flout the law for a fee. "The defendants bet the house they could continue their scheme, and they lost." The trampling of basic freedoms is nothing more than a literary/philosophical exercise to this biatch.
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Posted by madulamaximus
3 years ago

LOL....AGREED
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Posted by jerseyjohnny77
3 years ago

the banks r the real crooks.
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Posted by basewinner
3 years ago

another great use of federal tax money - whoever is behind this should be ashamed what a joke great use of funds
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Posted by jerseyjohnny77
3 years ago

shame is not in their vocabulary.
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Posted by dude1618
3 years ago

just another sign of apocalypse! the end is nigh!
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Posted by rpuck1
3 years ago

fuck al d'amato and his poker playes alliance.... thief takes $50 from a million people and does nothing
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Posted by alling
3 years ago

change we can believe in thanks Obama
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Top Response

Posted by madulamaximus
3 years ago

"Cool, enjoy your knock off version of the NFL...and all other American sports.....that CANT be duplicated. Yall workin with all the scrubs and cast offs that cant cut it in AMERICA!!!!!!!!!!!you gets NO APPLE PIE!!!....FUCK YOU!!!!....Only family can..."