I would be very interested in how that works out.
Pat McCauley
On Apr 17, 2011, at 10:07 AM, Barry Glazer <b.glazer@att.net> wrote:
> > 1a. Re: Online Poker Apocalypse
>
> It is my understanding from a variety of sources (some of which may of course be in error) that the law prohibits US financial institutions from processing transactions related to gambling activity. I'm NOT aware of what the penalties to these institutions is if they violate this law.
>
> Because of this, some (?most) US banks will not process transactions directly to and from gambling sites, and the sites have set up what appears to be a hard-to-trace chain of institutions, mostly off-shore, to handle the money. When you transfer money into the site, it doesn't show up on your bank statement as being "to" them, but instead is shown as paid to a more obscure name, and when you take money out, you get a check that in no way identifies its source.
>
> While it my understanding that it is NOT per-se illegal for them to operate the sites outside the U.S., and most defiinitely is NOT illegal for an individual to play on one of the sites, and apparently is not illegal for the sites or an individual to execute a financial transaction thru a US bank (if the bank illegally allows it), it is my understanding that the Justice Department (which is now becoming a "1984"-like oxymoron) nevertheless has, on occasion, chosen to freeze and seize accounts of the sites and some individuals (not just the gambling-related money, but the entire account).
>
> I do not know if such freeze/seize activity has been upheld in court at this time, and can only assume that the Justice Dept. has decided that harassing individuals in this substantial manner will be an effective strategy to shut down the sites, since there are not criminal charges being filed against individual players that I know of.
>
> I MAY go out on Monday and move most of my money into a new account at a different bank as a precaution against such an action.
>
> Clearly (to me at least) the more rational approach is to license, regulate and tax gambling websites. They are out there, and while they might be intimidated into stopping US operations, gambling is still out there, and in some cases the sites do operate improperly (ie, cheat, or fail to police for cheating adequately), and a lot of money is involved -- so licensing, regulating, and taxing seems to be in everyone's best interests EXCEPT perhaps the sites, who would nevertheless likely survive just fine but with a decrease in net revenue, and who might welcome this in exchange for a clear go-ahead to operate legally.
>
> Once it's legal and regulated, they might even find an off-setting increase in business from those who currently think they are breaking the law if they play online, and from those who currently think that the sites are all crooked (although the latter individuals will likely think that they still are crooked, and that the government is just colluding with them to get their share).
>
> I personally have money in PokerStars and FullTilt, where I play on occasion as a purely low-stakes recreational activity. Although it is not a large amount, I expect that it will be a while before I can access it; I am (and always have been) prepared to lose it all, although I had expected it to be via my customary lapses in skilled play (of which I'm capable when I exercise the discipline to do what I know is correct - I never suffer the same lack of discipline when playing VP or blackjack for some reason, probably because there's no element of bluffing to use to deceive myself into making bad judgments).
>
> I went online Friday night and couldn't play on Pokerstars, but played on Full Tilt. Haven't been back to either since Friday night, but I've heard they are both shut down now to U.S. players, and I certainly assume that this means I won't be able to get a withdrawal processed.
>
> I go to Switzerland this summer for a short meeting (3 days) and wonder if there's a way for me to open a small foreign bank account and an off-shore Pokerstars account that I can then use to play while there, and also when I get back home? I'll have some free time and might look into it and give it a try, but will need to think thru a check-list of questions to ask before proceeding.
>
> --BG
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>
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