Poker Room Pulse

Online Gambling Bill



On Friday Oct 13, 2006 President George W. Bush signed a bill that affected the online gambling industry. Although it is not illegal to gamble online in most US states it is illegal for credit card companies and ecommerce providers to assist in funding these offshore accounts.

Out of the 50 States it is illegal to play poker online in Illinois, Indiana, Louisiana, Michigan, Nevada, New Jersey, New York, Oregon, South Dakota, Washington and Wisconsin. Several of the biggest and most legitimate online poker rooms exited the US market at the time the bill was signed, leaving just a few sites available for US players. Among these poker sites that remained in the market were Absolute Poker, Full Tilt Poker and Bodog Poker. Although there are only a hand full of legitimate poker rooms accepting US players these are among the best poker rooms in the world. You can try their poker software for free and continue to play in the free poker rooms or you can simply fund your account using one of the convenient methods available. Although it has become more difficult to fund your US poker account it is still made possible by the diligence of these top poker sites.

Since the passing of legislation banning the transfer of funds into offshore gambling sites several organizations have continued efforts to have this bill repealed. With the WTO ruling onside with Antigua in their ongoing dispute with the United States it will be interesting to see what happens over the next few months.

The poker player's alliance continues to garner support within the administration and with concerted efforts from both the citizens of the US and the organizations that are fighting to repeal this bill we have hopes that the American Gambling community will be free once more to pursue what has become a mainstream American pastime.


US Tax Department Taxes Casino Poker Tournaments



The US Tax Department has issued a new court ruling with respects to regulated land based casino winnings. Under the new regulations payouts from casino poker tournaments which have grown immensely in the last few years are subject to a 25% withholding tax. Any player who wins in excess of $5000.00 at a poker tournament plus their entry fees are subject to this tax. The result of this new tax is likely to turn off players from using land based casinos to play poker.

Many players who have paid the $1000.00 in fees to enter higher stakes tournaments have done so on a regular basis. To hit a win and have to give back 25% could potentially put the poker player in the red.

Winning from poker tournaments have always been subject to taxation but it is a hint of things to come when regulation is counted on to do positive things rather than negative.

The reasoning sited for the regulations what that poker is a game of chance rather than skill and therefore subjected to the same taxes as casino winnings.

Through the efforts of Barney Frank it is thought that the Government might take in to consideration the legalization and taxation of online gambling. However instead the new guidelines have been announced that are to be put into place by the American banking system to prevent online gaming transactions. With this new tax law in place the effects should be seen by the online poker rooms as the players who consistently filled the Vegas poker tournaments will return to online tournaments to avoid paying the hefty taxes.

It is surprising to the industry that the United States hasn't considered legalizing the Online Gambling Industry rather than insisting on the prohibitive behavior. It will be interesting over the coming months to see what happens with the pressure of the WTO to comply with its rulings. There are billions of American peoples dollars at stake here which the concessions that are being requested by the EU, Antigua, India, Japan, UK and Canada.

To me it seems that the Bush Administration has decided to take on the White Whale and like Moby Dick it will eventually lead to the destruction of said administration.

US Vs. WTO



A couple of events in recent days suggest there is a bigger battleground going on regarding legislation of online gambling within International Trade Agreements.

The United States this week finally declared defeat to the tiny Caribbean Island of Antigua regarding internet gambling legislation, however that being said the have also prepared to rewrite the original contract with the WTO with respects to Gambling. Antigua is expected to escalate trade sanctions and penalties against the United States to try and force them into compliance with the WTO ruling. Antigua's Ambassador John Ashe is adamant in his determination to bring onside some of the larger members of the EU to peruse his countries cause. Antigua will be looking for compensation and is calling on other members of the World Trade Organization to do the same. They believe that the United States is taking a protectionist position of its highly profitable horse racing industry.

Elsewhere around the globe a German court has thrown out case between the German State of Bavaria and Australian bookmaker BWin.com. Bavaria late last year passed a law attempting to prevent offshore bookmakers from marketing their gambling services in competition with their official state run gambling outlets.

Sweden has also been taken to task by the EU for its failure to open up its doors to outside interests with respects to its online gambling industry. Svenska Spel, has the state monopoly now on gambling but has decided to allow outside interests into Sweden's gaming market but will apply strict requirements and heavy fees. It is believed this is to deter any real competition, however it remains to be seen what the response of the EU will be.