Posts Tagged ‘U.S. online poker’

Chilipoker legally operating in the United States

Thursday, November 18th, 2010

Most online gambling websites have pulled out of the United States market, out of fear of prosecution from the Justice Department. Though there is no federal law banning online poker or any form of online gambling, the Justice Department treats the UIGEA, passed in 2006, as a de facto ban. The government uses that law to go after any gambling websites or financial institutions who are involved in gambling transactions with American citizens. Now one poker room has found a loophole and is legally operating in the U.S.

Chilipoker recently began offering a service for American customers that allows them to play online poker for real money. And it is 100% legal. Chilipoker is offering a “subscription-based service.” Basically how it works is that instead of the players paying for each hand of poker, they pay a monthly subscription fee. They then play the games themselves for free, with winners earning cash prizes.

Though the U.S. is growing more and more progressive and anti-business, there’s nothing illegal about operating a website that requires a paid subscription. There’s also nothing illegal about giving away cash prizes. The fact that the website features poker games is irrelevant. It could be solitaire, checkers, World of Warcraft, fantasy football or whatever.

Right now I’m sure the DOJ is looking for a way to prosecute Chilipoker. Just as they found a way to sue a state (Arizona) that made the federal government look incompetent, I’m sure they’re searching for a way to prosecute a poker website that is making them look like fools. Like Arizona, Chilipoker has broken no laws, but that doesn’t stop progressive governments from flexing their muscles and exerting their control over foes. It will be interesting to see how this shapes up and whether other gambling operators follow Chilipoker’s lead to enter largely neglected the U.S. market.

Interstate online poker coming to U.S.

Wednesday, September 8th, 2010

This seemed like crazy talk a few years ago, but online poker is coming to the United States. Tribal casinos in more than 30 states have joined together and the collaboration will result in the first interstate online poker network in America.

Atlantis Internet Group Corporation announced today that they signed a licensing deal with Cake Gaming NV that will open up online poker in the United States. The licensing agreement will allow tribal casinos to run online poker networks on their land. The Atlantis Internet Group Corp. will use their Tribal Gaming Network, which was approved by the National Indian Gaming Commission (NIGC).

This deal succeeds where Congress so far has failed. Many in Congress – most notably Barney Frank and Ron Paul – have been trying to get online gambling legislation passed, but it has stalled in the House after passing the Financial Services Committee and no bill with any support exists in the Senate. It seems increasingly unlikely that a repeal of UIGEA will happen this year. Since intrastate activity and activity on tribal casino is exempt from federal laws, the Tribal Gaming Network needs no such legislation.

The Atlantis Internet Group Corporation will run the only online poker network operating in more than one state. With it, anyone on tribal land can access the online poker network, existing on a Wide Area Progressive network (WAP) and play online poker against anyone else that is on the network.

Before UIGEA created a de facto ban on online gambling in the United States, America accounted for approximately two-thirds of the worldwide online gambling revenue. Losing that market meant online gambling operators losing a lot of money. The tribal online poker network will bring much-needed revenue to the tribes.

Donald L. Bailey, the CEO of the Atlantic Internet Group Corporation, said that the new system offers “an immediate and legal solution to Indian casinos nationwide, providing the largest online poker network in the U.S.” He also called the network a milestone and said that they will provide an “economic shot in the arm for tribes and states facing deficits nationwide.”

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