Yes, that’s right. Harvard. Harvard University, home of the smart people has come out with the results of a study that claims that addiction to online poker is only a moderate risk. For those who did not attend Harvard and are not smart, here is the definition of moderate:

moderate (adjective) – not extreme, excessive, or intense.

The stereotype of the modern online poker player might be a man wearing nothing but a beard and a dirty terry cloth robe huddled in a corner, nibbling on a wet cigar nub with a trembling hand on the mouse, clicking away his kids’ college fund. Or maybe that’s just my dad? Whatever your perception of the average online poker player, prepare to change it.

A recent study at Harvard University Medical School Division on Addictions conducted a study wherein 3,445 poker players were carefully observed from February 2005 until early 2009. The objective? To estimate the risk of addiction online gambling poses to online poker players. The study could find no link between the availability of online gambling and online gambling addiction. The study even found that online gamblers were more likely to regulate themselves.

Mr. Andrew M. Woods, executive director of Harvard Law School’s Global Poker Strategic Thinking Society, was not surprised and believes that online poker is not so much gambling, but more an exercise in risk assessment. “There is no house in poker, so no one is guaranteed to win.” he said, “Poker exercises your ability to make good decisions.”

So there. Harvard says that online poker “exercises your ability to make good decisions.” Suck on that big government and UIGEA supporters. Maybe you should play some online poker and learn how to make good decisions such as, I don’t know, legalizing online poker.

Fedzilla is a hungry beast. Prosecutors in the Southern District of New York have filed new charges against Douglas Rennick in connection with the processing of over $350 million in funds for various online casinos. Rennick is looking at a jail sentence of up to 55 years on charges of bank fraud and a slew of other charges.

The indictment was filed in a federal court in Manhattan and alleges that Rennick opened a slew of accounts with names such as ‘KJB Financial Corporation,’ ‘Account Services Corporation,’ and ‘Check Payment Financial Co.’

Prosecutors allege that Rennick was intentionally hiding the fact that he was processing payments for US gamblers and instead claimed his business was involved in “rebate check processing for large retailers.” The indictment calls attention to one account in particular opened at Washington Mutual and reads, “On or about August 8, 2007, Douglas Rennick, the defendant, opened an account in the name of KJB Financial Corporation at Washington Mutual Bank in California. In opening the Washington Mutual account, Rennick did not disclose to Washington Mutual Bank that KJB Financial Corporation would process payments from the Internet gambling companies.” It goes on further to say, ““Instead, Rennick falsely and misleadingly represented to the Washington Mutual Bank ‘for the following reasons’: affiliate cheques (travel resellers, product resellers, advertising resellers)…refunds on items purchased…sponsorship cheques…(and) minor payroll.”

Rennick, a Canadian resident, has been in a legal bind since June when federal prosecutors seized $33 million in funds from one of his companies, Account Services. Rennick is facing 30 years in federal prison for bank fraud, 20 years for money laundering and 5 years for gambling. They are also looking to seize further funds, including an alleged $565,000 in profits Rennick made from the processing of payments to US gamblers.

Congressman and online gambling patron saint Barney Frank’s bill to do away with the Unlawful Internet Gambling Enforcement Act continues to pick up supporters, now up to 50 as of Monday. Mike Thompson, a state representative from California is the latest to join the ranks, the tenth to do so since the beginning of July. More are expected to follow in August.

“Reaching this milestone illustrates that momentum is growing for a shift in U.S. Policy and a rewrite of U.S. Internet gambling laws,” said Jeffrey Sandman, of the Safe and Secure Internet Gambling Initiative. “The list of supporters will continue to grow as more representatives are educated on the subject and increasingly hear from their constituents that Internet gambling regulation presents the only viable way to protect consumers, since attempts to prohibit the activity have completely failed. We also expect an increased spotlight on Internet gambling as a way to augment federal revenues and help cover the cost of necessary policy initiatives.”

In the past, Republicans had done the most to thwart efforts to legalize online gambling. But with Democrats making up the overwhelming majority of the congress and Republicans still in time out after George W. Bush flushed their reputations down the political toilet, the possibility is ripe for this to really happen.

“These lawmakers are starting to realize just how out of touch previous lawmakers were when they adopted the UIGEA,” said observer Mark Freely, “the new administration seems much more in tune with what people in the US want, and clearly people want the right to gamble online legally.”

California’s legislature is hard at work devising a way to slash costs. The state is in the midst of a crisis and face a $26 billion shortage in funds. Nothing seems safe there for the moment as legislators worked to cut spending from areas like education, prisons and local government. They have made a dent it seems, with a package comprised of $16 billion in cuts, but what of the other $10 billion?

According to H2 Gambling Capital, legalized online poker in California would raise an estimated $250 million per year to start, eventually climbing to $625 million some ten years after the legislation has passed. The PVA (Poker Voters of America), a group who lobbies on behalf of online poker observes that online gaming could be one of the answers California lawmakers are looking for and many are starting to agree.

Melanie Brenner, PVA executive director, had this to say to EGRmagazine.com, “In California, you can’t pick up a newspaper and not be hit in the face with the budget issue. While in Florida, which is also considering legalising intrastate online poker, you don’t hear about it as much, but as a state, they are looking for revenue sources. That will be something we can use to our advantage.”

Brenner further believes that if California does not look to sources like online poker and other gaming, the other $10 billion in lost revenue will have to be made up by borrowing from other states and with unemployment at 12% and rising, foreclosures showing no sign of slowing online poker isn’t such a bad alternative.

However Brenner, who spent 25 years as a political consultant in Florida warns that there is no “one-size fits all” solution for every state. The makeup of every state is different and online poker faces different hurdles and employs varied advantages in each one.

“In Florida, you are not dealing with the complexities of the tribal situation you have in California. Instead, you have a state that is divided between North Florida, which is conservative and mainly Republican, and South Florida, which is more progressive, Democrat, and already has some gaming. We are dealing with a different set of political issues when we move into that state,” said Brenner.

The Poker Players Alliance is excited about gains made this week towards furthering their goal of achieving the legalization and regulation of online gaming. More than 50 members of the Poker Players Alliance, 33 of them state directors, descended on Washington to seek support for online poker.

“From the more than 100 meetings with members and staff to the charity tournament that raised $35,000 for our wounded warriors, I’d say National Poker Week was a rousing success,” PPA Chairman and Former Senator Alfonse D’Amato said. “Congress is preparing for hearings this fall on the licensing and regulation of the game we love, so I urge all PPA members to continue this activism and enthusiasm so our elected officials can take their marching orders and fight to protect our game.”

Andy Bloch, one of many professional poker players to visit Washington to show his support said, “every single meeting and every method of communication counts. Even if you’re cynical about the political process, you’ll be encouraged to know that these members, whether they agree yet or not, are listening to our arguments and are truly surprised to know just how popular poker is in their hometowns. I truly feel we are winning on this issue, and the time is ripe for pro-poker legislation to pass into law.”

The PPA used this week to launch a major pro-online poker advertising campaign as well. The adds target politicians and representatives in Washington, urging them to protect poker. The adds highlight real online poker players and their stories, putting a human face to what many see as an illegal industry.

National Poker Week included lots of activity, here are some of the highlights:

• Over 100 meetings with representatives n Congress

• Charity poker event raised $35,000 to benefit the wounded warriors program

• 10 Congressmen and 30 soldiers wounded in battle participated in charity poker tournament

• The PPA’s Congressional briefing was attended by 70 Capitol Hill staffers and other interested parties

• The online petition addressed to President Obama received 375,769 (not so much a success since they were aiming for 500,000)

• Over 200,000 letters of support reached U.S. Representatives and Senators

The state of Illinois likes making money and, in general, will do anything to make it, whether it’s selling a senate seat, taking bribes, embezzlement, or the state lottery. It recently occurred to lawmakers that they were losing out on money by requiring people to go to lottery locations, such as convenience stores, to purchase lottery tickets. Never willing to pass up easy money, the lawmakers are currently checking with the Department of Justice to see whether it would be legal to offer citizens the ability to play the lottery online. Now, this is a new move for Illinois, checking to see if a money-making scheme is legal before doing it. I really am proud of them. 

The problem stems from the passing of the Unlawful Internet Gambling Enforcement Act (UIEGA) in 2006, which prohibited financial institutions from transferring funds relating to illegal online gambling. The act, however, does not specify what types of gambling is illegal and what is legal. Other states have been offering online lottery to its citizens, but after the passing of UIGEA, problems have come up. The states offering online lotteries have used a subscription method, where citizens subscribe to the lottery site, chose numbers that they will use every time, and paid for the subscription. Earlier this year, some credit card companies have denied payment for these subscriptions, worried that they could be seen as breaking the law. And that is why Illinois is seeking clarification of the legal status of their proposed online lottery. It wouldn’t be profitable if the credit card companies deny payments. So it seems that even when Illinois does something good, it is for selfish reasons. 

All of this could be moot soon, though, as UIGEA is being challenged in court as being unconstitutional and Representative Barney Frank has introduced legislation that would repeal the law.

Government officials are starting to learn the meaning of the phrase “The enemy of my enemy, is my friend.” After years of looking down their nose at gambling, state and federal officials, the current economic crisis has politicians scrambling for ways to make some cold hard cash to put a money band-aid on the wounded economy.

News has come down the pike that three, count’em, THREE U.S. States are pushing plans for video poker and slot machines to be legalized in their states to compensate for failing taxes. Ohio has projected $933 million in revenue from the 17,500 slot machines being installed by May statewide at horse racing tracks. Video poker is now legal in Illinois taverns and expected to raise $300 million annually as support for $31 billion in infrastructure improvements. While Pennsylvania is betting that $550 million in revenue would find its way into the state’s coffers from legalized video poker in bars.

“As we learned in Ohio and Illinois, desperate times call for desperate measures,” said Brian McGill, an analyst at Janney Montgomery Scott LLC. Desperate times indeed. Clearly there are some things that are only illegal until we need money from them, which should leave people questioning, why did our leaders make it illegal in the first place?

“Given that the state is desperate for revenue, it is possible the bill could find more support going forward,” McGill said. “We believe the situation in Pennsylvania is yet another example of a state that needs revenues and is considering turning to expanded gaming.”

With officials turning to gaming as a tremendous source of income, it seems even more likely that online gaming won’t be far behind.

“The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”

Ah, the ninth amendment. That vague “rule” written by the framers of the Constitution oh so many years ago. The ninth amendment is significant because it limits the size of the federal government. Unfortunately, over the past hundred years or so, the size of the federal government has increased and the significance of the words in our Constitution slowly chipped away for some. To the point where the federal government tells the people what games they can and cannot play. Still, our great country allows for the reversal of laws both silly and significant.

Today marks the start of National Poker Week 2009 and it’s not only a great time to get together with friends, drink a Shasta and toss some chips at your friends, it’s a great time to speak your mind. The goal of National Poker Week is to send a message to the President and the US Government as a whole that online poker and poker in general should be legal and licensed. The Poker Players Alliance has been working hard to raise awareness of the effort to do away with the UIGEA.

“We all have a right to play poker and taking away that right sets a dangerous precedent that no American should stand for,” stated Annie Duke, WSOP bracelet winner and UltimateBet consultant. “There’s a lot of work to do to ensure that poker players and the game get the respect they deserve but we’re getting there.”

This year is particularly important as Barney Franks online gaming legislation gains heat in the press and September approaches. A planned “fly in,” where pokers best and brightest plan to meet with delegates in Washington to promote the repealing of the UIGEA, is in full swing this week. Also, an online petition set to be delivered to President Obama is up to over 352,000 signatures with a goal of 500,000 signatures.

Joke: The United States government is so bloated and regulation happy.  Audience Response: How bloated and regulation happy is it?  Punchline:It’s so regulation happy that Europeans are saying that the United States government is bloated and regulation happy. So much so that the European Union is threatening to file a case with the World Trade Organization over the US government’s ban on online gambling.

The European Commission released the “Trade Barrier Regulation Report”, detailing the negative effects the US online gambling ban has had on European gambling firms. The EU’s announcement of intentions to bring a case to the WTO (which could result in billions of dollars in compensation to the EU) immediately prompted a face to face. EU Trade Commissioner Catherine Ashton met with US Trade Representative Ron Kirk met to discuss various trade issues, among them, the US stance on online gambling. “Today was not a day to resolve any problems, but rather to set out the approach we are going to take, who would do what, and to agree to keep in touch,” said Ashton

Both the US and EU are planning further talks in September, each aiming for a “creative solution.” The US is eager to avoid further WTO disputes as a previous hearing resulted in a $21 million payment to Antigua. One issue that will likely have a profound on discussions is Congressman Barney Frank’s legislation aimed at undoing the UIGEA bill.

Since a potential multi-billion dollar judgement is composed of our hard-earned tax dollars, perhaps the federal government should worry less about protecting Americans from gambling problems they might develop and worry more about the over-regulation problem that it actually has?  Just a thought.

If there’s one thing that the United States Government is good at that isn’t war, it’s seizing money by force. Whether you call it “federal income tax” or “highway robbery,” there is nothing tastier to Fedzilla than money. Recently, over 30 million in assets was stolen frozen by the federal government.

Account Services Corp. of San Diego has requested that the federal government return $14 million that the firm says was illegally seized from online poker player accounts.

The Poker Players Alliance confirmed that the money is part of over $30 million in assets recently frozen by the federal government. The group told the Associated Press on Monday that it plans to file a motion with a court as well. “Any action contesting the government’s seizure of players’ funds will help protect the rights of U.S. Internet poker players and we will explore every legal avenue to ensure that out members’ voices are heard and their rights are protected,” said John Pappas, executive director of the alliance.

The filing by Account Services states that federal prosecutors seized $13.3 million from a Wells Fargo Bank account in Escondino California and an additional $1 million from a Union Bank in San Diego. Account services says that the Wells Fargo money seizure was accompanied by a warrant, the Union Bank funds were not. The warrant for Union Bank was issued two weeks later by U.S. Magistrate Judge Henry Pitman in New York City.

Account Services has said that if the money is not returned, it will most likely have to shut down. Such a thing would be ironic for the federal government, considering all of the money it has seized from taxpayers to keep failing banks and businesses from doing just that.

The Justice Department continues to maintain that online gambling is illegal, but Account Services disagrees. Jeff Ifrah, who represents the Interactive Gaming Council. “Poker players have been damaged significantly,” said Ifrah. “Some of the players face civil liability for bounced checks, some have had bank accounts closed.”

Estimates show that at least half of the $16 billion online gambling industry, though mostly hosted overseas, is funded by players in the United States.