Quote:
Originally Posted by three_dee
That last paragraph is an insane statement, IMO. The UIGEA was the reason PokerStars and Full Tilt started committing fraud in the first place -- to evade the law and retain their massive US customer base.
In fact you could argue that that was the whole reason for the UIGEA -- to do the casino lobby a huge favor, by setting a trap, fully expecting the two biggest companies to walk into it and incriminate themselves, which they did.
Then wait 5 years, build a case, let them hang themselves, and then sweep the competition out of the way so that the casinos can eventually come in and corner the market, without any interference from offshore, quasi-untaxable competitors.
Even with their awful business practices, which of course they should take 100% of the blame for, they were still printing money. If Full Tilt wasn't forced to operate in the oppressive environment of the UIEGA, which was expensive and time consuming, they may never have been forced to go under, even with the company engaging in such shady practices (they certainly wouldn't be the first poker company to do so).
I'm not sure how anyone say these things are not connected.
The bank fraud (assuming any occurred - no one has claimed to have been damaged) had nothing to do with their problems either, those charges were the risks the processors were getting paid to take, and without the IGBA charge there is no money laundering predicate (UIGEA is not an SUA).
The UIGEA made it expensive for them to operate in the US (deposit processing fees/thefts), but they chose to continue to operate in the US because it was still profitable until 2009 when the Holder/Obama DOJ reinterpreted the IGBA to allow them to target withdrawal processors.
It wasn't until player funds (withdrawals) were put at risk, thanks to that ridiculous interpretation of a statute specifically written to justify Federal jurisdiction over illegal gambling activity with no interstate nexus, that it was no longer profitable to offer poker to the US.
Of course that doesn't excuse FTP for continuing to take their profit distributions as if that player money had never been (unjustly) forfeited, and the fact that the PPA (before FTP even admitted being insolvent) proffered the idea of using those prior forfeitures to to repay US players via remission makes one wonder if that wasn't FTP's (PPA board member's) doomsday plan for US players all along.
As gambling prohibitions go, the UIGEA couldn't have been less intrusive, it targeted only the businesses and their profits, made gambling less of an impulse purchase due to the inconvenience, yet never prevented (and still doesn't prevent) individuals from jumping through a few hoops to gamble online.
Black Friday and it's aftermath is entirely attributable to the prosecution of a statute (IGBA) the DOJ knew had no extraterritorial application when they asked for the UIGEA to be passed - but the UIGEA they passed has no teeth, so Holder invoked a statute designed to shut down intrastate mafia operations.
The biggest government failure of all is the judicial branch, no judge should have ever signed an IGBA seizure warrant for player funds from an internet (interstate by definition) offshore gambling site - the courts effectively signed off on a license to steal.