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Poker not an IGBA violation - Ruled a Game of Skill By Court Poker not an IGBA violation - Ruled a Game of Skill By Court

08-21-2012 , 08:25 PM
Quote:
Originally Posted by Karak
I'm grunching, so pardon me if any of this has already been covered.

I haven't gotten to read the opinion cover to cover, but based on my skimming/the important parts my conclusions are:

-This finds that, under the rule of lenity, statutory interpretation must fall on the side of the defendants in finding that Congress did not intend to cover poker under the IGBA. This ruling applies ONLY to this statute (the IGBA).

Wiki does a great job of very simply explaining the "rule of lenity."

Rule of Lenity
In construing an ambiguous criminal statute, the court should resolve the ambiguity in favor of the defendant. See McNally v. United States, 483 U.S. 350 (1987); See, e.g., Muscarello v. U.S., 524 U.S. 125 (1998) (declining to apply the rule of lenity); Evans v. U.S., 504 U.S. 255 (1992) (Thomas, J., dissenting); Scarborough v. U.S., 431 U.S. 563 (1977) (Stewart, J., dissenting); See United States v. Santos (2008).


-The judge also discusses, at length, why poker is DIFFERENT from the other forms of gambling enumerated in the statute. In order to be clearly covered by the statute, it must be SIMILAR to these forms of gambling. He finds skill predominates luck in poker, whereas it doesn't in the other named games. This helps him move towards the final decision of "poker isn't like these other games."

-This is just one of many reasons he offers. Another reason is that the statute was targeted towards mafia actions and, at the time, poker wasn't a mainstay of any mafia activity. It was also played legally in many home games. And there were other statutes that could apply, blahblahblah. You get the point.

-This does NOT mean poker, online or otherwise, is suddenly deemed legal nationwide by federal law.

-This doesn't mean the DC's ruling on this specific statute is suddenly precedent nationwide either. It will be appealed, and this is just the district level of a federal court.

-The language he writes on skill predominating is fantastic, but this ruling is just a step in the right direction (and the predominate skill argument was just one factor of many, although clearly it was a major factor). This should only be construed as a ruling on THIS statute.

-Poker can be and still is considered gambling under many statutes in many states. Just because skill predominates doesn't mean a legislature can't call it gambling. (And just because this judge says skill predominates doesn't mean every other will suddenly follow suit).
THIS statute happens to be the statute that the DOJ has fallen back on to effect seizures/forfeitures of online poker sites now that the Wire Act is off the table, so if this ruling is upheld on appeal, the DOJ will be left with only the dangerous precedent (as unlike the IGBA, it doesn't hold mere gamblers harmless) of using the Travel Act to prosecute online poker sites.

Without this statute, the Federal government could be left with nothing more than a few hoops players are required to jump through to circumvent the UIGEA prohibiting offshore sites from offering poker in the US.

Regardless of how the appeal is decided likely next year, the fact that this decision will be looming over Congress throughout the lameduck session of Congress is a huge deal, as doing nothing may no longer be considered a 'conservative' option.
Poker not an IGBA violation - Ruled a Game of Skill By Court Quote
08-21-2012 , 08:35 PM
+1 TA.

I would suspect that the existing sites still supporting US play are happy. Barring bank fraud there's realty nothing stopping them except in states where it's clearly illegal.

That will force Congress to act to protect US company interests.
Poker not an IGBA violation - Ruled a Game of Skill By Court Quote
08-21-2012 , 08:36 PM
Quote:
Originally Posted by Geof11061
Not wanting to derail though, but wouldn't this ruling also have consequence for a lot of state laws too? For example, take the example of New Jersey. The state consitution says:

No gambling of any kind shall be authorized by the Legislature unless the specific kind, restrictions and control thereof have been heretofore submitted to, and authorized by a majority of the votes cast by, ..... etc

However, in the same constitution in gives the definition of gambling as thus:

b. "Gambling" means staking or risking something of value upon the outcome of a contest of chance or a future contingent event not under the actor's control or influence, upon an agreement or understanding that he will receive something of value in the event of a certain outcome.


Now, in the ruling today the judge made the specific point that this argument does not apply to poker because, unlike in sports betting, the bettor does have control or influence on the outcome of the hand.

I guess what I am saying is, does this ruling for the reasons given also act as a precedent on other laws specific to states, which use similar wording or arguments to the federal law which was the subject of today's hearing?
The judge said, in no uncertain terms, that poker is gambling under New York law: "The argument [that poker is not gambling under New York law] is waived. In any event, it has no merit. New York courts have long considered that poker contains a sufficient element of chance to constitute gambling under that state’s laws." (p. 6) So, there is a possibility that some state laws somewhere look more like the federal statute, and this judge's opinion could be persuasive (i.e., not binding) authority for those states. But for the few states that have statutes that look more like New York's, the opinion is persuasive in the opposite direction.

Also, the "contingent event" (the cards dealt) is still not in the player's control, even though the outcome--winning or losing, and how much--is partially in the player's control (i.e., you can move someone off a better hand, or fold when drawing nearly dead to minimize loses, etc.). So it's not clear how much the opinion would help under the New Jersey definition of gambling.

Last edited by STinLA; 08-21-2012 at 08:48 PM.
Poker not an IGBA violation - Ruled a Game of Skill By Court Quote
08-21-2012 , 08:47 PM
Quote:
Originally Posted by tamiller866
THIS statute happens to be the statute that the DOJ has fallen back on to effect seizures/forfeitures of online poker sites now that the Wire Act is off the table, so if this ruling is upheld on appeal, the DOJ will be left with only the dangerous precedent (as unlike the IGBA, it doesn't hold mere gamblers harmless) of using the Travel Act to prosecute online poker sites.

Without this statute, the Federal government could be left with nothing more than a few hoops players are required to jump through to circumvent the UIGEA prohibiting offshore sites from offering poker in the US.

Regardless of how the appeal is decided likely next year, the fact that this decision will be looming over Congress throughout the lameduck session of Congress is a huge deal, as doing nothing may no longer be considered a 'conservative' option.
Perhaps. I never ruled any of the above out.

However, it just makes things very murky at best. IT certainly doesn't set up poker as legal federally or nationwide, especially in many states.

Nationwide (or at least a substantial amount of states) legalized and regulated US poker will still require new federal legislation. Period. Smaller intrastate efforts may not, and they didn't before this ruling either. It certainly does make things a little easier... I guess.
Poker not an IGBA violation - Ruled a Game of Skill By Court Quote
08-21-2012 , 08:51 PM
Quote:
Originally Posted by Karak
Perhaps. I never ruled any of the above out.

However, it just makes things very murky at best. IT certainly doesn't set up poker as legal federally or nationwide, especially in many states.
No, but you can speed right passed a Federal agent and he can not pull you over unless he has suspicion of a Federal law violation, so to some degree, State law becomes irrelevant if State law enforcement has no way of 'seeing' the violation.
Poker not an IGBA violation - Ruled a Game of Skill By Court Quote
08-21-2012 , 09:27 PM
well any good news i'll take, thx
Poker not an IGBA violation - Ruled a Game of Skill By Court Quote
08-21-2012 , 10:31 PM
Made front page of MSNBC.COM

http://usnews.nbcnews.com/_news/2012...rnet-ante?lite

even has a poll asking about online poker legality with the vast majority voting pro-online poker
Poker not an IGBA violation - Ruled a Game of Skill By Court Quote
08-21-2012 , 10:44 PM
To be clear, I think this is a big win for poker. I think my post perhaps stressed more of the cautious side of cautiously optimistic than it should have.
Poker not an IGBA violation - Ruled a Game of Skill By Court Quote
08-21-2012 , 10:51 PM
Quote:
Originally Posted by zoomie123
+1 TA.

I would suspect that the existing sites still supporting US play are happy. Barring bank fraud there's realty nothing stopping them except in states where it's clearly illegal.

That will force Congress to act to protect US company interests.
There is still UIGEA.
Poker not an IGBA violation - Ruled a Game of Skill By Court Quote
08-21-2012 , 11:48 PM
Quote:
Originally Posted by zachvac
There is still UIGEA.
But the UIGEA has no teeth (forfeiture remedy) for the Federal (or even State) government to use to try and get those giant checks they like to take pictures with, making it far less likely for them to waste any resources on an investigation.
Poker not an IGBA violation - Ruled a Game of Skill By Court Quote
08-21-2012 , 11:54 PM
Quote:
Originally Posted by zachvac
There is still UIGEA.
Buzzkill
Poker not an IGBA violation - Ruled a Game of Skill By Court Quote
08-22-2012 , 12:00 AM
Problem as I see it is that unlicensed raked poker is still illegal in most if not all states.
Poker not an IGBA violation - Ruled a Game of Skill By Court Quote
08-22-2012 , 12:11 AM
Quote:
Originally Posted by bigtex21
Problem as I see it is that unlicensed raked poker is still illegal in most if not all states.
Exactly and the UIGEA allows the federal government to intervene if an online game violates a state law.
Poker not an IGBA violation - Ruled a Game of Skill By Court Quote
08-22-2012 , 12:53 AM
I have a feeling this news is being blown out of preportion
Poker not an IGBA violation - Ruled a Game of Skill By Court Quote
08-22-2012 , 02:02 AM


L'chaim! says this great American.
Poker not an IGBA violation - Ruled a Game of Skill By Court Quote
08-22-2012 , 03:44 AM
Poker stars back in the US please.
Poker not an IGBA violation - Ruled a Game of Skill By Court Quote
08-22-2012 , 05:03 AM
What is the best and worst case scenerios with timelines if possible?
Poker not an IGBA violation - Ruled a Game of Skill By Court Quote
08-22-2012 , 07:11 AM
From just a couple above comments: You look at threads like this and see how uninformed and out of the loop poker players are and you start to understand why the masses and/or non-players think the way they do.
Quote:
Originally Posted by tamiller866
But the UIGEA has no teeth (forfeiture remedy) for the Federal (or even State) government to use to try and get those giant checks they like to take pictures with, making it far less likely for them to waste any resources on an investigation.
But it's not really a waste, DUCY?

In my opinion, the quite lucrative endeavor is what has driven their efforts.

Last edited by Saturn V; 08-22-2012 at 07:32 AM. Reason: combined 2 posts into 1
Poker not an IGBA violation - Ruled a Game of Skill By Court Quote
08-22-2012 , 07:25 AM
So IGBA doesn't apply to Poker. UIGEA doesn't apply to poker. Shouldn't the PPA now go after the rules about banks not processing poker transactions?
Poker not an IGBA violation - Ruled a Game of Skill By Court Quote
08-22-2012 , 07:35 AM
The wire act doesn't apply which is different than the UIGEA, which as far as I know continues to apply to Internet poker.
Poker not an IGBA violation - Ruled a Game of Skill By Court Quote
08-22-2012 , 07:41 AM
Adanthar tells me that Judge Weinstein was on the litigation team for Brown v. Board of Education. [1]

This guy has an astonishing resume; it's worth reading about him just to see what a huge player he's been in the American judiciary for over 50 years.

Regards, Lee

[1] For the non-USers and young 'uns, this was the Supreme Court case in 1954 that declared the "separate but equal" treatment of African-Americans in the United States unconstitutional. It was the first crack in the wall that ultimately led to the election of Barack Obama in 2008. No Brown, no President Obama, imo.
Poker not an IGBA violation - Ruled a Game of Skill By Court Quote
08-22-2012 , 07:47 AM
He is 91 years young?
Quote:
From 1980 to 1988, he served as chief judge of the district. On March 1, 1993, he took senior status; however, unlike some senior judges, he has maintained a full docket.
wowowowowow
Quote:
He is the author of a leading treatise on evidence and numerous articles and books, and is widely regarded as one of the most respected and influential living judges in America.
Poker not an IGBA violation - Ruled a Game of Skill By Court Quote
08-22-2012 , 09:35 AM
Quote:
Originally Posted by zoomie123
So IGBA doesn't apply to Poker. UIGEA doesn't apply to poker. Shouldn't the PPA now go after the rules about banks not processing poker transactions?
Quote:
Originally Posted by irockhoess
The wire act doesn't apply which is different than the UIGEA, which as far as I know continues to apply to Internet poker.
The UIGEA, as it's name implies, is an enforcement act. It doesn't make any gambling illegal, it only enforces penalties for processing gambling transactions that are already been made illegal by another law. Thus, it still applies to any Internet poker that violates state law. However, given the DOJ's ruling this past December on the Wire Act not applying to Internet poker, along with this new ruling that poker doesn't violate the IGBA, it appears that offering Internet poker (and processing related transactions) does not currently violate any federal laws. Can any legal experts chime in and confirm whether this is true?

If so, is there anything stopping casinos (or foreign entities) from establishing poker sites in states where there are no laws against it? I understand that most states (maybe even all except Nevada and Delaware?) have laws that either explicitly or implicitly would ban online poker. Also, it seems like with this out of the way, there's now nothing stopping Nevada, Delaware and any other states that pass IP bills in the future (such as NJ or California) from creating interstate player pools without the need for Federal regulation.
Poker not an IGBA violation - Ruled a Game of Skill By Court Quote
08-22-2012 , 09:53 AM
I have tried to answer the basic questions that seem to get repeated over and over across the forums in a single place in the PPA forum. Since it is hard to keep posting the same thing again and again across the forums, I invite you to read what I have posted there and if you still have questions regarding the ramifications of this ruling, ask them there: http://forumserver.twoplustwo.com/15...skill-1237082/

Skallagrim
Poker not an IGBA violation - Ruled a Game of Skill By Court Quote
08-22-2012 , 10:20 AM
This judge is my new favourite person - intelligent arguments about poker, quotes Sherlock Holmes in his decision, plus Lee Jones post about his history. Love it.
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