Now that the Unlawful Internet Gambling Enforcement Act is in full effect, is it illegal for me to play or deposit on poker sites?

No. Nothing in the UIGEA makes it illegal for you to play or make deposits. In fact, nothing in US federal law even makes it illegal for sites to offer online poker to US players. And where there are state laws that might apply, they are as yet unresolved in the courts on issues such as free commerce, jurisdiction over foreign companies and other legal challenges.

Then why is there any trouble with deposits and play?

The US Department of Justice has taken the stance that all online gambling, including online poker, is illegal under federal law, despite the fact that no such law is written that way and even a federal circuit court has ruled otherwise. So, according to the DOJ, it is illegal under the UIGEA for any site to accept money deposits for online poker. (Withdrawals are never illegal under the UIGEA.)

The UIGEA puts the burden of enforcement on Financial Service Providers (FSPs - banks, credit card companies, money transfer services, etc.). If they fail to block restricted transactions, they can be subjected to severe fines. The UIGEA also gives them legal immunity for blocking non-restricted transactions in an effort to block restricted ones.

All this adds up to over-blocking - the policy of some FSPs of blocking all online gambling related transactions, whether legal or not and whether a deposit or withdrawal.

What are my risks for making poker site deposits and withdrawals?

So far, the only real consequence suffered by any player has been the closing of their bank account. This has happened in a very few instances. When it does happen, the bank simply gives you your money and closes your accounts. They do not freeze or confiscate your money. For this reason, it is recommended that you have an account at a different bank from your normal banking for just your poker transactions. A local credit union is usually a good choice.

There may also be some additional delays for deposits and withdrawals from time to time as the sites make their best efforts to stay ahead of the game and keep options available. If you are experiencing a long delay, contact support at your site for their help in tracking the transaction.

What methods are working for deposits and withdrawals?

Credit cards, debit cards and gift cards no longer work in most cases, although there are some reports here and there of something working (watch the various forum threads for details). Currently, most of the sites have available echecks (ACH transactions), wire transfers and paper checks for US players. What is available can change daily, so check with the cashier at your site for specifics.

Which banks don't block poker transactions?

As this is an open forum, we don't post the names of banks, cards or other FSPs that are working. Posting the name here might alert someone in the banking industry or government. If you know of an FSP that works, you can offer to provide the name by PM to regular 2+2 posters.

How do I deal with depositing a paper check at my bank?

An atm deposit is a good option. If the check has an ABA routing 9-digit number followed by the bank account number imprinted along the bottom [MICR encoding] it can be deposited in your bank account without the need for it to be sent for collection.

Paper check withdrawals are ofttimes issued on a Canadian bank. If it has the MICR encoding, it will be processed just the same as a US check. However, sometimes an improperly trained bank teller, seeing a Canadian check, will mistakenly claim that the check is foreign and has to be sent for collection, which can take weeks. Use the atm instead. If your atm has a check reader and rejects the Canadian check, your bank might have a more stringent policy. Use a different bank. You can also ask the cashier at your poker site if they can send only a check written on a US bank.

What about withdrawing large amounts? Should I break it up into smaller transactions to avoid suspicion?

A series of smaller transactions may be spotted as suspicious. Banks are required to file a Suspicious Activity Report (SAR) on any transactions which seem suspicious, i.e. possibly related to illegal activities, regardless of the amount. They may be alert to series of structured transactions for this reason. Keep it simple - if you act in a way to hide what you are doing, you look more suspicious.

What do I say if my bank asks about my cashout deposit?

Don’t lie. The worst they can do is return your monies and close your account. Most likely they aren’t trying to find out if the deposit is from Internet poker, but rather are looking for other types of suspicious activity. You can say something unspecific such as you have an online business or you are being paid for some online work. If they press for more information, you can refuse to answer and, if necessary, take your business elsewhere. Or just tell them the truth - they might not care. If they do care, they will probably just give you a warning and you will know it is time to take your poker business to a different bank.

What do I say if my bank or credit card company asks about my credit card usage or puts a security hold on it?

Most likely they are just concerned that your credit card isn’t being used by someone who has stolen your card number. When you use your credit card to make a deposit to a poker site, the transaction may be blocked (based on the credit card coding system), or the transaction may get flagged as unusual as it doesn’t fit your ordinary purchasing patterns. In either case, the fraud department of your bank or your credit card company may put a hold on your credit card and try to contact you to verify that you initiated the transaction. Once you verify the transaction as yours, they will remove the hold and you can start using your card again. Do not tell them that you were making an Internet poker deposit; just verify that you were making an Internet purchase.


For more information about the UIGEA, see The UIGEA and Federal Licensing Bills FAQ .

thanks

are 5 echeck/check cashouts in one month suspicious?

no

Thank you PX for answering and created this FAQ. I find it very useful and answered my question.

Great post PX, this should cut down on the numerous threads asking the same things you just covered, nice job!

Awesome work PX!

five stars

five stars.

one question though:

can anybody recommend which banks are more laid back about deposits

The best way to lose good banks would be to post them on public forums.

credit unions and smaller banks seem to not care about online gambling as much as [the bigger banks].

This may just be in my area and with my circle of friends though.

Sticky imho.

nice work.

agreed

Well done, PX, as usual.

+1

bump. sticky now?

Would anyone be able to PM with banks they use in the midwest that don't care about deposits and withdrawals?

There's no such thing. They all care. The difference is in their levels of success in blocking these transactions.

IMO, the best thing to do is open accounts at a few different banks. If one gets closed, just open another.

I combined the originating post and the tax sticky into a new sticky: U.S. Taxes, U.S. Bank Accounts, and Poker Site Deposits FAQ

What about if you want to make a large (5-6k figure) withdrawal? If you win a Sunday major and want to withdrawal 100k, would you do a check or wire? I'd feel a bit unsafe about having them send a 100k check in the mail. Will your bank freak out if you get wired 100k from out of the country?

win the 100k first and then worry about how to withdraw it

Why play the 100k if you don't have confidence you can get the money if you win?

A foreign bank wire of that amount is likely to generate a Suspicious Activity Report (SAR) by your bank, especially if that's an unusual activity amount for your account. Depositing a check in that amount may do the same. Nothing will necessarily come of the SAR, but be sure to accurately pay your taxes and do your FBAR reporting (see Tax Sticky). Also, if your bank detects that the money is coming from iPoker (by either wire or check), they might refuse the deposit and they might close your accounts (but give you your money).

Can anyone give me a % estimate of successful echeck usage after getting a different bank account, say in a really rural area?

It's my impression that wires get more scrutiny than checks.