PPA: IGBA Ruling is "Victory for the Game of Poker"
On Tuesday, Judge Jack Weinstein of the United States District Court for the Eastern District of New York became the first Federal judge to rule that poker is a game of skill rather than a game of chance. The verdict concluded by saying that poker is not illegal gambling under the Illegal Gambling Business Act (IGBA), which could have ramifications for poker-related court cases down the road.
In a press release sent out on Tuesday afternoon, Poker Players Alliance(PPA) Executive Director John Pappas called the ruling a “major victory for the game of poker and the millions of Americans who enjoy playing it.”
Pappas announced, “As we worked for years defending players against vague gambling laws, we have patiently waited for the right opportunity to raise the issue in Federal court… Judge Weinstein’s thoughtful decision recognizes what we have consistently argued for years: poker is not a crime; it is a game of skill. As the judge’s opinion aptly notes, poker is an American pastime that is deeply embedded in the history and fabric of our nation and his decision sets aside the notion that the vague laws render the game criminal.”
The PPA was intricately involved in the case, which centered on Lawrence DiCristina‘s operation of an allegedly illegal poker game, and submitted an amicus brief. In the end, the U.S. Government failed to prove that chance predominates in poker. Pappas (pictured) pointed out, “Judge Weinstein gave the Government an opportunity to prove that poker was a game of predominant chance, but even Federal prosecutors could not provide an expert of any kind that could conclude that chance predominates over skill in poker.”
In the 120-page ruling, Weinstein asserted that professional poker players “draw on an array of talents” that “permit the best poker players to prevail over the less-than-skilled players over a series of hands.” For those of you thinking there is an element of chance in poker, Weinstein agreed, but countered, “That chance plays some role in the outcome of the game does not imply that poker is predominantly a game of chance rather than predominantly a game of skill.”
We’ve had a few posters on PocketFives ask about the corollary to the Unlawful Internet Gambling Enforcement Act, which outlaws financial transfers from online poker players to “unlawful internet gambling” sites. PPA Vice President of Player Relations Rich TheEngineer Muny (pictured) provided the following insight in a statement to PocketFives: “The DOJ alleged that it was a violation of New York state law that led to the UIGEA Black Friday charges for PokerStars and Full Tilt.”
You’ll recall that late last year the DOJ ruled that the Wire Act of 1961 only applies to online sports betting. Slowly but surely, according to Muny, there is some clarity as to whether poker falls under certain Federal laws: “There’s still going to be an open question on the UIGEA if you offer poker in a state where it’s not allowed. That’s what we saw with PokerStars and Full Tilt, which led to the alleged UIGEA violation.” Therefore, state laws will also continue to come into play.
In addition to alleged UIGEA violations, the 11 individuals targeted on Black Friday were also hit with counts of operating an illegal gambling business, conspiracy to commit bank fraud and wire fraud, and money laundering conspiracy. Several, including Absolute Poker co-founder Brent Beckley, have already pleaded guilty. Others, like embattled Full Tilt Poker founder Ray Bitar, are in U.S. custody awaiting trial.
