Poker and the UIGEA

January 20, 2009 | News Category: Gaming Law

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For over two years, since the Unlawful Internet Gambling Enforcement Act (UIGEA) took effect, there have been a number of problems, both for the United States government, and for individuals, because of the lack of clarity as to how the law should be interpreted.

On a national scale, the United States were considered to have broken international trade treaties. On January 25, 2007, the World Trade Organization (WTO) ruled that the U.S. was in violation of its treaty obligations with Antigua by not granting full access to the online gambling market based on the island nation. In June 2007, the European Union filed claims against the United States for compensation, which were followed by claims filed by Antigua the next day.

The online gambling community have been working hard to get some kind of clarification regarding exactly what is legal, and what is illegal, according to the UIGEA. From laymen to legislators, all are confused by the law that seems somewhat open to interpretation. The Poker Players Alliance (PPA) have been trying to get a ruling through the courts, to exclude Internet poker from being governed by this law, as the game is considered to be a game of skill.

Last week, a Pennsylvania judge, Judge Thomas A. James Jr., shed some light on the issue of where poker fits into title VIII of the SAFE Port Act. While the case in question was regarding a girlfriend and boyfriend who were standing trial for running a house poker game, and not directly related to Internet poker, the judge's clarification helps define where poker could fit in to the UIGEA.

Judge James Jr. ruled that poker is not a game of luck, but a game of skill, which could set an important precedent in the U.S. for any future court cases regarding both online poker and offline poker.

PPA's Executive Director, John Pappas, said that it was clear that the judge had some kind of an understanding of how poker is played. He continued, saying that "Coming to this decision was not a far leap. The decision sets an excellent bar for us in the future."

There is some speculation in the Internet poker community as to whether Judge James Jr.'s ruling will encourage the return of the online casinos and Internet poker rooms who, due to the UIGEA, pulled out of the U.S. market.

In April 2007, U.S. Congressman, Barney Frank, who attempted to overturn the UIGEA, said "The existing legislation is an inappropriate interference on the personal freedom of Americans and this interference should be undone." Online gambling sites, and poker sites in particular, are hoping that the new Administration, along with President Barack Obama, will reform the UIGEA laws.