Feds Ask Banks to Freeze U.S. Online Poker Players' Winnings

Authored by Mark Hefflinger on June 10, 2009 - 11:27am.

New York - In attempts to uphold the U.S. ban on Internet gambling, federal prosecutors have asked four U.S. banks to freeze at least $33 million in winnings owed to American online poker players, The New York Times reported.

The move marks the first time that the government has targeted money belonging to poker players, rather than the financial operations of online casinos or payment processors.

Some 27,000 players at online poker sites including PokerStars.com and FullTiltPoker.com are affected.

In one letter to a bank, prosecutors said the monies "constitute property involved in money laundering transactions and illegal gambling offenses."

At least one gambling law expert noted that he was not clear what law would authorize such a move.

"It's very aggressive, and I think it's a gamble on the part of the prosecutors," Whittier Law School professor I. Nelson Rose told The Times.

Rep. Barney Frank (D-Mass.) last month introduced a bill in Congress that would overturn the three-year-old ban on Internet gambling, and instead impose licensing restrictions to regulate the industry.

http://snipurl.com/jv3qb (DMW previous coverage)

Published in DMW Daily, June 10, 2009

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tags: Law | Policy | Gambling |

Comments

Freezing Full Tilt Poker Funds from US players

Submitted by Tanner (not verified) on June 10, 2009 - 6:14pm.

The USA is against anything that they cannot tax. Cigarettes, Alcohol, and gambling within the country our legal because they can tax it in a much easier manner. Yet marijuana and online gambling are illegal. Is it because the government aren't receiving their cut? Do they only care about matters that pay money? These issues should have to do with freedom, not money. At the age of 18 I started walking into casino's in Washington State, yet at 24 I can't choose to gamble online if I want to? I can drink myself to death, yet can't smoke marijuana? I do not understand the country I live in. I do not understand. But even in this century, I am a slave. Many may disagree with that statement. But the only reason for my existence is to suit the government (in their eyes). -Tanner