Internet poker a sucker bet
Filed under: Ripoffs and Scams
Online poker in the U.S., despite regulations against it, has grown in lockstep with cable programs devoted to poker. A new investigation by the Washington Post and the CBS show 60 Minutes revealed how two online sites were hacked, resulting in the scamming of millions of dollars in poker winnings.
I've written before about the many reasons that online gaming is a bad deal. The sites are located God-knows-where. The cards are not cards, but lines of code, subject to manipulation by a hacker or site operator; there is no guarantee the game is on the up and up. Your money flows through the books of people of unknown trustworthiness, funding who knows what kind of programs.
The WP/CBS investigation focused on two sites in particular, AbsolutePoker and UltimateBet. In both cases, criminals had managed to gain access to the betting software, so, as they played hands of poker, they knew what cards their opponents were holding. As you can imagine, this advantage resulted in millions of dollars in winnings. Only the greed of the winners, who won at a rate statistically impossible, tipped off the companies that their security had been compromised.
While at least some of the losers were compensated, these results reinforce my cynicism. How many other cheats are there who haven't been caught, who shrewdly lose often enough to keep from violating the laws of probability?
Add these troubles to the very real risk that, playing from home, a gambler's self-destructive addiction can go unrecognized by friends and family until too late.
If you love poker, do yourself a favor. Call up a few friends and host a live game. Internet poker is a sucker bet.
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Reader Comments (Page 1 of 1)
12-01-2008 @ 4:00PM
da governator said...
Also, since a law passed in 2006, it's illegal too. Apparently you can get away with it if you only have small winnings that aren't that noticeable, but once you start getting big money, that's when you run into trouble.
I actually dabbled with it myself in college before it was illegal and had a great time. It's how I got beer money for weekends. :)
Reply
12-01-2008 @ 9:40PM
CohibAA said...
Online poker is not illegal to play. Here is more information about the law passed in 2006:
From http://www.onlinepokerfaq.com/uigea.html -
On September 30, 2006, the US Senate passed the Unlawful Internet Gambling Enforcement Act.
What this new law does not do:
* The new law does make any type of online gambling illegal. It refers only to forms of online gambling that are already illegal due to other laws. For example, at the federal level the 1961 Wire Act makes it illegal to operate an online sports-betting business (but not to be a customer). At the state level, some states make it illegal to play at an online casino. But the new law does not make any more forms of online gambling illegal. It is quite clear about this, saying that nothing in this new law shall be construed as "altering, limiting, or expanding any Federal or State law... prohibiting, permitting or regulating gambling within the US".
* The new law does not apply to the players. The law addresses only the operators of online gambling businesses and financial institutions that transfer money into those businesses.
* The new law does not mention poker specifically. The interesting question then is whether online poker is already illegal due to other existing laws. At the federal level, the executive branch says it is illegal but has never brought a suit; the judicial branch case law says it is not, most clearly in the "In Re Mastercard International" case which held that the Wire Act applied only to sports betting and not other forms of gambling. A few states do have laws prohibiting online gambling of any type except those specifically authorized (like the state lottery).
What this new law does:
* Prohibits a business from receiving deposits for the purpose of unlawful online gambling. For example, an online sportsbook that is already breaking the Wire Act by accepting online bets, is now further prohibited from accepting deposits. Specifically, the law says: "No person engaged in the business of betting or wagering may knowingly accept... credit cards, ... electronic transfers, ... " (etc) where a person is engaged in "unlawful Internet gambling".
* Requires regulation of financial institutions.The Federal Reserve is directed to create new regulations within 270 days that will apply to financial institutions. The regulations will detail how financial institutions are to identify and block transactions from the US to unlawful online gambling businesses. Note that this does not include transactions to lawful online gambling businesses, nor does it include transcations in the other direction. Also, it specifically does not cover paper checks, due to practical difficulties in tracking them.
What does this mean for the players?
* Some sites have decided to leave the US market. Party Poker is the largest such site. If you live in the US, you will not be able to play at these sites any longer. All of the sites have said they intend to honor existing account balances. See below for the full list of sites that are rejecting US players.
* Other sites will stay and absorb the displaced players. Some sites will sense a business opportunity and will stay in the US market. Poker Stars and Full Tilt Poker are the largest sites to announce this is their intent.
* Old ways of depositing money may be replaced by new ones. Financial institutions will begin blocking certain types of transactions into online gambling sites, even legal ones, just to be on the safe side of the law. As the regulations are written, the sites will find legal ways for people to transfer money and will make it easy for the players.
What remains painfully obvious is that the United States need to enact legislation that will protect the consumer by regulating and taxing the online casino industry. Until that happens, black-market opportunists will continue to fill the industry with shady, immoral, and unethical practices.
Join the Poker Players Alliance - Voice your opinions and help make online poker fair.
CohibAA
http://www.Allinpoker.cc
Reply
12-05-2008 @ 2:33AM
manoj said...
thanks for info
visit
http://www.bigbonuspoker.com/
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