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Sunday, 16 May 2010 23:59

While online poker is actually legal in the US, it is unlawful for banks to transact online gambling deposits and withdrawals. So where does that leave us?

Gambling on the Internet for anyone living within the United States has been a precarious pastime to say the least since the introduction of the Unlawful Internet Gambling Enforcement Act, or UIGEA. From recent crackdowns such as the State of Kentucky not only banning all forms of online gambling but the attempted confiscation of gambling related domain names to the ongoing investigation of Full Tilt Poker by the FBI, poker over the Internet is taking a firm beating of late.

To such an extent is the effects of this being felt that all across the world, poker players and organisations are lobbying in vehement opposition to the Act. But why should other countries in the world want to make a big deal out of the problems in the US?

It goes back to the poker boom in 2003 that saw the top players of the day such as Tom Dwan, Patrik Antonius and Viktor Blom build their incredible eight-figure bankrolls, which were then annihilated by the UIGEA. There is a wave of lobbyists in the US that includes some Senators aiming to get poker recognised as being a skill game. It is hoped that such a move will exempt poker from the restrictions on gambling and the hope is to restore online poker's golden years.

The restriction imposed on US gamblers has divided poker into Euro Sites versus the big four, which are Full Tilt Poker, Poker Stars, Absolute Poker and Ultimate Bet. It is generally believed the European games are softer because a lot of recreational US players believe that online poker is illegal and American pros cannot play on many of the European sites. What's more, poker is not taxable in Britain, which gives the Brits a rather sweet deal.

However, if the US decides that poker is a skill game, it's highly possible the UK government may decide to look at taxing of the game. It could effectively cut anywhere between 22 percent and 50 percent from the profits including rakeback. The WSOP first prize could end up being cut by anywhere up to 60 percent if this goes down.

While that scenario is a long shot, the benefits reaped by the UIGEA being overturned certainly outweigh the slim probability of that grim vision of a taxed future coming true. But nothing is certain and poker is, after all, all about gambling.