Is Internet Poker Illegal In The United States?

Internet Poker is not illegal in the US but it is illegal for US banks to process gaming transactions (credit card payments, wire transfers, etc). Now, to deposit legally you have to go through a 3rd party such as an ewallet like eWalletXpress, e-checks (poker sites use third party companies to process e-Check payments) or a money transfer company such as Western Union (But don't waste your money on Western Union, there are other ways to load your account. Check out my article How to Start a Poker Bankroll From $0).



In 1961 Congress implemented the Wire Act which prohibited the operation of certain types of betting businesses in the United States. It begins with the text:

Whoever being engaged in the business of betting or wagering knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers, shall be fined under this title or imprisoned not more than two years, or both.

No casual bettor has been convicted under this statute. In 2006, The Unlawful Internet Gambling Enforcement Act (UIGEA) was passed which made it illegal to transfer monies between financial institutions and on-line gaming sites. Notice the word, enforcement which is to enforce the 1961 Wire Act.

Why was the UIGEA bill implemented?

Because there are some people who would gamble money that they do not have. Such as a California woman who raked up more than $70,000 on a Visa card. Here is the official reason why the bill was passed;

Internet gambling is a growing cause of debt collection problems for insured depository institutions and the consumer credit industry.

The obvious solution to this is to "Stay within your Limits" and have a separate bankroll for your gaming account. But some people become "compulsive gamblers" and there really should be a better system to help them. I'll write an article tomorrow about compulsive gambling.

Here is Barney Frank, Chair of the House Committee on Financial Services, at a hearing entitled,"Can Internet Gambling Be Effectively Regulated to Protect Consumers and the Payments System?"



Barney Frank has been trying to repeal the UIGEA for some time. The last attempt to repeal the act failed resulting in a 32 to 32 voting tie. Now, with the new Obama adminstration, Frank has expressed his intention to reintroduce legislation designed to counter the effects of the UIGEA.

"I'm going to be pushing it," Franks said. "The existing legislation is an inappropriate interference on the personal freedom of Americans and this interference should be undone."