Is it Legal to Deposit for Online Poker in USA?

The most common questions professional poker players hear from those first learning of their profession go something like: “oh wow! Have I seen you on TV?” and “isn’t online poker illegal?” The first of those questions is generally met with a chuckle and a response to the tune of “umm, no” followed by a now confident “I mean… Not Yet!” The second question can be answered many different ways and is the one we’ll address on this page.
 
Is it legal to deposit for online poker in USA?

The answer to this may soon be a definite “yes, it is perfectly legal to deposit for online poker in USA” if HR2267 is passed into law. If you’re not familiar with HR2267, this is a bill that proposes the legalization and regulation of online poker in the United States. In July 2010, HR2267 passed the US House Representatives Financial Services Committee by a 41-22 vote. For this bill to become law, it now needs to pass the full House, the Senate and then be signed into law by the president. Many poker players, operators and affiliates are optimistic that USA licensed poker sites will be available sometime in 2011.

In the immediate, to the best of our knowledge, there are no federal laws that make it illegal to deposit or play online poker from the US. Of course, we’re not attorneys, nor do we come from a legal background. Also, while there might not be federal laws against online poker, there are most certainly laws against it in some states as well as certain counties and Indian reservations. In matters of the law, while Google search is convenient, we strongly suggest consulting with a licensed attorney rather than going by what you read on the net. With that said, we’ll now address some misconceptions regarding the legality of poker in the United States.
 
Didn’t the US Ban Online Poker in 2006?
 
This is most certainly not the case. What you’re thinking of is the Unlawful Internet Gambling Act of 2006 (UIGEA for short). What UIGEA did was make it illegal for banks and financial institutions to aid in the processing of “illegal” online gambling transactions. Experts on this law have made it clear the bill itself did not create any new laws. It simply made it illegal for banks to assist in situations where old laws had already made gambling illegal.

What about the Wire Act?

The Wire Act is an interesting topic, and what it does and doesn’t do is still being debated in court. Before looking at the bill’s text we should state this law has been on the books since 1961, which was well before the use of home computers, the internet and the birth of online gambling. With that said, this is how the Wire Act starts:

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.

The remainder of the Act goes on to outline penalties and previsions, none of which span outside the words we’ve underlined “in the business of”. To us this suggests the law simply makes it illegal to “operate” a betting service over the phone, which was the common way bets were placed in 1961, and has nothing to do with targeting “the bettor” (or in the case of poker the “player”). Now we’d normally include a “this is not legal advice” disclaimer to this section of the page, however even legal professionals can’t decide what the wire act means in relation to online gambling; it is largely up for debate.

One thing is for certain, the US Department of Justice believes the wire act makes all forms of online gambling illegal. However, US Courts have rules against this. Most, but not all, experts agree this applies only to those “in the business of” gambling. What’s up for debate is does “internet-based” gambling apply, and if so what specifically is illegal; sports betting or all forms of online gambling? The legal precedent that has been set so far is that the wire act only applies to sports betting. This came from a US District Court Ruling in 2001, and was upheld in 2002 by the US Fifth Circuit Federal Appeals Court. We’re not even sure if any rulings have been made (or not) that interprets that the wire act even covers “internet-based” betting. Again, we’re not legal experts, but calling online poker illegal under the wire act is quite a stretch as again the legal precedent backed up by the federal court of appeals in plain language states “The wire act only applies being in the business of accepting wagers on sporting events”.

So, is it legal to deposit for online poker in USA?

Well, we’ve come full circle on that topic. Once again, talk to your attorney and let them decide for you. If they tell you it is okay, you can then read about our various online poker deposit methods for USA. If you do decide to play, we wish you the best of luck at the US online poker tables.