$33 Million In Poker Winnings Seized By US Govt

An anonymous reader writes "A New York Times story reports that, 'Opening a new front in the government's battle against Internet gambling, federal prosecutors have asked four American banks to freeze tens of millions of dollars in payments owed to people who play poker online. ... "It's very aggressive, and I think it's a gamble on the part of the prosecutors," Mr. Rose said. He added that it was not clear what law would cover the seizure of money belonging to poker players, as opposed to the money of the companies involved.' Many players are reporting that their cashout checks have bounced."

Comments

Lame Gov

[tc3driver]

Hello.... Government....
Don't you have more important things to be thinking about than `internet poker`?
Like an economy on the rocks?
or maybe nearly 10% of the folks in this nation who have no source of income?

Honestly, I'll never understand who goes through our governments minds... they do nothing but waste time, thus waste money... and people wonder why this nation is on the verge of collapse...

Re:Lame Gov

[Brett Buck]

There's no more important government function that getting their hands on someone else's money.

      Brett

Re:Lame Gov

[MetinAustralia]

Wasn't this law brought in to protect the individual from losing his/her money to gambling? Then why is the individual now losing his/her money to the government?

Re:Lame Gov

[Darkness404]

Just like the 1880s, right? Sure, you can live free if you're the upper crust. Otherwise, your life will be nasty, brutish, and short, and spent toiling away and never seeing more of your proceeds than you need to stay alive, barely.

Please elaborate. With the decline of government comes the decline of patents, therefore medicine would be cheaper than ever before and would only be limited by the materials needed to manufacture it. And how won't you see any more of your proceeds? Today we can import almost anything we need for cheap, with the sharp reduction in tariffs expected with a decline in government, goods become cheaper.

This isn't a nightmare scenario. It actually happened. It was called the Gilded Age, and we should be glad it ended. Why do extreme libertarians like you consistently deny the logical implications of your policies?

Again, elaborate, the Gilded Age was plagued with lack of information, government policies (such as giving land away to the railroad companies), a lack of a global economy to export to and import from and a lack of (today) basic technology. Suffice to say that the Gilded Age could not be recreated with A) A weaker government and B) 21st century technology/world economy.

I can't eat a Youtube video. How do you think all the thousands of people who are paid to create internet content get paid? With currency only good on the internet? The Internet isn't some isolated bubble divorced from the real economy. It's enmeshed quite heavily: people order real, hard goods through it, put real capital derived from conventional industry into it, and spend the real money generated from it on tangible products.

Your point holds true to a point, but look at Google, their entire business is intangible and works on choice. Plus even though there are thousands getting paid for internet content there are untold millions making no profit whatsoever on internet content. If you don't believe me simply look at your post, you posted a comment with a 0% chance that you could use that comment to make a profit.

The internet though is different than the traditional government controlled economy because you have absolute freedom of choice. Where in the USA you are penalized for choosing a provider in a certain area (either by taxes or by tariffs) it makes no difference where the site is you are accessing on the internet. If I want to go to www.nicovideo.jp rather than YouTube for my online video, that makes no difference. Whereas if I choose to get a Japanese car rather than an American car I would be paying more to the government for doing absolutely nothing.

I suppose I'm dealing with a true believer here. Of course there's a recession "in the internet": it makes as much sense to say "no recession in the internet" as it does to say "no recession on the telephone network".

The difference is there are entire industries not based off the network of the internet but rather the internet as a whole. The phone network functions, well, as a phone network. Other than perhaps a few phone-based services, there is no business using the phone system to really function like Google has for the internet. Then there is the internet community, the phone network has no real community.

Re:Lame Gov

[kcitren]

Please elaborate. With the decline of government comes the decline of patents, therefore medicine would be cheaper than ever before and would only be limited by the materials needed to manufacture it. And how won't you see any more of your proceeds? Today we can import almost anything we need for cheap, with the sharp reduction in tariffs expected with a decline in government, goods become cheaper.

And where is the incentive to create new medications? I, for one, am awaiting for the creation of a few new medical treatments [a pill, say, to replace the three times a week injections I have to give myself; or a cure, perhaps to the underlying condition, not that it's in the pharmaceutical companies interest to actually cure anything ]. The value of something is not simply the material costs. Research costs time and money, that cost has to be a) recouped, and b) incentivized. While I'm a huge proponent of the open-source, work on what you believe in, approach to development, it's not enough. There are not enough independently wealthy, selfless, do-gooders [in the best sense of the word] in the world to rely on for advancement in technologies.

Re:Another reason not to gamble online

[Zocalo]

Actually, there are no house odds in poker played with a real deck of cards. For anything involving a computer (or mechanics, historically) it's just a matter of how you implement the game.

Wont work.

[wonderboss]

They may successfully grab the money of these unfortunates, but then people will stop depositing winnings in US banks. The internet does not respect borders or jurisdictions.

Re:Another reason not to gamble online

[Pulzar]

It's poker, you're not playing against the house. There's no reason to skew the odds.

(Before somebody else says it, yeah, they could try to generate "action" hands to increase the rake. They could make weaker hands win more often to keep the fish around. This is a much harder thing to do undetectably than have the house win 10% more often in blackjack... with all the software available to keep track of and analyze all hands played, it's easy to spot any irregularities in randomness. I doubt that it's worth the effort to try to develop an undetectable skew in probabilities... Not to mention that if you screw up and get detected, your gold mine will be deserted the next day).

Saw it Coming

[Renraku]

Honestly, I wondered why this hadn't happen sooner.

Now, instead of the people taking a risk of getting cheated out of their money, they 100% did get cheated out of their money.

The companies should be allowed to pay-out what has already been accumulated, but no more after that. There's no guarantee whatsoever that the gamblers themselves weren't going to pay taxes on the money that they won.

These comments are just stupid

[Canberra Bob]

Reading through this it is amazing the ignorance shown in a lot of the comments.

To elaborate - I will come out and say it. I play poker professionally online. Mid stakes limit hold em to be precise. Firstly, I have been paid in full every time I have made a withdrawal. There are PokerStars offices (yes, real offices, with people working in them) in many countries around the world. I have bought many items, including cash bonuses, through the site store. I have received every single one (including the cash) in a timely manner and have not once had an issue. International freight is via DHL and usually arrives within a week (with no charge on shipping to me). The statement that you will not get paid just shows pure ignorance of the subject. I am sure there are some dodgy sites out there, but there are many dodgy sites out there in other activities too. I suppose you should never buy anything off a site because there are some dodgy sites?

As for fair or not, let me continue...

You can purchase quite sophisticated statistical analysis software for poker. Most (possibly all) professional and serious amateur players use it. It will break down every single part of all the games you have played and you can pull numbers on almost any conceivable situation you have ever been in to find flaws in your game ("leaks" in poker jargon). The data is stored in a PostgreSQL database for you to access if you care to write your own front end. This software stores every single hand I have ever played in. Included is analysis that shows if you are running "lucky" - you can prove mathematically if you have been "lucky" or "unlucky" with how the cards have come out - that is - if your results are skewed due to the cards being dealt giving you statistically more or less wins than you should have on average. There are some VERY smart guys playing (as one would imagine with the money that is at stake) including pros who have post grads in statistics, finance etc. I personally studied electrical engineering and am currently doing some stats study on my own to improve my game and move my play towards the holy grail that is Game Theory Optimal (which may not even exist in multi-handed poker due to incomplete information). These guys are not some country yokels who have no idea if they are being duped or not.

As for bots...
Firstly, I invite you to put your money where your mouth is, get a bot and play some mid stakes or higher multi-way poker (6-max or full ring). Your bot will be crushed. Period. Yes I know about Polaris (the University of Alberta bot which can match it with the best heads up limit players in the world). A few points to note. This is for heads up limit - more players than 2 and the game becomes exponentially more difficult for a bot to play. Bots are not all conquering in the poker world as some assume, a good player will crush almost any bot. Unlike other games poker is a loooooong way from being solved (if it can be). As for collusion, this happens unfortunately from time to time (as it does in a real casino) but there are protection mechanisms in place against it. Firstly, the sites employ poker and statistical specialists who have no other job than to keep the games honest. You can see if someone is playing statistically better than they should. Added to that, as a professional player many can quite easily spot when people are colluding on the table. If someone is caught cheating they have their entire playing account funds frozen and anybody who has played against them has their money refunded.

I have played pro live and online. I play online as I can get multiples more hands per hour against weak player in than I can in a live game. Also the rake is a small fraction of what I pay live. The only ones who say "omgz online is rigged" either have no idea what they are talking about, or are players who just suck at poker and instead of working on their game find something else to blame for why they always lose.

Plenty more to say but that will do for now...

The point of drug laws?

[BancBoy]

I thought the point of drug laws was to punish people for choosing non-corporate recreational drugs. This Bud's for you! That bud growing over there? We'll lock you up for that...