United States. However, like many bills passed by Congress, ...

Two years ago, Congress passed the Security and Accountability for Every Port Act of 2006 to address concerns about cargo being moved into the United States. However, like many bills passed by Congress, there was an addendum that related to something almost entirely different. That time, it was the Unlawful Internet Gaming Enforcement Act of 2006 (UIGEA).

This legislation describes the legality of internet gaming. Although it does not outlaw the practice of online gaming, it prohibits the transfer of funds from financial institutions to any online gaming site located offshore, except for sports and horse race betting as well as online lotteries. The bill has the most significantly affected online casino games, particularly online poker. It has had a severe negative impact on U.S. poker websites, but even more so on European ones. Although certain American sites like PokerStars and Full Tilt Poker have made a commitment to continue servicing their American costumers, European sites determined that it will be too difficult to operate in the United States. For example, Party Poker, one of the old mainstays of online poker, discontinued its United States coverage after the passage of UIGEA. Upon learning of the act passing Congress, PartyGaming, which runs Party Poker, issued the following statement: "the Board of PartyGaming Plc has concluded that the new legislation, if signed into law, will make it practically impossible to provide U.S. residents with access to its real money poker and other real money gaming site." They held that transferring money in and out of the site, a process typically consisting of wire transfers to banks or e-wallets would no longer be viable.

Overall, this legislation is perceived to depress the online poker communities and markets. In addition to hurting the revenues of several of the companies that offer online poker like PartyGaming, which saw a 68 percent drop in the value of their stock following their decision to discontinue gaming in the United States, the bill is likely responsible for a decrease in gaming. According to studies conducted by Poker Players Alliance (PPA), a non-profit organization working on behalf of Internet poker players, the percentage of college-aged players participating in online gaming decreased from 5.8 percent in 2006 to 1.5 percent in 2007, the year after the introduction of the legislation. Now online poker is facing an even tougher challenge.

After the passage of more definitive UIGEA regulations near the end of George W. Bush's tenure as president, domestic internet poker sites have greater difficulty managing banking transactions. Recently, the Vice President of the American Banking Association, Steve Kenneally, recommended that financial institutions begin blocking all transfers to poker sites, both foreign and domestic. This means that large U.S. poker rooms, like Full Tilt and Poker Stars face huge obstacles to maintain their current coverage. Once the bill is necessarily implemented by all banks on December 1 of this year, it will be very difficult for Internet poker to continue anywhere near its current capacity in the billions of dollars annually. Of course, the poker community will not be marginalized without a fight.

Chaired by former Senator Alfonse D'Amato, the PPA yields a significant influence in United States politics. In addition to a membership exceeding one million people, the organization is working diligently to protect online poker and establish it as a game of skill. Recently, it has been successful. In a Columbia County court case in Pennsylvania a judge ruled that prosecuting players for participating in unlawful home poker games was not punishable because poker is a game of skill. Consequentially, the case was dismissed. Similarly, the PPA has been involved in cases in Colorado, Kentucky, and South Carolina where judges have established that poker is a game of skill.

Additionally, there are several measures before Congress meant to delegitimize UIGEA legislation. Barney Frank (D-MA), a consistent supporter of Internet gaming rights, has committed to introducing online gaming legislation that will protect online poker. Also, Congressman Jerry Nadler (D-NY) introduced the Midnight Rule Act that will nullify all the new rules put into place in the final 90 days of the previous administration if passed, including the new version of UIGEA. Additionally, many members of Congress continue to introduce legislation establishing certain types of gaming, like online poker, as skill games and thereby verifying their legality.

Speculation about how the Obama administration will react to Internet gaming legislation runs rampant. In lieu of recent court rulings establishing poker as a game of skill, support has been growing to legally identify it as such. Also, under the auspice of a Democratic president and more heavily Democratic Congress, online poker's chances will likely improve. Although none of the legislation has yet passed, several previous bills have maneuvered their way through committees and the process is becoming more indicative of general support for the bills, which may be the silver bullet for online poker players.