What's Happening Legally...And What Can We Expect!

[Randy C]

Greetings Leaguers,

The fire is heating up...This new law is starting to affect us in ways that the industry has never faced before. Questions loom, answers are not forthcoming, player's are up in the air as are the industry provider's themselves. It's a very dark cloud, but ....there's hope!

Many folks are feeling the impact of the UIGEA in ways they never expected. Many companies associated with the online poker industry are pulling the plug because of the Neteller debacle. That one major bust was enough to send the entire industry into a frenzy. Pulling out was really the only option many of the larger pay sights had.

So, where is the State of Poker? (I wish there was one...lol) Well, the correct answer and the one that I have been privy to is; time will tell... Most of the sites that still run in the US market are privately held companies who have no ties whatsoever to the US in terms of stock and investment holdings. When Party Poker, Paradise Poker, Titan, Pacific Poker and some of the other big ones pulled out, they did so because they were traded publicly and had NO other option. Those that are left are coming up with new and innovative ways of keeping the engine rolling, but we are fast approaching the point where they may "run out of gas."

The only hope that we have left now are the recent changes made in the Congress and House. It is plausible that a bill can be written to repeal the UIGEA or ratify an exemption for poker specifically. As a member and State Rep for the Poker Player's Alliance, I am unaware of any current Federal bills that are being proposed, however their is still a slight hope left because their is currently a Country (Antigua) who is opposing the UIGEA because they claim that it is in direct violation of the Fair Trade Act. This opposition HAS merit and may be our saving grace, although they are not fighting for poker specifically. Antigua is claiming the entire UIGEA is wrong because it interferes with their right's under the Free Trade Agreement to do business with US consumers.

At this point, I guess the "only time will tell" answer is as good as any. Time will certainly tell which direction we are going, but I fear things may get worse before they get better. Unfortunately, their is current legislation that out opposition hangs their hats on...and until that law is either repealed or changes, we have a LONG road ahead of us.

My best advise to you all is to get active. Join the Poker Players Alliance and get on a letter-writing campaign to your State Reps and Congressmen.

All In,

Randy C~

[skallagrim]

Hi Randy (and all masspoker members)!

I am new to your forum, and live next door in New Hampshire. But I am a dedicated poker enthusiast and therefore want to help preserve and protect the great game wherever I can.

First let me say thanks to Randy for his efforts!

Second, I really hope all of you Mass. citizens in Barney Frank's district remember to frequently remind him what a great job he is doing. Rep. Frank is our best hope in Congress right now: as chairman of the Financial Services Committee he is the one who can spearhead a "clarification" of the UIGEA that exempts poker.

I also wanted to assist in our efforts by putting forth what I have (so far) reasoned to be the best method for showing those unfamiliar with poker why poker is different from other "gambling" (in fact, under most state laws is not gambling at all) and threfore is entitled to be treated differently from other "gambling:"

First, tell people Poker is predominantly skill and as such should be treated as a "mental sport" no different than chess - when people play chess for money, or enter chess tournaments for money, is that gambling? Does that create any social ills?

When those people (who are the majority remember - those of us who play regularly already know poker is predominantly skill, but we have to convice those who dont play) respond, how can it be a game of skill when the results are determined by randomly dealt cards? You tell them, most results are not the product of the cards, but the product of the decisions made by the players. Decisions made by players are "skill" and account for most poker results, the cards account for a far smaller percentage than you (they) think. When they ask "how can that be?" give them the follwing argument:


Define terms: Skill = decisions made by players
Chance (or luck) = the distribution of the cards


Now consider a fair representative number of poker hands at any table, and remember, showing chance means the outcome is determined by the cards.

So, first, every hand that does not go to showdown was the clealry result of player actions, not the cards (there is no rule that says you HAVE to fold 2-7 or call/raise with A-A). In most forms of poker this is the way most hands are resolved (all but one person folds before all the cards are revealed).

Second, when hands do go to showdown, that is a choice of the players and that should count for something, as we see by looking further.

Third, who is at the showdown is detemined by player decisions (to call, fold or raise), not the cards. And quite often the person who would have had the best hand has folded long before all the cards are shown.

Fourth, even at the showdown the more skilled player will be in the advantage (he who has the best pre-river hand is there usually because his skills -math AND psychology- tell him he has that hand). So the cards ARE NOT determining who goes into a showdown with the hand most likely to win, it is the skill (or lack thereof) of the players.

Fifth, even at the showdown, the underdog only wins less than half the time because, of course, thats why he is the underdog!

And finally, the amount of the win (especially significant in tournament poker) has been determined completely by the players (though structured by the betting rules), not the cards.

So put all that together, and the only time you can really say that chance DETERMINES the outcome in poker is when there is a showdown and the less skilled player gets lucky and hits his or her improbable card. We all know that happens in poker, we also all know that happens far, far less than half the time.

Therefore Poker results are determined far more often by the players than by the cards. And thus Poker is a game of Skill. This is clearly true in tournament poker as I hinted above, because how much you win or lose on each hand is absolutely significant in determining who will have all the chips at the end.

Lots of folks talk about the fact that if it were not a skill game there would not be consistent winners. People also bring up how it must be a skill game becasue there are long term money makers. These are good points, but dont show that skill is the predominant factor.

Many folks adopt the unfortunate saying that poker is skill in the long term but luck in the short term. Although we players know the kernal of truth in this statement (it is a good idea to fold when dealt 2-7), it is a bad thing to say to the average Joe (unless you are trying to lure him into a game ) because he then things of luck as a key factor in the game. Luck is not the key factor, psychology is the key factor. Again, one of the fascinating things about poker is the luck factor, it can come up at any time and ruin your best laid plans. But remember that you laid those plans based on either a read (skill of course) or a probability (again skill), and when you are right it means that you are NOT going to lose most of the time. So these things must happen less than most of the time. That, I believe, the average Joe, even the average Judge, can understand.

So Poker is like mental golf. Is there anyone who wants to make it illegal to bet on which of the 2 or more of you is going to get the best golf score? Of course not, and thats why poker deserves a carve out from the UIGEA.

Good luck to all you guys!

Skallagrim

PS, this same argument can be made to contend that poker is not covered by Massachusetts gambling law. And note that this argument does not legalize slots or craps or even blackjack - activities which it is unlikely a majority of Mass citizens want to be legal.

[MardelleDixon]

skall, excellent article. Well defined thoughts. Thanks for sharing. J.C.