White House responds to online poker petition

Regulation of online gambling in the US is being “examined” at a federal level but should be left to individual states to determine, the White House has stated in a response to a player petition.

Almost 10,000 people signed a petition by the Poker Players Alliance when it was submitted in September last year as part of the White House’s ‘We The People’ promotion.

Author of the four-paragraph response, Brian Deese, deputy director of the National Economic Council and a special assistant to President Barack Obama on economic policy, acknowledged that online poker is played in America despite it violating federal law.

Aside from sports betting, which also currently violates federal law, Deese said egaming should be “left to each state to determine whether it wishes to permit such activity between residents”, confirming that regulation of online poker can continue on an intrastate level.

Deese noted the drawbacks to online gambling as offering greater potential for fraud and money laundering, but added the Obama administration continues to examine the issue and “is open to solutions that would help guard against the use of online gambling sites as tools for conducting illegal activities”.

The full statement can be read below:

Thank you for taking the time to participate in the “We the People” petition process. We launched this online tool as a way of hearing directly from you, and are pleased to see that it has been effective in soliciting your feedback. We understand your interest in the petition to support the legalization of online poker, and appreciate the opportunity to share President Obama’s concerns about this issue.

The Administration understands that many Americans engage in paid online poker games for entertainment purposes. Online gambling on sporting events or contests violates federal law. The legality of other forms of online gambling is dependent upon the law of the states where the bettor or gambling business is located. It is left to each state to determine whether it wishes to permit such activity between its residents and an online poker business authorized by that state to accept such wagers, but online gambling that is not authorized by state law may also violate federal statutes.

The rapid and anonymous nature of the internet distinguishes online games from onsite games, such as those in casinos, and creates distinct challenges. For example, there are many means of technologically circumventing restrictions on online gambling that can allow individuals from countries where gambling is illegal — or even minors — to play using real currency. Online games also have greater potential for fraud because gambling websites are much cheaper and easier to establish than on-site locations, and like telemarketing scams, can appear and disappear overnight. Finally, online gambling can be used in money laundering schemes because of the volume, speed, anonymity, and international reach made possible by internet transactions. The Administration will continue to examine this issue and is open to solutions that would help guard against the use of online gambling sites as tools for conducting illegal activities or preying on unsuspecting individuals to the extent that online gambling is permitted.

Thank you once again for signing the online petition. We appreciate hearing your opinions and look forward to hearing from you again soon.