When Did Online Poker Become Illegal in the US?

Online poker has been a popular pastime for many Americans since the early 2000s. However, the legality of online poker in the United States has always been a bit of a gray area. In 2006, the Unlawful Internet Gambling Enforcement Act (UIGEA) was passed, which made it illegal for financial institutions to process transactions related to online gambling.

While this law did not explicitly make online poker illegal, it made it much more difficult for players to deposit and withdraw funds from their online poker accounts. Many online poker sites pulled out of the US market altogether as a result.

Things took a turn for the worse on April 15, 2011, a day that became known as Black Friday in the online poker world. On that day, the US Department of Justice (DOJ) seized the domains of three major online poker sites: PokerStars, Full Tilt Poker, and Absolute Poker. The DOJ also indicted eleven individuals associated with these sites on charges related to bank fraud and money laundering.

This event effectively shut down the US online poker industry overnight. Players were left without access to their accounts and funds, and many wondered if they would ever be able to play online poker again.

PRO TIP:Online poker became illegal in the US in 2006, when the Unlawful Internet Gambling Enforcement Act (UIGEA) was passed. The act made it illegal for banks and other financial institutions to process payments related to online gambling. It did not make it illegal for individuals to play online poker, but it did make it difficult for them to do so.

In December 2011, the DOJ released an opinion stating that the Wire Act of 1961 applied only to sports betting and not to other forms of online gambling. This opened up the possibility for states to legalize and regulate online poker within their borders.

The first state to pass an online poker bill was Nevada in 2013. New Jersey followed suit later that year. Today, there are four states with legal online poker: Nevada, New Jersey, Delaware, and Pennsylvania.

While it is now legal for players in these states to play online poker, players in other states are still unable to do so. The UIGEA and other federal laws make it difficult for online poker sites to operate in the US market.

In conclusion, online poker became effectively illegal in the US on April 15, 2011, when the DOJ seized the domains of three major online poker sites. While it is now legal in some states, the legality of online poker on a national level is still a gray area.

  • Key takeaways:
  • The Unlawful Internet Gambling Enforcement Act (UIGEA) made it difficult for players to deposit and withdraw funds from their online poker accounts.
  • The DOJ seized the domains of three major online poker sites on April 15, 2011, effectively shutting down the US online poker industry overnight.
  • Legalization and regulation of online poker within state borders began with Nevada in 2013 and has since expanded to include New Jersey, Delaware, and Pennsylvania.
  • The legality of online poker on a national level is still a gray area due to federal laws such as the UIGEA.