From a legal perspective, online poker may differ in some ways from online casino gambling. However, many of the same issues do apply. For a discussion of the legality of online gambling in general, see
online gambling. Online poker is legal and regulated in many countries including several nations in and around the
Caribbean Sea, and most notably the
United Kingdom.
United States In the United States, the
North Dakota House of Representatives passed a bill in February 2005 to legalize and regulate online poker and online poker card room operators in the state. The legislation required that online poker operations would have to physically locate their entire operations in the state. Testifying before the state Senate Judiciary committee,
Nigel Payne, CEO of
Sportingbet and owner of Paradise Poker, pledged to relocate to the state if the bill became law. The measure, however, was defeated by the State Senate in March 2005 after the
U.S. Department of Justice sent a letter to
North Dakota attorney general
Wayne Stenehjem stating that online gaming "may" be illegal, and that the pending legislation "might" violate the
federal Wire Act. However, many legal experts
dispute the DOJ's claim. In response to this and other claims by the DOJ regarding the legality of online poker, many of the major online poker sites stopped advertising their "dot-com" sites in American media. Instead, they created "dot-net" sites that are virtually identical but offer no real money wagering. The sites advertise as poker schools or ways to learn the game for free, and feature words to the effect of "this is not a gambling website." On October 13, 2006,
President Bush officially signed into law the
SAFE Port Act, a
bill aimed at enhancing security at U.S. ports. Attached to the Safe Port Act was a provision known as the
Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA). According to the UIGEA, "unlawful internet gambling" means to place, receive, or otherwise knowingly transmit a bet or wager by means of the internet where such bet is unlawful under any law in the State in which the bet is initiated, received, or otherwise made. Thus, the UIGEA prohibits online gambling sites from performing transactions with American financial institutions. As a result of the bill, several large publicly traded poker gaming sites such as
PartyPoker,
PacificPoker and
bwin closed down their US-facing operations. The UIGEA has had a devastating effect on the stock value of these companies. Some poker sites, such as
PokerStars,
Full Tilt Poker,
Absolute Poker, continued to operate and remained open to US players. Following passage of UIGEA, former U.S. Senator
Al D'Amato joined the
Poker Players Alliance (PPA). Part of the PPA's mission is to protect and to advocate for the right of poker players to play online. D'Amato's responsibilities include Congressional lobbying. In April 2008, the PPA claimed over 1,000,000 members. Other grassroots organizations, including the
Safe and Secure Internet Gambling Initiative, have formed in opposition to UIGEA, to promote the freedom of individuals to gamble online with the proper safeguards to protect consumers and ensure the integrity of financial transactions. On November 27, 2009, Department of the Treasury Secretary
Timothy F. Geithner and Federal Reserve Chairman
Ben S. Bernanke announced a six-month delay, until June 1, 2010, for required compliance with the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA). The move blocks regulations to implement the legislation which requires the financial services sector to comply with ambiguous and burdensome rules in an attempt to prevent unlawful Internet gambling transactions. On July 28, 2010, the
House Financial Services Committee passed H.R. 2267 by a vote of 41–22–1. The bill would legalize and regulate online poker in the United States. In September 2010, the
Washington State Supreme Court upheld a law making playing poker online a
felony. He responded in the Washington Post on April 22. On September 20, 2011, in response to guidance requested by the states of
Illinois and
New York regarding the sale of lottery tickets online, the Department of Justice issued a memorandum opinion stating that the
Wire Act does not prohibit lottery sales over the internet because it deals solely with wagering on sporting contests. While this opinion does not address online poker specifically, the reasoning employed interprets the Wire Act in such a way that its provisions don't apply to the game of poker. On August 21, 2012, a federal judge in New York ruled that poker is not gambling under federal law because it is primarily a game of skill, not chance. The ruling resulted in the dismissal of a federal criminal indictment against a man convicted of conspiring to operate an illegal underground poker club. The judge relied in his decision largely on findings by a defense expert who analyzed Internet poker games. On April 30, 2013,
Nevada became the first U.S. state to allow persons physically located within the state and at least 21 years of age to play poker online for money legally. In late October,
Delaware launched its regulated online gambling market. Controlled by the Delaware Lottery, the state offers online casino games in addition to online poker. On February 25, 2014, Nevada Governor
Brian Sandoval and Delaware Governor
Jack Markell signed the first interstate poker compact, an agreement that will allow online poker players from Nevada to play for real money against players located in Delaware. The compact is limited to online poker only, as that is the only game currently permitted under Nevada law. Should more states enter into the agreement, something that is provided for under the terms of the compact, more games could be offered. Following an agreement between Nevada, Delaware, and New Jersey governments to allow player pooling between all three states, a three-state online poker compact went live on May 1, 2018. On April 7, 2022, Michigan joined the interstate poker compact as the fourth state.
Australia In Australia the Interactive Gambling Act was signed into law in 2001. The act makes it illegal for online poker providers to operate or advertise their services in Australia. The intention of the act was to entirely prohibit online poker, but the act itself only forbids operators based in Australia from providing their service. It did not prohibit citizens from accessing the online poker services of providers that were based overseas. The Interactive Gambling Amendment Bill was passed in 2017 in response to the failings of the 2001 Interactive Gambling Act. This provided a significant improvement towards ensuring consumer protection and responsible gaming in Australian citizens. This latest bill successfully forced the major poker companies to stop offering their services to Australian citizens. Although there are certain provisions in the law which allow licensed establishments to provide online poker services, there is no agency set up to issue any of such required licenses. ==Profit model==