FBI speaks on Internet gambling

[jetset]

FBI SPEAKS ON ONLINE GAMBLING

"Online gambling is a growing problem," says FBI agent

A television station in Boise, Idaho published some FBI thoughts on Internet gambling this week in a report which superficially covered the continuing popularity of online poker.

Describing the growing poker trend, the KTVB reporter said it was Americas hottest pastime in which the digital age has "...put poker back on top of the world."

Unfortunately, the reporter was not well versed in the intricacies of US federal and state law regarding the game, which she described as "illegal and offshore" following the UIGEA: "Recently, U.S. lawmakers banned online gambling in the U.S. with the passage of the Unlawful Internet Gambling Enforcement Act of 2006. That act put an end to Internet casinos based in the U.S. So those casinos took their business to foreign countries!"

The report went on to recount the personal experience of one young online poker player before explaining that at any given time, tens of thousands of people are playing, 24 hours a day, every day of the week and quoting FBI agent Patrick Kiernan, who said:

"Online gambling is a growing problem, I think the FBI estimates that its growing at a rate of $10 billion a year.

"We don't know who's actually doing it. It could be a young child, it could be someone who is addicted to gambling, yet they don't have the money to do it. And just because you check a box that says you are over 18 and you have a credit card, they are going to take it, because it's money," said Kiernan.

"So what's being done about the problem?" the journalist asks in her investigation. She tried without much success to talk to a number of agencies about what they're doing to stop the allegedly illegal activity. Idaho State Police, the Idaho attorney general, and the local U.S. attorneys office had no comment on the issue.

The only agency that would comment was the FBI in Salt Lake City.

"We have responsibility here for the state of Idaho, Ive talked to the agents that work this area and its just not a big problem," said Kiernan. The FBI agent goes on to say there's just too many other crimes to worry about.

"Most people don't realize that there is only a little over 12 500 agents in the FBI for the entire country, and we are responsible for protecting 300 million people. So there are not too many of us around, so we have to prioritize our cases," said Kiernan.

Clearly fishing for the underage angle (and not giving the responsible gaming, technology or industry perspective on the issue) the piece claims that:

"Its not just adults playing the games online, children are getting hooked too.

"Do you know a lot of young people that play it? asked NewsChannel 7.

Oh yeah, my cousins and things in high school," said Lawley (the young poker player interviewed).

"Signing up is based on honesty, and if you have the money, you're allowed to gamble online."

 

[The Dude]

Typical idiotic reporting that plagues the media. In the US and abroad - poorly researched news pieces do more harm than good whether it's war corresponding or reporting on online casinos.

Fodder for "fast food" news consumption.

 

[tennis_balls]

it's a reporter from a Boise, Idaho TV station. i doubt anyone would pay attention to anything a reporter from a Boise TV said, not even the locals as they only listen to the pretty anchor woman.

 

[rhump]

The FBI agent goes on to say there's just too many other crimes to worry about.

 

[Peaceful1]

That reporter should be more focused on accuracy and research in her career to gain and maintain credibility, let alone suits of slander that her behavior could potentially lead to.

 

[w8n4win]

What about acholics, drug addicts, plastic surgery addicts (can't think of the politically correct term right now), etc. who can't afford it nor the other problems it causes? This is so BS. Like it's been said before, if it was about protecting us from ourselfs there would be NO gambling in the US. In Texas there is horse racing and dog racing, however you are paid in tickets, then you go to another window and cash them, what is that all about? That is about one of the dumbest things I have ever heard of, it is still gambling.

W8n4win

 

[REOdeathwagon]

Clearly fishing for the underage angle (and not giving the responsible gaming, technology or industry perspective on the issue) the piece claims that:

"Its not just adults playing the games online, children are getting hooked too.

"Do you know a lot of young people that play it? asked NewsChannel 7.

Oh yeah, my cousins and things in high school," said Lawley (the young poker player interviewed).

"Signing up is based on honesty, and if you have the money, you're allowed to gamble online."

The online casinos could fix this problem instantly. If they wanted to. Request documents on deposit ~ instead of withdrawal.

I am sure though that the true industry perspective on the issue of document requests on deposit ~ instead of withdrawal. Is that it would prohibit casual or "spur of the moment" deposits. Which would be bad for online casino profits!

 

[jetset]

I think you're probably right - players are impatient to get to it and traditionally have not been prepared to stick around while ID documents are verified and payments checked to isolate a minority of registrants, slowing the registration process down markedly.

But...policies can be changed as circumstances dictate, and the present environment together with improving technologies now makes changes in this area more likely - and more acceptable to players perhaps - imo.

The last thing that online casino operators want to see on their sites are underage gamblers or problem gamblers, believe me. They are more trouble than you can imagine, especially when losing and contrary to popular belief there are operators who do have a professional and ethical abhorrence for such gamblers.

Unfortunately, this class of wannabe gambler is persistent and sometimes ingenious.

 

[lots0]

i doubt anyone would pay attention to anything a reporter from a Boise TV said

jetset seemed too and I believe he is very very far away from Boise.

 

[silcnlayc]

EDITORIAL: Poker face

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Poker players took a bad beat when the government began going after Internet gambling operations -- the venue of choice for many of the card game's devotees.

Now comes a tax court ruling that continues the unlucky streak.

Under the current IRS code -- as many Las Vegans are aware -- gamblers can claim losses only to the extent they offset winnings. But professional poker player Gloria Tschetschot tried a novel approach: She itemized $30,000 in poker tournament entry fees as deductible business expenses. Her lawyer argued that because Ms. Tschetschot was paying entry fees to compete in pro tournaments, rather than wagering money in cash games, the limitation on deducting losses shouldn't apply.

For those puzzled over the distinction, a poker player who sits down at The Mirage to play Texas Hold 'em uses his own money on each hand. A professional who enters a poker tournament usually pays a flat entry fee that is used to build the prize pot, but plays each hand with chips supplied by the house.

But U.S. Tax Court Judge Robert Armen wasn't buying Ms. Tschetschot's all-in gambit and ruled against her. He did note, though, that the IRS provisions regarding gambling income may be a tad dated.

"The moral climate surrounding gambling has changed since the tax provisions concerning wagering were enacted many years ago," he wrote. "That said ... we are bound by the law as it currently exists, and we are without the ability to speculate on what it should be."

Given that 48 states now have some form of legalized gambling, perhaps it's time Congress addressed this issue as part of simplifying the Byzantine tax code.