Wednesday, April 29, 2009

Minnesota attempts to block access to Online Poker Sites

I will try and write a bit more later.  As many of you know I write this blog from Minnesota.  Minnesota happens to be one of a handful of states that has a law on the books related to internet wagering.  The most notable state with the toughest restrictions is the state of Washington (though it does not really stop anyone there).  Minnesota is attempting to do one better sending a letter to Internet Service Providers that asks them to block a list of online gambling sites that has not been released at this point.

Online Poker is not illegal

Firstly let me say that to play poker online is not an illegal activity, it is the act of taking bets that is the illegal activity and the only activity at this point that has been prosecuted is related to the wire act and sports gambling.  Most advocates for online gambling consider this to be a free speech issue because if something has not been deemed illegal you should have the right to do it.  Especially in your own home.

Online gambling and the World Trade Organization

Online gambling advocates also point to a favorable WTO ruling that put the United States in violation of the treaties and they were ordered to pay a fine and comply.  Up to this point they have not but if the Internet Service Providers cave to these demands you can expect this to be heavily litigated.  Recently the state of Kentucky tried a similar move only to be thwarted by the many advocacy groups that believe in the freedom and openness of the internet.

Press Release from Minnesota Alcohol and Gambling Enforcement Division

Here is the press release (there are many inaccuracies in this release, such as the whether or not these actions are indeed illegal and the now ludicrous claim that online gambling supports terrorism): "The Minnesota Department of Public Safety (DPS) Alcohol and Gambling Enforcement Division (AGED) today announced that it has served written notice to 11 national and regional telephone and Internet service providers (ISPs) instructing them to prohibit access of all Minnesota-based computers to nearly 200 online gambling websites. Online gambling is illegal in all U.S. states. Written notice was served to AT&T Internet Services, San Antonio; Charter Communications, St. Louis; Comcast Cable, Moorestown, N.J.; Direct TV, Los Angeles; Dish Network, Englewood., Colo.; Embarq and Sprint/Nextel, both of Overland Park, Kan.; Frontier Communications, Stamford, Conn.; Qwest, Denver; Verizon Wireless, Bedminster, N.J.; and Wildblue Communications, Greenwood Village, Colo. “We are putting site operators and Minnesota online gamblers on notice and in advance,” says John Willems, director of AGED. “Disruption of these sites’ cash flow will negatively impact their business models. State residents with online escrow accounts should be aware that access to their accounts may be jeopardized and their funds in peril.” Believed the first attempt by a state to employ this federal statute to restrict access to online gambling sites, the letters cites U.S. Code, Title 18, Section 1084, (d); notices were delivered Mon., April 27. Congress enacted the statute in 1961 in recognition of the need for states to control illegal gambling activities and granted authority for use of the statue to state law enforcement agencies. Response from the notified ISPs is expected within two to three weeks, at which time issues of non-compliance will be referred to the Federal Communications Commission (FCC). Acknowledging the effort as an initial sample, Willems anticipates the program expanding to address thousands of sites, depending on compliance. He notes that the required technology to restrict geographic access to particular sites is a relatively straightforward procedure on the part of service providers. In the written notices, AGED also provided the sites’ telephone numbers and requested access to those numbers by Minnesotans to be prohibited. For more than two decades, telecoms have shut down telephone numbers at the request of law enforcement agencies when believed to be involved in illegal activities, such as sports book-making telephone numbers. “In Minnesota, and for Minnesotans, the primary issues are legality, state self-governance and accountability,” says Willems. “In broader context, the long-running debate on online gambling continues to raise significant issues, including absence of policy and regulation, individual rights, societal impact, international fair-trade practices, and funding for criminal and terrorist organizations.”
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