Circumstantial reports may indicate the U.S. government is preparing its first case using the UIGEA online gambling ban, involving online poker operator Full Tilt.

FBI agents have turned up in Washington state interviewing online gambling patrons of Full Tilt, probably the most largest Internet poker sites. With the looming implementation of the UIGEA, the U.S. government could also be preparing the primary use of the ban in a prosecution of a web-based gambling operator.

Reports at the popular twoplustwo poker forum say that small-time players have received unannounced visits from FBI agents inquiring as to their transactions with Full Tilt. The agents are saying that they're not seeking to prosecute the players, but rather to collect information on Full Tilt, indicating the building of a federal case against the net poker operator. While the forum's reasoning in keeping with the facts is only speculative, the placement seems to steer to certain logical conclusions.

The setting of the investigation in Washington is a key, because the state is one among only a few with a law against online poker. Courts have found that the UIGEA only penalizes violators of existing gambling laws, which means online gambling operators accepting Washington residents would fall under the prohibition's purview.

Further, Washington allows prosecution against patrons of Internet gaming as a felony, a legal leverage that can help investigators coerce cooperation from reluctant gamblers. Courts investigating  Internet gambling operations in other jurisdictions have had trouble persuading participants to testify.

The UIGEA is ready to start out implementation on June 1st, unless Congress acts before then to switch or repeal the law. Barney Frank is leading an effort to control online gambling before the implementation date for the UIGEA involves pass.

However, if the U.S. does implement the net gambling ban, a prosecution of Full Tilt could prove disastrous to the poker company. Even if the violations could also be specific to Washington and that state's law, the dep. of Justice could use that opening to create such financial and legal trouble as to force Full Tilt out of the U.S. gaming market.

Published on February 21, 2010 by JoshuaMcCarthy

Read More... [Source: UIGEA News]