In an opinion in a criminal case on August 21, 2012, US v. Dicristina, Eastern District of New York Judge Jack Weinstein entered a judgment of acquittal against a defendant who had been charged under the federal Illegal Gambling Business Act (IGBA) for operating a poker room out of the back room of a bicycle warehouse. The operator took a 5% rake from each pot, of which 25% was paid to the dealer. The Court found that the operation of a poker business, specificaly Texas Hold’em, even in violation of state law, does not violate the IGBA. Accordingly, although the defendant could be prosecuted under state law, the court found that no federal crime had been committed.
PokerStars and Full Tilt Poker on path to online gaming licensing.
The U.S. Department of Justice, (DOJ) Southern District of New York, reached a settlement today with PokerStars on the U.S. Government’s civil charges that the company defrauded customers and evaded U.S. prohibitions on Internet gambling. The DOJ action arose from the Black Friday, April 15, 2011, indictment and civil complaints against PokerStars, Full Tilt Poker and Absolute Poker and its chief executives, which left online poker players in the U.S. in shock and disarray, as detailed in this New York Times blog.