News, Reviews And Interviews From Around The Poker World

More Luck Than Skill in Poker,
Pennsylvania Court Claims 2-1 Ruling Reverses Earlier Decision

It’s a decision that will leave many poker players scratching their heads.

“While the outcome of poker may be dependent on skill to some degree, it is predominantly a game of chance,” Judge Robert Freedberg wrote in an opinion recently.

So, yeah, if you’ve been making a living at poker, consider yourself blessed, because according to the Superior Court of Pennsylvania, you’re one lucky guy or girl.

The controversial 2-1 ruling by the Court reversed a trial judge’s ruling in January 2009 that poker is more a game of skill than a game of chance, and thus is not subject to the state’s illegal gambling laws.

The Poker Players Alliance released a statement stating that it is “disappointed” with the ruling, but that “the case is not over,” indicating that the organization believes the defendants will appeal to the state’s Supreme Court.

The case in question centers on two individuals, Walter Watkins and his girlfriend at the time, Diane Dent, who were running a small-stakes poker game out of his garage. The game was broken up by authorities, but Watkins and Dent refused to plead guilty, saying that poker is not a “game of chance,” and thus is not subject to Pennsylvania’s illegal gambling laws.

Judge Thomas James agreed with the defendants’ argument, and threw out the case. But the state appealed, and the Superior Court overturned James’ verdict in a 2-1 ruling.

In Judge Freedberg’s decision, he pointed to a variety of court decisions from across the United States that identified poker as a “game of chance” — including a 1904 New York case, a 1911 Missouri case, 1919 Nevada case, a 1927 Oregon case, a 1928 Utah case, a 1935 Kansas case, a 1971 Washington case, a 1995 New York case, and a 2007 North Carolina case.

“We agree with the cases cited above that, while the outcome of poker may be dependent on skill to some degree, it is predominantly a game of chance,” the Court wrote.

Judge Robert Colville disagreed with his two fellow judges, and issued a dissenting opinion. He said that the commonwealth had failed to prove in court that poker is primarily a game of chance.

“We think it is likely that the case will promptly be pursued to the Pennsylvania Supreme Court, which will have the final word on that state’s laws,” said John Pappas, the executive director of the PPA. “That Court should agree with the excellent opinion of the trial judge in this case, who recognized that poker is a game of skill, not illegal gambling.”

France Passes Online-Poker Bill
Sports Betting and Online Poker Legalized by French Parliament

France’s parliament made a historic decision to open up the state-dominated gambling market after it passed a bill in April that legalized and regulated online betting, including poker.

The bill is now expected to be signed into law ahead of June’s World Cup in South Africa.

The Daily Telegraph quotes Budget Minister Francois Baroin as saying, “This text will allow us to progressively dry up the black market in online gambling by creating a legal offer which obeys the rules.”

Online poker will be taxed at 2 percent, while sports betting will face a tariff of 7.5 percent.

PartyGaming, the operator of PartyPoker.com, has made a move into the market and will be offering online poker to PMU [the state-controlled betting system].

Rep. McDermott Introduces Poker Companion Bill
Tax Bill Would Provide Added Benefits for States and Tribes

Rep. Jim McDermott (D-Wash.) introduced an updated version of his poker tax bill at the end of March, adding a new tax that would specifically benefit state and tribal governments if Congress passed legislation to explicitly legalize and regulate online poker.

“The major reason [for the updated bill] is to make it possible for states to have access to online gambling revenue,” McDermott told The Hill, a congressional newspaper.

McDermott has introduced tax-related legislation on poker before, and this bill is designed to serve as a companion bill to Rep. Barney Frank’s bill that would regulate the industry.

Online-gambling advocates hailed it as an important step in the battle to regulate online poker.

“This legislation is a win-win for federal and state leaders, providing an opportunity to regulate a currently offshore and underground industry, protect consumers, and put to good use tens of billions [of dollars] in otherwise lost revenue,” said Michael Waxman of the Safe and Secure Internet Gambling Initiative.

McDermott’s bill, called the Internet Gambling Regulation and Tax Enforcement Act (HR 4976), calls for a 6 percent tax on deposits that would directly benefit state and tribal governments. Just like his previous poker bill, there also will be a 2 percent federal tax — of which a quarter will be allotted to foster-care programs.

“I wanted to help out foster kids,” said McDermott. “I have always watched them get the short end of the stick.”

The bill is estimated to raise approximately $30 billion for states and tribes over the next 10 years. Along with other taxes and federal licensing fees, online-poker regulation would generate approximately $42 billion in federal revenue over 10 years, according to the Congressional Joint Committee on Taxation.

“At a time when many policymakers are faced with significant budget shortfalls, it is only common sense to choose regulation that will generate new revenues and create new jobs currently offshore as an alternative to layoffs, program cuts, or imposing broad-sweeping taxes that may further depress struggling families and businesses,” said Waxman.

Frank (D-Mass.) showed his support for McDermott’s legislation by immediately signing on as a co-sponsor. Rep. Earl Blumenauer (D-Ore.) and Rep. John Larson (D-Conn.) also have signed on as co-sponsors.

“Given the many critical government programs currently going under-funded or not funded at all, Internet gambling regulation should be given fair and immediate consideration,” McDermott said when he introduced his first poker-related piece of legislation of the session in October. “Prohibition in various guises has failed before and is failing once again. There is a better way.”