WASHINGTON STATE: Online Gambling Reminder

[clevfan]

Online Gambling Reminder


kndo tv
Jan 26, 2008 02:23 AM EST




KENNEWICK, Wash. -- As millions of people around the world get ready to place bets on the biggest sporting event of the year, a reminder about online gambling in Washington State. According to the Offshore Gaming Association, over $500 million will be bet on the Super Bowl through web sites and call centers.

More than 60 million people will bet online on the game between the Patriots and the Giants using over 1,800 foreign-based web sites. And according to the Washington State Gambling Commission, all online gambling is illegal, both in the state and across the country.

And gambling officials say even if you don't get caught, online gambling can be very dangerous.

The Gambling Commission's Susan Arland says, "Not only is it illegal, but you might win and not get paid. So you could gamble all day and throw all that money away and you have no recourse."

Any online gambling is a C-class felony. First-time offenders in the state of Washington can face up to 90 days in jail and up to a $10,000 fine.

Now despite the fact that it is illegal, The Journal of Gambling reports that the number of online gambling sites has gone up almost 100 times since 1995.

[StarnetGypsy]

it still baffles me how they can make this a felony. felonies harm other people, either by defrauding them or being violent in nature (to include sex-offenses).

[Minnow]

Class C felony = to torturing animals, threatening the governor, etc.

Hopefully I don't see any helicopters circling my backyard.. will let you know.

[StarnetGypsy]

i wouldn't worry. every fall in New Mexico they'd come thru the valley with about 6/birds at low altitude lookin for weed. would fly by while being right over it ...

[Minnow]

That law is such an embarassment to Washington State I can't believe they are highlighting it on the news and bringing attention to it.

[stevo]

And gambling officials say even if you don't get caught, online gambling can be very dangerous.


Its true. I got up from placing a bet and bumped my knee. Dangerous stuff.

[Mike Brennan]

I know zero about criminal practice in the State of Washington but I'm very curious as to what other offenses in the State are list as C Level Felonies.

[StarnetGypsy]

Child molestation.

[StarnetGypsy]

Here's an article that appeared in 2006 CardPlayer ...

And this is the excerpt from the article answering your question about the crimes ...

Furthermore, the sentencing scheme is ridiculous. Playing poker online in Washington has been deemed a class C felony, punishable by an amount not to exceed $10,000 and/or confinement in a state correctional institution for up to five years.

Other class C felonies in Washington include certain degrees of rape, child molestation, stalking, bestiality, making deadly threats, failure to register as a sex offender, theft, assault on a child, custodial sexual misconduct, sex and labor trafficking, and the list goes on.

This means that under Washington law, a penny-ante poker player could ostensibly receive the same sentence as one involved in certain types of child molestation. This violates the Eighth Amendment's proscription against cruel and unusual punishment. Allow me to explain.

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PUBLISHED: Tuesday Oct 10, 2006 08:47 AM

Card Player's Legal Expert Examines the Issue of State Rights

Today's article addresses an important issue that has created a great deal of concern: How the new federal legislation affects state law.

My previous article analyzed the new bill as it relates to federal law and can be found here. This article focuses on the new bill as it relates to state law. For a complete collection of articles pertaining to this issue, click here.

State vs. Federal Constitution

Prior to analyzing how the new federal law interacts with state gaming law, it is necessary to have a basic understanding about the two constitutions by which we are all bound.

Every state has a constitution that is a body of laws that the citizens of that state must follow. There is also a federal Constitution that all citizens of the United States must follow. (The federal Constitution and the US Constitution mean the same thing.) We are each subject to both the laws of our state and federal laws.

The Tenth Amendment to the United States Constitution states that: "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people." The Tenth Amendment was intended to confirm the understanding of the people at the time the Constitution was adopted that powers not granted to the United States were reserved to the states.

Historically, the states have successfully regulated gambling within their borders, as that is seen to be a power reserved to the state. Almost every state has some form of legal gambling, be it a casino, lottery, video, lottery terminal, horse wagering, bingo, or other forms of gambling.

As to the issue of which law applies (state or federal), the US Supremacy Clause states that the "Constitution and the laws of the United States...shall be the supreme law of the land...anything in the constitutions or laws of any State to the contrary notwithstanding." This means of course, that any federal law - even a regulation of a federal agency - trumps any conflicting state law.

Finally, the Commerce Clause makes Congress the guardian of interstate commerce. Article I, Section 8, Clause 3 of the US Constitution states in relevant part: "The Congress shall have power to... regulate commerce with foreign nations, and among the several states …."

Every federal law must have a constitutional basis in order to be valid, and the Commerce Clause has been widely used as a constitutional base for federal legislation of every type. It has been predicted that the Commerce Clause will ultimately regulate many activities on the World Wide Web.

Those three constitutional mandates taken together basically mean that any federal law must be constitutionally based. If it is, and if there is a federal law on a subject, it preempts state law. The federal government is to regulate commerce, but powers not granted to the federal government are "reserved to the states. And laws relating to the health and welfare of its citizens usually fall within the purview of state law."

So what powers does the federal government have regarding online gaming law? Traditionally, the federal government has stayed out of the gambling arena and left its regulation to the states. However, when gambling crosses into different states or countries, the federal government has a legitimate interest and therefore gets involved.

The Unlawful Internet Gambling Enforcement Act

As I explained in a prior article, section 5361(b) of the Unlawful Internet Gambling Enforcement Act specifically states that nothing in this new law shall be construed as "altering, limiting, or expanding any Federal or State law… prohibiting, permitting or regulating gambling within the US."

In other words, the language of the statute confirms that this new law does not change existing gaming law. The federal government has merely enacted a law that attempts to enforce state or federal laws already in existence.

The operative section of this new legislation states that "No person engaged in the business of betting or wagering may knowingly accept…" electronic transfers, credit cards, etc. where a person is engaged in "unlawful Internet gambling." This new law applies, if and only if, the gambling is already illegal under current state or federal law.

Whereas my previous article focused on current federal law, this one addresses applicable state laws.

State Gaming Law

From the letters I have received, I am concerned that some readers do not know the gaming laws of their states.

A few states have passed statutes making it a misdemeanor to participate in Internet gambling. For example, Illinois passed legislation that criminalized the activity of the individual bettor, making it a Class A misdemeanor (720 ILCS 5/28-1 (2001)(a)(c)).

This legislation was ridiculed by deputy district attorneys, who would be the enforcers of this law, causing The Chicago Sun Times to conclude that the legislation "has bark and no bite" and that "without cyber cops monitoring households and their computers, the law will be difficult to enforce."

To my knowledge, there has not been one prosecution in those states that make it unlawful to play online poker in their state.

Problems with Enforcement

In a nutshell, the reason it is almost impossible to enforce a law prohibiting a gambler from playing poker online is because prosecutors are hard-pressed to come up with admissible evidence.

A criminal case must be pleaded and proved with specificity. What this means is that a crime must be alleged to have occurred on a specific date in a specific place, in order that the accused can lodge a defense. How could a state prove that one was playing poker on a certain date and time in its jurisdiction?

First, a county prosecutor would have to have sufficient information to file a lawsuit against an individual and then prove that the crime occurred within that county. With the advent of the Internet and laptop computers, it is almost impossible to prove that someone was playing poker in a certain jurisdiction. Many gamblers travel around the country to different venues. The government would have an extraordinarily difficult time proving from where a poker site was accessed. If a prosecutor cannot prove jurisdiction, the case gets thrown out of court at its inception.

Next, even if it could be proven that a certain computer was used, the identity of the user must be proven beyond a reasonable doubt. To prove the user's identity, the prosecutor would have to provide first-hand knowledge regarding who was at the computer playing poker. Also, subpoena power is not available overseas, meaning that an offshore online site would not turn over its records regarding who was playing and when.

The state cannot come into one's home without "probable cause" to believe a crime was being committed, which would entitle it to have a search warrant signed by a judge. The search warrant must be based upon probable cause, which is defined as objective facts that raise in the mind of a reasonable person the probability that a crime is being committed. It would be nearly impossible to demonstrate probable cause to believe a crime was being committed.

Finally, considering that some people play one- and two-penny poker, it would be embarrassing for a prosecutor's office to dedicate its scarce resources to catch a penny-ante online gambler, while murderers and rapists are on the loose.

The State of Washington Makes Online Gambling a Felony

It is important for our readers to understand that Washington did make it a felony to play online poker in their state. Although no entity appears to be enforcing this law, it does exist.

On March 28, 2006, the state of Washington passed a law prohibiting Internet gambling, which went into effect on June 7, 2006. The Washington bill upgrades online gambling from a misdemeanor to a class C felony.

Gambling Commission Director Rick Day and State Senator Margarita Prentice, who sponsored the legislation, have publicly stated that the aim of the law is not directed toward the online gambler. Day said that jailing small-time online gamblers is "not the focus of our work." Day said his priorities are to go after national and international promoters or operators based in Washington state. Evidently he thinks gamblers are like children, needing protection. He has publicly stated that he wants to protect gamblers from sites that won't pay, colluders, and money launderers.

In my opinion, this offensive, overbearing law is unconstitutional and needs to be challenged in a Washington court. Besides the fact that it attempts to legislate morality, the law is inconsistent with other Washington laws that allow gambling in brick-and-mortar casinos. The prohibition does not include online horse-race wagering, so that certain forms of online gambling are still legal where the state makes money. These issues will have to be hammered out in court. I eagerly await the first lawsuit and hope to be personally involved.

Furthermore, the sentencing scheme is ridiculous. Playing poker online in Washington has been deemed a class C felony, punishable by an amount not to exceed $10,000 and/or confinement in a state correctional institution for up to five years.

Other class C felonies in Washington include certain degrees of rape, child molestation, stalking, bestiality, making deadly threats, failure to register as a sex offender, theft, assault on a child, custodial sexual misconduct, sex and labor trafficking, and the list goes on.

This means that under Washington law, a penny-ante poker player could ostensibly receive the same sentence as one involved in certain types of child molestation. This violates the Eighth Amendment's proscription against cruel and unusual punishment. Allow me to explain.

In 1977, there was a law in Georgia that made rape punishable by death. In the famous case of Coker v. Georgia, the US Supreme Court ruled that a sentence of death for the crime of rape of an adult woman was grossly disproportionate and excessive punishment forbidden by the Eighth Amendment to the US Constitution. A sentence cannot be disproportionate to the crime. This issue will also have to be tested in court.

Regardless of what we all think about the Washington law, it currently exists. The next question is how it relates to the Unlawful Internet Gambling Enforcement Act.

How Does the Federal Enforcement Act Interact with State Law?

Only in the case where a state makes it a crime to play poker online, the new statute (if signed into law, of course) also makes it a crime for the "person engaged in the business of betting or wagering" to "knowingly accept" funds. As I have stated before, this rule does not apply to the online gambler, but rather, to the online sites.

In other words, where Washington makes it a crime to play poker online, the federal statute makes the operator of a site liable for accepting payment. However, since all gaming sites are offshore and not subject to our laws, this is a law with no teeth.

Recognizing that the US has no jurisdiction offshore, the bill ends in section 803 by saying that the US government should "encourage cooperation by foreign governments." Dream on.

People in the gaming world already know that a place like the Isle of Man does not feel sympathy with US laws and refuses to enforce a violation of a US law where no similar law exists there. As a matter of fact, the Isle of Man was one of the first jurisdictions in the world to introduce legislation specifically designed to benefit gambling and e-gaming firms as well as protect consumers. The last thing they would consider is cooperating with US antigaming laws.

In sum, the 2006 Enforcement Act does make it a felony for an owner or operator of a site to accept money for gambling where it is already illegal (that is, Washington), but since all gaming sites are located outside of the jurisdiction of the United States, this portion of the law is, in all practical terms, unenforceable.

[Minnow]

I heard that class c felony applied to kiddy porn.. not sure I heard the molestation law before. Ridiculous

[clevfan]

Monday, January 28, 2008 9:23 PM US/Western


Don't bet on Internet gambling
By CHANCE EDMAN
staff writer
KVNEWS.COM

ELLENSBURG – The Seattle Seahawks set a Super Bowl record in its 2006 game against the Pittsburgh Steelers.

Unfortunately for ‘Hawks’ fans, it wasn’t on the field.

The game drew a record $94.5 million in Nevada sports books bets, as reported by the USA Today. Last year’s Indianapolis Colts-Chicago Bears matchup fell $1.5 million short of the Seattle-Pittsburgh action.

Gambling experts believe next Sunday’s Super Bowl between the New England Patriots and the New York Giants may top $100 million in bets for the first time in history, but Washington State gamblers need to be aware of the rules.



Online betting is against the law.

As of 2006, Internet gambling is a class C felony, punishable by up to five years in prison and a $10,000 fine. Other class C felonies include possession of child pornography and animal torture.

Gamblers and Web site administrators are at risk of conviction if caught engaging in illegal gambling. State officials are focusing on Web site operators and service providers in an attempt to reduce scandals and cheating, according to Washington State Gambling Commission spokesperson Susan Arland.

“If we hear of an operator, the procedure is to contact them and advise them to stop. Normally they will,” Arland said.

The commission recently shut down an illegal gambling site operated out of North Seattle called Betcha.com. The site owners filed an appeal on Dec. 5.

Gambling has three requirements in order to be considered illegal in Washington. It must involve a paid fee, or a buy-in. It must involve chance. And a prize must be the ultimate goal.

Removing any of those three factors legalizes the activity. Fantasy sports played for money are considered illegal gambling, Arland said.

Internet gambling was changed to a felony in 2006 because offenders were not deterred by a misdemeanor, said Arland. The state’s goal is to encourage voluntary compliance.

But state officials say the threat of a $10,000 fine should be the least of an online gambler’s worries.

Identity theft and scams are a large factor in the state’s attempt to crack down on Internet gambling.

“You have no idea who’s behind that computer screen,” Arland said. “There’s no recourse if you’re not paid or if you’re cheated. It’s extremely risky.”

Internet gambling is a $1.5 billion industry involving more than 15 million players worldwide, according to the National Law Journal. Many experts believe the popularity of online gambling can be partly attributed to the emergence of Texas Hold ‘Em tournaments broadcast on major TV networks.

In 1995, the Journal of Gambling Issues reported 24 Internet gambling sites, according to the state gambling commission. In 2006, the number had increased to 2,500 sites.

Sports media like ESPN have had conversations centered on the odds of the upcoming Super Bowl on Feb. 3. Commentators have discussed oddsmakers in Las Vegas who continue to close the gap between the favored Patriots and underdog Giants and what affect that will have upon the betting industry.

About 80 percent of bets to this point have been placed on the Giants, according to USA Today, but most bets are usually placed 72 hours or less before kickoff. The state’s enforcement of Internet gambling laws has come under scrutiny since the law was passed in 2006.

A Bellingham man was reprimanded by the state for writing about gambling on a Web site. He posted reviews of online casinos, links and listed casinos that were known to cheat people out of their money.

State officials called it “aiding and abetting” online gambling, according to a Seattle Times column. The paper itself drew fire for posting a poker how-to column on its Web site with a link to a poker site where people can discuss the game.

Although Washington is one of the nation’s strictest states on gambling, according to Arland, certain methods are allowed. Businesses can conduct a sports board where players bet $1 on each numbered square. The winning number is the square with the combined score of both teams in the Super Bowl. All winnings must be returned to the players, businesses cannot make any money on sports boards.

[Minnow]

It's often stressed that the law wasn't created to arrest and put online gamblers in jail, but to thwart illegal online gambling operations. I don't see anybody rushing in to amend the law though. As it stands, any penny ante player could be hauled off to the pokey with a class c felony hanging over their heads.

[RaisinCapital]

Originally Posted by StarnetGypsy

i wouldn't worry. every fall in New Mexico they'd come thru the valley with about 6/birds at low altitude lookin for weed. would fly by while being right over it ...

I know an older woman, no relation to me, who got busted for that about 60 miles SE of Gallop. She has since passed.

[StarnetGypsy]

Originally Posted by clevfan

A Bellingham man was reprimanded by the state for writing about gambling on a Web site. He posted reviews of online casinos, links and listed casinos that were known to cheat people out of their money.

oh what bullshit ... how dare them interject their moral leanings like that.

[Minnow]

Gyps, you snowed in?

[StarnetGypsy]

Originally Posted by Minnow

Gyps, you snowed in?

check your PM files, Minnow

[StarnetGypsy]

damn Minnow. tonite they closed all three mountain passes going into Seattle. at Snoqualmi pass they got 40/inches of snow in the last 24/hrs, and at Stevens they're getting 2/inches an hour

[Minnow]

Damn.. sure glad I don't have any business in seattle anytime soon. I drove to Walla Walla yesterday and the sidewinds were wicked, but at least no white stuff. I was dodging some bigass tumbleweeds though... lol