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Rumours DOJ Plans Action Against Merge Poker – Is It All Over For Online Poker In USA ?
Reliable sources have rumoured that the DOJ plans to target the Merge Network or sites on Merge soon, possibly by the end of September. Maybe a sensationalist headline but if the rumours are true and the DOJ seize sizable funds, then effectively online poker in the USA will be finished.
The unnamed but reliable source has confided in the owner of subjectpoker that the DOJ is planning to take further action on the remaining US facing poker rooms, more specifically the Merge Gaming Network and/or sites on the Merge Gaming Network.
Read more here … DOJ Plans Action Against Merge
Now I am normally quite cynical about these sorts of rumors / rumours because it really isnt rocket science anymore its obvious … The DOJ is going to go after all the remaining US facing sites one way or another.
The DOJ has tasted blood, met very little resistance for one reason or another and feels it has the support of the would be US regulators. Plus the DOJ clearing out the “offshore” poker rooms is nothing short of a God send for the US casinos desperate to get a clear run at the US online poker market (and the rest of the world).
Rumour Started By Rival Poker Room ?
Not Likely
Some have suggested that it’s some kind of “clever” plan by one of the other remaining US facing sites to destabilize Merge in order to pick up more players by suggesting funds aren’t safe in Merge sites, but somehow would be on theirs.
This would be the stupidest idea since the chocolate teapot
The idea that money on any of the remaining US facing sites is safer in one than another is pretty stupid. Basically ALL sites that are accepting new US players or have remained open to their existing US players are now running the same risks when it comes to the DOJ.
They know that and truth be told none of the remaining US facing sites will be feeling comfortable and they are certainly not about to fight over US market share, at the moment US players are a hot potato that many would rather do without.
Why do you think sites are dragging their heels re-opening to new US players ? Because processing any US funds is costly, difficult and now increasingly risky.
Merge Rumour Started by US Casinos ?
Possible
If you wanted a conspiracy theory on the rumour it’s far more likely that the US casinos would start a rumour like this IF it turns out not to have any credibility.
In all likelihood the US Department of Justice are just targeting whichever site / network is the next biggest in transaction volume, while undoubtedly running investigations on ALL the others concurrently.
It’s most likely again that as the small sites have grown their US facing business they are leaving more of a footprint and will be easier to pick off.
Also while the actions of PokerStars, Full Tilt, Absolute & UB allegedly went far beyond those of the smaller sites in order to process the much higher volumes of US deposits and withdrawals there will be no doubt that the DOJ will have learnt a lot which would speed up shutting down or seizing funds from the remaining sites.
Which Poker Sites are Still in US Market ?
It boils down to the sites on Merge Network, most of the sites on Cake Network and for the moment Bodog who still has US players until the end of the year (although it’s possible that might change sooner IMHO).
Basically if Merge or sites on Merge do have seizures of sizeable amounts or indictments then I think it’s very unlikely the other remaining networks will stay in US to try and mop up the survivors of the carnage for a second time.
To be honest I very much doubt that many US poker players will be prepared to move to any remaining sites having had their rolls rolled over at least twice by the DOJ.
It will signal the end of online poker in the USA and a victory of sorts for the DOJ and those that got the UIGEA through the backdoor.
Blame The DOJ or Blame … Yourselves ?
An interesting post from Bill Rini seems to suggest we should all be blaming ourselves, that players, forums & websites, promoters and poker rooms are all to blame for the mess.
more … Who to Blame for Black Friday ?
In many ways I agree with some of Bill’s points, but to be honest while previously everyone might have been expecting someone else to take more responsibility for the smooth running of the industry …
It’s hardly our fault especially non US players that the US got away with the UIGEA and everything that’s come after it.
Now the sh*t has hit the fan everyone seems to be swift to focus on the faults of the poker rooms while IMHO the DOJ and the US government have been getting away with murder unchallenged.
When push comes to shove, segregated accounts or not … the DOJ has MY money and they are not MY government.
Did France or Italy seize sites and assets ?
No
And this is where my rub is with the US Government, the DOJ and the UIGEA.
Other countries like France and Italy have managed to introduce pretty strict regulation having a less than positive stance towards online gaming and online poker without thinking they have the right to steal (oops seize) sites / players money from around the world.
They got on and regulated their own countries and even demanded ring fencing of their players but they DID NOT do this by the back door and they didn’t try to bring sites down to their knees or use dubious bills to financially cripple sites either for the hell of it, for the free tax bucks or for longer term competitive advantage.
Other countries have accepted that offshore companies filled a void and where either regulations or legality were ambiguious / unclear they clarified, regulated and moved on from there accepting that they had not got a right on a retrospective claim or that they could just contravene global trade agreements.
Let us not forget that the US still has NOT made online poker illegal, they have NOT got any clear legislation on it, the UIGEA was a bolt onto another bill, covers banking regulation, been ruled unlawful by the WTO and doesnt even contain the word poker.
For the UIGEA to be used to run roughshod through a global industry is wrong in the extreme, don’t forget that if the UIGEA doesn’t stand up legally then most if not all of the “banking offences” would actually no longer be offences …
That is the ridiculousness of the whole situation.
Could Just a Rumour Bring Down Merge Sites ?
Well potentially maybe, with US processing times running at over a month it’s unlikely US player withdrawals will get processed before a potential DOJ action has gone ahead.
But non US players on Merge sites do at times generally get better processing times so if those remaining non US players decide to pull their bankrolls then it could make for more problems.
However rest of the world players have got burnt once with Full Tilt sticking with a sinking ship, some feeling it was the right thing to do, giving US players a shot at their money … I doubt very much they will do it a second time.
US Online Poker Is In It’s Dying Days
As I predicted right back when Black Friday first happened it was inevitable those non US players who didnt have to stay on US facing sites wouldn’t … And that in itself would make it increasingly difficult for US facing sites to diversify.
IMHO if those US facing sites had any sense they should drop out of the US market now, yesterday ideally and payout their US players before any DOJ action or at least have the money in transit and accounted for as player funds and start a fresh with whatever non US players they have left.
Nobody wants to see the DOJ claim more sites and more players money.
Comment & Discuss
- Rumours DOJ Plans Action Against Merge Poker –
Is It All Over For Online Poker In USA ? - US Government Are Rogues Not Poker Rooms
- Full Tilt situation should we all be concerned about online poker ?
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