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why is poker stars legal and party not?
serious respnoses only please ladies and gentalmen.
- 1 decade agoFavorite Answer
The main reason that PartyPoker has stopped accepting US players is because they are publicly traded on the London Stock Exchange. There are regulations that state that a public company can not operate in a jurisdiction in which they are breaking laws. If they continued to accept US players, they would have faced the possibility of being reprimanded or delisted from the London Stock Exchange.
PokerStars, on the other hand, is a private company. They actually postponed their Initial Public Offering on the London Stock Exchange so they can continue to accept US players. PokerStars can accept US players because they are not under the same restrictions as a publcily traded company.
Keep in mind that it is not illegal for an individual to play poker online. The Unlawful Internet Gambling Enforcement Act (UIGEA) deals with financial institutions, banks, and illegal internet gambling sites. Also, they have 270 days from the time the bill was signed by the President to comply with the new law. The US government has never purrsued an individual for playing poker online. This law will not change that.
If you look at the other sites that are not accepting US players, you will find that they are mostly publicly traded companies. Pacific Poker (888 Holdings) is a publicly traded company as well as PokerRoom.com (bwin). They have both stopped accepting US players. Full Tilt is privately owned, so they have not stopped accepting US players.
PokerStars is seeing a massive amount of traffic lately. There are a lot of new players signing up every day. One reason is that PokerStars is benefitting from PartyPoker and PacificPoker not accepting US players. Another is that they are giving away a 100% deposit bonus for new players. PokerStars rarely gives a bonus, so I feel they are trying to capitalize on the fact that former PartyPoker players are looking for a new room to play at. It is a great time to sign up at PokerStars, because many people do not get the oppurtunity for a bonus when they join. They are also giving away over $500,000 in prize packages to the 2007 PokerStars Caribbean Adventure - a World Poker Tour event. Players are flocking to PokerStars like crazy.
- Anonymous1 decade ago
They both fall under the same laws, it is just Stars lawyers have adviced them to stay in the game, that no harm can come from this yet. Party has ran into problems becuase most of the players are from the US. This is not the case with Stars, many are from the US but they have an international market as well. The law prohibits deposits and withdrawls from U.S. Banks ONLY. Party also has had technical difficults and not worth repairing and trying to stay in the game. Stars will be around for a long time. Even if they do shut down netteller or other payments options to the U.S. another one will pop up just as quickly. They will be around for awhile.
- Anonymous1 decade ago
Party has shareholders while Stars is privately owned. So while the legal situation is a bit murkier now than it was before, it wasn't in Party's best interest to stay in the US market. If they did they faced lawsuits from their shareholders over possibly violating US laws.
Pokerstars and Party both exist in the same legal framework though, but now Party isn't affected by US law since they do not operate in the US market.
US Laws may change soon since the WTO has found the US in violation of WTO rules by trying to ban online gaming.Source(s): Both Sites Press Releases and Statements: http://www.ultimatepokerbankroll.com/article.php/i...
- PolymathLv 51 decade ago
Each company has to decide how to handle the new law. Party has decided to play it safe, and not take any bets from US.
Stars has elected to not pay attention yet. Maybe they will when the regulations are released (270 days after the law was signed), but they run the risk of being found guilty of breaking the law later, which could be bad.
- Anonymous5 years ago
No, it is illegal. Most poker sites in which real gambling occurs are located outside of the US. I recently saw a news report that said the government was launching a crackdown on these sites. Under US law, the sites must deny access to anyone in the US.
- 1 decade ago
The law passed has to do with sports betting, they cannot touch poker. The online poker rooms that have stopped accepting US players all seem to have sports betting and casino games attached to them, such as PartyPoker and ParadisePoker. PokerStars and FullTilt only offer poker and are not affected by the law
- 1 decade ago
They're both still legal. Party is run by cowards. Stars is not. Even after this mess is sorted out, I won't ever be going back to Party.
- 1 decade ago
Personal Player sites where all they take wagers on are those that the user contributes to the outcome, that is card games... are legal because the bettor is the player. Betting on sports games are not legal because other people determine the outcome.