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Following a New York federal judge ruling proclaiming poker as a “game of skill” and not “gambling” under current federal legislation, there is talk that charges against PokerStars founder Isai Scheinberg could soon be dropped.
Scheinberg founded what is today the world’s largest “real money” online poker room the very day the World Trade Centers were under attack in New York City, September 11, 2011.
He and nearly a dozen other defendants were charged last year with bank fraud and money laundering in what was deemed to be a violation of the Unlawful Internet Gaming Enforcement Act (UIGEA).
Judge Jack Weinstein in Brooklyn threw out a conviction against a Staten Island poker room operator, Lawrence Dicristina, on grounds that poker is a "game of skill" and not a violation of federal gambling prohibitions. The judge relied extensively on the findings of a defense expert who analyzed online poker games, according to the Associated Press.
Scheinberg’s company opted to remain in the US market after passage of UIGEA back in October 2006 after his legal counsel supported what is now Judge Weinstein’s interpretation of the law.
As part of a settlement agreement with the US Government, PokerStars will pay back all players owed by one time rival Full Tilt Poker, a company also caught up in last year’s indictments. Scheinberg himself will be forfeiting millions of dollars to the US Government while the firm has settled for $731 million.
Posting on the TwoPlusTwo.com legal forums, one long time member had this to offer:
The civil cases against the companies have already been settled, none of the guilty pleads included an IGBA charge, all of them pleaded to either conspiracy to violate the UIGEA, conspiracy to commit bank fraud, money laundering conspiracy or a combination of the above.
The outstanding IGBA charges against Bitar, Burtnick, Tate and Scheinberg should be off the table now but likely would have been dropped anyway for a settlement, and the actual money laundering charges would go with them since the money isn't 'dirty' under this ruling.
The Wire Fraud charges against Bitar and Burtnick (Ponzi) aren't effected nor the civil wire fraud against Lederer, Ferguson and Furst, but this could pave the way for Scheinberg to turn himself in and do a few months for conspiracy and get back to running his company even before the government even gets a chance to appeal.
Scheinberg has yet to surrender to US authorities.
- Ace King, Gambling911.com
