It would be unfair to say scamming, or other forms of cheating are commonplace in online poker markets. But it would also be untrue to say they are rare. As we continue on this topic you might also want to take a look at my write-up about the safety of online poker as well. As poker looks for its rebound, collusion will always be the biggest problem but in some cases you can take action. See below for more on collusion.

For the rest of the country, I recommend trusted offshore sites such as Global Poker and Bovada Poker. Is PokerStars a legit poker site? There's no questioning that PokerStars is one of the most legitimate poker sites online, even if I don't like them as a player. For example, if an online poker site accepts players as young as 18 years of age, but the state in which you live requires players to be 21 in order to legally participate in any type of poker gambling, then the player is subject to the legal gambling age law in their state despite the fact that a poker.

Online poker and other forms of online gambling in the United States and across the world are still rather young, especially compared to older forms of gambling. The history of Internet poker started back in 1998 with Planet Poker. Planet Poker was the first real-money cardroom[A] and took their first clients on Jan 1^st, 1998, dealing a game of $3–$6 limit Texas Hold’em to a few select customers. The site continued growing from there.

The industry truly took off during the period of 2003 to 2006, which is known as the “Poker Boom”[B]. In these years, the number of online poker players grew exponentially, repeatedly doubling, year after year. However, due to the passage of the UIGEA[C] later that year and the US government’s crackdown on Internet gambling, the industry’s growth has been stifled.

While the brick-and-mortar casino industry has been around for at least 50 years in the United States and even longer in other countries, online poker still remains in its discovery phase.

Even in the now-regulated online poker markets of New Jersey, Delaware, and Nevada, there have been lots of hiccups for both regulators and players. The offshore world is ahead of them in many aspects, but not in terms of regulatory oversight.

What is Collusion and Does it Happen

This is the most common form of cheating by players. Since using sleight of hand, bottom dealing, stacking the deck or marking cards isn’t possible in online poker – wannabe cheaters must resort to colluding.

In online poker, collusion is when two or more players are working together with a clandestine but common strategy. This can be as simple as two players soft-playing each other, which if they’re playing heads-up, has little effect on others players. It is essentially two friends “checking down” a pot in a live game. This form of collusion is generally harmless.

However, more advanced forms of players can cost unsuspecting players a lot of money. Professional-level cheats, even in online poker markets, have taken unsuspecting players for tens of thousands of dollars.

Their tactics can go from trapping players with raises and re-raises, which forces them to fold or rethink their hand, to losing to each other so as to not arise suspicion. Heck, players can even talk to each other through an instant messaging service, like Facebook Chat or Skype. Bovada created an ‘anonymous’ pattern and while I believe they are the best site for safety concerns, it won’t stop collusion. A lot of the inside knowledge is shared at poker training sites that are legit (our top list).

They can also disguise themselves by using different IP address or creating multiple accounts and playing under different aliases, which is known as “multi-accounting”. This allows players to play multiple hands and go undetected.

Do You Suspect Collusion?

Collusion at online poker websites isn’t exactly commonplace, but the threat of being colluded against, especially in middle- to high-stakes games, is very real. How sites and networks handle collusion or how proactive they are at spotting it varies wildly, depending on the poker room.

Ideally, each room would have a security team that is heavily dedicated to stopping collusion on all fronts. Players who engage in collusion at the higher levels can be extremely sophisticated and organized. For this reason, it’s vital for operators to be vigilant against collusion and thoroughly investigate claims made by players.

If you’re playing and suspect collusion, immediately email or call support. Email any available hand histories where you suspect collusion is taking place as well. It should also go without saying that you should stop playing against those opponents. There’s no need to berate the suspects in the chat – just report the incident to support.

It may be worth posting on a public forum to warn others of the suspected collusion and to publicly post the correspondence with the poker room’s management and security. Additionally, posting hand histories so that others can review them is another common option.

However, you should remember that many players are quick to blame their losses on collusion when they’re getting beat by a particular opponent(s). In the vast majority of cases, collusion isn’t the reason why you’re losing. In most cases, you’re likely losing to said players because they’re simply better than you. Nonetheless, if you detect strange patterns in play against certain opponents, there may be a reason for concern, and you should report it.

What Are Regulated vs. Unregulated Poker Sites

Once you report suspected collusion to poker room management, it’s up to them to decide how far to go with their investigation. As described above, it would be great if each room vigorously investigated incidents of collusion, but that is just not the case.

In regulated and legal markets, like those in most of Western Europe and now in the states of New Jersey, Delaware, and Nevada, these claims are almost always taken seriously. There are stringent gaming commission requirements in these jurisdictions, and the poker sites have to answer to regulators.

Nevada and New Jersey have stiff penalties for collusion[D], which is, of course, a form of cheating. Nevada has taken all of their brick-and-mortar gaming laws and applied them online, which means players caught cheating could face a category B felony in the state for their first offense. This could amount to 1–6 years in prison (and/or $10,000 in fines) and additional restitution to the casino.

Regulated Offshore Poker Sites Real Money

In regulated markets, instances of collusion will almost always be dealt with appropriately. Once management has completed their investigation, those who are guilty of collusion will usually be barred from the site permanently, and their funds will be confiscated and distributed to player(s) who were victims of their scam.

In theory, this is how it should also work in unregulated markets. However, while some sites will do their due diligence when it comes to investing claims of collusion, many unregulated rooms don’t take the matter too seriously. Or they pretend that they do, only paying lip service to players but in reality doing little to stop collusion or investigate claims of cheating.

Though most of these sites are licensed in their home countries, many of these seals or regulatory bodies are mere formalities. While they occasionally revoke the licenses of serial offenders, for the most part, they have little or no knowledge of a site’s finances or day-to-day operations.

Collusion is much more likely to occur in offshore markets, for this reason. The oversight just isn’t there, and many sites don’t investigate claims adequately.

For instance, still one of the largest US-facing sites, Merge Gaming (Carbon Poker) had a cheating scam back in 2012. The evidence was undeniable. There was chip dumping and collusion going on, but Merge investigated the matter in only 12 hours and determined there was no wrongdoing.

After revisiting the matter and the 2+2 Forum providing more proof, Merge reopened their investigation. The room never made an official announcement, but the cheating stopped, and the accounts in question were never seen again. It’s unclear whether Merge banned the accounts and confiscated the funds or whether the cheaters simply stopped when discovered. The victims of the cheaters never did receive compensation for being cheated, which would be the only fair outcome if Merge indeed banned the players and seized their funds. Judging by their investigation into the matter, it’s tough to have much confidence in their security team when it comes to stopping collusion and investigating issues that players bring to their attention.

Other US-facing unregulated and offshore sites have faced similar allegations of collusion. This isn’t to say there’s collusion going on unchecked at all unregulated sites. Some are better than others. Overall though, sites in regulated poker markets do a much better job catching collision and other forms of cheating.

Checks Bouncing or Nothing Coming from Poker Websites

Not being paid when you request a withdrawal from an online gambling site is a situation many players have experienced. Like our example of collusion, there is a stark difference between regulated and unregulated markets.

For instance, during the “Black Friday” debacle in 2011, Full Tilt Poker went insolvent after the US Department of Justice’s seizures and indictments. PokerStars came to an agreement with the DOJ[E] to bail out Full Tilt Poker’s players and payout balances over a year later, but US customers still had to wait over 2.5 years to have their funds returned to them.

And they were lucky. Absolute Poker and UltimateBet (Cereus Poker Network) players are currently out hundreds of millions after Black Friday, and there’s almost no hope of being repaid.

Of course, the vast majority of players who play at unregulated or offshore online poker rooms don’t end up in this situation. But the cold reality is that there is little players can do in a dispute with an unregulated poker operator. Other than shaming them on poker forums and emailing and calling their support staff relentlessly to get paid – players are mostly helpless. There have been forum posts for years about suing sites that wronged players and run off with bankrolls or went insolvent, but I’ve yet to hear of one of these lawsuits proceeding, let alone succeeding.

Regulated Offshore Poker Sites Games

Even in regulated climates, it can take a long time to get restitution from a site that goes bust or runs off with player funds, but at least players have legal protections and a court system to work within.

If you’re playing in a state that has online gambling regulated on the intrastate level, (Nevada, Delaware, and New Jersey), you can be absolutely sure that you will be paid. From a legal perspective, state-regulated online poker in the United States is no different than playing at a traditional brick-and-mortar casino.

If a site fails to pay players or doesn’t meet the specific regulatory standards mandated by government – they will lose their license.

In Conclusion

Getting scammed or cheated in online poker isn’t commonplace. Even in unregulated offshore markets, the vast majority of players are not being taken advantage of and are paid within the appropriate time-frame when they request a withdrawal.

In regulated markets, the security in terms of collusion and the allotment of player funds is much better. Currently, that can only be done in the three states listed above. Legislation has been introduced in dozens of other states, and these numbers are expected to grow as the years go by.

For now, playing at unlicensed sites is the only option for most Americans, and it’s still a viable one. The best way to not get scammed or ripped off is to keep up with recent news and be aware of your opponents’ and their play patterns.

Author:Joseph Falchetti (twitter)
(C) Copyright PokerWebsites.com, 2018

References and Citations

Gambling Law: An Overview

Regulated Offshore Poker Sites

Gambling, though widespread in the United States, is subject to legislation at both the state and federal level that bans it from certain areas, limits the means and types of gambling, and otherwise regulates the activity.

Congress has used its power under the Commerce Clause to regulate interstate gambling, international gambling, and relations between the United States and Native American territories. For example, it has passed laws prohibiting the unauthorized transportation of lottery tickets between states, outlawing sports betting with certain exceptions, and regulating the extent to which gambling may exist on Native American land.

Each state determines what kind of gambling it allows within its borders, where the gambling can be located, and who may gamble. Each state has enacted different laws pertaining to these topics. The states also have differing legal gambling ages, with some states requiring the same minimum age for all types of gambling, while for others, it depends on the activity. For example, in New Jersey, an 18-year-old can buy a lottery ticket or bet on a horse race, but cannot enter a casino until age 21. Presumably, the age 21 restriction is due to the sale of alcohol in that location.

A standard strategy for avoiding laws that prohibit, constrain, or aggressively tax gambling is to locate the activity just outside the jurisdiction that enforces them, in a more 'gambling friendly' legal environment. Gambling establishments often exist near state borders and on ships that cruise outside territorial waters. Gambling activity has also exploded in recent years in Native American territory. Internet-based gambling takes this strategy and extends it to a new level of penetration, for it threatens to bring gambling directly into homes and businesses in localities where a physical gambling establishment could not conduct the same activity.

Internet Gambling

Federal Regulation

In the 1990s, when the World Wide Web was growing rapidly in popularity, online gambling appeared to represent an end-run around government control and prohibition. A site operator needed only to establish the business in a friendly offshore jurisdiction such as the Bahamas and begin taking bets. Anyone with access to a web browser could find the site and place wagers by credit card. Confronted with this blatant challenge to American policies, the Department of Justice and Congress explored the applicability of current law and the desirability of new regulation for online gambling.

In exploring whether an offshore Internet gambling business taking bets from Americans violated federal law, attention was focused on the Wire Act, 18 U.S.C. § 1084 (2000). The operator of a wagering business is at risk of being fined and imprisoned under the Wire Act if the operator knowingly uses a 'wire communication facility' to transmit information related to wagering on 'any sporting event or contest.' 18 U.S.C. § 1084(a). An exception exists if that act is legal in both the source and destination locations of the transmission. § 1084(b). The Wire Act’s definition of “wire communication facility” appears to embrace the nation's entire telecommunications infrastructure, and therefore probably applies to online gambling. See § 1081.

The Department of Justice maintains that, under the Wire Act, all Internet gambling by bettors in the United States is illegal. U.S. House of Representatives Committee on the Judiciary Hearing on Establishing Consistent Enforcement Policies in the Context of Online Wagers, 110th Cong., Nov. 14, 2007 (testimony of Catherine Hanaway, U.S. Attorney (E.D. Mo.), Dept. of Justice). The Fifth Circuit disagreed, ruling that the Wire Act applies only to sports betting, not other types of gambling. In re MasterCard Int’l Inc., 313 F.3d 257 (5th Cir. 2002).

In 2006, Congress passed the Unlawful Internet Gambling Enforcement Act, which made it illegal for wagering businesses to knowingly accept payment in connection with unlawful Internet gambling (though it does not itself make Internet gambling illegal). 109 Pub. L. 109-347, Title VIII (Oct. 13, 2006) (codified at 31 U.S.C. §§ 5301, 5361–67). It also authorizes the Federal Reserve System to create regulations that prohibit financial transaction providers (banks, credit card companies, etc.) from accepting those payments. See 31 U.S.C. § 5363(4). This Act, along with threats of prosecution under the Wire Act from the Department of Justice, has caused several Internet gambling businesses to withdraw from the U.S. market.

In response, House Representatives introduced multiple bills in 2007 to soften federal Internet gambling law. If passed, the Internet Gambling Regulation and Enforcement Act and the Internet Gambling Regulation and Tax Enforcement Act would license, regulate, and tax Internet gambling businesses rather than prohibit them from taking bets from the United States. Alternatively, the Skill Game Protection Act would clarify the Wire Act to exempt certain games such as poker and chess.

State Regulation

In addition to federal measures, some states have enacted legislation to prohibit some types of Internet gambling. In 2006, Washington State amended its Code to make knowingly transmitting or receiving gambling information over the Internet a felony. See Wash. Rev. Code § 9.46.240 (2006). Other states with similar prohibitions have made it a misdemeanor instead. See e.g., 720 ILCS 5/28-1 (2007).

States have not been particularly active in enforcing these laws, possibly due to a conflict with the dormant Commerce Clause doctrine. That doctrine theorizes that state law applying to commerce outside the state’s borders is unconstitutional because that power lies with federal, not state, government. In particular, federal preemption has obstructed states’ attempts to regulate gambling activity on Indian reservations within state borders. See Missouri ex rel. Nixon v. Coeur D’Alene Tribe, 164 F.3d 1102 (8th Cir. 1999). The federal Indian Gaming Regulatory Act, 25 U.S.C. § 29 (2000), governs gambling activity on Indian reservations, but the extent to which it and other federal gambling laws preempt state action in the Internet arena is uncertain.

menu of sources

Federal Material

U.S. Constitution and Federal Statutes

• U.S. Code: Title 15, Chapter 24: Transportation of Gambling Devices
• U.S. Code: Title 15, Chapter 57, Interstate Horseracing
• U.S. Code: Title 18, Chapter 50: Gambling
• U.S. Code: Title 18, Chapter 61: Lotteries
• 18 U.S.C. §1953 (Interstate Transportation of Wagering Paraphernalia Act)
• 18 U.S.C. §1955 (Illegal Gambling Business Act of 1970)
• 25 U.S.C. §§2701-2721 (Indian Gaming Regulatory Act)
• U.S. Code: Title 28, Chapter 178: Professional and Amateur Sports Protection
• Code of Federal Regulations: Title 25, Chapter 3: National Indian Gaming Commission, Department of the Interior
• Proposed Internet Gambling Prohibition Act of 1997 (not passed)

Federal Judicial Decisions

Regulated Offshore Poker Sites For Real

• Greater New Orleans Broadcasting Association, Inc. v. United States, 527 U.S. 173 (1999)
• Ratzlaf v. United States, 510 U.S. 135 (1994)
• Chickasaw Nation v. United States, 534 U.S. 84 (1999)

State Material

Other References

• '14 Charged in Internet Betting' (Washington Post, March 5, 1998)

Regulated Offshore Poker Sites No Deposit

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