Forbes Reports on Opposition to Black Friday Busts
US courts getting busy
In light of the US authorities’ enforcement actions against e-processors, banks and operators, a report arrived this week that a banker and an e-cash processor involved in the indictments have decided to fight back, filing legal papers in which they argued that online poker businesses like PokerStars
and Full Tilt Poker were not gambling enterprises.
The Forbes report reads: "John Campos, a former vice-chairman of a Utah bank that allegedly accepted a cash infusion in return for handling online poker transactions, and Chad Elie, a payment processor who is accused of deceptively facilitating the flow of funds between U.S.-based players and online poker companies, filed separate motions to dismiss all counts filed against them in federal court in Manhattan.
"It is the first direct assault on the April case the U.S. Attorney in Manhattan, Preet Bharara, brought against online poker’s biggest firms, which included the indictment of 11 individuals."
Further on, the filings claim: “PokerStars and Full Tilt are not ‘illegal gambling
businesses’ under the Illegal Gambling Business Act because they are not ‘gambling businesses’ at all. To be ‘engaged in the business of betting or wagering’ requires that the business has a stake in the outcome of gambling contests, and the Indictment here fails to allege that the poker companies had any such stake. Instead, the companies charged a fee, or rake, on each hand.”
In addition, three different memorandums have been filed by Elie in support of his motions to dismiss all charges filed against him as "flawed attempts to prosecute," whereas Campos has brought before court a 33-page memorandum, in which he claims that the Unlawful Internet Gambling Enforcement Act
charges against him should be dismissed because the law exempts financial transaction providers and those working on their behalf.
Both Campos and Elie have pointed out to the "skill vs. chance" argument, along with the fact that the Illegal Gambling Business Act lists nine activities regarded as gambling that do not include poker or any other card game
In addition, Elie referred to a statement issued by US Attorney General Eric Holder: “Indeed, the Attorney General himself has commented that determining whether poker is a game of chance is ‘beyond [his] capabilities.’”
Finally, in one of his memorandums, Elie claims that government charges that he conspired to commit bank and wire fraud by getting banks and financial firms to process online poker transactions, disguising them to look like they were unrelated to online poker will be hard to prove as harmful to banks, since such transactions actually profited the banks involved.
Source: LPB News