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Costigan Media Wins Case To Seizure Warrants For Poker winnings

Gambling News - August 11th, 2009 - Written by Glen

money logoIn June nearly $40 million dollars were seized as part of an FBI crack down on Internet gambling payment processing. The reasons were kept obfuscated, and the "whys" began to fly across the Net. Costigan media had thus put forth an effort to have the warrants unsealed and brought to light. The battle was arduous, but Costigan finally took what they had come for and now the documents will be released as per their request.

Parts of the documents were redacted, or edited, as to protect the individuals involved, but this is another piece of the puzzle that Costigan has reported to look into. Presumably the funds were ultimately disbursed to the players, even at a loss to the company itself. The money was seized under the pretext that money laundering and other illegal financial activities were taking place, and that the government had reason to believe, or probable cause, that the money was to be used as disbursal of gambling winnings, which is illegal under the UIGEA.

Moving beyond the $40 million dollars in poker winnings, an entire string of payment processing companies has been dissolved by the federal government, as they too had been accused of processing financial transactions pertaining to online gambling. While it is alleged that these companies moved money pertaining to Internet gambling that, while poker was a part of it, encompassed online casino gaming as well. Over $500 million dollars has been temporarily seized, and the owner, a 36 year old Canadian man, has been indicted

The legality of online poker has dropped under the spotlight and is under heavy scrutinization by many parties - not the least of which is the Senate and the House of Representatives. Both branches of Congress have been working to change laws regarding online poker, bringing the USA closer to embracing what is widely regarded as an important cultural game of skill, rather than a game of chance in which players gamble. It may be months before a change is seen, but progress is being made.

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