On Friday, April 15, 2011, the American Government shut down online poker sites over the ambiguity of the legality of poker. They branded its operators criminals. But is this still the case?

The answer to the above question is yes and no. One of the main problems with passing new laws is that they often have unintended consequences. The clearest example of that is the Volstead Act of 1919. The ostensible purpose of this – Prohibition – was to save Americans from the demon drink; in practice, it created an era of lawlessness.

The current drug prohibition laws – worldwide – have also caused more problems and ruined more lives than they have saved. The prohibition of on-line poker has had slightly different effects.

We have not seen shoot outs in turf wars, nor people busted at the airport for smuggling poker chips, but there is no doubt this form of prohibition has been detrimental to the American economy. The Unlawful Internet Gambling Enforcement Act actually came into force way back in 2006, and as its name suggests, it was not concerned solely with poker, but with any form of gambling.

Curiously, this does not seem to include playing the stock market. It is now acknowledged that so-called investment banking is nothing more and nothing less than gambling. In this connection we need mention only two names: Kweku Adoboli from a UK perspective, and John Corzine, former Governor of New Jersey.

Read more on the current legality of poker debate at the Digital Journal.