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Has MMA Folded on Poker?

(Disclaimer: Ingrained Media represents Athletes within the sport of Mixed Martial Arts. We have never done business with any of the companies listed below but certain members of our company have. Collectively these individuals made less then $1000 from their previous relationships with these companies. We have no current relationship with these companies.)

Media outlets ranging from The Wall Street Journal to all the top MMA websites have reported on the issuance of arrest warrants for several executives from the online gaming and poker sites such as Pokerstars.com and FullTiltPoker.com and that the government has shut down those URL’s . The Mixed Martial Arts industry claimed “It’s sponsors were shutdown” and one infamous agent said, “In the short-term, it will severely impact fighters’ sponsor revenue, which traditionally matched their show pay for our televised clients. I would venture to say the poker industry is equal to apparel industry as the No. 1 sponsor of fighters outside the UFC.”

We wanted to look into this situation and the billion dollar industry that will be impacted by these bans and the effects, if any, on the sport of MMA and the game of Poker..

A couple things that we need to make sure are clear: This is a US based ban that has a minimal impact on the overall international gaming market, and secondly, this is the US; these executives and companies are innocent until proven guilty.

The sponsors that the Mixed Martial Arts industry have been talking about are actually not the sites that have been taken down. The sponsor of the Mixed Martial Arts industry that is the most prominent is FullTiltPoker.net. The site that has been banned by the US Government is Fulltiltpoker.com. The difference is the .NET site is for entertainment and learning purposes and the .COM is the pay-for-play site. You would think that agent would know who his “number 2” sponsor is. That is, unless he did his deals with FullTiltPoker.com.

It is actually feasible to assume that the Full Tilt corporation will spend more in the US on its .NET presence since that is all they will be allowed to do. Many of the sites that are reporting on this story also earn income from the online gaming industry. I am not sure why or how they could misreport the information.

The Television lineup is still full of various cash poker games and anyone that can go to an Indian Reservation Casino or most of the Casinos in Las Vegas offer both electronic and live cash games. Many states have “poker rooms” that allow cash games and in houses across the US family and friends come together for friendly cash poker games. Poker is a game that dates back to the earliest settlers of this country. Poker is a part of America’s history and future.

Full Tilt Poker is on record saying:

“Dublin Ireland (April 15, 2011) – Full Tilt Poker is saddened by today’s charges against its CEO Raymond Bitar and offers its full support to Mr. Bitar and Nelson Burtnick.

Online poker is a game of skill enjoyed by tens of millions of people in the United States and across the world. And, Full Tilt Poker remains as committed as ever to preserving the rights of those players to play the game they love online.

Mr. Bitar and Full Tilt Poker believe online poker is legal – a position also taken by some of the best legal minds in the United States. Full Tilt Poker is, and has always been committed to preserving the integrity of the game and abiding by the law.

“I am surprised and disappointed by the government’s decision to bring these charges. I look forward to Mr. Burtnick’s and my exoneration”, said Mr. Bitar.

Unfortunately, as a result of this action, Full Tilt Poker has decided that it must suspend “real money” play in the United States until this case is resolved. However, Full Tilt Poker will continue to provide peer-to-peer online poker services outside of the United States.”

We tend to agree with Mr. Bitar’s claims. While we cannot reasonably or responsibly talk about the legal issues these 11 executives are facing, as we said they are innocent until proven guilty. What we do know is that many of the greatest legal minds contend that poker is a game of skill not chance and therefore not technically gambling. I love the game of poker myself. I have played on FullTiltPoker.net and we have a family tradition where we all gather over Thanksgiving and have a Texas Hold Em Tournament.

Online gambling and online poker just got a lot less convenient in the US. The courts are going to be forced to determine if online gambling and poker should be legal and if legal, who regulates the industry.

If you’re in the U.S., when you point your browser to any of those three gambling sites, you see a scary message: The U.S. government has seized the domain names of the three sites, preventing gambling transactions and anything else:

The Government claims that these businesses manipulated the banks in order to process these transactions (almost all of them conducted electronically) using wire transfers, credit cards and other means of commerce.

The problem gets a bit dicey when you realize that these three online gambling organizations are not based in the U.S. For instance, PokerStars’ headquarters is on the Isle of Man, a self-governed British Crown Dependency located in the Irish Sea between Great Britain and Ireland. Here is an image of their headquarters.

Even if the US Government wins the judgement there is no guarantee that the Isle of Man or the other host countries where these business’ operate and are based will comply with the US extradition request or asset seizure request. There is huge disagreement about the legality of online gambling. Not to mention the economic impact these small countries would feel if these large industries ceased to exist.

Are we supposed to believe the banks and credit card companies did not notice billions of dollars of transactions coming and going out of very small countries? Bank of America calls me if I use my card in a store that is outside of my normal shopping habits but they could not detect the billions heading to Ilse of Man or Costa Rica?

Since we are talking about US law and online gambling being illegal in the US, some questions obviously arise. The US Government is for the people, by the people, right? A recent poll of US citizens with over 3100 responses indicates the people are siding with the poker companies. 52% of those asked said online gambling should be legal and that it is a victimless crime, 33% said as long as it was regulated and only 15% said no. So 85% of the people polled feel as if online gambling should be legal and if we were asking them about poker only the percentage would be in the mid to high 90’s.

Last but surely not least, Full Tilt Poker specifically is just a platform. The laws that are being violated if online poker is illegal are being broken by the users of Full Tilt Poker, not the company itself. If the Government prevails in it’s case against Full Tilt and others, are the Internet providers who connect the users responsible? Or how about the poker table manufacturer? Full Tilt is not a wagering company or betting company. They are the virtual version of a Card Room; they merely provide a service to those who wish to test their skills against others for fun, prizes or money. It is duly regulated and licensed by the Alderney Gambling Control Commission.

The residents of the US seem to want to be able to play poker and gamble online and poker seems to be at its all time high in popularity. The few in opposition of the game and its legality should be reminded of Las Vegas. It was a relatively unregulated home to the Mob who handled and profited from the gambling industry. The US Government did not shut down Las Vegas, they cleaned it up and regulated it. The Mob was servicing millions of tourists (the voting public) and the Government found a way to keep them playing. Now Vegas represents a billion dollar industry.

For a company that has always found a way to brand itself (NSFW) in a industry valued in the billions we think the fight has just begun.

Or look at China. Some of Las Vegas’s biggest “whales” came from Asia and specifically China. China took a small island that had historically been plagued with prostitution and some of the lowest numbers trade jobs in the region. It has been transformed to a Chinese Las Vegas. Many of the same casinos located in Las Vegas have locations there. It has become extremely successful and transformed the economy of the region.

The law makers and media do not need to worry about the MMA athletes who are sponsored by websites still operating and very much in need of promotion. We need to ask our Senate and Congress to try to find a way to do what the majority of the people want and legalize poker and online gambling. Virtual gaming will help our economy and could create jobs here in the US if we found a way to embrace rather than erase this business.

Jason Genet

IngrainedMedia.com


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