Bank Seizes Player Funds June 16, 2009
So, the big buzz this week was the U.S. government seizing $30 million from bank accounts associated with player fund withdrawals from poker online sites. The U.S. attorney for the Southern District of New York (SDNY) instructed several banks, including Citibank, Wells Fargo and Alliance Bank of Arizona, to freeze the accounts of payment processor Allied Systems Inc. This is the processor of the very popular e-check payment method.
So, essentially, a lot of online poker players cashed out money from Full Tilt, PokerStars, Ultimate Bet and Absolute Poker and received bad checks. The money was not accessible and the checks bounced.
This doesn’t mean that the money does not exist or has been taken away, it had just been frozen. For whatever reason, the U.S. government is trying to lean on businesses that cooperate with poker online sites. If they make their lives more difficult, then the average poker player’s life is more difficult and the game slows down and eventually dies without having to pass any actual laws. This is a scare tactic. The PPA along with an ever growing number of members of Congress are working to combat the UIGEA. If not amended, the UIGEA can begin enforcing its restrictions Jan 1st 2010. But, in the meantime, the government is exercising its right to do whatever they want.
The sites have credited players back the monies they’ve tried to withdraw, and on some sites have even issued bonuses for the hassle.
