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For a discussion of the legality of online gambling in general, see online gambling. In the United States, the North Dakota House of Representatives passed a bill in February 2005 to legalize and regulate online poker and online poker card room operators in the state. The legislation required that online poker operations would have to physically locate their entire operations in the state. Testifying before the state Senate Judiciary committee, Nigel Payne, CEO of Sportingbet and owner of Paradise Poker, pledged to relocate to the state if the bill became law. Online poker is legal and regulated in many countries including several nations in and around the Caribbean Sea, and most notably the United Kingdom. The measure, however, was defeated by the State Senate in March 2005 after the U.S. Department of Justice sent a letter to North Dakota attorney general Wayne Stenehjem stating that online gaming “may” be illegal, and that the pending legislation “might” violate the federal Wire Act. However, many legal experts dispute the DOJ’s claim. Instead, they created “dot-net” sites that are virtually identical but offer no real money wagering. In response to this and other claims by the DOJ regarding the legality of online poker, many of the major online poker sites stopped advertising their “dot-com” sites in American media. On October 13, 2006, President Bush officially signed into law the SAFE Port Act, a bill aimed at enhancing security at U.S. Attached to the Safe Port Act was a provision known as the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA). According to the UIGEA, “unlawful internet gambling” means to place, receive, or otherwise knowingly transmit a bet or wager by means of the internet where such bet is unlawful under any law in the State in which the bet is initiated, received, or otherwise made. As a result of the bill, several large publicly traded poker gaming sites such as PartyPoker, PacificPoker and bwin closed down their US-facing operations. Thus, the UIGEA prohibits online gambling sites from performing transactions with American financial institutions. The UIGEA has had a devastating effect on the stock value of these companies. Some poker sites, such as PokerStars, Full Tilt Poker, Absolute Poker, continued to operate and remained open to US players.
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