Online Poker Shutdown
April 15, 2011, three major U.S. poker sites were shut down by the U.S. Department of Justice for illegal gambling, money laundering, and bank wire fraud. The trial marked a turning point in the regulation and legality of online gambling in the United States. The day forever known as "Black Friday," was arguably the most devastating and costly day in poker history.
United States v. Scheinberg, the case revolved around the prosecution of the founders of three major online poker companies, PokerStars, Full Tilt Poker, and Absolute Poker. The federal authorities took over the domain names and hundreds of thousands of players were unable to access to their funds.
Unlawful Internet Gambling Enforcement Act (UIGEA)
In the early 2000s, online poker experienced an explosive growth in popularity, attracting millions of players worldwide. However, the legal status of online gambling, including poker, remained ambiguous in many jurisdictions in the United States. Nowhere does the UIGEA make it a federal crime to play online poker. Criminality is restricted to accepting and processing payments to online poker sites.
As a result of the Federal indictments the three major online poker companies suspended their operations in the US market. The case also sparked discussions on whether online poker should be considered a game of skill or chance, and whether it should be subject to different regulations than other forms of online gambling.
Following “Black Friday,” the landscape of online poker in the United States underwent significant changes. Several states began exploring the possibility of legalizing and regulating online poker. Nevada, Delaware, and New Jersey were among the first to establish intrastate online poker platforms, allowing residents of those states to play poker legally online.
Settlement
On July 31, 2012, the US government dismissed all civil complaints against PokerStars and Full Tilt Poker after coming to a settlement with PokerStars that included PokerStars purchasing Full Tilt Poker. Full Tilt Poker executives Chris Ferguson and Howard Lederer settled with the government for a fraction of millions they had earned.
As of 2023, online poker is legal in Connecticut, Delaware, Rhode Island, Nevada, New Jersey, Pennsylvania, West Virginia, and Michigan.