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Practice Matters

unlawful Internet gambling,

unlawful Internet gambling, [50][51] that is, Internet gambling that involves a "bet or wager" that is illegal under the laws of the state where the bet is made.[52] The indictment alleges that the companies used fraudulent methods to evade this law, for example, by disguising online gambling payments as purchases of merchandise, and by investing money in a local bank in return for the bank's willingness to process online poker transactions.[50] The companies argue that poker is a

game of skill

game of skill rather than a game of chance, and therefore, online online hold'em poker is not unlawful Internet gambling. There are other legal problems with the government's case; and, interestingly, the indictments did not mention the Wire Act.[53] On July 31, 2012, it was announced that two of the three companies indicted for money laundering and forfeiture settled with the Manhattan U.S. Attorney for $731 million without legally admitting guilt. The government also asked the judge to approve a settlement with the third defendant, Absolute Online Hold'em Poker.[54]

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