In a move that has come as a huge surprise to online poker affiliates in the United States, the New Jersey Division of Gaming Enforcement (DGE) and the New Jersey Attorney General’s Office have recently gone after affiliates who promote offshore internet poker rooms.
The action comes in the form of an April 17th cease-and-desist letter from New Jersey Assistant Attorney General George Rover, issued to six affiliates. The letter, a copy of which was acquired by OnlinePokerReport.com, spells out for the affiliates the law as stated in the New Jersey’s gaming act:
5:12.95.26 Offering of Internet gaming without approval, fourth degree crime; fines
Any person who offers games into play or displays such games through Internet gaming without approval of the division to do so is guilty of a crime of the fourth degree and notwithstanding the provisions of N.J.S.2C:43-3, shall be subject to a fine of not more than $25,000 and in the case of a person other than a natural person, to a fine of not more than $100,000 any other appropriate disposition authorized by subsection b. of N.J.S.2C:43-2.
To this untrained legal eye, it seems like it could be argued that this doesn’t apply, as affiliates do not offer games on their sites. They provide links to the gambling sites and information about how to play, deposit, etc., but there is no actual gambling going on on affiliate websites. The “displays such games” might be the key phrases, but again, I am not a lawyer.
The next part, though, is much clearer, as it spells out the applicable section of the New Jersey Criminal Code (emphasis present in the letter):
a. Promoting Gambling Defined. A person is guilty of promoting gambling when he knowingly….
(2) Engages in conduct, which materially aids any form of gambling activity. Such conduct includes but is not limited to conduct directed toward the creation or establishment of the particular game, contest, scheme, device or activity involved, toward the acquisition or maintenance of premises, paraphernalia, equipment or apparatus therefor, toward the solicitation or inducement of persons to participate therein, toward the actual conduct of the playing phases thereof, toward the arrangement of any of its financial or recording phases, or toward any other phase of its operation.
There is not much ambiguity there. Affiliates certainly aid in gambling activity and solicit or induce persons to participate in such activities.
The affiliates who have been warned include some major names in the industry, including RaketheRake.com, PokerSource.com, RakeBrain.com, CardsChat.com, and PokerSites.com. The letter published by OnlinePokerReport.com was sent to RaketheRake.com and cited Bovada Poker, Merge Gaming, Black Chip Poker, and America’s Cardroom as poker sites which are being promoted by the affiliate. None of those sites are based in the U.S. and none are approved by New Jersey DGE.
The final paragraph of the letter, though, is not entirely accurate, and may just be included partially as a scare tactic:
This letter shall serve as official notice that your website, by offering links to sites which may be offering unauthorized online gaming, may be promoting activity that is contrary to New Jersey and federal law. We request that you immediately remove any online gaming links that are not authorized under federal law or under the law of any State. The State of New Jersey reserves the right to pursue appropriate civil or criminal sanctions against you if you fail to take the requested actions.
As far as we can tell, there is no federal law which prohibits affiliates from promoting offshore poker sites. That said, the New Jersey-specific threat may be legitimate; it will be interesting to see if the affiliate sites acquiesce to the state’s demands. Right now, it looks like PokerSource.com may have taken down its offshore site promotions for U.S. customers, as the only ones currently available are for New Jersey-based sites. The other four sites listed in this article still have their usual promotions active.