Gambling is now one of the big business for every one and there are lots of people losses or earn money from playing online game.
"I figured if gambling online is illegal, I might as well go to legalized gambling in the form of the stock market," Fritz laughs. A friend had gone to a Wall Street firm and "just blew the doors off, and he said what he learned in poker really helped him. They were, like, 'Well, we need to hire more poker players.' "
For Michael LaTour, the game was a way out of unemployment. The Syracuse, N.Y., man landed a job out of college selling mortgages and personal loans for American General Financial. But a year later, spectacularly inept bets by American's parent company, AIG, put him back on his ass.
"There weren't many jobs out there, and I'd been on unemployment for a while," LaTour says. "I saw some people being successful at poker, and I decided if I was ever going to seriously take a shot at it, now would be the time to do so."
He played for two years, earning $50,000 in 2010. He was doing even better last year, averaging $10,000 a month for 2011, until the feds came calling. Suddenly, the $35,000 in his PokerStars account was seized.
"The days after, it was really a panic," he says. "Nobody knew what was going on. It's been draining emotionally."
If he and his girlfriend hadn't bought a house, LaTour might have gone to Canada. Instead, he has taken the Syracuse police officer exam, but the academy doesn't offer the required classes until April, and there is a huge waiting list. Two years after pulling himself off unemployment by his wits, he's back to searching for a job.
"This isn't something I wanted to do my entire life," he says, "but the money was out there, and it made more sense than any entry-level job just because of the potential to win such huge amounts of money."
Players weren't the only ones thrown out of work. The feds blew up an entire industry. In 2003, Michael Minkoff started a business that handled the shipping of poker books and videos sold on websites. His Las Vegas company also did freelance video production. It was a modest affair, employing three people and a passel of part-time help.
Then came the stealth attack by Frist and Kyl in 2006. Sites began closing and paring costs, hurling little guys like Minkoff to the side of the road. Black Friday nearly finished him. At his height, he was moving more than 1,000 books a month. Nowadays, he's selling fewer than 50, hardly enough to employ himself part-time.
The feds launched an even bigger hit on the television industry. The list of canceled shows since April is long. Poker After Dark, the late-night show on NBC, was canceled abruptly after four years, when the feds called its sponsor, Full Tilt, a "Ponzi scheme." High Stakes Poker ended a six-year run on the Game Show Network in December. National Heads-Up Poker Championship, also on NBC, collapsed in October after seven years. In April, Fox pulled PokerStars Big Game and PokerStars Million Dollar Challenge prior to their second seasons.
According to research firm Kantar Media, Full Tilt and PokerStars spent $26 million in TV advertising last year; PokerStars spent another $8.3 million on Web and magazine ads. In one fell swoop, the feds made it disappear.
Though they wiped out the major American sites, a few remain, notably Bovada and Merge Gaming Network.
The volume is much lower, and it's difficult to get paid. All have severe restrictions on how much and how often players can withdraw from their accounts. Merge allows players to withdraw up to $2,500 once every six to eight weeks. And many are finding it difficult to add money to their accounts, since credit card companies often reject the transaction.
After Black Friday, Walter Wright started playing on Merge just to salve nerves made raw by an empty wallet and a squealing baby. He and his wife went to Florida for a live World Poker Tour event, but he didn't play well. When they returned to North Carolina, they didn't even have enough money to get their dogs out of the kennel.
With their marriage stretched to its breaking point, Wright went to Costa Rica just before Thanksgiving. A friend agreed to front him a roll, pay his airfare and cover his rent for a few months.
Costa Rica has become a magnet for Americans. Wright lives in an apartment complex with other online players. The country's tourist-friendly economy makes it a logical landing spot for those like Wright, who has a DUI conviction and thus isn't allowed into Canada. Since Black Friday, companies such as Poker Refugees have sprung up to help players get visas, bank accounts and apartments in Costa Rica.
But there remains a larger question: Why are the feds chasing honest, taxpaying citizens out of the country? Especially for something as benign as playing cards, an activity enjoyed by nearly every American?
Rep. Barney Frank denounced the crackdown as an "incredible waste of resources," wondering why the feds felt compelled to protect "the public from the scourge of inside straights."
After all, for most of the country's estimated 2 million online players, poker is little more than recreation. And those who made their living from it seemed to personify the American spirit, providing for families by creating livelihoods by their wits.
Gambling is now one of the big business for every one and there are lots of people losses or earn money from playing online game.
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Great information. Thank you for shedding light on this story! I'm glad you are providing information on the tragedy that was our Black Friday. It is well past time to license and regulate this industry in the US. Most of the world is able to play this game of skill and strategy online and Americans, of all people, should be free to play as well.
This article is journalistically shabby and, frankly, would be laughed out of any college journalism course.
1. It merely gives us anecdotal accounts of people who have managed to make online poker work, but it does not discuss how many thousands, tens of thousands, hundreds of thousands, etc, may have lost substantial sums gambling online.
2. It blithely blames the religious nuts for the shutdown of online poker in the U.S. However, there is zero direct evidence provided in this article of this. There are no statements, for example, from the usual suspects in the evangelical or other faith based crowds. Mere name calling with no evidence is not journalism.
3. It is fine to go after Kyl and Frist, two clowns who I don't particularly like myself, for this, but where this article REALLY fails is to discuss if there was any Abramoff-style lobbying by casinos in the U.S. to have their online competitors taken out. To read this article, it was almost as if Kyl and Frist just one day got up on the wrong side of the bed and decided to take it out on online poker sites. Now the combination of this kind of lobbying, if it happened, and pressure from the religious nutbars could have been the hammer that made the crackdown happen, but this piece just does not give us any clear picture as to whether that is, in fact, what happened.
4. The article thus reads too much like it was written by a public relations firm for the online providers. The online poker sites are cast, in a very simple way, as victims here without any sense of skepticism on the part of the writer that the truth may be more complex than that. Consequently, this article is little more than glorified spam---Make Money Gambling Online! should have been the real header here.
One of the things dogging the mainstream media is that it has gotten so lazy it often rips, reads and reprints corporate press releases as worthy news articles when they are anything but. The L.A. Weekly has thus fallen into that same lazy habit, or so it appears.
- Thanks for this informative article about online poker and what the government did to it. An entire industry was destroyed last year. This is the first article that really illustrates the situation. We need federal legislation that licenses and regulates online poker in the U.S. and brings back an industry. -
Mr.Parker:
You really, REALLY don't get it.
When someone builds a car, or grows some wheat, or performs a cabaret act on the Sunset Strip, there is an exchange of cash for goods and/ or services. Gambling is not like that. It is not an "industry" employing people as you suggest, it's nothing more than shuffling money around from one set of hands to another, with no product or service provided. If one person such as Walter Wright, Maxwell Fritz or Michael Minkoff can make enough money from their activities to provide for a lavish lifestyle, it's because they understand card counting or some other version of an inside track that is sapping the life from other households-- there is no free lunch. If someone gets rich by building fancy furniture, or selling push-up bras or cleaning carpets, it's because someone got something in exchange for that money; when Mr. Fritz gets rich playing cards, it is only because someone else is getting poor playing with him, thinking he, too, can ride a gravy train. But whenever anyone wins in gambling, it's because someone else is losing... and getting nothing out of the deal but a bit closer to bankruptcy, or divorce, or Gambler's Anonymous.
When I buy junk food from a fair-- cotton candy, as in the story-- it might eventually give me diabetes, but I at least get something for my money. All I might get from Mr. Fritz is the wrong lesson-- that I need to learn to play better, and waste my money on Mr. Minkoff's books so that next time, Mr. Fritz will be the one who can't pay his mortgage, not myself.
There is no winning in gambling... not overall. There is only money shifted from one soulless sap's pocket to another.
These men are all obvuously more intelligent than normal in some way or another. I hope that Fritz and others like him can use their greater ken of numbers, averages, odds or whatever to find other outlets for their talents that actually provide benefits for someone besides themselves-- that's the difference between win-win, and win-lose. It's also what defines personal satisfaction-- when you're getting someone else's money because you're helping him, it's much easier to sleep at night than knowing you have his money just because you beat him AND HIS FAMILY with a deck of cards.
There is definitely winning in poker. Ever hear of entertainment? There is no reason why I shouldn't be able to play a $3.30 tournament from my home. That $3.30 tournament on a Friday night is my entertainment (I'm disabled and don't get out much). And I usually win enough to not have to re-deposit. Sometimes I even win enough to withdraw, which is quite the headache right now. We need licensing and regulation in the U.S.
That's a very informative article about what happened to online gambling. I like your work, Chris Parker. To any law makers paying attention: I favor legalizing online poker; I vote.
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