Sheldon Adelson, who has launched the national coalition against Internet gambling, is trying to drive home the point that anti-social elements use online poker sites for money laundering by presenting reports of studies in a confusing. Adelson’s anti-gambling coalition is quoting studies out of context or flavouring them with their own language to imply things that the authors never said.
The Internet allows people to enjoy a lot of anonymity, but regulated online poker rooms are expected to supply accurate facts. To register for real money gaming at an online poker room, players are required to submit proof of identification by supplying details such as name, address, social security number, and date of birth. But Adelson and his coalition are trying to spread the idea that regulating online poker will facilitate money laundering, which is simply not true. Moreover, there is no evidence to show that banning online poker will curb illegal activities such as money laundering.
The simple truth is that regulated online poker markets make money laundering impossible. In regulated US online poker markets, players are required to be within the borders of a state to play poker against one another. Licensed and regulated online poker rooms are expected to report large deposits and withdrawal as per the Bank Secrecy Act.
Testifying at the online poker hearing held recently in California, Sanford Millar, the attorney, said: “Money laundering is not an issue for intrastate online poker … there are too many trails.” During the same hearing, Tobin Prior, an executive for Ultimate Gaming, said that it is wrong to say that technology used to run KYC checks and detect money laundering activities is ineffective. He added that there is evidence to show that such technology works well.
Thanks to the Bank Secrecy Act and the above-mentioned technologies, it is very difficult for anybody to indulge in money laundering activities; and even if they do, they will not be able to launder a lot of money. Taking into consideration the fact that players will have to undergo a number of KYC checks at online poker rooms, money laundering is impossible in regulated markets.
It is also worth noting that player-to-player transfer is impossible in regulated online poker markets. Players are also not allowed to deposit huge sums of money into their online poker accounts. Since regulated online poker rooms come with strict withdrawal and deposit limits, it is not possible to use them for money laundering purposes.