Internet Poker-Ponzi

Letter to the Editor

If you weren’t watching closely, you might have missed a story about an Internet poker fraud scheme.

On September 21st, the U.S. Department of Justice filed a civil suit against owners and directors of Full Tilt Poker for bilking thousands of players of over $300 million. The Department charged Full Tilt defendants with fraud, money laundering, and violation of United States federal gambling laws. Owners and partners are alleged to have been bleeding the operation for tens of millions of dollars while players were unable to withdraw funds at all.

Online gaming sites like Full Tilt carry a tremendous amount of gaming traffic and consequently a phenomenal amount of money. It was that huge potential for handling the money that caught Rep. Jim Kasper’s attention in 2005 when he sponsored legislation to allow North Dakota to become an online poker haven. Kasper said as much in an October 2005, when he suggested that Internet gaming could be a “lucrative source of revenue for the state.”

The truth is Internet poker was an accident waiting to happen. It is an industry that is ripe for fraud and corruption. Yet, Rep. Kasper emerged as the industry’s best friend in promoting North Dakota as a safe haven to help legitimize their operations. If you don’t think so, just recall how Global Interactive Gaming Summit in Montreal. That same year Kasper led four Republican legislators (three co-sponsors and Rep. Bette Grande) on an all expense paid trip to Antigua, the recognized center for online gaming.

Just think, if Kasper had been successful, the headline could easily have read, “Kasper’s law gives rise to North Dakota poker ponzi.” Thank goodness Kasper’s judgement was overruled by the N.D. Senate.

Dennis Edwards
Fargo