PTP Q&A with Jay Lakin
As co-owner of PokerSourceOnline, one of the largest poker communities on the internet, Jay Lakin has a unique perspective on not only the history of the industry, but also the future. Lakin has been a regular fixture on talk radio in recent weeks, discussing the flurry of legislative activity surrounding online poker. Jay was nice enough to take a few minutes out of his day to answer some of our questions about the health of poker, the way that players can make a difference on the political side of things, and the legacy of everyone’s favorite piece of legislation, the UIGEA.
PTP: There seem to be a lot of legislative initiatives regarding online poker and online gambling floating around Congress in one form or another. In your opinion, what’s the number one legislative initiative poker players should keep an eye on?
JL: HR5767 is the most promising at the moment, but the iMEGA lawsuit may have the best shot of overturning the UIGEA, because they’re attacking it on Constitutional Grounds. Although a Judge in the case initially disagreed with iMEGA’s arguments, the organization has been granted standing to sue, which is a very important first step.
PTP: We’ve seen several states move on the issue of online gambling; is it your sense that this issue might ultimately be decided on a state-by-state basis instead of a federal one?
JL: I’d like to think that it could be handled by the Federal Government, but it might turn out otherwise. I can’t quite figure out how each individual state could work around the UIGEA though. Say California makes online gambling legal. Does that mean that a Bank of America customer in Los Angeles can use his bank account, but a Bank of America customer in Las Vegas can’t? How would Bank of America be able to identify the terms of transaction, the merchant involved, and other critical information? The banks are having enough problems already with credit woes and a struggling economy, which were the reasons for the introduction of HR 5767.
PTP: What do you think the online poker landscape would look like currently if the UIGEA had never been passed?
JL: I think at this point there would be fewer online poker sites, due to mergers and acquisitions, and that every casino in Las Vegas would be running an online poker room.
PTP: As a result of the UIGEA, the average American seems to have an idea that playing poker online is illegal. How can the industry educate those people about the legal reality surrounding online poker?
JL: I think that as long as it’s a hardship to fund your online poker account, it’s irrelevant whether it’s legal or not. Most Americans will try to use their credit card, and when that fails, will give up. As for the “average American”, I don’t think they’ve ever heard of the UIGEA and could care less about the law. Needless to say, there is a lot of ignorance on the current state of affairs in the online poker industry.
PTP: What’s your take on rumors of Party Gaming reaching a settlement with the DOJ?
JL: I think the rumors are true. The owners and management would love to travel freely around the world without looking over their shoulders and they have the money to pay whatever fine the U.S. Department of Justice imposes.
PTP: Poker seems to be waning in terms of popularity in the US. Do you think that’s a result of the UIGEA at all, or simply a part of the natural ebb and flow of popular interest?
JL: I think it is waning in popularity in the US, partly due to overexposure on television and the struggling economy, but is still growing in many parts of the world. AT PokerSourceOnline.com, for example, we’ve translated the site into German, Spanish, Portuguese, Russian, French, and Swedish to keep up with demand across the globe.
PTP: Do you view the online poker market as fairly mature at this point, or do you still see a lot of opportunities for growth?
JL: While I don’t think that online poker has peaked, I do see it starting to level off. The roadblocks that have been put up by governments around the world have slowed its progress. Making depositing on online poker sites in the U.S. difficult has cut out one of the largest markets on the face of the Earth.
PTP: What’s your take on the usefulness of the iMEGA lawsuit?
JL: I’m sorry that IMEGA wasn’t around back in Sept 2006. Maybe if we’d had someone lobbying on our behalf back then, we could have had poker carved out of the UIGEA as well. I think that any organization that is pushing for the legalization of online gambling is a good thing in the long run, whether it is successful or not.
PTP: If you could offer three simple steps for poker players looking to impact the legal status of online poker in the US, what would they be?
JL: 1. Register to vote (politicians only care about “registered voters” and only those from their own state)
2. Call all of your representatives in Congress and tell them your stance on online poker
3. Join the PPA. There is strength in numbers, especially in Washington
