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Monday, April 18, 2011

Don't Gamble! The State Hates Competition!

This story was offensive. Pokerstars and other Internet gambling websites were shut down by the FBI. The domains were seized. The money that customers had deposited was seized.

Over $3 billion was stolen by State thugs. Via "asset forfeiture" laws, the police get to keep the stolen money. In "asset forfeiture" cases, stolen money is usually added to a police slush fund to spend however they want.

There was a "secret grand jury, secret investigation, and a sealed indictment". Those are Police State tactics. If the investigation were public, customers would have withdrawn their money. Then, State thugs would not make as much stolen booty on the seizure.

The "internet gambling banned law" (UIGEA) is only 5 years old. Ironically, the gambling website operators are facing a longer jail term than the age of the law they're accused of breaking.

The law didn't make offshore gambling explicitly illegal. Instead, the law made it illegal to deposit money. The offshore gambling websites thought they had found a loophole in the law, but it didn't work. They funneled online gambling deposits through other businesses and banks. The small banks that accepted deposits for Internet gambling were accused of "money laundering".

I was disappointed in the mainstream media coverage. They were saying "The law must be enforced as written!" rather than "WTF? This is a bad law!" However, that isn't surprising.

The "online gambling ban" came at the urging of casinos and State lottery operators. It is hypocritical to ban online gambling, when the government organizes and sanctions gambling.

It was a strategic mistake, for casinos to ban online gambling. Many people played poker online, and then tried it in a casino. Many people won seats in the World Series of Poker in online tournaments.

There was some discussion of repealing the stupid online gambling law. However, it didn't go anywhere. Even if the law is changed, there probably won't be retroactive immunity for those already indicted.

I'm offended by this law. However, I'm not interested in Internet gambling. I have no incentive to lobby against it. Casino executives and lottery executives lobbied for the law, banning competition.

Ironically, I work for the world's biggest Internet gambling operation. I work in the financial industry! Instead of betting on poker, you bet on stocks. The stock market is a negative-sum game, with odds almost as bad as a casino!

The stock market underperforms true inflation (gold) by nearly 1% a month. The banksters and corporate insiders take a "house rake" of 1% per month on the stock market!

Even though this is a bad law, only a tiny percentage of the population is affected. Therefore, State thugs can enforce the law with impunity.

There's another interesting aspect. The President does not go on TV and say "HAHA! I shut down Internet gambling!" If he did that, people would think "What a douchebag!" Instead, some US Attorney (appointed by the President) announces the crime. Clueless people don't blame the politicians, because they aren't the ones enforcing the law.

Via "asset forfeiture", State thugs will keep the money that customers had on deposit, totaling more than $3 billion. The gambling website operators will be convicted in a sham trial, or coerced into plea-bargaining.

This occurred shortly after the Liberty Dollar sham conviction. I wonder when the slaves will start to notice? The USA is not a free country. It's clearly a police State. I don't need this incident to convince me of State evil, but maybe this will help others understand.

The secret investigation, secret grand jury, and sealed indictment is a clear abuse of State power. If there was a public investigation, customers would have withdrawn their money. By using Police State tactics, State thugs maximized the amount of property they stole.

This isn't about "enforcing the law". It's about restricting people's freedom. It's about stealing $3 billion.

It is hypocritical to accuse Internet gambling websites of "money laundering". The housing bubble, bust, bailout, and Federal Reserve are a money laundering operation stealing a trillion dollars or more a year.

Wachovia was laundering money for Mexican drug cartels. They settled for a slap on the wrist, paying a fine smaller than the profits they made from money laundering! There are two justice systems, one for insiders and one for everyone else.

Just like E-gold, these websites are accused of breaking a law that was passed after they started operating. Laws were specifically passed to prevent Internet competition with State incumbents.

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