Since the “
Black Friday†indictments of last year, there have been several online poker sites that have sprung from the ashes in an attempt to capture those American players who still would like to play poker online but don’t trust the handful of offshore sites that still cater to the United States. These sites, whether subscription based or “free play,†have increased in popularity as a result of the April 2011 federal government action that shut down the three major players in the online poker industry. However, it seems as though certain jurisdictions are still on the hunt for potential violators of their laws regarding gaming and poker.
California Attorney General Kamala Harris’ office is looking into the actions of one of these sites,
Cafrino.com, just as the site has achieved a relative measure of success. Started in September, Cafrino.com announced this week that they had dealt their 1,000,000th hand (doubling what was their target goal), an outstanding performance for an online poker startup. With this success, however, has come the attention from the California AG as to whether their operation is legal or not under the Golden State’s laws.
Under California law, if players on an online site are playing for cash or prizes, they are playing for something “of value.†This would make such activities illegal, according to current California statutes. With this in mind, the Attorney General is examining the activities of Cafrino.com to see if it is violating any of the gambling laws inside the state.
In the opinion of Cafrino.com, they are not violating any of these laws because they are a “lawfully structured sweepstakes,†according to their attorney,
Adam Solomon. There are no subscription fees for players who wish to play on the site and any cash that is won comes from the advertising revenue that is generated by the sales staff of Cafrino.com or financing from partners involved with the site. “We’re not a gambling site, that’s why it is legal,†co-owner
Jonathan Aiwazian (who created the site with fellow co-owner
Sean Stavropoulos) said when questioned about the activities of the site.
According to the
Ventura County Star writer
Stephanie Hoops, the noted gaming attorney
I. Nelson Rose weighed in on the issue. “The Attorney General is simply wrong when saying that something you can enter for free is gambling,†Rose stated to Hoops in their discussion.
Rose points out that there are three elements to consider when looking at whether something is “gambling†or not. Rose lays out those three elements, which are whether there is a prize being offered, whether the game is one of “chance†or not and whether the participant has to put their own money on the line to obtain the prize. “If anyone and everyone can enter for free, then it is not gambling,†Rose concludes.
Cafrino.com is the second online poker room that has entered into the “free play†system in California. Last year, the
California Online Poker Association, a coalition of California’s varied card clubs and Indian casinos, launched a free play site called
CalShark.com. At this time, CalShark.com has not come under any scrutiny from California authorities although it looks as if they also offer the opportunity to win cash awards from games it offers.
The “free play†phenomenon looks to be growing and not just in California. Last week, the
Mohegan Tribal Gaming Authority joined forces with
Bally Technologies to offer a play-for-free online poker room. Expected to open at the start of 2013, it will mark the first time that an East Coast casino has entered into the online poker arena. Previously, the
South Point casino operation in Nevada had operated a “free play†site late last year, but it has since shut down as the casino prepares for the opening of its intra-state money play site sometime later this year. The “free play†options are joined by a gaggle of subscription based sites that offer online poker to players for a monthly fee.
At this time, the California Attorney General has not rendered a verdict on the activities of Cafrino.com, but Aiwazian doesn’t seem to be concerned with the potential outcome. “We have talked to legal experts very familiar with sweepstakes law and gambling law and we feel safe the site will stay open,†Aiwazian said to Hoops.
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