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ok so the actual playing is not illegal on the federal level its just that funding online gaming accounts from the US is illegal.

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This is not even 100% true..It is not illegal for me to send sites funds BUT it's illegal for sited to receive the funds..Being that the sites are "outside" US jurisdiction so what can be done to them???? If the UIGEA Regs are ever approved they will be faced by a number of Constitutional challenges...

This points out how effective the DOJ is with there scare tactics...

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Not only is his assertion not "100% true" it really isn't ANY true.
I can fund my account all day long and I am not breaking the law. Some of the media have misunderstood this and said otherwise and obviously there are people like this poster who believe this to be true. But I'm pretty certain that the federal laws as they currently stand specifically state that any player who is funding any account or even playing poker on that account are not breaking the law. There are a few states where even these activities are illegal now I believe.
But people REALLY need to just stop making stuff up that they thought they heard on CNN about how it is illegal to fund an account or gamble on the internet.

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The reason I used not 100% true is because of the "proposed" Regs currently in the comment phase...Under these "proposed" Regs financial Institions such as bank can face fines and penalities if they send payments to "Illegal Gaming Sites"...OTOH the Banks face no such risk from "overblocking"...