Gonzales Resigns

[MiltonFriedman]

Michael Chertoff, was the author of a DOJ letter claiming that ALL internet gambling was illegal, ignoring the In Re Mastercard case law:

From a Sept 4, 2002 Las Vegas Review Journal article:

Assistant Attorney General Michael Chertoff's Aug. 23 letter to Nevada Gaming Control Board Chairman Dennis Neilander ended industry hopes that the Justice Department would reverse a Clinton administration opinion that Internet casino gambling is illegal under existing federal law.

"Until a court rules differently or Congress changes federal law, the (Justice Department) letter will likely prevent Nevada regulators from writing rules allowing interactive gaming from outside the state," Internet casino expert and Las Vegas lawyer Tony Cabot said Tuesday.

Cabot and two other Internet casino experts said they were dismayed by the Justice Department's decision.

Cabot was disappointed that Chertoff didn't explain the rationale behind its announcement that all interstate Internet gambling is illegal.

"It was a bald conclusion," Cabot said. "There's no good legal analysis to support the decision."

River City Group President Sue Schneider, a St. Louis-based Internet casino expert, noted that Chertoff's letter ignored a New Orleans District Court decision that said an obscure 1961 law written to target sports betting, the Wire Act, only applied to sports betting operations, not other gambling activities.

"The letter sort of negates some of the case law people are looking at," Schneider said. "There had been total silence from the Bush administration, and I think some people were surprised they took a position."

Chertoff also took the position that online gambling violated moneylaundering statutes, so look for more activity in that realm:

From a 2005 Associated Press article:

""Moreover, the federal money laundering statutes are applicable to unlawful Internet gambling businesses," Michael Chertoff, then an assistant U.S. attorney general, said in an August 2002 letter to the Nevada Gaming Control Board."

[MiltonFriedman]

Realistically, it would have no effect anyway.

However, overall it is actually bad for online poker, if his successor is Michael Chertoff.

[MiltonFriedman]

No such luck.

[Grasshopp3r]

It is being reported on CNN that Chertoff will be appointed AG to replace Gonzo. http://politicalticker.blogs.cnn.com/

He was a law clerk for the very liberal and activist Justice Brennan, which may be a good thing.

Wait a minute, sources say that Chertoff is not getting the nod. We shall see what develops.

[MiltonFriedman]

Chertoff has a VERY active, very bad history with respect to the Wire Act scope and expanding moneylaundering to cover online gaming .... Two key issues for poker

[oldbookguy]

Yes, Chertoff seems to toe the line for anti-games.

I will note a few things though.

His letter is August 2002, the MasterCard appeal case followed after his letter, November 2002.

The article does note:

[ QUOTE ]
"Until a court rules differently or Congress changes federal law,

[/ QUOTE ]

Actually both have occured somewhat. A court of appeals has ruled and though congress passed a law, does it really apply to Internet poker since IP was not illegal before the law was passed, except MAYBE in a few states.

However, I do not think Chertoff will get the nod from Bush and certainly not congress.

obg

[Grasshopp3r]

Speculation on who gets the Attorney General nomination? Will that person be confirmed?

1. Karl Rove will be nominated.
2. He will not be confirmed.

[JPFisher55]

I heard on the radio that the Solicitor General would temporarily assume the role of AG.

[MiltonFriedman]

but, someone with the proper political credentials will be drafted.

Chertoff has added Katrina Baggage to his resume, by the way.

So, expect someone to be nominated by Fiends of Family and their ilk.

[MiltonFriedman]

Worst possible nominees list:

1. Whoever is counsel to Friends of Family
2. former Sen. Fred Thompson, who plays a prosecutor on television
3. The guy who said, "we don't need any stinking warrants", No wait, that was Gonzales.
4. Allyn Jaffries Shulman
5. permafrost