PokerStars' political role questioned

Nevada State Senator Greg Brower is the former US Attorney for Nevada and is questioning the legality of Isle of Man-licensed PokerStars.com’s use of a political action committee to hand out contributions in the western state during last autumn’s local and national elections.

“In light of the recently announced federal indictment of several PokerStars.com principals as well as the revelation of PokerStars.com-sponsored foreign trips by Nevada legislators and news of nearly $300,000 in political contributions by PokerStars.com to Nevada legislators who are currently considering proposed legislation introduced on PokerStars.com’s behalf, I am calling for federal and state investigations into PokerStars.com’s political activities in Nevada,” the Republican told The Las Vegas Sun.

“The fact that a foreign company, which has been charged with operating a criminal enterprise, could play such a large role in Nevada campaigns is troubling.

“Federal law clearly prohibits foreign contributions to federal, state and local campaigns. Nevada law is not so clear but should be. I am reviewing this issue with legislative counsel and plan to introduce legislation, if necessary, to ensure that any loopholes in our state law are closed immediately.

“In addition, I will be discussing this matter with both the US Department of Justice and Nevada enforcement authorities to determine whether federal and state investigations into PokerStars.com’s activities in Nevada are warranted.

“Nevada’s gaming industry and regulatory regime are the very best in the world and it is critical that we take swift action to ensure that we maintain the unquestioned integrity of both.”

In addition, leading land-based casino operator Wynn Resorts has announced that it has cancelled its strategic partnership with PokerStars.com that would have seen the pair jointly run a regulated online poker domain for US-based players at PokerStarsWynn.com should Congress ratify Federal legislation currently under consideration

Only agreed late last month, the deal was immediately abandoned by Wynn following the criminal indictment of Isai Scheinberg, the founder of PokerStars.com, on charges of bank fraud, money laundering and illegal gambling

“Wynn Resorts announced today that it terminated its alliance with PokerStars.com, the online poker company,” read a statement from Las Vegas-based Wynn Resorts.

“The decision was reached as a result of the indictment unsealed by the US Attorney for the Southern District of New York.”