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Online poker is the game of poker played over the Internet. It has been partly responsible for a huge increase in the number of poker players worldwide. Christiansen Capital Advisors stated online poker revenues grew from $82.7 million in 2001 to $2.4 billion in 2005,[1] while a survey carried out by DrKW and Global Betting and Gaming Consultants asserted online poker revenues in 2004 were at $1.4 billion.[2] In a testimony before the United States Senate regarding Internet Gaming, Grant Eve, a Certified Public Accountant representing the US Accounting Firm Joseph Eve, Certified Public Accountants, estimated that one in every four dollars gambled is gambled online.[3]

Traditional (or "brick and mortar", B&M, live, land-based) venues for playing poker, such as casinos and poker rooms, may be intimidating for novice players and are often located in geographically disparate locations. Also, brick and mortar casinos are reluctant to promote poker because it is difficult for them to profit from it. Though the rake, or time charge, of traditional casinos is often high, the opportunity costs of running a poker room are even higher. Brick and mortar casinos often make much more money by removing poker rooms and adding more slot machines. For example, figures from the Gaming Accounting Firm Joseph Eve estimate that poker accounts for 1% of brick and mortar casino revenues.[3]

Online venues, by contrast, are dramatically cheaper because they have much smaller overhead costs. For example, adding another table does not take up valuable space like it would for a brick and mortar casino. Online poker rooms also allow the players to play for low stakes (as low as 1/2) and often offer poker freeroll tournaments (where there is no entry fee), attracting beginners and/or less wealthy clientele.

Online venues may be more vulnerable to certain types of fraud, especially collusion between players. However, they have collusion detection abilities that do not exist in brick and mortar casinos. For example, online poker room security employees can look at the hand history of the cards previously played by any player on the site, making patterns of behavior easier to detect than in a casino where colluding players can simply fold their hands without anyone ever knowing the strength of their holding. Online poker rooms also check players' IP addresses in order to prevent players at the same household or at known open proxy servers from playing on the same tables. Digital device fingerprinting also allows poker sites to recognize and block players who create new accounts in attempts to circumvent prior account bans, restrictions and closures.

Free poker online was played as early as the late 1990s in the form of IRC poker. Planet Poker was the first online card room to offer real money games in 1998. The first real money poker game was dealt on January 1, 1998. Author Mike Caro became the "face" of Planet Poker in October 1999.

The major online poker sites offer varying features to entice new players. One common feature is to offer tournaments called satellites by which the winners gain entry to real-life poker tournaments. It was through one such tournament on PokerStars that Chris Moneymaker won his entry to the 2003 World Series of Poker. He went on to win the main event, causing shock in the poker world, and beginning the poker boom. The 2004 World Series featured three times as many players as in 2003. At least four players in the WSOP final table won their entry through an online cardroom. Like Moneymaker, 2004 winner Greg Raymer also won his entry at the PokerStars online cardroom.

In October 2004, Sportingbet, at the time the world's largest publicly traded online gaming company (SBT.L), announced the acquisition of ParadisePoker.com, one of the online poker industry's first and largest cardrooms. The $340 million acquisition marked the first time an online card room was owned by a public company. Since then, several other card room parent companies have gone public.

In June 2005, PartyGaming, the parent company of the then-largest online cardroom, PartyPoker, went public on the London Stock Exchange, achieving an initial public offering market value in excess of $8 billion. At the time of the IPO, ninety-two percent of Party Gaming's income came from poker operations.

In early 2006, PartyGaming moved to acquire EmpirePoker.com from Empire Online. Later in the year, bwin, an Austrian-based online gambling company, acquired PokerRoom.com. Other poker rooms such as PokerStars that were rumored to be exploring initial public offerings have postponed them.[4]

As of March 2008, there are fewer than forty stand-alone cardrooms and poker networks with detectable levels of traffic. There are however more than 600 independent doorways or 'skins' into the group of network sites.[5] As of January 2009, the majority of online poker traffic occurs on just a few major networks, among them PokerStars, Full Tilt Poker and the iPoker Network.

The COVID-19 pandemic has resulted in a massive increase in online poker traffic. The pandemic is believed to have directed both professional and recreational players who normally prefer live poker to online platforms due to the indefinite closure of most casinos and other live gaming venues worldwide, with even many unlicensed venues shutting down. In addition, the sudden dearth of live entertainment options due to the widespread disruption of the sports and entertainment schedules around the world is believed to have resulted in more than the usual number of casual players turning to online poker as an alternative. Many operators reported traffic of double or more the previous volume, depending on the time of day.

From a legal perspective, online poker may differ in some ways from online casino gambling. However, many of the same issues do apply. For a discussion of the legality of online gambling in general, see online gambling.

In the United States, the North Dakota House of Representatives passed a bill in February 2005 to legalize and regulate online poker and online poker card room operators in the state. The legislation required that online poker operations would have to physically locate their entire operations in the state. Testifying before the state Senate Judiciary committee, Nigel Payne, CEO of Sportingbet and owner of Paradise Poker, pledged to relocate to the state if the bill became law.[12]

The measure, however, was defeated by the State Senate in March 2005 after the U.S. Department of Justice sent a letter to North Dakota attorney general Wayne Stenehjem stating that online gaming "may" be illegal, and that the pending legislation "might" violate the federal Wire Act. However, many legal experts dispute the DOJ's claim.

In response to this and other claims by the DOJ regarding the legality of online poker, many of the major online poker sites stopped advertising their "dot-com" sites in American media. Instead, they created "dot-net" sites that are virtually identical but offer no real money wagering. The sites advertise as poker schools or ways to learn the game for free, and feature words to the effect of "this is not a gambling website."

On October 13, 2006, President Bush officially signed into law the SAFE Port Act, a bill aimed at enhancing security at U.S. ports.[13] Attached to the Safe Port Act was a provision known as the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA). According to the UIGEA, "unlawful internet gambling" means to place, receive, or otherwise knowingly transmit a bet or wager by means of the internet where such bet is unlawful under any law in the State in which the bet is initiated, received, or otherwise made. Thus, the UIGEA prohibits online gambling sites from performing transactions with American financial institutions. As a result of the bill, several large publicly traded poker gaming sites such as PartyPoker, PacificPoker and bwin closed down their US-facing operations. The UIGEA has had a devastating effect on the stock value of these companies.[14] Some poker sites, such as PokerStars, Full Tilt Poker, Absolute Poker, continued to operate and remained open to US players.[15]

Following passage of UIGEA, former U.S. Senator Al D'Amato joined the Poker Players Alliance (PPA). Part of the PPA's mission is to protect and to advocate for the right of poker players to play online. D'Amato's responsibilities include Congressional lobbying. In April 2008, the PPA claimed over 1,000,000 members.[16][17]

Other grassroots organizations, including the Safe and Secure Internet Gambling Initiative, have formed in opposition to UIGEA, to promote the freedom of individuals to gamble online with the proper safeguards to protect consumers and ensure the integrity of financial transactions.[18]

On April 15, 2011, in U. S. v. Scheinberg et al. (10 Cr. 336), the Federal Bureau of Investigation temporarily shut down three major poker .com websites of Full Tilt Poker, Poker Stars, and Absolute Poker, and seized several of their bank accounts. A grand jury charged 11 defendants, including the founders of the poker sites, with bank fraud, money laundering, and violating gambling laws. The prosecutors claim the individuals tricked or influenced U.S. banks into receiving profits from online gambling, an act that violated UIGEA.[22] The same day, former Senator D'Amato released a comment on behalf of the PPA. He asserts that, "Online poker is not a crime and should not be treated as such." D'Amato made no comment on the specific charges raised but promised a response once the "full facts become available."[23] He responded in the Washington Post on April 22.[24] The actions by the Department of Justice were also criticized by gaming law experts, including I. Nelson Rose.[25] e24fc04721