Online Poker is the game of poker played over the Internet. It has been partly responsible for a dramatic 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, while a survey carried out by DrKW and Global Betting and Gaming Consultants asserted online poker revenues in 2004 were at $1.4bn.

Overview
Traditional (or "brick and mortar", B&M, live) 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.

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.

Legality
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.

Online poker is legal and regulated in many countries including several nations in and around the Caribbean Sea, and most notably the United Kingdom.

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 cardroom 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.

North Dakota Rep. Jim Kasper (R-Fargo), the author of the legalization bill, has vowed to continue his efforts. He states that he is "not putting away the idea of getting into Internet gaming licenses in North Dakota" and that the "revenue we missed is too great to pass up."

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."

Later in the year a similar event happened in France, where Norbert Teufelberger and Manfred Bodner, the CEO's of bwin, were giving a press conference. The arrest was made due to offenses against the French gambling laws.

The first method is to hold players' funds in their native currencies and convert them only when players enter and leave games. The main benefit of this method for players is to ensures that bankrolls are not subject to exchange rate fluctuations against their local currencies whilst they are not playing. Also, most sites that use this method usually apply the same exchange rate when player cashes out of a game as when he bought in, ensuring that players do not expend significant sums simply by entering and leaving games.

The other method is to require players to convert their funds when depositing them. However, some sites that use this policy do accept payments in a variety of currencies and convert funds at a lower premium compared to what banks and credit card companies would charge. Others only accept payment in U.S. dollars. One benefit of this method is that a player who constantly "tops up" his chip stack to a constant level (some poker rooms have an optional feature that can perform this function automatically) does not have to worry about rounding issues when topping up with a nominal sum - these could add up over time.
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