What To Do With Your Online Poker Funds

The immediate question most people are asking is what they should do with the money they have deposited at online poker sites. Here are my recommendations:

1. If you live in the U.S. and have money deposited at PokerStars, Full Tilt, or UB/Absolute:

Cash out all of your money as quickly as possible.

There is no sign that any of the three indicted sites will be able to serve U.S. customers anytime soon, so there is no reason to keep even a single dollar there. But if you wait to cash out, you will be more likely to run into problems -- the Feds could put a freeze on payouts, or the sites could change their cash-out policies.

The sooner you act, the more confident I am that you'll get your money back in full. Stop reading this and do it right now.

2.  If you live in the U.S. and have money deposited at unaffected sites like Bodog, Cake, etc.:

While these sites haven't been indicted, the writing is on the wall and the other shoe could drop at any point. If you have a large amount of money deposited here, you may want to withdraw most of it -- only leave enough online to cover your recreational online poker needs, but not so much that it would hurt your bankroll to have it disappear.

If you don't plan on playing online in the next few weeks, I'd withdraw it all.

3.  If you live outside the U.S. and have money deposited at PokerStars, Full Tilt, or UB/Absolute:

These companies are under indictment from the U.S. Department of Justice, which is known for going after the money of their targets. If you have a large amount of money at these sites, you may want to withdraw most of it, just in case. I'd recommend keeping only the minimum online that you need to cover your short-term needs (perhaps 2-3 weeks). 

Once you get a clearer picture of the future of their non-U.S. status, you can always deposit more funds as you need them. But there is too much uncertainty with these companies to leave a large portion of your bankroll in their hands.

4.  If you live outside the U.S. and have money deposited at sites that haven't accepted U.S. players since the UIGEA (PartyPoker, Betfair, Ladbrokes, Everest, etc.):

You should be unaffected by these U.S. indictments, and your money should be as safe today as it was a week ago. Your friends in the United States are envious.

Some people may accuse me of fear-mongering, or creating a panic with these recommendations. They remember the scene in "It's a Wonderful Life" where Jimmy Stewart calms everyone down and gets them to cooperate to avoid a run on the banks.

This is not that situation.

The online poker sites are not Jimmy Stewart, and they don't personally care if you lose your bankroll (or your house). They will do what's in their own best interests, and you should do what's in your best interest.

Update at 3:45 am: Full Tilt Poker released a software update today, which seems to restrict U.S. players from withdrawing any funds. When I attempt to withdraw my $12.62, I get the following message:

Players located within the United States will temporarily be restricted from withdrawing from Full Tilt Poker.

We would like to assure you that your funds are safe and secure. Unused Tournament Tickets or Tournament Dollars (T$) can be converted to real money - please contact support@fulltiltpoker.co.uk for more information.

Here's hoping that the situation really is temporary. If/when Full Tilt allows withdrawals again, get your money out as quickly as you can.

Update at 1:20 pm ET: Business Insider has an article on this topic called "Will Online Poker Players Ever See Their Money Again?"