In the latest skirmish in the battle over Internet gambling, online poker advocates say the government has frozen more than $30 million in payouts affecting thousands of players.

The Poker Players Alliance released a statement Tuesday claiming that the U.S. attorney for the Southern District of New York instructed four banks to freeze accounts belonging to online payment processors. John Pappas, the group's executive director, claims the frozen accounts contain funds owed to 27,000 players who used offshore poker Web sites.

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