Poker News

Full Tilt sued over bot accusation

Lary "pokergirl_z" Kennedy and Greg Omotoy filed a complaint in the Superior Court of California this week accusing Full Tilt Poker, all the members of Team Full Tilt, Full Tilt Pro Perry Friedman and TiltWare CEO Ray Bitar of fraud, false advertising, racketeering, unjust enrichment, libel and slander.

According to the suit, Full Tilt confiscated more than $80,000 from the two player's accounts after accusing them of using poker bot software.

Kennedy, who used both accounts after Omotoy abandoned his, claims she never used a bot or computer program and attempts to clear her name using a webcam to broadcast images of her actually playing were ignored by the site.

The lawsuit also accuses Full Tilt of a number of indiscretions, making several insinuations about the inner-workings of the organization.

Included in the allegations are claims that Team Full Tilt's Chris Ferguson and Andy Bloch created poker bots to fill out online tables and generate revenue for the site and that Team Full Tilt members are playing on the site using company revenues, which is akin to being the house in a casino and therefore contrary to the site's claims it is not a gambling website.

Kennedy and Omotoy are seeking compensatory and punitive damages to be determined by the court based on Full Tilt's revenues.

Full Tilt Poker declined PokerListings' requests to comment on the suit.

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Full Tilt Poker Sued Over Bot Use

The legal woes keep piling up for Full Tilt Poker, as the site now has a third lawsuit on its hands to go along with pending legal action from former pro Clonie Gowen and former employee Jason “JDN” Newitt.  Unlike the previous two cases, this suit comes from a customer rather than someone with inside knowledge of how the company works.

Heads-up online poker player Lary “pokergirl z” Kennedy and former Full Tilt customer Greg Omotoy filed their complaint on October 1st and levied accusations of fraud, libel, slander, false advertising, and racketeering against the popular online poker room.

Kennedy and Omotoy sought legal action after Full Tilt Poker confiscated more than $80,000 spread across the two players’ accounts because the site believed they were using bots, which is against its Terms of Service.  Shortly after her account was frozen in 2007, Kennedy posted her story on the popular TwoPlusTwo online poker forum seeking advice.  As the thread developed, news broke that Kennedy was multi-accounting, logging into Full Tilt on Omotoy’s account in an attempt to elicit more action at the heads-up tables.

The official complaint against Full Tilt alleges that a player known on the site as “TheComplainer” accused Kennedy of being a bot and suggests that his good standing with Full Tilt resulted in her being booted off the site.  TheComplainer, known among the TwoPlusTwo community as “Crazy Mike” and “Gatorade,” had a reputation as an anti-bot poker crusader and accused several other players of being bots as well.

In addition to seeking restitution and damages in relation to the confiscated funds, the lawsuit accuses the site of a number of other crimes and makes insinuations about the inner workings of its management team.  The suit is filed against the companies Full Tilt Poker and Tiltware as well as several individual members of Team Full Tilt.  The list of individuals named in the claim includes Howard Lederer, Raymond Bitar, Phil Gordon, Chris Ferguson, Andy Bloch, Perry Friedman, Erick Lindgren, Erik Seidel, Phil Ivey, Patrik Antonius, John Juanda, Gus Hansen, Mike “The Mouth” Matusow, and Allen Cunningham.

Within the claim, Kennedy and Otomy’s representation explains that Full Tilt originally consisted of two separate companies, Tiltware and Vert Enterprises.  It suggests that, despite Full Tilt’s assertion that they are separate entities operating out of California and St. Kitts and Nevis, respectively, the two companies are one in the same and even suggests that Vert Enterprises actually ran an office out of Los Angeles for over two years.  When describing the roles of the individuals named in the suit, the claim also argues that Bitar, Lederer, and Ferguson all play major executive positions in the company.

The suit accuses Ferguson and Bloch of creating bots to populate slow cash game tables on the site and increase the profits of the company.  The bot accusation and the contention that Team Full Tilt and Full Tilt Red Pros are playing with “house money” are used in the claim to depict Full Tilt as an online casino rather than cardroom and, as such, in violation of California state law as well as online gaming laws in several other states.

These illegal online gambling charges are joined by accusations of fraud, unfair competition, and false advertising.  The complaint also invokes the Racketeer-Influenced Corrupt Organization Act (RICO), which has historically been used to levy criminal charges against organized crime syndicates, but is used in private suits as well in part because it enables plaintiffs to receive triple the amount of damages.  Kennedy and Otomy’s claim suggests that Full Tilt has willfully committed hundreds of illegal gambling transactions that fall under RICO’s definition of racketeering.

Full Tilt has yet to issue a response to any of the charges issued in this most recent suit or in the pending litigation involving Newitt and Gowen.  While the latter two are remaining mum about their cases against the company, Kennedy has taken her story to the Web and posting the complaint against Full Tilt on her official pokergirl website.

Travolta, Sinbad to play charity poker event

John Travolta, Kirstie Alley, Sinbad, Kelly Preston, Patrick Cassidy, Brad Garrett and Catherine Bell will all be making an appearance at the charity event, which takes place Oct. 3 at Cartwright's residence in Northridge, California.

Joining the celebs will be poker pros Jamie Gold, Todd Brunson, Jennifer Harman, Men "The Master" Ngueyn, Jerry Yang, Kenna James and Sammy Farha.

The evening will include live music from MC Tom Kenny, Nathan Osmond and Dee Dee O'Malley all leading up to a No-Limit Hold'em tournament where fans will be able to play cards with the aforementioned celebrities and poker pros.

Prizes in this year's Monte Carlo Night include five seats in a WSOP satellite tournament, signed scripts and memorabilia and a day on the set of top TV shows like The Simpsons, Castle, American Idol and So You Think You Can Dance.

This is the fourth time that Cartwright, who voices Bart Simpson on The Simpsons, has held the tournament.

Tickets for the event are $250, which includes the tournament buy-in, or $150 just for the party.

Devonshire PALS is an Los Angeles Police Department activity group that provides after school and weekend enrichment programs for at-risk children and teens.

For more information check out the Devonshire PALS website.

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Federal Officials Seize Additional Internet Gambling Funds

Recent seizures of internet gambling funds related to the payment processor Account Services do not appear to be the end of the U.S. Government’s war against the industry. This week, it was revealed that funds in six more accounts had been seized.

The six accounts, according to the Baltimore City Paper, are held by Wachovia and appear under the name Forshay Enterprises. In July and August, other funds were seized in branches of Interstate Net Bank, Bank of America, and First Premier Bank belonging to Electracash and HMD. Regina Mignogna, a Maryland State Trooper, signed the warrant affidavits for the HMD accounts, which were obtained by Poker News Daily. Each of the warrant applications was ordered seized “until further order of this court or until January 20, 2010, whichever is earlier.” The documents were filed in the U.S. District Court in Baltimore.

Richard Gunn, an Anne Arundel County Police Detective, signed the warrant applications for the Wachovia accounts, which were numbered 2000042478410, 2000042478070, 2000042478452, 2000042478300, 2000042089414, and 2000042089427. The City Paper linked Forshay Enterprises to TransactSvc.com. Meanwhile, Electracash was tied to Edward Courdy, who many might remember as one of the defendants in Maryland’s Bodog case in 2008. That news broke last July, when $24 million was seized from the popular online poker site. Funds were taken from four publicly traded U.S. banks, including Wachovia, Bank of America, SunTrust, and Regions.

Account Services, which processed payments for PokerStars and Full Tilt Poker in 2008 and 2009, filed a motion in July for return of property, namely $14 million seized by the U.S. Government. The money was held in Union Bank and Wells Fargo branches in California. In retaliation, the Government indicted Account Services’ Douglas Rennick, a Canadian, on charges of bank fraud, money laundering, and illegal gambling. He faces up to 55 years behind bars and $1.75 million in fines for his actions. As of the time of writing, he has not settled with U.S. authorities.

In August, Judge Jeffrey Miller denied Account Services’ motion for return of property, instead electing to wait for the criminal case against Rennick to pan out. The seizure was part of a larger effort by the Southern District of New York in June during which over $30 million was frozen. The funds in question were allegedly destined for more than 24,000 online poker players and not connected to online wagering on sports. Bodog operates a full online sports book, an option that does not exist on PokerStars or Full Tilt. The Poker Players Alliance (PPA) filed an amicus brief on behalf of Account Services, a decision the organization stuck by despite Rennick’s criminal indictment.

Many in the online poker community assumed that the election of U.S. President Barack Obama, a poker player, would ease the attack on the industry. However, the opposite has been true so far, with federal agencies going on the offensive. For example, FBI Special Agent Dana Conte swore to the affidavits relating to Account Services.

In the closing months of the Bush Administration’s stay in Washington, D.C., the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) were ushered into effect as “midnight rules.” Former Senate Majority Leader Bill Frist (R-TN) was instrumental in attaching the UIGEA to an unrelated port security measure in 2006. The SAFE Port Act passed through the House with ease and was approved in the Senate by unanimous consent. Speaking out during the debate in the House was Congresswoman Shelley Berkley (D-NV), who questioned why internet gambling appeared in the bill.

As a result of the June seizure, which coincided with the running of the annual World Series of Poker (WSOP) in Las Vegas, paper checks and e-checks temporarily bounced, leading to reimbursements and cash bonuses from some of the world’s largest online poker sites. What effect the latest round of seizures will have on the industry is anyone’s guess.

Pokernews Op-Ed: Will Casinos Cater to Pot-Smokers in the Future?

If California and Nevada Legalize Marijuana in the Near Future, Should Casinos Cater to Pot-loving Players? Although California and Nevada both face numerous hurdles in their efforts to legalize the use and possession or marijuana, both are looking for an

Master hunts 7th bracelet, denies cheating

When play resumes in London Wednesday, Men "The Master" Nguyen will have a legitimate shot at his seventh WSOP bracelet, coming in third in chips behind Swede Mats Gavatin, an EPT champion, and London's own Richard Gryko, who made 50th at the 2009 WSOP Main Event.

Sitting behind Nguyen in the chip counts are Canadian Erik Cajelais, who booked runner-up finishes at both the WPT and WSOP in 2007, and the UK's Robin Keston, who counts both an EPT and WSOP final table on his resume.

But despite the fact a win would move him into a tie for sixth on the all-time bracelet winners list with Phil Ivey and Billy Baxter, Nguyen says he doesn't play the game for such honors.

"To be honest with you, making money motivates me; I don't care about more bracelets," he told PokerListings. "I already proved to the world that I am a very good player. I've won so many tournaments that I can't even count them all. I've won player of the year four times. I don't have to prove anything to the world.

"I came to enjoy myself here in England. I came to play with other players here in the UK and from Europe and make money. That's important, not that I can win more bracelets and show poker players and the whole world that I'm good. They already know."

Allegations of chip dumping, card marking and other unethical practices at the poker table have swirled around Nguyen for years.

To this day he denies it all.

"I see a lot of things they say on the Internet," he said. "If they say that in any magazine I'll sue them for slander, but I've never seen it. They slander me on the Internet, but I talked to my lawyer and he said they can say anything they want on the Internet.

"They are probably jealous. I earned what I won. I came to the United States empty-handed. I got what I won, I got my name out there and people just talk about me now. Show me. Catch me. Until they can prove it they should not talk about it. It's just gossip."

Nguyen fled communist Vietnam in 1978 and settled in Los Angeles, California. He started playing poker in 1984 and won his first WSOP bracelet in 1992.

A devout Buddhist, Nguyen reiterated that he would never cheat and never has.

"I'm a Buddhist so I am afraid to cheat," he explained. "If I cheat on anything it will come back to me. If I do something like that God will punish me.

"If I cheated do you think I would be able to go all over the world and play poker? They would kick me out of every tournament."

An emotional player at the tables, Nguyen has also been accused of being abusive to dealers and floor staff.

Again, Nguyen denies any wrongdoing.

"The problem is that sometimes dealers make mistakes and I just try to correct them," he said. "If you play with me at the table you will see how good I am and how nice I am. I will always be nice.

"People talk and they don't think. People say 'Oh Men, you did this or that,' but they don't know. The dealer comes in and maybe they don't change the deck, so I ask why they don't change the deck, because it's a rule. I'm just correcting mistakes."

Regardless of all the allegations against him, with $9,116,177 in career tournament earnings coming into the 2009 WSOPE, Nguyen sits 12th on poker's all time money winners list.

His 65 cashes at the WSOP also put him second only to Phil Hellmuth's 75, and when the final five players return to London's Casino at the Empire Wednesday, Nguyen will have a chance to add to his already stacked resume.

To follow all the action live from Leicester Square click through to PokerListings' Live Tournaments page beginning at 2 p.m. BST.

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Poker News in Brief: Sept. 14-20, 2009

The tournament series dominated the news with Annette_15 turning 21, J.P. Kelly taking the early lead in the first event and Anestis Metsas winning $1 million in a Betfair freeroll.

Of course, there's always more going on behind the scenes that doesn't necessary make it to the front page of PL.com.

As part of our ongoing Poker News in Brief feature we've compiled a list of these stories below. This week we'll take a look at a man taking first in a female event, an online player taking down his second WCOOP event, record numbers at the Commerce Casino and more.

Man wins women's poker tournament

It's story that is becoming more and more frequent in the poker world. Men are entering women-only poker tournaments.

This week, Abraham Korotki of New Jersey entered the Ladies Event at the Borgata Poker Open and, after outlasting 268 women, took down the event for $20,982.

Korotki was able to enter the tournament because organizers are not allowed to exclude players based on gender.

Nicole Rowe finished in second place for $11,889 to become the last woman standing in a ladies event. Rowe was recently diagnosed with breast cancer.

Korotki allegedly offered to donate some of the money to a breast cancer foundation, but an exact amount wasn't given.

In 2007, former baseball player Jose Canseco entered a ladies event at the Bicycle Casino and recently a man filed a discriminatory lawsuit against Hollywood Park Casino because its poker room offered a ladies-only event.

g0lfa drives his way to two WCOOP titles

Ryan "g0lfa" D'Angelo proved that lightning can strike twice by winning his second WCOOP title this week.

D'Angelo outlasted 1,406 players to take first place and $69,245 in the $320 PLH/PLO event on Tuesday.

In winning his second bracelet of the online series, D'Angelo rocketed to the top of the 2009 WCOOP leaderboards with 220 points. George Danzer is the closest competition with 190 points.

D'Angelo also upped his total winnings in the 2009 WCOOP up to $120,782.

Commerce Casino event draws nearly 4,000

Say what you will about the economy, but poker tournaments are still booming in California.

A total of 3,967 bought into the $220 No-Limit Hold'em event at Commerce Casino this week, the first tournament of its Hold'em series. It was enough to create the largest land-based poker tournament in history outside of the WSOP.

Los Angeles-based player Moshe Mashiah outlasted everyone to take down a $164,627 first-place prize. But according to tournament director Matt Savage, the last 10 players actually chopped for $45,000 each.

The Commerce Casino Hold'em Series is currently in full swing with the $2,580 main event scheduled to take place this coming Friday.

SSIGI introduces new pro-online gambling ads

The Safe and Secure Internet Gambling Initiative went on the offensive this week with a new ad campaign aimed at legalizing online poker.

One of the ads featured a photograph of the prohibition era in the U.S. with the tagline, "End Prohibition! Again."

The ads were in support of Rep. Barney Frank's Internet Gambling Regulation Consumer Protection and Enforcement Act of 2009 (H.R. 2267).

"As Congress searches for ways to pay for health care reform and other worthy programs, it should end the unsuccessful prohibition of Internet gambling and start collecting taxes on the billions in revenue currently lost to unlicensed, offshore gambling operators," said Jeffrey Sandman, spokesperson for the Safe and Secure Internet Gambling Initiative.

((Full Tilt)) goes with new data expert

Full Tilt Poker is already known as one of the most secure poker sites on the web, but this week it added to that reputation.

FTP announced it would be using Aster Data for fraud detection and analytics. The goal is to provide better customer service to players, more security and manage increasing data volumes.

Full Tilt will also use Aster to fuel customer access to hand history data, meaning players will be able to learn more about how they play.

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Records fall, Juanda stands tall at WSOPE

After winning the main event and banking the £868,800 first-place prize last September, Team Full Tilt pro John Juanda went on to finish runner-up in the PokerStars EPT London High Roller event for a £327,000 score less than a week later.

For this reason and more, the Indonesian-born California resident has developed quite an affinity for the British capital.

"I always like it here," Juanda told PokerListings on a break in the £1,000 buy-in No-Limit Hold'em event's second Day 1 Saturday, the first of four bracelet events at the 2009 WSOPE.

"Win lose or draw it's a great city. It's raining a little too much this year. I don't remember that last year, but I still think it's great."

Juanda appeared particularly eager to defend his main event title at the Casino at the Empire in Leicester Square.

He'll get that chance when the event begins Saturday Sept. 26 and coming off four final table appearances at the 2009 WSOP in Las Vegas, he seems primed to do it.

"That's what I'm here for," he said.

In 2008, Juanda battled through a 21-hour final table to book the win and relishes the opportunity to play the same kind of marathon final again this year.

"I enjoy playing poker, especially at high stakes and final tables when it matters," he explained. "People get tired, but I don't. I can keep playing.

"I can't believe people complain about being tired. When you get to the final table you are so close to achieving your goal to win the tournament. It's time to give it your all, not to be tired."

PokerListings continuing coverage of the 2009 WSOPE can be found on the site's Live Tournaments page.

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Man Wins Ladies Event at Borgata Poker Open

What was supposed to be a fun poker tournament for the women of the Atlantic City area turned into a source of controversy this past weekend when a man signed up to participate in the event.   The mere presence of World Series of Poker (WSOP) Circuit winner Abraham Korotki in the $260 + $40 Ladies No Limit Hold’em event was enough to irritate some, but when Korotki went on to defeat a field of 269 women, the story struck a nerve and became a topic of national debate.

News first broke of the unusual entrant in Event #7 of the Borgata Poker Open when the casino’s blogging team reported that Korotki was in the field for the event and causing several stirs that brought floor people to the table to moderate.  According to the Borgata Poker Blog, participants in the tournament grew increasingly irate as the field thinned and Korotki rose to the top of the chip counts.

In the end, it would come down to Korotki and Nicole Rowe of West Windsor, New York for the $20,982 first place prize and commemorative trophy.  According to an interview Rowe gave to the Philadelphia Daily News, she offered to evenly chop the prize money with Korotki, but he refused, insisting he wanted to win the trophy.  Rowe could have used the extra cash, as she was recently diagnosed with breast cancer and needed the additional poker winnings to help cover her medical expenses.  Perhaps in an effort to pay homage to his competitor, Korotki told several media outlets he would be donating a portion of his winnings to charity, including some to a yet-to-be-named organization involving breast cancer.

Korotki is not the first man to participate in what is promoted to be a ladies-only poker tournament.  Jose Canseco made poker news when he participated in a California ladies event and Phil Gordon, Rafe Furst, and their friends once dressed in drag to participate in an all-female event as well.  However, Korotki’s story has arguably received the most press of all, even getting picked up by mainstream media organizations.

Legally, the poker room staff at Borgata was unable to prevent Korotki from entering because of anti-discrimination laws.  Korotki told multiple media outlets he was motivated to participate in the ladies event after busting out of a $1,000 buy-in tournament earlier in the day.  The Philadelphia Daily News reported that Korotki claimed he saw several other men in line to register, which the Borgata staff was unable to corroborate.

Ray Stefanelli, the Director of Poker Marketing for the Borgata, spoke to Poker News Daily about how the poker room staff handled the unusual circumstances: “Borgata offers specialty tournaments, such as the ladies event, as it has been our experience that these events are favored by certain segments of our customers.  In the spirit of this event, it was our hope that only women would seek to participate, which has been the case in the past.” Stefanelli continued, “However, given both legal and regulatory requirements, we must allow anyone who is over the age of 21 the opportunity to participate in all of our events.  As such, when Mr. Korotki insisted upon gaining entry into the tournament against our wishes, we had no option but to allow him to participate.”

Korotki has a long list of tournament cashes at the Borgata and other casinos in the Atlantic City area.  His largest came in 2006 when he took down the Main Event of Harrah’s Atlantic City WSOP Circuit event for $433,008.  Rowe has a fair share of impressive cashes herself, finishing second in the same Ladies Event in 2007 and also just missing the final table of a Harrah’s Poker Open No Limit Hold’em final table in May.

There is no word yet whether Korotki or Rowe will be participating in the upcoming Borgata Poker Open Main Event.  The $3,500 buy-in tournament is part of Season VIII of the World Poker Tour and will also feature a $2 million guarantee.  The event starts on Saturday, September 19th and runs through September 24th.

Legal Online Poker’s Biggest Obstacle: Nanny Democrats

One might think that when Republicans suffered much-deserved humiliation in the last general election, the notorious Unlawful Internet Gambling Enforcement Act (UIEGA) would soon be history.  Remember, it was back in 2006 that Senate Republican leadership effectively guillotined the “Moneymaker Effect.”  Whatever one’s views are on other worldly issues, the popular perception within the poker community was that Democratic political gains would be very good for players.

With Democrats now in complete control of all branches of the Federal Government, we can no longer limit our anger and disappointment to those musty old Republicans.  Indeed, trampling on the rights of poker players now appears to cut across party lines.  While Senator Jon Kyl (R-AZ), Representative Bob Goodlatte (R-VA), and Representative Frank Wolfe (R-VA) continue to merit our universal contempt, the sad fact is that the “out-of-touch brigade” now has plenty of company on the other side of the partisan aisle.

Consider the positions of many powerful Democrats.  The fact is that many national Democratic leaders happen to be women from western states.  Virtually all of these influential Democratic women are opposed to overturning the UIEGA.  In other words, these proud liberals march lock and step with the most repulsive elements of the religious right.  These same Democratic women champion countless progressive causes and wouldn’t agree with the likes of Kyl, Goodlatte, or Wolfe on anything except, peculiarly enough, smothering the freedoms of millions of American citizens who want to play online poker.  These Democrats are just as bad as the Republicans.

For your displeasure, here’s a list of the guilty:

Representative Nancy Pelosi (D-CA) – The Speaker of the House has repeatedly stated that she is dead-set against any expansion of gambling.  She remains stubbornly opposed to legalizing poker on the internet because a family member reportedly once had a gambling problem.  Pelosi may be the worst House Speaker in my lifetime (note that this opinion comes from an avowed political liberal), but her powerful influence on introducing bills and the legislative process unquestionably remains the biggest obstacle to overturning the UIEGA.

Senator Diane Feinstein (D-CA) – The senior U.S. Senator from California recently demonstrated her appalling confusion on the issue of internet gambling.  Consider her response to a constituent in a published letter.  She wrote, “Internet gambling has become too easily accessible to minors, subject to fraud and criminal misuse, and too easily used as a tool to evade State gambling laws.” Aren’t these the very reasons we desperately need legalization, licensing, and regulation of online gambling?

Senator Barbara Boxer (D-CA) – It’s unclear precisely why Senator Boxer remains strictly opposed to online poker.  Unlike her contemporaries Pelosi and Feinstein, Boxer has not widely expressed her views on the subject other than making her opposition known.  However, California’s junior Senator has backed major initiatives on behalf of tribal resorts.  Perhaps tribal opposition to legalized online poker (the Pachanga Tribe, for example) has influenced her position.

Representative Maxine Waters (D-CA) – Oddly enough, Representative Waters represents a Congressional district in Los Angeles that has reaped enormous financial rewards for various municipal projects directly from casino tax revenues.  Hollywood Park is located within her district.  Waters’ opposition to online poker and internet gambling appears to be based on her view that gambling activities disproportionally harm poor people.  That said, to date there has been no word from Waters’ office as to when she plans to start fighting to dismantle the California State Lottery.

Governor Christine Gregoire (D-WA) – This politician is guilty of supporting and ultimately signing into law the most draconian sanctions against poker in more than a century.  It’s eerily reminiscent of what many Southern states did in the 1830s when gamblers were rounded up and hanged publicly.  Gregoire made Washington the first state in the nation to make gambling on the internet a Class C felony (contrary to the opinion of many courts, poker is considered gambling in Washington state).  A poker player living in Seattle or Tacoma is risking far more than a few dollars when he or she plays online.  Thanks to the Governor, the poker playing vermin could very well receive the same punishment doled out to child molesters and drunk drivers.

For far too long, groups like the Poker Players Alliance (PPA) believe they can win the political debate with simple logic.  Sure, our argument is better than their argument and most rational people would agree after listing to a five-minute exchange, but this isn’t a high school debate class.  It’s a political street fight versus powerful forces camped out on both the right and the left.  Until the PPA rolls up its sleeves and dives into the trenches with an all-out media bombardment aimed directly at the oblivious mainstream voter, nothing is going to change.  Sure, we might sway a few Ivy League professors and political columnists from time to time.  A few poker players might get five minutes of airtime on MSNBC or FOX.  That’s all good, but online poker is not going to be legalized and regulated in the United States until some significant changes in strategy take place.

The first rule of politics is that “right” and “wrong” have little to do with any issue of significance.  The debate you see on C-SPAN is pretty much scripted and irrelevant.  No Congressman or Senator is swayed one way or the other on any legislation without either coercion or compromise.

Indeed, Washington is nothing more than a gigantic power plant fueled by the only lubricant of any real action – money.  Lots of money.  Whatever your political views may be, I strongly advise against poker players donating money to national party organizations.  If you support a political candidate, donate to the person directly and not to the Democratic National Committee or to the Republican National Committee.  If you make a donation to either of these organizations, there’s a good chance some of your money is going to be funneled into the re-election campaigns of Kyl and Pelosi.  Just say no.

Morongo Tribe Postpones Online Poker Debate in CA

An effort between some California card rooms and the Morongo band of Mission Indians in Southern California to regulate online poker in the Sunshine State has been put on the backburner. An article by Debra Gruszecki of the Palm Springs Desert Sun reported on the issue earlier this week and cited growing concerns from the tribe and card rooms that the important issue was being rushed through the legislative process was the driving factor behind the decision.

While they are no longer pushing the online poker issue, they are not abandoning it altogether. Patrick Dorinson, a spokesperson for Morongo, spoke to Gruszecki about the decision. “Some concerns have been raised, and we want to make sure we address those concerns so this can benefit everyone,” he explained. “We are going to redouble our efforts and present this in January to the (state) Legislature.”

The crux of the proposed legislation centered on the formation of the California Tribal Intrastate Internet Poker Consortium. That group would retain the ability to license and regulate online poker ventures within the state of California. State Senator Darrell Steinberg spoke out against the bill last month not because he opposes online gambling in the state, but because he believes the state needs more time to review the potential revenue that could stem from such a venture.

The Morongo band and their card room partners have taken Steinberg’s words to heart and now plan on taking time to research and prepare before re-introducing the idea to the state legislators according to Dorinson and card room representative Waltona Manion. Both told the Desert Sun that their current timetable involves returning to the issue in January of 2010.

During the next three months, major issues that will likely be researched and discussed at length is exactly how much money the state stands to profit and whether or not the proposed consortium is in violation of any existing state or federal laws such as 2006’s Unlawful Internet Gambling and Enforcement Act (UIGEA). The Morongo tribe will also have to address the concerns of the numerous tribes, such as the Pechanga Band in Temecula, who are currently opposed to such legislation.

According to Gruszecki, many tribes fear opening up the intrastate online gambling issue in California may compromise the current exclusivity enjoyed by tribes to offer gambling within the state. David Quintana, political director of the California Tribal Business Alliance, expressed relief at the postponement of the legislation. In an interview with the Desert Sun, Quintana said he hoped this would allow time for all of the tribes and card rooms in California to have a more in-depth discussion about the issues at hand.

Though most of the reports about the Morongo band’s decision to relent on the online poker push have construed it to be a setback for the online gambling world, Poker Voters of America (PVA) Executive Director Melanie Brenner still believes the situation in California is a step forward for poker advocates. In an interview with Poker News Daily last month, Brenner explained why the Morongo partnering with some California card rooms was so important:

“What I think you’re seeing is a part of the political process. There are so many different parts to the process. One of the biggest challenges in California has been the opposition of the tribes not wanting online poker,” she explained. “One of the tribes now wants to run an online poker site. That’s a huge breakthrough.”

It remains to be seen whether the delay in action will allow the Morongo tribe time to persuade other Native American groups in California to endorse the online poker legislation, but the decision to drop the issue for the moment will certainly allow them more time to formulate a thorough argument to do just that.

Poker Pros Michelle and Ho Confirmed for “The Amazing Race”

After two months of speculation, CBS has finally confirmed what the poker world has suspected all along: poker pros Tiffany Michelle and Maria Ho will be competing together as a team on the upcoming season of the competition reality show “The Amazing Race.”

Photos, bios and video of the two women went up on the show’s official website on Wednesday, along with those of the other eleven teams competing in the latest installment of the race. Ho and Michelle will be facing off against a wide array of people including a married couple who work as yoga instructors, members of the Harlem Globetrotters, a singer/songwriter team and a contestant who has Asperger’s Syndrome.

Rumors first surfaced of the poker playing pair’s involvement with the show when neither woman participated in this year’s World Series of Poker Main Event. A series of clues, including Michelle alluding to an upcoming project with one of the show’s producers, Jerry Bruckheimer, a forum thread featuring posts from former “Survivor” contestant Jean-Robert Bellande seeking female poker players for a new reality project and fan photos from the shows launch capturing what looked like Ho, all led to speculation that the two ladies would be the latest poker pros to take a stab at reality television.

In the video of the team posted on the show’s website, the two discussed their chosen profession and talked about how they became friends while travelling the poker tournament circuit. Michelle cited their success in a traditionally male-dominated field as one of their strengths as a team. No all-female team has won the show in its 14-season history and the team of Ho and Michelle believe they have a legitimate shot to win. “We’re used to being the women doing the things that no other women are doing”, Michelle explained.

Ho ran down some of the things the ladies did in order to prepare for the event. In addition to taking extensive notes on previous episodes of the show, Ho and Michelle also learned how to drive a stick shift, as there is typically some sort of vehicle-related challenge that involves just such a skill.  She joked that they may not have practiced eating rare and potentially unappetizing food, another staple challenge of the program, but asserted that she and Michelle were mentally prepared to run the race. Michelle and Ho also cited their knowledge of Mandarin Chinese (Ho is fluent) and sign language as potentially helpful skills, but noted that the last season of the race featured a lengthy leg in China, so Ho’s knowledge may not be put to use after all.

Should the two survive in the race long enough to make it to the finale, rumors indicate the two may have home field advantage working in their favor. The Las Vegas Review Journal recently reported that the production crew of the show pulled permits to film in and around Las Vegas in early August. Some of the stops listed on the permits included McCarren International Airport and the famous “Welcome to Fabulous Las Vegas” sign. While both women hail from Southern California, their poker work requires them to spend several weeks in Vegas each year, so the stop in Vegas would certainly be familiar territory for the duo.

This is not the only exciting news for Michelle. This week it was announced that she will be renewing her sponsorship deal with online poker site Ultimate Bet. Michelle first signed on with the site during her memorable WSOP Main Event run last year. She was the last woman left in the field that year and ultimately finished in 17th place.

“I’m happy to be signing on for another year with UltimateBet and I’m eager to get back to playing in live tournaments and exclusively at their online tables”, Michelle said in regards to her new deal. “The corporate team at UB has been so welcoming and supportive and I’m thrilled to be working with them. I can’t wait for the exciting things in store for us.”

The newest season of “The Amazing Race” begins on Sunday September 27th. The show will air on CBS from 8PM-9PM ET.

Morongo Tribe Backs Down from Intrastate Poker For the Moment

According to a recent article by Debra Gruszecki, a writer for the Palm Springs-based Desert Sun, the Morongo Band of Mission Indians has backed off of its position to legalize online poker in California. Originally, the Morongo tribe was working...

Internet Gambling Law Expert Reacts to UIGEA Decision

The story of the week in the internet gambling industry has been the constitutional challenge to the Unlawful Internet Gambling Enforcement Act (UIGEA) brought on by the Interactive Media Entertainment and Gaming Association (iMEGA). Internet gambling law expert I. Nelson Rose comments on the ruling, which was passed down by the Third Circuit Court of Appeals.

The Third Circuit tossed out iMEGA’s arguments that the UIGEA violated the First and Tenth Amendments of the United States Constitution as well as privacy rights and international treaties. However, the judicial body asserted, “It bears repeating that the Act itself does not make any gambling activity illegal. Whether the transaction… constitutes unlawful internet gambling turns on how the law of the state from which the bettor initiates the bet would treat that bet, i.e., if it is unlawful under that state’s law, it constitutes ‘unlawful internet gambling’ under the Act.” The bet must also be legal in the jurisdiction in which the internet gambling operator is located.

Rose was perplexed by the Third Circuit’s ruling, which seemed to, in part, shed light on the UIGEA’s meaning. He told Poker News Daily, “This decision was written by judges who appear to know absolutely nothing about gaming law.” Rose reiterated that only two states, Hawaii and Utah, ban commercial gambling. The 10-page court ruling cites Oregon as a state in which it may be problematic to conduct internet gambling. However, Rose noted, “It is bizarre to use Oregon as an example. Oregon has more forms of legal gambling than Nevada.”

Deferring to the states, therefore, may not be a straightforward endeavor. Rose explained, “I practiced law in Hawaii for over three years and I can tell you that neither these nor any other existing Hawaiian statutes clearly make all forms of internet gambling illegal.  The Oregon statute cited merely makes it a crime to transfer money for ‘unlawful gambling using the internet,’ which brings us back to the question of whether any other existing law covers internet gambling.” The U.S. Department of Justice, for example, may assert that online poker is illegal under the Wire Act, although organizations like the Poker Players Alliance (PPA) would deny such an interpretation.

If internet gambling’s legality varies on a state-by-state basis, then a long road may be in store for financial services outfits like Visa and MasterCard. Rose forecasted, “The reality is that some forms of internet gambling are expressly legal, such as pari-mutuel bets on horseracing in most states. In every other case, it would take a detailed analysis by a competent gaming lawyer to know whether the state’s anti-gambling laws might apply.” A handful of states allow permit lottery purchases, further complicating the matter. For example, TwinSpires.com, a site that offers online wagering on horse racing, is owned by the same publicly traded parent company as Churchill Downs in Kentucky.

A press release issued by iMEGA shortly after the Third Circuit’s decision noted that some forms of internet gambling were “potentially lawful” in 44 states. The organization added, “There are only a half-dozen states which have laws against internet gambling.” The Poker Voters of America (PVA) is leading the charge for licensed and regulated intrastate online poker in California. The PVA is also pushing for intrastate wagering in Florida. California offers a bevy of card rooms sprinkled within its borders, including the Commerce Casino and Bicycle Casino, which host World Poker Tour events.

iMEGA may appeal the Third Circuit’s decision in an effort to overturn the UIGEA, which was its primary goal. However, no decision has yet been made. The U.S. Department of Justice can also appeal the ruling.

Stay tuned to Poker News Daily for the latest on the iMEGA UIGEA challenge. A wealth of information on U.S. internet gambling statutes can be found at Rose’s website, GamblingAndTheLaw.com.

Poker Industry Happenings — Sept. 1, 2009

California Ocean’s Eleven Casino From Sept. 23 to Sept. 27, more than 200 women are expected to attend Ocean’s Eleven’s 13th annual California Ladies State Poker Championship. While the championship …

Annie Duke to Host Charity Tournament in California

Poker professional Annie Duke, who has been at the forefront of the usage of poker for charitable means, will add to her philanthropic outlets when she hosts a charity poker tournament at the Commerce Casino in Los Angeles to benefit the Decision Education Foundation in November.

The tournament, which will play out on November 19th at 7:00pm Pacific Time, is a $300+$30 buy-in No Limit Texas Hold’em event with unlimited $100 rebuys during the first hour and a $100 add-on at the first break. Duke, a Poker News Daily Guest Columnist, will be the host of the tournament that is being held during the schedule of events for the inaugural Open at Commerce from November 6th to 22nd.

With the tournament being held near Hollywood, it is expected that there will be a celebrity-laden field in attendance. “We’ve already had confirmations from several pro players and a couple of celebrities,” Lisa Wheeler, the event organizer, confirmed to Poker News Daily. “Some of Annie’s friends from Ultimate Bet are going to be a part of the tournament. Actress Shannon Elizabeth has already confirmed and so has comedian Brad Garrett. This is only the beginning and there will be more to come!”

The tournament will have all the pomp and circumstance of a major awards show in Hollywood, befitting of its play at the jewel of California poker in the Commerce Casino. Activities will include a red carpet walk, a Commerce Casino hosted cocktail party, and silent and live auctions. The tournament itself will be officiated by one of the top tournament directors around, Matt Savage, and all proceeds raised will benefit the Decision Education Foundation.

The Decision Education Foundation is an organization that has been established to improve the lives of young people by empowering them with effective decision skills. The work of the Foundation crosses the nation from Pennsylvania to California, attempting to provide teachers with the tools to help young people acquire, appreciate, and apply the fundamentals of good decision-making.

The Decision Education Foundation is an important philanthropy for Duke. She is a member of the Board of Directors for the organization in addition to her other charitable and philanthropic work. As many may remember, Annie raised $730,000 through her second place effort on this year’s “Celebrity Apprentice” for Refugees International and continues to attempt to assist with the plight of refugees through Ante Up For Africa, an organization she co-founded along with “Crash” actor Don Cheadle.

Stay tuned to Poker News Daily as more information comes available regarding this and other charitable events in the coming months.

Card Player Cruises Releases 2009-2010 Schedule

Starting in November, Card Player Cruises will return to the high seas aboard the 138,000 ton Royal Caribbean Cruise Lines’ Explorer of the Seas. Destinations over the next year for the cruising company include Alaska, the Mediterranean, and Mexico.

The nine-night Canada and New England Fall Foliage cruise will depart from Cape Liberty Cruise Port in New Jersey in November and steam up the eastern seaboard of the United States. Ports of call include Portland, Bar Harbor, Saint John, Halifax, and Boston and the cruise starts at $550 per person. Card Player Cruises partner and Poker News Daily Guest Columnist Linda Johnson commented in a press release distributed by the travel company, “This trip will feature some of the most spectacular scenery on the Eastern Seaboard. There’s no better time to visit this region than in the fall, when the foliage stands out in every imaginable color.”

Besides the fall foliage outside of the ship, the other main attraction on the November cruise will be its poker room. $100 to $200 buy-in poker tournaments will abound, with private seminars and free poker lessons also taking place. In addition, the press release notes, “Passengers can play as much or as little as they want during the week.” The Explorer of the Seas also features a rock-climbing wall, ice skating rink, miniature golf course, basketball court, disco, spa, fitness center, pools, Jacuzzis, and shops. In addition, what would a cruise be without a parade of food?

Here is the upcoming schedule for Card Player Cruises:

Canada and New England Fall Foliage nine-night cruise – October 15, 2009
Royal Caribbean’s Explorer of the Seas
Departs from Cape Liberty Cruise Port, Bayonne, New Jersey

Mexican Riviera seven-night cruise – November 15, 2009
Royal Caribbean’s Mariner
Departs from Los Angeles, California

Western Caribbean seven-night cruise – March 7, 2010
Royal Caribbean’s Voyager
Departs from Galveston, Texas

Mediterranean Venice 12-night cruise – May 15, 2010
Royal Caribbean’s Brilliance
Departs from Barcelona, Spain

Alaska seven-night cruise – August 27, 2010
Royal Caribbean’s Rhapsody
Departs from Seattle, Washington

Eastern Caribbean seven-night cruise – September 25, 2010
Royal Caribbean’s Oasis
Departs from Fort Lauderdale, Florida

Mexican Riviera seven-night cruise – December 5, 2010
Royal Caribbean’s Mariner
Departs from Los Angeles, California

The poker room closes while the ship is parked in port and opens while the vessel is out in the open water. Card Player Cruises customers make up between 25% and 40% of the total number of passengers onboard, so traditional cruising activities still occur day and night. In order to play poker, Card Player Cruises guests must be at least 18 years-old, while some special events, such as the PartyPoker Million, feature a different age requirement.

Besides tournaments, each ship’s poker room hosts a wide variety of cash games, ranging from limits of $1/$2 to $30/$60. Customers with children are more than welcome to participate as well. Card Player Cruises explains, “There are extensive programs for children that provide entertainment for the kids from morning until night. Some of the activities are scavenger hunts, arts and crafts, talent shows, pizza parties, disco parties, trips to the spa/gym, video games, etc. Children are able to sail at reduced rates on most cruise lines.”

Prices for the above schedule vary between $448 per person and $1,719 per person. The cost covers food, cabin, nightly entertainment, and use of the ship’s amenities. According to Johnson, the majority of players who board a Card Player Cruise are recreational and several are celebrating milestones like birthdays and anniversaries. Players can call 888-999-4880 for additional information and to book passage.

Online Poker Funds Remain Seized in Account Services Case

According to the San Diego Union-Tribune, online poker funds seized by the Southern District of New York belonging to Account Services will remain under guard for what the newspaper claimed “could be years.”

On August 21st, a hearing was originally scheduled featuring lawyers for the online poker payment processor Account Services arguing why $14 million should be returned to the company. The funds were seized as part of a June raid by the Southern District of New York and were contained in Wells Fargo and Union Bank accounts in California. Account Services filed a motion for return of property in the Southern District of California and the case was assigned to Judge Jeffrey Miller. However, the hearing was later cancelled indefinitely.

On Saturday, the Union-Tribune published a story claiming that Miller “denied a bid Thursday by lawyers for the company, Account Services Inc., and the Poker Players Alliance to return the money. The players group is an advocacy organization that represents some 1 million online poker players.” It added, “Now, after Miller ruled against them, it could be years before they see any of the money.” The Southern District of New York seized well over $30 million in total, affecting more than 24,000 online poker players.

Paper checks and e-checks began bouncing in June, leading to concern on popular online poker forums about the security of player deposits. In many cases, the online poker sites, including PokerStars and Full Tilt Poker, compensated players fully and oftentimes awarded a cash bonus for any inconvenience. The warrant to seize funds from the Union Bank accounts identified Full Tilt and PokerStars by name as clients of Account Services. The document read, “Account Services has previously provided payment services for companies providing online gambling services, including PokerStars and Full Tilt Poker, the largest internet poker businesses in operation.”

The Wells Fargo account was used to pay online poker players in 2008 and 2009. Still redacted (crossed out) in its warrant application is evidence that led the Southern District of New York to finger PokerStars and Full Tilt in the first place.

Account Services’ Douglas Rennick was indicted earlier this month on bank fraud, money laundering, and illegal gambling charges. He faces up to 55 years in jail and up to a $1.75 million fine plus forfeiture of funds obtained. The San Diego news outlet explains, “Prosecutors then argued the indictment made the San Diego lawsuit irrelevant and that Miller should not hear it. The judge agreed, saying the players could try to recover the money after the criminal case is resolved.”

Rennick is a Canadian citizen and, as of yet, has not surrendered to U.S. authorities. The indictment issued by the Southern District of New York revealed that Rennick had been in the business of processing internet gambling payments since 2007. Over $350 million was transferred from a bank account in Cyprus for this purpose and “Rennick… provided false and misleading information to various United States banks about, among other things, the nature of the internet gambling-related payments being processed by the companies under Rennick’s control in order to induce banks to engage in financial transactions that they otherwise would not have facilitated.”

The Poker Players Alliance (PPA) filed an amicus brief on behalf of Account Services despite Rennick’s indictment. The 1.2 million member strong organization argued that poker is a game of skill and therefore not illegal gambling. Account Services added that funds in the Union Bank accounts were seized without a warrant, which was issued about a dozen days after the asset freeze took place. FBI Special Agent Dana Conte swore to both warrant applications.

Poker News Daily is seeking comment from the PPA and Interactive Media Entertainment and Gaming Association (iMEGA).

California Intrastate Online Poker Update

Recently in California, the Morongo Band of Mission Indians presented a bill calling for the legalization of online poker in the state, according to the Capitol Weekly news publication. Poker News Daily sat down with Poker Voters of America (PVA) Executive Director Melanie Brenner to get the organization’s reaction.

Capitol Weekly explained the Indian tribe’s proposal, which could mark the first step towards intrastate online poker. The draft bill would “create a centralized, online poker website they would offer to online customers within California’s borders. The consortium would have an exclusive right to offer online poker, but all California Indian tribes and card clubs would be eligible to be members.” California finds itself stuck in an ongoing budget crisis, adding momentum to the Morongo proposal for increased revenues.

In response to the submission, State Senator Darrell Steinberg claimed that the bill should not be discussed in the waning days of the 2009 Congressional session. Now, the PVA has embarked on a mission to formulate a ballpark revenue figure that the State of California would realize should it choose to allow online poker. The news outlet quoted a study done of over 800 voters in August that showed that 61% of voters opposed legalizing online poker in California. This amid brick-and-mortar card rooms sprinkled throughout the state, including the Bicycle Casino and Commerce Casino in Southern California. The former is fresh off hosting the World Poker Tour’s (WPT) Legends of Poker.

Brenner, who is also spearheading an effort to legalize and regulate the game in Florida and elsewhere throughout the United States, explained her position.

Poker News Daily: We’ve seen headlines like “Online poker suffers setback in California” in response to State Senator Steinberg’s remarks. Can you give us your reaction?

Brenner: This has been one of the best things that has happened to the PVA in the last couple of weeks. I want to open a bottle of champagne. What I think you’re seeing is a part of the political process. There are so many different parts to the process. One of the biggest challenges in California has been the opposition of the tribes not wanting online poker. One of the tribes now wants to run an online poker site. That’s a huge breakthrough.

PND: Have you been in discussion with the Morongo Tribe and others in California?

Brenner: Our plan was to have educational outreach to the tribe. When the Morongo Tribe announced this, we knew that the tribes had been starting to understand what we were saying. However, they jumped the gun a bit and hadn’t worked out all of the details.

PND: What was the feedback you received from lawmakers in Sacramento?

Brenner: The feedback was that there are way too many blanks to put this through. They have a three-week session that started last week. The Senate President said that they have too much on their plates and there isn’t enough here for them to tackle it now.

PND: What financial figures did the Morongo Tribe intend to use?

Brenner: They are using numbers from the Commerce Casino earlier in the year. We are familiar with the study and saw it, but aren’t quite comfortable with the credibility of the numbers.

PND: Will we see legalized intrastate online poker in California in 2009?

Brenner: From a political insider’s perspective, you can never say never. These are crazy times, but it’s very doubtful.

PND: Give us an update on your Florida endeavors.

Brenner: Things are going well, but nothing is happening right now. We’re on track and our timeline is to introduce legislation during the 2010 session.

PartyGaming Purchases WPT Enterprises for $12.3 Million

The long-awaited second bidder in the sale of World Poker Tour Enterprises (WPTE) has finally been revealed. Peerless Media Limited, a subsidiary of Party Gaming, will purchase the rights to the popular poker tour for $12.3 million plus 5% of future gaming revenues.

PartyPoker, the online poker arm of PartyGaming, does not accept customers from the United States. In a form filed to the Securities and Exchange Commission (SEC) after trading had closed on Monday in New York City, WPTE officials explained, “Buyer will pay the Company $12.3 million less the amount of certain obligations of PartyGaming or its affiliates accruing or paid to the Company from July 10, 2009 through the close of the Transaction… $1 million of such amount shall be paid by Buyer to the Company upon the execution of the Purchase Agreement and the balance shall be paid to the Company at the Close.”

The $1 million cash advance will be used to back out of a prior purchase agreement with Gamynia Limited, which is associated with Playtech, the parent company of the iPoker Network. Earlier this month, WPTE entered into an agreement to sell the majority of its assets to Gamynia for $9.075 million plus 4% of future gaming revenues. The new agreement not only increases the sale price by more than $3.2 million, but it also affords WPTE an additional 1% of future gaming revenues.

Addressing the new buyer, WPTE Founder, President, and CEO Steve Lipscomb commented in a press release distributed late Monday afternoon, “The Board of Directors has determined that PartyGaming’s acquisition proposal is financially superior and we look forward to working with one of the pioneers and leaders in the poker and online gaming markets to provide a strong vehicle for the WPT brand to continue its global expansion and return to online gaming.” WPTE stock, which is traded on the NASDAQ under the same four-letter acronym, closed at $1.05, down $0.01 on Monday. Upon hearing that a second buyer was waiting in the wings, the stock shot up from $0.93 to $1.09 last week.

In a similar arrangement as the Gamynia sale, WPTE will hand over its television library, intellectual property rights, and brand names, which include the WPT and Professional Poker Tour (PPT). The company will retain its cash on-hand and pocket “future license revenues from certain existing Sponsorship deals for Season Seven of the World Poker Tour.” WPTE will not distribute any of the proceeds of the sale to its stockholders; the Los Angeles-based company will use the proceeds as seed money in a business venture outside of poker. WPTE officials could not comment on any future proceedings, citing SEC regulations.

WPTE shareholders must now approve the sale. The company’s SEC filing notes that investors holding 39% of the company’s stock have agreed to vote in favor of the transaction. A stockholders’ meeting will be coordinated in order to vote on the proposal.

According to the filed document, “The Purchase Agreement may be terminated by either Buyer or the Company if the Closing has not occurred by February 24, 2010.” If WPTE officials were to accept an alternative proposal from another buyer, the company would be subject to a $1 million termination fee and, in some cases, a $1 million reimbursement for PartyGaming’s up-front payment.

PartyPoker boasts WPT Host Mike Sexton as its ambassador after the two parties reached an agreement in late April. Sexton is a 2009 Poker Hall of Fame candidate and is currently on-site for the WPT’s Legends of Poker, which wraps up on Wednesday from the Bicycle Casino in Southern California. Attendance at this year’s event was off 25% from last year. The tournament will air as part of Season VIII of the WPT on Fox Sports Net.

Stay tuned to Poker News Daily for the latest WPT sale news.

WPT Legends of Poker Begins Today

Kicking off today from the Bicycle Casino in Los Angeles, California is the annual World Poker Tour (WPT) Legends of Poker. The $10,000 buy-in tournament will crown a champion on Wednesday.

Last time out, John “The Razor” Phan trumped online poker pro Amit “amak316” Makhija in the finale of the WPT Legends of Poker. A total of 373 players took to the felts and Phan walked away with a first place payday of $1.1 million. Zachary Clark earned $281,000 for his third place showing in a lively final table that also featured Paul Smith, Trong Nguyen, and Kyle Wilson. In 2007, “Action” Dan Harrington, a former World Series of Poker (WSOP) Main Event Champion, bested David “The Dragon” Pham heads-up to pocket $1.6 million. That year, 485 players took to the felts.

In 2006, Joe Pelton banked $1.6 million for his win in the Legends of Poker. He defeated Frankie O’Dell heads-up in a talented final table that also featured Hoyt Corkins, Kevin O’Donnell, Randy Holland, and WSOP Main Event winner Scotty Nguyen. A total of 466 runners took to the Bike’s felts three years ago and created a $4.5 million prize pool. In 2005, Alex Kahaner outlasted “Cowboy” Kenna James to earn $1.1 million. It marked the last year that the buy-in was only $5,000 and 839 players threw their hats into the ring. O’Donnell finished sixth in 2005 and Todd Phillips, who directed “Old School” and “The Hangover,” landed in fourth place, earning $250,000.

In 2004, Doyle Brunson showed that he is truly a legend of the game by taking down the marquee WPT tournament, outplaying Lee Watkinson heads-up. Brunson banked $1.2 million for his efforts and solidified his name as among the game’s best only one year after the Moneymaker Boom began. At the time, Watkinson was fresh off a runner-up finish in the Mirage Poker Showdown and earned $578,000 for his second place effort in Los Angeles.

During Season II of the WPT, Mel Judah defeated Paul Phillips in the Legends of Poker. Judah is a two-time WSOP bracelet winner and Phillips won the Bellagio Five Diamond World Poker Classic that season for $1.1 million. Also appearing at the final table were Poker Hall of Fame member T.J. Cloutier, Chip Jett, three-time bracelet winner Farzad Bonyadi, and Phil “The Unabomber” Laak. During the inaugural season of the WPT, Chris Karagulleyan, who outlasted a field of 134 players to pocket $258,000, won the Legends of Poker. Joining him at the final table were Hon Le, Stan Goldstein, Mark Seif, Can Kim Hua, and Kathy Liebert.

The action kicks off from the Bike’s brand new Events Center at 3:00pm PT on Saturday. Players will receive 30,000 in starting chips and blinds will kick off at 50/100. The price of poker increases every 90 minutes, with the six-handed final table panning out on Wednesday.

In the WPT’s last tournament, Team PokerStars Pro member Alexandre Gomes defeated a table full of internet superstars to earn $1.2 million in the Bellagio Cup V. Heads-up, Gomes trumped Faraz Jaka, who affectionately goes by the moniker “The-Toilet” online. Also appearing at the final table was Justin “Boosted J” Smith, who suffered an Achilles injury after celebrating a win in a hand. Newly-minted DoylesRoom pro Alec “traheho” Torelli, Christoffer Sonesson, and Full Tilt Poker pro Erik Seidel all joined them at the final table. The tournament is held annually near the conclusion of the WSOP Main Event, which is held down Flamingo Road at the Rio.

Recent news surrounding the WPT hasn’t been about the Legends of Poker. Instead, attention has been focused squarely on its sale, where news of a second buyer other than Gamynia Limited has emerged. Speculation on the alternate WPT bid has run rampant throughout the online poker community and additional information should be released in the near future.

Keep up to date on the 2009 WPT Legends of Poker right here on Poker News Daily.

PokerNews Jet Set: Los Angeles

This weekend, the poker world descends on Southern California with the kickoff of the Bicycle Club's $10,000 buy-in Legends of Poker Main Event. Though the Bike is one of the most beloved venues for tour pros (especially now with it's snazzy new...

Online Poker Facing Opposition in California

According to a recent EGRmagazine.com report, California is still a good ways off from having intrastate online poker. Although the Morongo Tribe and several card clubs have joined forces to push the bill in the financially desperate state, but it...

PokerStars Teams With Fox Network Television For New Poker Show

PokerStars, who has been on the hunt for an outlet for some poker related television programming of its own in the United States to keep up with other online poker sites, has announced that they will team up with Fox Sports for a national network broadcast of a heads up poker program that is called the “PokerStars Million Dollar Challenge.”

The program is set to premiere on October 11th either before or following – the tentative schedule states that the start time is 4PM, but could be adjusted depending upon the region of the country and any football conflicts – the regional broadcast of the National Football League. The “PokerStars Million Dollar Challenge” will feature a challenge somewhat along the same lines as NBC’s “Face The Ace.”

Players will have to battle their way through several Heads Up No Limit Hold’em matches against some of the top poker professionals in the world (as with Full Tilt Poker’s sponsorship of “Face The Ace” and the resulting Full Tilt pros on the show, it is expected that the “PokerStars Million Dollar Challenge” will prominently feature the PokerStars stable of poker players.) If they are able to make their way to the top of the mountain, they will take on PokerStars professional Daniel Negreanu – who will have also coached the players in their previous matches – for a $1 million prize.

Qualifying for the “PokerStars Million Dollar Challenge” is quite unique in that players don’t have to pay a dime for the chance to be on television. There are daily freeroll qualifying tournaments at 8PM and 11PM (Eastern Time) that players start with and which will run until November 25th. In those tournaments, the player has to finish in the Top Ten to be eligible to continue on to attempt to qualify for the program. Rather than determining the players on the “PokerStars Million Dollar Challenge” through poker ability, however, a different method will be employed to determine who will head for California.

If a player finishes in the Top Ten, the player then has to submit a two minute video to PokerStars as to why they should be considered as a player for the “PokerStars Million Dollar Challenge.” These two minute videos will also have to feature two friends that will also come with the player to participate in the show. The friends will be an integral part of the show, as they will be able to offer advice to the player as they are competing on the program. Players who are chosen by the PokerStars Team will then be on their way with their buddies to the Fox Network television studios and could compete on the show.

The remaining episodes of the “PokerStars Million Dollar Challenge” will extend through the remainder of 2009. Episodes will be broadcast on October 18th, November 22nd, December 13th, and four of the top winners will return for what is being called a “grand final” which will be shown on December 27th. Because of the Fox Network’s commitments to the NFL, the show is scheduled to be aired at 4PM but could be moved to a different time on Sunday afternoon, according to how the NFL schedule is laid out.

With the unveiling of the “PokerStars Million Dollar Challenge,” poker is seeing a renaissance on television overall and exposure on the major networks in particular. With “Face The Ace” on NBC and the ongoing showings of “Poker After Dark,” the World Poker Tour and “High Stakes Poker” on GSN (among others), poker is almost as prevalent on television as it was five years ago. For more information on the rules of the competition or to take part in the freeroll tournaments, visit PokerStars to learn more.

Account Services Hearing Cancelled

A hearing scheduled for Friday to address Account Services’ motion for the return of property, namely $14 million seized by the Southern District of New York, has been cancelled. The future of the case is now in jeopardy.

Attorney Jeff Ifrah told Poker News Daily that counsel for the U.S. Government filed a motion to dismiss the case, which was to be heard in the Southern District of California. Ifrah candidly explained, “The Government is in New York and they don’t want to travel to California.” Both sides have submitted briefs in the case, with the Government arguing that Account Services’ request for return of property should be rolled into its case in the Southern District of New York.

Account Services attorney Michael Pancer told Poker News Daily, “Motions like this are not uncommon.” On the future of the case, which no longer involves a hearing tomorrow, Ifrah claimed, “The judge may deny the Government’s motion and instead schedule an evidentiary hearing to listen to witnesses and arguments. Then, he can make a determination of whether the Government had probable cause to seize funds.” The funds in question were taken from Union Bank and Wells Fargo branches in California as part of the Southern District of New York’s actions against online poker payment processors in June.

Earlier this month, Account Services’ Douglas Rennick was indicted on charges of bank fraud, money laundering, and illegal gambling. He faces up to 55 years in jail and up to a $1.75 million fine plus forfeiture of funds obtained as a result of his actions. The Account Services hearing was originally scheduled for last Friday before a judge postponed the proceedings by one week. In a memo to both parties outlining the hearing date change, Judge Jeffrey Miller also granted the request of the Poker Players Alliance (PPA) to file an amicus brief on behalf of Account Services.

Rennick’s indictment alleges that he created several businesses to provide payment processing for internet gambling outfits, including My ATM Online, Alenis Limited, KJB Financial Corporation, Check Payment Financial Company, and Account Services. The document claims, “Rennick and his co-conspirators receive funds from offshore internet gambling companies, cause those funds to be wired into United States bank accounts, and then cause the funds to be disbursed through checks payable to United States residents who are seeking to cash out their gambling winnings.” A sum of $350 million was transferred from a bank account in Cyprus to pay out funds to online poker, blackjack, and slot machine players.

Rennick and company claimed that the funds in question would be used for affiliate checks, rebates, refunds, sponsorship checks, and payroll. However, the indictment notes, “The… account was used by Rennick and his co-conspirators almost exclusively to process internet gambling related payouts.” In the case of Union Bank, Rennick told officials that Account Services was “a ‘rebate check processor’ for ‘large retailers’ and ‘auto dealerships.’”

In June, the Southern District of New York seized over $30 million belonging to more than 24,000 online poker players. In many cases, the affected sites, which included PokerStars and Full Tilt Poker, reimbursed players and doled out cash bonuses for the inconvenience. In its reply brief seeking return of property as a result of the seizure, attorneys for Account Services noted, “ASC and Mr. Rennick are separate and distinct legal persons, despite the Government’s assertions to the contrary.” The warrant application filed by FBI Special Agent Dana Conte revealed that Rennick was one of the signers on the Account Services account.

The future of the Account Services motion is now up in the air. We’ll keep you posted right here on Poker News Daily.

Ernest Scherer III to Stand Trial for Murder?

Last year we reported that Ernest Scherer III, a live poker pro who frequented the casinos both in Vegas and at his hometown in Southern California, had been arrested on suspicion of murder.

PokerStars and Full Tilt Poker Named in Online Poker Warrant Applications

Last week, Judge Laura Swain of the Southern District of New York (SDNY) asked attorneys for the United States Government to explain how the indictment of Account Services’ Douglas Rennick affected information contained in the warrant applications used to seize over $30 million from more than 24,000 online poker players.

As a result of the document filed by the Government last Wednesday, new information was released on the background of Account Services, including the company’s association with PokerStars and Full Tilt Poker. Half of the warrant applications used to seize funds from California branches of Wells Fargo and Union Bank were redacted (crossed out) when the documents were unsealed and released last week. However, Judge Swain commented, “The Court finds that certain other previously redacted portions of the materials should now be unsealed.”

In a section of the warrant application entitled, “Account Services’ History of Providing Payment Services for Online Gambling Companies,” the text reads, “Account Services has previously provided payment services for companies providing online gambling services, including Pokerstars and FullTilt Poker, the largest internet poker businesses in operation.” Dana Conte, the FBI Special Agent who swore to the affidavits, noted that the Wells Fargo account was likely used to transfer payments from PokerStars and Full Tilt, both of which accept players from the United States.

The document also profiles Rennick’s involvement with Account Services. The newly-released warrant application reveals, “There are multiple links between the Defendant Account and Douglas Rennick, a Canadian citizen who has previously processed winnings for the internet gambling industry. Rennick is one of the signers of the Defendant Account. Rennick is also associated with Alenis Limited.”

Rennick had indicated that the funds contained in the bank accounts would be used for activities like processing rebate checks and affiliate checks. J.P. Morgan closed the Wells Fargo and Union Bank accounts in December of 2008. Rennick had been associated with KJB Financial Corporation, Account Services, My ATM Online, Alenis Limited, and Check Payment Financial.

International money transfers from Cyprus were used to finance the Account Services operation. Conte noted, “I also learned that in April 2009, the individuals who applied to have the Defendant Accounts opened instructed Union Bank to list ‘Check Payment Financial Co.’ as the entity issuing checks… rather than ‘Account Services Corp.’” The Union Bank warrant application is dated June 24th, nearly two weeks after the seizure of funds took place.

Still redacted is the SDNY’s evidence for identifying PokerStars and Full Tilt. After fingering the two online poker behemoths, the warrant application notes, “There is probable cause to believe that the Wells Fargo Account Services Account was providing payment services for these online gambling companies in 2008 and 2009.” Then, a page of redacted text appears. In the Wells Fargo warrant application, sections entitled “The Defendant Account is Used to Transmit Gambling Payout Checks,” which continues for several pages, is fully redacted.

In July, Account Services filed a motion for return of property, namely $14 million in funds destined for online poker players. A hearing in the Southern District of California is scheduled for this Friday in the matter despite Rennick’s indictment on bank fraud, money laundering, and illegal gambling charges. He faces up to 55 years behind bars and $1.75 million in fines. The Poker Players Alliance (PPA) has filed an amicus brief on behalf of Account Services asserting that poker is a game of skill and therefore not illegal gambling.

PokerStars and Full Tilt Poker are the two largest online poker sites in existence. According to PokerScout.com, which monitors online poker room traffic, PokerStars boasts a seven day running average of 25,000 real money ring game players, with a 24 hour peak of 35,239. Full Tilt owns a seven day running average of 15,400 cash game players, with a 24 hour peak of 22,259. Trailing the duo is the iPoker Network, a non-USA friendly family of sites operated by Playtech.

Commerce Casino To Host New Autumn Tournament Series

After moving the extremely popular California State Poker Championship to May earlier this year, the Commerce Casino in Los Angeles, CA, was left with a gap in its schedule of poker events in the fall when the CSPC traditionally was held. To cover up that gap and offer some innovations to the poker tournament world, the Commerce announced last Friday that the Commerce Casino Hold’em Series would take place from September 10^th to September 25^th.

The Commerce Casino Hold’em Series will feature sixteen tournaments that offer buy-ins from as low as $220 up to the $2500 buy-in for the Championship Event. In a departure from most tournaments, nearly each event will have guaranteed prize pool ranging from $50,000 to $500,000 guaranteed for the players. The $335 No Limit Hold’em Shootout tournament and a $1065 Pot Limit Hold’em event will not have guaranteed prize pools and other tournaments that do not have guarantees will offer seats to the $2500 Championship Event to the victors. Along with a wealth of cash, there are other innovations that will be tested during the run of the Commerce Casino Hold’em Series.

One of the best innovations is offered to players in the first tournament on the series, the $220 No Limit Hold’em tournament with a $500,000 guarantee. Slated to have three Day Ones and be a four day tournament, a player who is eliminated on Day 1A has the option to come back and buy in again to play on Day 1B. Any players eliminated on Day 1B will also have the option to buy in again and play Day 1C. The potential exists for a player to take three shots at the $500K prize pool, which should exceed the guaranteed amount.

Other interesting tweaks to tournament poker can be found later in the Commerce Casino Hold’em Series schedule. The Commerce will put a twist to the Heads Up format when they offer the $545 Double Elimination (meaning that a player has to lose twice before they are eliminated) Heads Up Championship on September 22^nd, which will feature a seat into the $2500 Championship Event for the eventual winner in addition to the cash prize. Also on the 22^nd, the first ever $335 Knockout Bounty Tournament with a $100,000 guaranteed prize pool will play out. For each player that a competitor eliminates in that tournament, the winning player will get $100 on the spot from the Commerce Casino.

On September 23^rd, arguably the most original event of the Commerce Casino Hold’em Series will take place with the $1600 Ironman Challenge. The tournament, which will have $10,000 added to the final prize pool, will truly be a test, as it has no scheduled breaks and will test the abilities of the players under extreme and unrelenting pressure. While the tournament does not deny the players the opportunity to leave the felt, the tournament does not stop and the player’s stack continues to be in play and blinded off. The payout of the event is also like no other tournament, as 50% of the prize pool is paid to first place and no deals are allowed at the final table.

Some of the new twists on tournaments are courtesy of the gentleman considered the finest tournament director around today, Commerce Casino’s very own Matt Savage. “The series will feature huge guarantees and unique tournaments that have never been seen before in poker,” Savage commented during the announcement of the Commerce Casino Hold’em Series. “The diversity of events and unusual formats will continue to make Hold’em tournaments at Commerce Casino exciting, stimulating and rewarding for our players.”

With the fall schedule a little slow in the poker community, Commerce Casino’s Hold’em Series should offer different innovations for players and plenty of guaranteed money for the winners. For a full look at the schedule of events or other information, visit the Commerce Casino website to learn more.

Gary Kaplan Pleads Guilty in BetOnSports Case

Gary Kaplan, the founder of BetOnSports, has pled guilty to violations of RICO and the Wire Act in a Missouri courtroom. He will face between 41 and 51 months behind bars and pay the United States Government $43.65 million.

According to a press release distributed by the U.S. Department of Justice, Kaplan established businesses in Costa Rica, Antigua, and Aruba. One company was BetOnSports, which advertised heavily to U.S. customers and offered the following technological prowess: “Kaplan’s toll-free telephone lines terminated in Houston or Miami and then were forwarded to Costa Rica by satellite transmitter or fiber-optic cable. Some of Kaplan’s Web servers were located in Miami and were remotely controlled from Costa Rica.”

The Department of Justice contends that in 2004, BetOnSports had 1,700 employees in Costa Rica alone and nearly one million registered customers. Its clientele issued more than 10 million bets that combined for over $1 billion. Also in 2004, BetOnSports held an initial public offering (IPO) on the London Stock Exchange that earned Kaplan $100 million. He was arrested in March of 2007 and sentencing will take place on October 27th. He has been held without bond ever since being detained by U.S. authorities.

Former BetOnSports CEO David Carruthers pled guilty to racketeering charges in April and now faces up to 33 months behind bars. Carruthers, who was detained in St. Louis, will learn his fate during a sentencing hearing on October 2nd. In June, Neil Scott Kaplan, Lori Kaplan-Multz, and Penelope Tucker all pled guilty for their roles with BetOnSports. None will receive jail time, although Tucker was issued a one year probation. Kaplan’s trial had been scheduled for September 21st before last week’s plea agreement was announced.

Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan, who has been closely monitoring the actions in the BetOnSports case, told Poker News Daily, “It sounds like Kaplan’s plea agreement is complex. However, his risk against going to jail for a long time seems to have been minimized. There may also be some recognition that he’s already spent a significant amount of time behind bars.” Last August, William Hernan Lenis, Will Lenis, and Manny Lenis became the first BetOnSports staffers to admit guilt. The trio advertised the online sports betting outfit; one stunt involved bringing an RV to a St. Louis Rams game in 2002, enabling fans to place bets before entering the stadium.

In June, the Southern District of New York (SDNY) seized over $30 million in payments destined for more than 24,000 online poker players in the United States, marking one of the first times that the industry has been the target of federal law enforcement actions. Brennan explained, “Under the new administration, there has been no softening of the stance by the Justice Department towards internet gambling. When you look at what happened with Kaplan and what’s happening with the SDNY, it may be discouraging to those who thought that with the new administration, there would be less hostility towards internet gambling.”

On Friday, attorneys for Account Services will appear in the Southern District of California calling for the return of $14 million seized by the SDNY in June. Recently, Douglas Rennick, an individual associated with the company, was indicted on bank fraud, money laundering, and illegal gambling charges. He faces up to 55 years in jail and $1.75 million in fines. Brennan forecasted, “I’m sure that during the course of Friday’s hearing, there is going to be some discussion that the Department of Justice may prefer to see the criminal matter resolved before any civil action can move forward.” The Poker Players Alliance (PPA) has submitted an amicus brief in the case outlining that poker is a game of skill and therefore not illegal gambling.

FBI Special Agent John Gillies noted that Kaplan’s guilty plea was monumental: “Today’s guilty plea should have a lasting effect because Kaplan was not only the founder of BetOnSports, he was also one of the pioneers of illegal online gambling.”

The Bicycle Casino Wheels Out New Event Center

WSOP bracelet winners John Phan, Men "the Master" Nguyen, Jennifer Harman, and Mark Seif have all called Southern California’s Bicycle Casino their home away from home at some point in their careers. Doyle Brunson and Dan Harrington won their...