Poker News

Poker Site Haiti Donations Top $2m

Currently PokerStars players have donated $670,000 with five days left to participate while Full Tilt is up to $307,721 and still taking donations.

Both rooms will match the amount their players donate meaning more than $1.9 million from just those two rooms alone will be going toward relief efforts in Haiti.

The smaller rooms are getting in on the cause as well with Absolute Poker and UB Poker hosting a $5 rebuy event that drew 717 players last week.

Cake Poker and RedKings Poker will also be taking donations in their lobbies all this week. Bodog founder Calvin Ayre has committed to matching up to $1 million of the donations made to the cause.

The Poker Players Alliance publicly commended the online rooms' efforts.

“Like the rest of the world, the poker community is eager to do anything it can to aid Haiti in the wake of the devastating earthquake,” said PPA chairman Alfonse D’Amato.

“I applaud PokerStars, Full Tilt Poker and Cake Poker for providing poker players across the globe an easy way to make a contribution.”

The PPA estimated that over 50,000 players had donated with proceeds going to organizations like the Red Cross, Doctors Without Borders or UNICEF.

Haitians are still dealing with the catastrophic effects of a 7.0 magnitude earthquake that hit Jan. 12. More than 150,000 people have been reported dead and millions are homeless.

Players can still make donations with most of the major online poker rooms until Jan. 31.

Online Poker Community Donates $1.5 Million to Haiti Earthquake Survivors

The online poker community has raised $1.5 million for victims of the magnitude 7.0 earthquake that rocked Haiti earlier this month, according to a press release distributed by the Poker Players Alliance (PPA).

Full Tilt Poker saw 22,785 donations come in from concerned members of the industry for total donations of $293,211. In a gracious showing, the world’s second largest online poker site doubled contributions from its patrons for a total donation of $586,423, or over one-third of the figure cited by the PPA. Aid for Haiti play and no-play tournaments were held on Full Tilt Poker and a special user account was created to accept incoming transfers benefiting the relief efforts.

As expected, PPA Chairman Alfonse D’Amato, a former three-term Republican Senator from New York, was elated to see the giving mood of the online poker community. In a press release distributed by the lobbying organization this week, D’Amato commented, “Like the rest of the world, the poker community is eager to do anything it can to aid Haiti in the wake of the devastating earthquake. I applaud PokerStars, Full Tilt Poker, and Cake Poker for providing poker players across the globe an easy way to make a contribution. The generosity online poker players are showing makes me even more proud to be part of this community.”

PPA Executive Director John Pappas echoed D’Amato’s sentiments in an interview with the online poker forum PocketFives.com, calling the massive effort “a tribute to the generosity of the poker community.” Pappas added that the seven-digit donation mark does not include private contributions made by poker pros and other members of the industry to organizations like the Red Cross and UNICEF, which hit the ground in Haiti shortly after the epic January 12th tremor.

The PPA revealed that 50,000 online poker players have donated a total of $760,000, an average of about $15 each. With online poker sites matching the funds dollar-for-dollar, the total amount generated surpasses $1.5 million. On PokerStars, donations are being accepted until January 31st at Noon ET. No-play Haiti Earthquake Relief tournaments have buy-ins ranging from $1 to $1,000. Text found on PokerStars’ website succinctly explains, “You will not need to play an actual tournament; instead, all of the 'entry fees' go straight to the fund.”

PokerStars, the world’s largest online poker site, also created a special player account called “Haiti Fund.” Users can transfer funds to the account and PokerStars will match all money raised for the relief effort. The website, which has campaigned for a variety of charitable causes like Ante Up for Africa over the years, reminded its clientele, “PokerStars has been quick to facilitate this after previous disasters, and once again it is giving you an easy way to donate cash.”

Meanwhile, Cake Poker, a USA-friendly site that features Lee Jones as its Poker Room Manager, is taking donations until Midnight ET on January 31st. Five “holding tanks” were created for players to donate to the cause in $5, $25, $100, $200, and $500 increments. Past charity efforts by Cake Poker include involvement in the Aces and Angels Celebrity Poker Tournament and Oregon’s West Side Poker Club.

Other sites, including RedKings, UB.com, Absolute Poker, and DoylesRoom held poker tournaments last week to raise money for the cause. On the CEREUS Network, 717 players turned out for a $5 rebuy benefiting earthquake victims. In addition, customers on the Network’s two sites, UB.com and Absolute Poker, can donate their player points in each room’s store. On DoylesRoom, a special Haiti Bounty saw Academy Award nominee Mickey Rourke hit the felts.

A magnitude 5.9 aftershock hit Haiti shortly after and the Red Cross noted that three million people may have been affected. We’d like to salute members of the poker community who donated.

No Decision Handed Down in Kentucky Internet Gambling Case

The Kentucky Supreme Court failed to hand down a decision on Thursday in the case involving the seizure and potential forfeiture of 141 internet gambling domain names.

The list of sites that could be affected includes PokerStars and Full Tilt Poker. Officials from the Interactive Media Entertainment and Gaming Association (iMEGA) and others involved in the case had anticipated a Thursday release of the Kentucky Supreme Court's decision. However, none was passed down as the day came and went.

A press release distributed by iMEGA on Thursday added that the next time the case could be addressed is late March. iMEGA Chairman Joe Brennan told Poker News Daily what his reaction was to no decision being rendered by the Commonwealth's highest court: “Everyone was surprised in Kentucky. The rumor mill thought the decision was going to be rendered. That could have been why their attorneys acted so quickly at the end of December, so if they got an adverse decision, they could keep it alive.”

No dates for releases of court opinions are listed in February. The next date shown for verdicts to be handed down on the Kentucky Supreme Court's calendar is March 18th. Others include April 22nd, May 20th, June 17th, August 26th, September 23rd, October 21st, November 18th, and December 16th. Twenty pages' worth of decisions were handed down on Thursday in the Frankfort court.

Back in October, oral arguments were heard by the six of the seven justices that comprise the Kentucky Supreme Court. In December, two months after the proceedings occurred, attorneys for the Commonwealth filed a motion to add names to its original complaint. Its counsel explained the reasoning behind identifying more defendants two months after oral arguments transpired: “In the course of the litigation and the Commonwealth’s continuing investigation, the Commonwealth has learned the identity of certain entities and individuals involved in internet gambling operations, some of whom are U.S. citizens.”

The motion called for a hearing in front of Judge Thomas Wingate on January 20th. However, because the motion was never acted on by the Kentucky Supreme Court, no such hearing took place. Wingate upheld the initial seizure order as part of a decision rendered in October 2008. The last-second move by Commonwealth attorneys to add names to the record, to some in the industry, indicated that the Kentucky Supreme Court was readying to hand down a verdict. However, those inclinations ultimately proved to be false.

The case centers on whether domain names, which are housed in the depths of cyberspace, constitute “gambling devices” under Kentucky state law. The two-word phrase traditionally refers to physical objects like roulette wheels and slot machines that you'd find in an underground casino. The domains were allegedly seized without due process back in September 2008. Wingate mandated that the affected sites cease taking customers from Kentucky immediately, else risk losing access to their domain name worldwide.

For now, it appears that the future of domain names like FullTiltPoker.com and PokerStars.com will remain up in the air in the Bluegrass State. Also involved in the case is the Poker Players Alliance (PPA), the industry's 1.2-million member strong lobbying force. The PPA filed an amicus brief to the Kentucky Supreme Court charging that poker is a game of skill and therefore not gambling under state law.

Original estimates pinned a decision in the Kentucky Supreme Court between three and six months after oral arguments took place, or sometime between January and April. Stay tuned to Poker News Daily for the latest on the case.

Tribes meet in city to discuss internet poker

Internet Gambling Bill Introduced in New Jersey

Legalized internet gambling and online poker may be coming to New Jersey. State Senator Raymond Lesniak introduced S 3167, which specifically legalizes the internet version of popular brick and mortar games like poker, roulette, baccarat, blackjack, craps, the big six wheel, slot machines, mini baccarat, red dog, pai gow, and sic bo.

Servers and monitoring offices for internet gaming companies created under the bill must be located in Atlantic County, New Jersey. The State is charged with protecting consumers under the bill, which explains that a government division would develop “technical standards for approval of software, computers and other gaming equipment used to conduct internet wagering, including mechanical, electrical or program reliability, security against tampering, the comprehensibility of wagering, and noise and light levels, as it may deem necessary to protect the player from fraud or deception and to insure the integrity of gaming.” Online accounts would only be open to players age 21 or older, mirroring the standards of the brick and mortar casino world.

Online poker is mentioned by name several times, mitigating any doubt that the game may not be legal if Lesniak’s bill were enacted into law. Internet gambling outfits would be subject to a 20% tax paid to the state’s casino revenue fund. An additional tax will see a portion of its proceeds go to the New Jersey Racing Commission “to be used for the benefit of the horse racing, including but not limited to the augmentation of purses.”

The act would take effect immediately upon future Governor Chris Christie signing it into law, setting up a model for intrastate online gaming that other jurisdictions could soon mimic. The New Jersey Casino Control Commission would establish a Division of Internet Wagering to oversee operations and licensing. Permit holders would be required to pay an up-front licensing fee of $200,000, with renewals running $100,000. In addition, operators would be required to fork over a $100,000 non-refundable deposit and $100,000 annual fee that would go towards treating compulsive gambling.

The Interactive Media Entertainment and Gaming Association (iMEGA) has been one of the leading forces pushing for legislation in New Jersey. Its Chairman, Joe Brennan, commented in a press release distributed by the trade organization, “We’re happy that New Jersey has taken this issue into their own hands. New Jersey is recognized as having the toughest gaming regulators in the U.S., but as a leading gaming state with a long track record of doing things the right way, internet gambling will have a great home here and the opportunity to begin normalizing the industry.”

Legal online wagering on horse racing is available to New Jersey residents on 4NJBets.com. Those placing wagers must be 18 years of age and have completed a form W9 for tax purposes. An automated phone betting system supplements the website, allowing multiple avenues for New Jersey residents to place wagers on their favorite ponies. Popular New Jersey tracks include Monmouth, Meadowlands, and Freehold.

On a national level, New Jersey Senator Robert Menendez has introduced S 1597, the Internet Poker and Game of Skill Regulation, Consumer Protection, and Enforcement Act. As its name implies, the measure legalizes skill games like online poker in a similar fashion to Congressman Barney Frank’s (D-MA) HR 2267 in the House. S 1597 was introduced in August, but has not yet picked up any co-sponsors. Menendez’s bill defines “skill game” simply as “an Internet-based game in which success is predominantly determined by the skill of the players, including poker, chess, bridge, mah-jong, and backgammon.”

In the meantime, iMEGA anxiously awaits a decision from the Kentucky Supreme Court on the future of 141 internet gambling domain names, including those belonging to PokerStars and Full Tilt Poker, that face potential forfeiture. A decision may be handed down as soon as January 21st.

David Carruthers Gets 33 Months Jail Time in BetOnSports Case

In April, former BetOnSports CEO David Carruthers pled guilty to racketeering charges stemming from his operation of the popular online sports book. He faced up to 33 months in prison and a maximum sentence was handed down on Friday.

U.S. District Court Judge Carol E. Jackson sentenced Carruthers on Friday after he was indicted by a grand jury four years ago, according to an article that appeared in Business Week authored by Bloomberg. In court late last week, Carruthers expressed remorse for his actions: “I understand now that the business was operating outside the laws of the United States. I realize I made the biggest mistake of my life. I am sorry for the actions of BetOnSports and the trouble it caused.” The company purportedly raked in over $1 billion in 2004 alone, with Bloomberg noting that a whopping 98% of wagers came from customers in the United States.

Carruthers had been under house arrest in St. Louis since 2006, but found time to get out and stretch his legs as part of the St. Louis Marathon. BetOnSports had been traded in London on the city’s stock exchange and Bloomberg added that Judge Jackson fined BetOnSports $28.2 million. However, the firm owes creditors in the United Kingdom and would likely not be able to make good on the $28.2 million penalty. Attorney Jeffrey Demerath told the financial news outlet, “We won’t be able to pay the $28 million. We have an obligation under the laws of the United Kingdom to pay the creditors first.”

A bevy of guilty pleas were entered in the BetOnSports case. In August, the company’s founder, Gary Kaplan, pled guilty to violating RICO in a Missouri courtroom. Kaplan received more than four years behind bars for his role in the company as well as a $43 million fine, according to the AFP news service. Assistant U.S. Attorney Steven Holtshouser commented in a press release distributed by the U.S. Department of Justice, “The prosecution and conviction of Carruthers is significant to the government's efforts at enforcement of U.S. laws against offshore Internet and telephone sports wagering businesses, because Carruthers was both a foreign national and a top executive of BetOnSports.” Kaplan was arrested in 2007.

In June, Neil Scott Kaplan, Lori Kaplan-Multz, and Penelope Tucker all entered guilty pleas in front of Judge Jackson in the BetOnSports case. Each agreed to hand over money in Swiss bank accounts, but would not face any jail time. Scott Kaplan and Kaplan-Multz also received time in a halfway house. An article that appeared in the St. Louis Post-Dispatch explained why the trio received significantly lighter sentences than Kaplan and Carruthers: “Assistant U.S. Attorney Steve Holtshouser said the sentences reflect the minimal roles that Neil Kaplan and Kaplan-Multz played, their lack of decision-making power there, and their willingness to surrender their BetOnSports money.”

The USA-facing online poker site Bodog, founded by Calvin Ayre, continues to accept wagers on sporting events. The site is in the midst of the National Football League (NFL) playoffs, which kicked off over the weekend. Carruthers assumed the head role at BetOnSports in 2004 after joining the company in 2000. Both the Internal Revenue Service (IRS) and Federal Bureau of Investigation (FBI) participated in the investigation of the former CEO. Besides Holtshouser, Steven Muchnick and Special Assistant U.S. Attorney Charles Birmingham led the case on behalf of the United States Government.

On Capitol Hill, the Poker Players Alliance (PPA) is carrying the flag for explicitly legal online poker in the United States. Financial services industry compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) was delayed six months to June 1st. The delay came after a November decision by U.S. Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke. Congressman Barney Frank (D-MA) is championing the cause on the Hill with HR 2267, which establishes a full licensing and regulatory framework for internet gambling outfits to solicit U.S. customers. The measure is up to 63 co-sponsors on both sides of the aisle, but would not permit online sports betting.

Stay tuned to Poker News Daily for the latest from the BetOnSports case.

2009 Poker News Story of the Year

What is the poker news story of the year for 2009? Is it Swedish online poker pro Isildur1 igniting the high-stakes cash game world? Is it the World Poker Tour (WPT) being sold to Party Gaming? Is it something else? Poker News Daily’s staff evaluates the nominees.

In a poll posted on Poker News Daily asking readers to choose which of five news stories was the most important of 2009, an overwhelming majority picked the high-stakes cash game action featuring Isildur1. Others selected Joe Cada becoming the youngest winner of the World Series of Poker (WSOP) Main Event, while many readers picked the delay of mandatory compliance with the Unlawful Internet Gambling Enforcement Act (UIGEA). Also receiving votes were Party Gaming’s purchase of the WPT and the sudden closure of several high-profile poker rooms.

We asked each of our writers to select one option and argue why it is the top poker news story of 2009. Here’s what they had to say. Don’t forget to voice your choice in the poll to the right of this article.

Isildur1 Ignites High-Stakes Poker Scene
By Brett Collson

With the Durrrr Challenge moving at a crawl and the rest of the nosebleed games on Full Tilt Poker lacking in attendance, it appeared that the online high-stakes action was deteriorating in the fall of 2009. That all changed when an unknown Scandinavian with a seemingly bottomless bankroll appeared out of nowhere to take on anyone up to the challenge. Isildur1 shocked the world when he exploded onto the scene in November, recording multi-million dollar wins over Tom "durrrr" Dwan, the man we all perceived to be unbeatable. Phil Ivey, Patrik Antonius, and many others took notice and sat down with the Swede, resulting in swings that the online poker world had never witnessed before. At one point, Isildur1 had a profit of around $5 million, but after a number of losing sessions and a record-setting match against Brian Hastings, he was stuck nearly $3 million in a matter of weeks. While his masked emergence may have been brief, the mysterious Isildur1 changed the dynamic of high-stakes poker on the internet.

Joe Cada Becomes Youngest WSOP Main Event Champ Ever
By Jessica Welman

While Isildur1’s online run was impressive and the UIGEA delay was important, ask the casual poker fan what happened this year and they’ll likely cite the 2009 WSOP Main Event final table. This year’s November Nine had everything - big names, great stories, broken records, and a lot of suckouts. Fans were surely sad to see Phil Ivey bust in seventh place, but young Joe Cada has proven to be a more than adequate ambassador, as he brought poker to the mainstream media with appearances on the “Late Show with David Letterman,” CNN, “WWE Monday Night Raw,” “ESPN SportsCenter,” and Time Magazine. “The Kid” and his fellow November Niners captured the attention of people who typically didn’t give poker a second thought and took huge strides towards taking the game out of the backrooms, out of cyberspace, and into the spotlight, which no other poker headline was able to achieve in 2009.

WPT Sold to Party Gaming
By Earl Burton

There are several reasons why the sale of the WPT to Party Gaming is the top story of 2009 in poker. The most important reason is that, for the first time in its illustrious history, the WPT is now on a firm financial footing with an organization that can promote it to the fullest. In the future, with Party Gaming’s financial backing, there shouldn’t be problems securing tournament venues or television contracts. With the ability of Party Gaming, through its online poker site PartyPoker, to provide satellites for players to earn their way into events, tournament fields will probably grow in the coming year, potentially even returning to the “glory days” of a few years ago before the UIGEA. These and many other reasons should continue to keep the WPT in the same stratosphere as the WSOP and makes the sale of the WPT to Party Gaming the top story of 2009.

UIGEA Compliance Deadline Delayed
By Dan Cypra

I wonder whether I would even be here right now if the UIGEA regulation compliance date of December 1st had stood. The online poker industry in the United States, which feeds live tournaments around the world, could have potentially come to a screeching halt. Although nobody knows for sure what the real-world implications of the delay will be, the actions by U.S. Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke essentially preserved the status quo for another six months until June 1st, 2010. The delay marked the most important legislative development since the UIGEA was passed in 2006 and should be the most important poker news story of the year.

Pitbull Poker/Eurolinx/BetOnBet Closures
By Tom Jenkins

The closures of a handful of notable online poker sites represented a dark chapter of 2009. Pitbull Poker, Eurolinx, and BetOnBet all shut their doors to the general public, with thousands of poker players potentially out money as a result. Given the circumstances surrounding their closures, one can easily see why the very foundation of the online poker world could be disrupted going forward. Players must be able to trust that their money is safe when they deposit online given that very little punishment exists for wrongdoing by poker rooms. The wave of closures may ultimately lead to industry consolidation in 2010 and beyond, making this one of the top news headlines of the 2009 calendar year.

New Defendants in Kentucky Internet Gambling Case Remain Unknown

Following a chain of e-mails sent last week by attorneys for the Commonwealth of Kentucky, the names of additional defendants in the state’s legal action against the owners of 141 internet gambling domain names remain a mystery.

In October, the Kentucky Supreme Court heard the case, which pits industry organizations like the Interactive Media Entertainment and Gaming Association (iMEGA) and the Interactive Gaming Council (IGC) against the Kentucky Justice and Public Safety Cabinet, led by Secretary J. Michael Brown. Despite a ruling by the state’s highest judicial body potentially being handed down any day now, Kentucky attorneys filed a motion to add parties to its complaint last week. How the latest filing will affect the Kentucky Supreme Court’s decision, if at all, remains unknown. The additional parties in question were U.S. citizens and companies engaged in internet gambling.

When lawyers for iMEGA tried to obtain a list of the additional names, counsel for the Commonwealth turned them down. iMEGA Chairman Joe Brennan told Poker News Daily, “They've basically said that they don't recognize our standing. They're just ignoring what happened in the Court of Appeals, which confirmed our standing.” In a chain of e-mails between opposing attorneys available on iMEGA’s website, William Hurt of Kentucky counsel Hurt, Crosbie, and May states, “I do not believe anyone has standing to file a response or motion to strike.”

Brennan lashed out at the State’s attorneys, who are purportedly working on a contingency basis, as part of a press release sent on Monday: “They were counting on a big payday from our members in the form of settlements to get their own property back, but it doesn’t look like that’s going to happen. Since they don’t get one nickel from the state to pursue this, it’s clear that the drive for big money has taken over and any sense of fair play or due process has gone out the window.”

The 141 internet gambling domain names in question include those belonging to online poker giants like PokerStars and Full Tilt Poker. If the Commonwealth of Kentucky were successful, these domains would be inaccessible not just in the southern state, but also around the world. The domains were seized back in September of 2008 on the grounds that they constituted “gambling devices,” a term that traditionally refers to tangible objects like slot machines and roulette wheels that you’d find in an underground casino.

In January, the Kentucky Court of Appeals ruled by a two-to-one margin that the Commonwealth did not have jurisdiction to act, setting up an appeal by the State to its Supreme Court. iMEGA attorney Jon Fleischaker noted in an e-mail, “The Court of Appeals ruled that we had standing in this case, and by implication, a right to intervene. I believe the Supreme Court is likely to rule the same thing.” Hurt retorted that the State would “object to anything that you file, but will nonetheless continue to send you notice.”

Brennan told Poker News Daily that Circuit Court judge Thomas Wingate did not act on the motion to add names filed by Kentucky’s attorneys last week and the next day that it can be considered is January 21st. The motion calls for a hearing on January 20th in front of Judge Wingate, although its future appears to be in doubt. Judge Wingate upheld the State’s actions as part of an October 2008 decision.

The Kentucky Supreme Court has given no indication as to when it will hand down a ruling. As it currently stands, the Kentucky Supreme Court does not have any oral arguments scheduled on its calendar until January 13th. However, Brennan expected a decision from the Kentucky Supreme Court to be issued in January.

House Financial Services Committee: Key Issues

FBI Issues Online Poker Findings; PPA Responds

Online poker players tuned into last week’s House Financial Services Committee on internet gambling can recall a letter cited by Congressman Spencer Bachus (R-AL) that claimed online poker games could be compromised.

The memo, dated November 13th and written by FBI Cyber Division Assistant Director Shawn Henry, addresses six questions put forth by Bachus regarding the current state of affairs in the online poker world. The report states, “The technology exists to manipulate online poker games in that it would only take two or three players working in unison to defeat the other players who are not part of the team.” Henry’s analysis speculates as to whether online poker sites would spend the time and money needed to combat these tag team maneuvers: “It really comes down to a cost analysis for the vendor. How much money will I make or lose by detecting cheating and implementing safeguards?”

The letter from Henry then addresses money laundering possibilities in private online poker tournaments before Bachus asked if “qualified personnel” existed to regulate the game should it be legalized. Henry responded, “FBI investigative resources are focused on our highest priorities, that being counterterrirosm, counterintelligence, and cyber threats to critical infrastructure.” No mention of online poker or internet gambling is given in Henry’s response to this question.

Henry questions the age and location verification mechanisms that online poker sites currently have in place. Henry responds, “For age verification, the possession of a credit card is usually the only validation these sites require. Credit card numbers are easily compromised and can be bought by the hundreds on several ‘underground’ websites.” On the question of location verification, Henry asserts, “While geolocation can be accurate when used to determine the physical country of residence, it becomes exponentially less accurate when determining the city or zip code.”

Also discussed in the letter from the FBI Cyber Division official are bots, programs against the Terms of Service of most major sites. In addition, Bachus asks whether U.S. law enforcement officials have had any conversations with their counterparts overseas where internet gambling is regulated about “potential vulnerabilities.” Henry emphatically claims, “The FBI has not engaged in this discussion with our foreign partners.” On casino bot programs manipulating online games, Henry admits, “While casino software could very easily be employed to manipulate games, the FBI has no data in this area.”

The Poker Players Alliance (PPA) was quick to point out the pitfalls of Henry’s letter. Its Executive Director, John Pappas, charged, “Every concern the letter raises is better addressed by licensing and regulation than by prohibition. The letter misconstrues much about the current state of online poker, but it does so in a way that clearly makes the case for why federal oversight is necessary. Licensing and regulation is the most protective measure we can take to ensure the online community can be properly monitored while maintaining our internet freedom.”

The PPA added that Congressman Peter King (R-NY), the current Ranking Member and former Chairman of the Committee on Homeland Security, conveyed that money laundering and terrorism financing were not taking place through internet gambling. The PPA explains that online poker sites use credit databases to address age and location and that the Department of Justice has never found evidence that organized crime benefited from internet gambling. In total, the lobbying group notes, “In defense of Mr. Henry’s letter, it is intended to address the status quo, not the internet poker landscape under HR 2267.”

Age verification was one of the many issues discussed at last week’s hearing, which focused on HR 2267. The bill, proposed by Congressman Barney Frank (D-MA) crafts a complete licensing and regulatory framework for the internet gambling industry in the United States.

Barack Obama Poker Article Appears on Cover of National Journal

Since the inception of the game, poker has often been invoked as a metaphor for other parts of life.  Similarities have been drawn between poker and business, poker and relationships and, most recently, poker and politics.  The latest article to draw comparisons between government and gaming was recently published as the cover story of the National Journal.  The feature piece examines President Barack Obama’s tenure in office and draws comparisons between his political decisions and his poker game.

National Journal is a 40-year old weekly publication that covers the U.S. national political scene and emerging trends in policy.  The magazine is primarily read by the Washington political sect who, thanks to author Will Englund, now have some new insight on how President Obama’s style of poker play may be influencing his policy decisions.

Englund’s feature-length piece begins with his view on how poker imitates life.  In his words, “If there is a single game that comes closest to recapitulating modern existence – that both mimics and informs the logic of a cluttered, challenging, bewilderingly complicated, less-than-all-knowing, partially comprehensible human society – it is poker.”  As Englund notes, Obama is not just a metaphorical poker player, he is also an avid fan.  Fellow politicians and card sharks have referred to his playing style as cautious, patient and, oddly enough, conservative.  In other words, our President is a bit of a nit.

The article offers insight from both poker author James McManus, whose books include “Positively Fifth Street” and the recently released “Cowboys Full: The Story of Poker,” as well as Harvard Law School Professor Charles Nesson.  Nesson is also the founder of the Global Poker Strategic Thinking Society, a Harvard student group designed to promote how poker’s strategic thinking that may be applicable to other avenues of life.

In the National Journal piece, both Nesson and McManus described Obama’s style of play as traditional and Englund cites the game of Stud, in which players have ostensibly more control over each street of play, as the type of game in which the President would excel.  His work on public health insurance is used as an example of President Obama’s conservative and cautious style as well as his ability to keep his holdings close to his chest and not let the opposition know exactly what he is planning.

The analysis of Obama as a poker player also includes a discussion of botched bets and misplayed hands and offers some predictions about the type of strategic decision-making the President has in store for the future: “Look for Obama to stick with Stud, where memory and insight and experience and calculation rule the table.”

On the whole, the article praises the game of poker as a way to sharpen critical thinking skills.  Nesson speaks to the game’s practical application in politics, business, and day-to-day interactions.  The piece also traces the long and storied presence of poker in American politics.  Former President Richard Nixon was known to have funded his early political campaigns with poker winnings and several game theorists have served as political consultants over the course of U.S. history.  More recently Obama and several other politicians have openly admitted their fondness for the game.  Another example of a politician and poker enthusiast is former Senator Alfonse D’Amato, who now serves as the Chairman of the Poker Players Alliance (PPA).

The article is currently on the Journal’s official website, but it is only available to subscribers of the magazine.

Poker Industry Reacts to House Financial Services Committee Hearing

On Thursday, the House Financial Services Committee, Chaired by Congressman Barney Frank (D-MA), hosted a hearing on two internet gambling bills. Twenty-four hours later, the online poker industry has had a chance to respond.

In one portion of Thursday’s hearing, Congressman Spencer Bachus (R-AL) referenced a letter he received from the FBI noting that the integrity of online poker games could be compromised. On the letter sent by Shawn Henry, the Poker Players Alliance (PPA) retorted, “The PPA takes issue with certain representations made by Mr. Henry, but believes that the larger point is the more important one: Mr. Henry’s letter makes a compelling case for licensing and regulation of internet poker as proposed in HR 2267.” Bachus is the Ranking Member of the House Financial Services Committee and a staunch opponent of internet gambling interests.

Safe and Secure Internet Gambling Initiative (SSIGI) spokesperson Michael Waxman gave Poker News Daily his two cents on the 90-minute long hearing that took place on Thursday morning in one of Congress’ most powerful committees: “The hearing and witness testimony clearly portrayed why Congress should scrap an unrealistic attempt to ban internet gambling and regulate the burgeoning underground marketplace since it is the only effective way to protect consumers.” Witnesses covered the gamut, ranging from the banking industry to problem gambling interests.

Early on in the proceedings, Bachus questioned Frank as to why no representatives from the U.S. Treasury or Federal Reserve were present at the hearing. Frank responded that he had not received any such request. However, the Committee’s Chairman later recanted his statement after producing an e-mail dated 40 hours before the hearing began from Bachus’ staff calling for the Treasury or Fed to be present. The awkward exchange ultimately led to agreement that an additional hearing should take place featuring members of the two government organizations, setting up more debate on the internet gambling issue in 2010. The Treasury and Fed granted a six-month delay in compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA).

On the proceedings, Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan told Poker News Daily, “It’s good to see that the ball is rolling again. The trick is going to be if things are sustained beyond the hearing. The industry has this pace of getting a public hearing every six months, but there seems to be little follow-up. Seeing that the minority wanted to hear from the Treasury and Fed, it may be the opposition who keeps the ball rolling.” No hearing has been scheduled, although PPA Executive Director John Pappas expected swift movement to mark up HR 2267.

Bachus’ generalizations about millions of young Americans becoming addicted to online gaming if legalization were to occur rubbed many in the industry the wrong way. On some of the claims made by the high-ranking Alabama Congressman, PocketFives.com poster “RI Tony” commented, “This Bachus guy is a classic example of why I hate politicians. There would be no way to change this guy’s mind. He’s simple minded and arrogant, thinking he can legislate morality. Oh yeah, and like I’m going to play poker on my Blackberry as I’m driving or waiting in line at the supermarket as he suggested people would. Idiot.” Online sites like Cake Poker already offer a mobile client.

Bachus asserted, “If Congress repeals the law, online casinos will proliferate. In the next five years, I feel that if [we] are successful in creating a federal right to gamble on the internet, we will create a generation of millions of Americans who from their youth will be addicted to internet gambling and, therefore, life-long problem gamblers.” Frank labeled Bachus’ comments “hyperbole” and “based on no factual basis whatsoever.”

In June of 2008 during a separate committee hearing, Bachus relayed a study from McGill University claiming that one-third of college students who gambled on the internet attempted suicide. In fact, no such study had ever taken place. A representative for the university quipped, “I am confident the Congressman doesn’t read research – he could not misinterpret this.”

Stay tuned to Poker News Daily for the latest from Capitol Hill.

Poker2Nite Recaps UIGEA Compliance Delay

The six-month delay in compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) was featured on Wednesday night’s episode of the UB-sponsored poker news show Poker2Nite.

The series, hosted by PokerRoad’s Joe Sebok and Scott Huff, opened with a discussion of the reprieve until June 1st, with the former explaining, “I don’t think we should start lying to ourselves and telling ourselves that all of the sites are going to start popping up. All this did is maintain the status quo.” Huff added, “The only way this was going to occur was if the message was being heard by more and more people.” Horse racing interests, members of Congress, and banking associations joined forces with the Poker Players Alliance (PPA) to petition U.S. Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke for a delay, which was granted last week.

A trip to a poker home game in Los Angeles revealed that few people understood what the PPA or UIGEA were. The segment served as a lead-in to an appearance via Skype by PPA Executive Director John Pappas, who told Huff and Sebok, “It gives us six months to work with Congress to try to clarify the law so it won’t affect people who want to play poker in the internet… What we’ve done is put the onus back on Congress. We’ll be pushing Congress to move quickly.” He ardently told Poker2Nite viewers who question the legality of online poker, “There is no Federal law that says playing online poker is illegal.”

Dana Workman’s “Weekly Misdeal” came with a sponsorship from Bluff Magazine this week. Her satirical news segment focused on the arrests of 75 to 85 year-old women in Cypress for playing poker as well as a new Irishman signing with PokerStars. She also took a shot at California State Senator Margarita Prentice, who is considering proposing a new video keno bill after serving as a major proponent of a law that made playing online poker in the Northwest state a Class C felony. Finally, Workman recapped the ESPN: The Magazine Body Issue featuring four nude poker players, including UB.com’s Phil Hellmuth.

A new segment called “All in Blind” featured six topics sealed in white envelopes. Both Sebok and Huff had no idea what they were and the duo selected three to discuss. Up for debate first was whether 2009 World Series of Poker (WSOP) Main Event runner-up Darvin Moon’s appearance on ESPN’s Monday Night Football or the 16-0 New England Patriots team was better. Huff chose Moon because “he actually got something,” while Sebok selected the Pats because “they got a little bit of history.” The Patriots lost to the New York Giants in Super Bowl XLII.

The second topic discussed on the Poker2Nite “All in Blind” segment was innerpsy’s short-lived online poker record of 40,088 hands played in a 24-hour period. Finally, Huff and Sebok debated whether they preferred James McManus’ poker history tale “Cowboys Full” or Doyle Brunson’s new autobiography “The Godfather of Poker.” Huff resoundingly selected McManus: “The New York Times says it’s good, so it’s good enough for me.” Contrastingly, Sebok emphatically chose Brunson, the figurehead for the poker industry..

Finally, the Poker2Nite Dictionary came to life. The show’s hosts discussed the meaning of “stacks ‘em off,” which translates to “to bust someone, or knock them out,” and “button,” which originally used to be called the “buck.” Huff claimed that phrases like “Pass the buck” President Harry Truman’s “The buck stops here” originated in poker.

Poker2Nite’s air time varies by market, but according to UB.com, the series begins at 11:00pm ET each Wednesday. When Poker News Daily caught the show, it was scheduled for 1:00am ET. Repeats are available on Fox Sports Net on Thursdays at 4:00pm ET and Fridays at 11:00am ET and 6:00pm ET.

Visit UB.com for more information and to view online clips.

Internet Gambling Discussed in House Financial Services Committee

On Thursday morning, the subject of internet gambling took center stage in an informative hearing in the House Financial Services Committee, Chaired by Congressman Barney Frank (D-MA). Seven witnesses participated.

The hearing began with Frank candidly stating, “It is nice to be able to think legislatively about other things besides the financial crisis, which has consumed this Committee since September of 2008.” It was over one year ago, just before the world’s economy crumbled, that internet gambling was last discussed in the Committee. Frank added, “There are a whole range of things on the internet that we would not like underage people to use. The notion that because some people abuse something, you prevent everyone from doing it is as great of a threat to the individual as any cause I have ever seen.” He went on to cite smoking, video games, and dieting as activities that people abuse.

The Committee’s Ranking Member, Congressman Spencer Bachus (R-AL), summed up many of the opposing arguments for legislation like HR 2266 and HR 2267. The former delays compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) by one year, while the latter establishes a comprehensive framework for licensing and regulating the industry in the United States. Bachus asserted, “I believe that internet gambling is, has been, and will continue to be a substantial threat to our youth. Any economic benefits from taxing internet gambling would be more than offset by the harm it causes young people.” He then sourced a New York Times Letter to the Editor from a mother lamenting her son’s turn to internet gambling.

Bachus expressed remorse that the regulations of the UIGEA had not been fully implemented, citing last week’s six-month delay of their compliance: “These regulations should have been finalized and implemented more than two years ago. The House voted by an overwhelming number to stop illegal internet gambling. Chairman [Frank], it’s time for you, the Treasury, and the Fed to stop delaying the will of the great majority of this Congress and the American people.

Bachus noted that the Treasury and Federal Reserve, who granted the six-month compliance reprieve, should have been a part of Thursday’s witness panel. The Alabama Congressman quoted a letter from the FBI he received in November stating, “The FBI warns that technology exists to manipulate online poker games. The FBI rejects claims from vendors that they can validate age and location.” Frank retorted that he had not received a request from Bachus for the Treasury or Federal Reserve to be present, but later recanted his statement, referencing an e-mail from the Ranking Member’s staff late Tuesday afternoon. Both agreed that the Federal Reserve and Treasury should testify at a future hearing.

Seven witnesses each spoke for about five minutes, offering different viewpoints on the issue. Robert Martin, Tribal Chairman of the Morongo Band of Mission Indians, noted that tribes were not consulted in the extension of the UIGEA deadline and “By following the law, we are now facing unfair competition because of these bills. Allow the regulatory scheme [currently in place] to protect what we have built.”

Parry Aftab, Executive Director of Wired Safety, candidly explained, “It’s ironic that I am sitting here today saying that the only way to protect consumers is by legalizing it. If we don’t legalize it, we can’t regulate it.” She referenced a study by Professor Malcolm Sparrow from the John F. Kennedy School of Government at Harvard University, who explained, “Legalization with regulation would provide U.S. authorities the power to grant or deny licenses.” He added that HR 2267 is an “adequate framework” in which to operate.

Keith Whyte, Executive Director for the National Council on Problem Gambling, remarked, “While participation in internet gambling by U.S. residents appeared to decline after the passage of the UIEGA, we did not see a decrease in indicators of gambling problems, such as help line calls.” A chart submitted by Whyte showed that help line calls instead gradually increased every year since 2006, when the UIGEA was approved.

Jim Dowling from the Dowling Advisory Group lent his insight into fraud, money laundering, and terrorism, while Mike Brodsky, Executive Chairman of YouBet.com, discussed the presumably legal online horse racing market. The legality of online horse racing was discussed at length, with Frank noting that the Department of Justice said it was against the law in 2006. Brodsky added that 88% of online horse racing wagers are transmitted across state lines electronically, which Frank also questioned the legality of.

Also speaking was Samuel Vallandingham, Chief Information Officer and Vice President for The First State Bank in West Virginia. Interestingly, Vallandingham was the only financial services industry representative present and explained, “The added burden [of enforcing the UIGEA] would drain our resources… The law doesn’t define unlawful internet gambling. As a result, the burden rests solely on financial institutions.”

After 90 minutes, the hearing adjourned, with Frank noting that the Committee would take up the issue again in 2010. No markup vote on HR 2266 or HR 2267 was scheduled.

Preview of Dec. 3 Committee Hearing

Internet Gambling to be Discussed in House Financial Services Committee

On Thursday, internet gambling will take center stage in the House Financial Services Committee. A hearing to be held at 10:00am ET in Room 2128 of the Rayburn House Office Building will discuss two bills that could change the landscape of the industry in the United States.

Although an official list of witnesses has not yet been announced at press time, Poker News Daily can confirm that National Council on Problem Gambling Executive Director Keith Whyte will speak during the proceedings. Whyte told us that he received his formal invitation Wednesday morning and is looking forward to discussing the issue in front of the Committee tomorrow. A press release distributed by the Safe and Secure Internet Gambling Initiative (SSIGI) on Wednesday added, “Top experts are expected to describe how existing systems and technologies have proven successful in blocking minors from gambling online, combating compulsive gambling, and protecting consumers against money laundering, fraud, and identity theft.”

SSIGI spokesperson Michael Waxman commented that his organization is looking forward to a well-rounded discussion that could lead to one of two internet gambling bills being marked up and passed: “This hearing will provide further evidence on the ability to effectively regulate internet gambling and require licensed operators to utilize already-proven technologies to protect consumers. It’s expected this hearing will answer any outstanding questions and pave the way for a vote in the committee on Chairman Frank’s legislation.” Thursday’s hearing marks the first major discussion of internet gambling in the House Financial Services Committee in over a year and is expected to last around two hours.

At issue will be HR 2266 and HR 2267, both introduced by Congressman Barney Frank (D-MA). The former, dubbed the Reasonable Prudence in Regulation Act, delays mandatory compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) by one year. Despite compliance being delayed by six months last week, a Committee spokesperson told Poker News Daily that HR 2266 would still be discussed on Thursday. The bill claims 53 co-sponsors.

Also to be discussed is HR 2267, Frank’s Internet Gambling Regulation, Consumer Protection, and Enforcement Act. The measure, which was introduced on the same day in May as HR 2266, establishes a full licensing and regulatory framework for internet gambling companies to accept real money wagers from U.S. customers. It boasts 63 co-sponsors on both sides of the aisle and is Frank’s latest attempt to undo the effects of the UIGEA, which was passed into law in 2006.

Poker Players Alliance (PPA) Executive Director John Pappas told Poker News Daily that markup of HR 2266 or HR 2267 could be scheduled within one week of the hearing, although it would be contingent on the Committee’s calendar. Lawmakers on Capitol Hill have been focusing their efforts on a faltering economy and major health care reform, the latter of which could come with a $1 trillion price tag. A study by the Joint Committee on Taxation revealed that up to $42 billion over a 10-year period could be reaped by taxing the internet gambling industry at a rate of 2% of deposits pursuant to Congressman Jim McDermott’s (D-WA) HR 2268.

Waxman put the hearing in perspective: “Coupled with last week’s decision by the Treasury Department and Federal Reserve to delay UIGEA implementation, this hearing further builds the case for Congress to rewrite U.S. gambling laws. It’s simply common sense to override the UIGEA, a poorly conceived law that is doomed to fail, and replace it with a framework that regulates a thriving underground marketplace to protect consumers and collect billions in otherwise lost revenue.” Despite the UIGEA, traffic on the USA-facing site Full Tilt Poker, according to a recent report released by PokerScout.com, is up 127% year over year.

We’ll have a complete recap of the hearing right here on Poker News Daily.

Poker Industry Reacts to UIGEA Regulations Delay

Twenty-four hours after it was revealed that mandatory financial services industry compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) would be delayed by six months, the poker industry has had a chance to react.

The Poker Players Alliance (PPA) was one of several organizations that successfully petitioned U.S. Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke to push back conformity with the UIGEA rules until June 1st, 2010. The 1.2 million member strong lobbying organization’s Chairman, Alfonse D’Amato, commented in a press release distributed on Friday, “We are thankful to our co-petitioners, the National Thoroughbred Racing Association and the American Greyhound Track Operators Association, and for the dozens of members of Congress who voiced their support for this petition through letters to Secretary Geithner and Chairman Bernanke. The PPA looks forward to working with regulators and legislators to pass legislation that protects consumers and the great game of poker.” News of the extension originally broke on Wednesday.

The two horse racing outfits co-authored a letter with the PPA to Geithner and Bernanke outlining the potential for overblocking by financial institutions, which could have led to legal online wagers being denied by companies like Visa and MasterCard. According to the PPA, the possibility of an extension beyond the current six-month time frame exists. Ideally, Congress would formulate proper internet gambling legislation before June 1st.

To that end, Safe and Secure Internet Gambling Initiative (SSIGI) spokesperson Michael Waxman commented, “This decision is the latest evidence that momentum is building for a shift in policy and a rewrite of U.S. internet gambling laws to provide for regulation and taxation instead of prohibition. Over the next six months, Congress should act to create a framework that regulates internet gambling to protect consumers and collect billions in much-needed revenue for critical federal and state government programs.”

Congressman Barney Frank (D-MA), whose House Financial Services Committee will host a hearing on two internet gambling bills next Thursday, gave his two cents on the UIGEA compliance date being postponed: “The Department of the Treasury and the Federal Reserve Board of Governors deserve a great deal of credit for suspending these midnight regulations promulgated by the Bush administration which would curtail the freedom of Americans to use the internet as they choose and which would pose unrealistic burdens on the entire financial community. This will give us a chance to act in an unhurried manner on my legislation to undo this regulatory excess by the Bush administration and to undo this ill-advised law.”

On the PocketFives.com online poker forum, Rich “TheEngineer” Muny, who serves as the Kentucky State Director for the PPA, broke the news early on Black Friday. While many online poker players were out hunting for deep holiday discounts, PocketFives.com member “mordan” was on the message boards candidly responding, “Everyone in the poker community just won a 30/70 with this development. Although this doesn’t guarantee regulation in the future, our odds have significantly increased with the U.S. Treasury recognizing problems with this bill.”

The future of the legality of games like online poker remains up in the air. In the PPA forum on TwoPlusTwo, poster “Distajo” questioned, “Was the delay granted more for the clarity of the UIGEA rules? Thus, being more beneficial for banks? Like don’t fund poker accounts, but allow horseracing wagers?” Past attempts to clarify the UIGEA have mandated that “laundry lists” of legal activities be created. If a bill like Frank’s HR 2267 is passed, much of the industry seems likely to be legalized and regulated in the United States.

Stay tuned to Poker News Daily for the latest UIGEA headlines.

UIGEA delayed six months

A joint press release from the U.S. Department of the Treasury and the Federal Reserve Board announced Friday that the date for implementing regulations in the Unlawful Internet Gambling Enforcement Act (UIGEA) has been delayed by six months, from Dec. 1 to June 1, 2010.

The regulations were to force financial institutions in the U.S. to stop processing any transactions related to Internet gambling.

However, the delay will now give the U.S. House Financial Services Committee the chance to hold hearings on two bills designed to regulate and tax online gambling and futher delay UIGEA enforcement.

Those hearings are schedule for Dec. 3.

Committee Chairman Barney Frank applauded Friday's announcement.

"This will give us a chance to act in an unhurried manner on my legislation to undo this regulatory excess by the Bush administration and to undo this ill-advised law," he said.

A poker advocacy group lobbying to legalize online poker in the United States, the Poker Players Alliance believes the delay is also the first step towards legal and regulated online poker in America.

"This is a great victory for poker, but an even greater victory for advocates of good and fair public policy," said PPA Chairman Alfonse D'Amato.

"These additional months are critical to provide legislators time to clarify UIGEA and pass legislation to licence and regulate poker early next year."

UIGEA Regulations Officially Delayed Six Months

Online poker players in the United States have a lot to be thankful for this holiday season. On Friday, CNBC and the Associated Press confirmed that U.S. Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke had granted requests to delay the mandatory compliance date of the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) by six months to June 1st, 2010.

Word of a potential delay first broke on Wednesday from Interactive Media Entertainment and Gaming Association (iMEGA) Executive Director Joe Brennan. However, no official comment had been handed down from Geithner, Bernanke, the Poker Players Alliance (PPA), or the office of Congressman Barney Frank (D-MA). Around 12:15pm ET on Friday, cable station CNBC ran a segment touting the successful six-month delay and an Associated Press article had hit cyberspace 15 minutes earlier.

The six-month delay will take the internet gambling industry to June 1st, 2010. In the interim, the theory goes that sensible legislation governing the industry in the United States will be passed. Frank introduced HR 2267 back in May. The bill, which has attracted 63 co-sponsors, establishes a full licensing and regulatory framework for online gaming outfits to solicit U.S. customers.

An Associated Press article sourced both the Treasury and Federal Reserve as saying that the UIGEA’s regulations would indeed be pushed off until mid-2010. The news service explained, “The delayed rules would curb online gambling by prohibiting financial institutions from accepting payments from credit cards, checks or electronic fund transfers to settle online wagers. The financial industry complained that the new rules would be difficult to enforce because they did not offer a clear definition of what constitutes internet gambling.” Since the UIGEA was approved in 2006, a Third Circuit Court of Appeals ruling stated that the legality of internet gambling may depend on state law, similar to the way that the brick-and-mortar version is governed.

Next Thursday, December 3rd, the House Financial Services Committee will hold a hearing discussing the merits of HR 2266 and HR 2267. The former bill delays mandatory industry compliance with the UIGEA regulations by one year to December 1st, 2010. Its relevance given Friday’s confirmation that the regulations would be pushed back six months is up in the air. The hearing kicks off at 10:00am ET in Room 2128 of the Rayburn House Office Building. Witnesses for the informational hearing have not yet been announced and the proceedings can be followed via a live webcast accessible from the Committee’s website.

Potential overblocking by credit card companies like Visa and MasterCard led the PPA, two horse racing organizations, and members of Kentucky’s Congressional delegation to petition Geithner and Bernanke, urging that the regulations of the UIGEA be shuttled back to December 1st of next year. PPA Executive Director John Pappas told Poker News Daily, “Many believe what you’ll see is overblocking of legitimate transactions. It’s not a good thing for players. It won’t just affect poker; it’ll affect horse racing, lotteries, and other online entities.”

Around 1:00pm ET, the PPA confirmed the news. The organization’s Chairman, Alfonse D’Amato, commented in a press release, “The PPA is extremely pleased with the decision by the Federal Reserve and Treasury to grant the six month extension. This is a great victory for poker, but an even greater victory for advocates of good and fair public policy.”

Stay tuned to Poker News Daily for the latest news and events from Capitol Hill.

UIGEA regulations postponed by six months

UIGEA hearing scheduled Dec. 3

According to the House Financial Services Committee website, a full committee hearing on two bills designed to regulate and tax online gambling in the US and delay UIGEA enforcement will be held Dec. 3.

House Financial Services Committee chairman Barney Frank, a longtime proponent of legalized online poker, unveiled both bills this past May.

HR 2266 is designed to delay UIGEA compliance until December 2010 while HR 2267 seeks to render the act moot by establishing a federal regulatory and enforcement framework to license Internet gambling operators, including online poker sites, in the United States.

The hearing will be held Dec. 3 at 10 a.m. ET in the Committee's Rayburn House Office Building and interested members of the public can watch a live webcast through the Committee's website.

In the meantime, UIGEA regulations come into effect next Tuesday Dec. 1 forcing financial institutions in the U.S. to stop processing any transactions related to online gambling.

Report: UIGEA Regulations Postponed Six Months

The regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) have been delayed six months from December 1st, according to Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan.

Neither U.S. Treasury Secretary Timothy Geithner nor Federal Reserve Chairman Ben Bernanke had made any official comment regarding a six-month delay at press time. The two government officials received petitions to stay the UIGEA’s regulations by one year in letters filed by the Poker Players Alliance (PPA), National Thoroughbred Racing Association, the American Greyhound Track Operators Association, and members of Kentucky’s Congressional delegation. Congressman Spencer Bachus (R-AL) and Senator Jon Kyl (R-AZ) asked the two officials to uphold the original December 1st industry compliance deadline in a dissenting opinion.

The news comes one week ahead of a hearing in the House Financial Services Committee regarding two internet gambling bills introduced by Congressman Barney Frank (D-MA) in May that would alter the landscape of the industry in the United States. The first, HR 2266, would have postponed the regulations of the UIGEA by one year to December 1st, 2010. Its viability given today’s news of a likely six-month postponement is up in the air. The measure had attracted 53 co-sponsors on both sides of the aisle.

HR 2267, claiming 63 co-sponsors, creates a full licensing and regulatory framework for the internet gambling industry in the United States. It marks Frank’s latest attempt to undo the UIGEA, which was passed in 2006 after being attached to an unrelated port security measure at the prompting of then-Senate Majority Leader Bill Frist (R-TN). In the Senate, the SAFE Port Act was passed by unanimous consent.

On the hearing next week, which will be held at 10:00am ET in Room 2128 of the Rayburn House Office Building on Thursday, Safe and Secure Internet Gambling Initiative spokesperson Michael Waxman told Poker News Daily, “Chairman Frank is clearly indicating his commitment to switch the government’s position on Internet gambling, replacing attempts to prohibit the activity with a regulatory framework where consumers are protected. Chairman Frank’s commitment is further reinforced by scheduling this hearing and taking up this issue on the heals of the push for financial industry reform, which has been the committee’s exclusive focus the last six months.”

The six-month window will take the internet gambling industry to June 1st, right before election season in the United States in 2010. While issues like health care and a sagging economy have taken center stage since late 2008, internet gambling may finally see its day in the sun. Brennan explained his thoughts on the breaking news: “It’s encouraging that you’ve had this stay on the compliance, but it’s unfortunate that it took this long. We should all hope that in the next six months, a bill that already has 63 co-sponsors can be heard.”

To be clear, no official comment from the Treasury or Federal Reserve was available at the time of writing. With December 1st occurring next Tuesday, a stay likely had to be granted today or Monday, November 30th given the Thanksgiving holiday in the United States. Word breaking on Black Friday was also a possibility.

Stay tuned to Poker News Daily for the latest on this developing story.

No Markup Planned for December 3rd Internet Gambling Hearing

On Tuesday night, it was revealed that a hearing will occur next Thursday, December 3rd in the House Financial Services Committee. Taking center stage are two bills related to the Unlawful Internet Gambling Enforcement Act (UIGEA).

Poker Players Alliance (PPA) Executive Director John Pappas told Poker News Daily that no markup will occur at the hearing, which will be purely informational in nature: “It’s just an informational hearing. I don’t think the witnesses have been set yet and we’ve been in touch with the Committee about that. The PPA has been building the groundwork for this hearing for some time now. We look forward to it.” A representative from the House Financial Services Committee confirmed that no markup will occur. The hearing will take place in Room 2128 of the Rayburn House Office Building at 10:00am ET.

Depending upon the outcome of the internet gambling hearing next Thursday, either HR 2266 or HR 2267 could be scheduled for markup, potentially within a week. Congressman Barney Frank (D-MA) introduced both bills back in May. HR 2266 delays mandatory financial services industry compliance with the regulations of the UIGEA by one year to December 1st, 2010. It has attracted 53 co-sponsors on both sides of the aisle and is dubbed the Reasonable Prudence in Regulation Act. As it stands now, the financial services industry must fall into line with the UIGEA by Tuesday, December 1st.

When asked if the December 1st compliance date passing makes HR 2266 moot, Safe and Secure Internet Gambling Initiative (SSIGI) spokesperson Michael Waxman told Poker News Daily, “It could be unless Frank decides that the financial services sector needs a reprieve. Many companies have already expressed concern that the implementation of the law will be burdensome. I believe we’ll hear back from them again as they are forced to abide by the rules.”

HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, establishes a full licensing and regulatory framework for the internet gambling industry in the United States. It boasts 63 co-sponsors and, when coupled with a tax bill introduced by Congressman Jim McDermott (D-WA), could bring in as much as $42 billion over a 10-year period, according to a study by the Joint Committee on Taxation.

Many in the industry have pondered the status of the internet gambling and online poker industries in the United States after December 1st. Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan told Poker News Daily, “Poker players are going to have to get used to the kind of speed of deposit and withdrawal that online sports betters have had to get used to. To my knowledge, all of the top sports books have moved their processing offshore. I don’t expect there to be the wealth of electronic transfer methods and you’re probably going to see an increased use of checks drawn on international banks.”

One possible outcome in the post-December 1st internet gambling industry is overblocking by credit card companies like Visa and MasterCard. The 12-letter term began popping up earlier this year, when legal online lottery purchases in North Dakota and New Hampshire were denied. In essence, credit card companies could disallow any transaction that appears to look remotely like internet gambling in an effort to comply with the 2006 law. Overblocking also led several members of the Kentucky Congressional delegation to petition U.S. Treasury Secretary Timothy Geithner seeking the delay of UIGEA regulation enforcement. The group fears that legal online wagering on horseracing could come to a screeching halt as a result.

The PPA, National Thoroughbred Racing Association, and the American Greyhound Track Operators Association issued a letter to Geithner and Federal Reserve Chairman Ben Bernanke seeking delay of the UIGEA’s regulations. As of the time of writing, the request had not yet been acted on.

Stay tuned for the latest from Capitol Hill right here on Poker News Daily.

UIGEA Hearing Scheduled for December 3rd in Financial Services Committee

In breaking news from the House Financial Services Committee, a hearing to discuss two pieces of legislation related to the Unlawful Internet Gambling Enforcement Act (UIGEA) will be held on Thursday, December 3rd at 10:00am ET.

Interested online poker players can check out the hearing via a webcast found on the official website of the Committee. The hearing, which will be held in Room 2128 of the Rayburn House Office Building, will cover two pieces of legislation introduced by Committee Chairman Barney Frank (D-MA), HR 2266 (Reasonable Prudence in Regulation Act) and HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act. The longtime Massachusetts Congressman introduced the measures on the same day in May.

On December 1st, two days prior to the hearing, the financial services industry in the United States must come into full compliance with the regulations of the UIGEA, which were officially approved as midnight rules by the outgoing Bush administration back in January. Several days ago, Poker Players Alliance (PPA) Executive Director John Pappas told Poker News Daily that he expected a hearing to come soon: “Chairman Frank has told us that he intends to have a hearing and mark up HR 2267 as soon as he’s done with financial regulation reform bills. We think it might be in January, but there’s a good chance we could have a hearing in December. It depends on the Congressional schedule.”

Christmas has come early for the PPA, which has lobbied on several fronts for HR 2266 and HR 2267 to be marked up. It is unclear at the time of writing as to whether any markup will occur, as the proceedings next Thursday appear to be purely informational in nature. HR 2266 delays the regulations of the UIGEA by one year to December 1st, 2010. As it stands now, the industry has merely a week to brace for their effects on payment processors. HR 2266 has 53 co-sponsors on both sides of the aisle, including Steve Cohen (D-TN), Jim McDermott (D-WA), Ron Paul (R-TX), and Robert Wexler (D-FL).

Frank’s other bill, HR 2267, has 63 co-sponsors and creates a full licensing and regulatory framework for internet gambling and online poker outfits to solicit real money customers from the United States. A companion bill introduced by McDermott in May, HR 2268, taxes online gaming operators 2% of deposits. Although several estimates have been made as to how much revenue internet gambling could bring to the United States Government, the most recent study, which came from the Joint Committee on Taxation, pinned the figure at $42 billion over a ten-year period.

Witnesses for the December 3rd hearing and their prepared testimony were not given on the House Financial Services Committee website at the time of writing. Next Thursday will mark the first major movement on the internet gambling front in the Financial Services Committee since September of 2008, when Frank’s HR 6870 was approved by a 30-19 margin. The bill sought to clarify what activities were permissible under the UIGEA. It was not acted on during the 110th Congress and therefore was declared dead entering 2009.

A total of 41 Democrats and 29 Republicans make up the Financial Services Committee. The latter are headed by Spencer Bachus (R-AL), who, along with Senator Jon Kyl (R-AZ) recently authored a letter to U.S. Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke urging that the regulations of the UIGEA be enforced on December 1st as scheduled. Recently, members of the Kentucky House delegation implored Geithner and company to delay UIGEA regulation enforcement due to overblocking by credit card companies, potentially stunting legal online horseracing wagers.

We’ll have more information on the December 3rd hearing as it unfolds right here on Poker News Daily.

Poland Limits Gambling, Poker to Brick and Mortar Casinos

Poland’s Senate approved a measure limiting gambling to casinos, stunting access to poker and other games outside of a structured establishment. The bill cleared the Senate by a 48 to 3 margin, with 30 lawmakers not voting.

The Krakow Post noted that the new crackdown on gambling outside of licensed casinos may also spell trouble for internet gambling and online poker: “The legislation also affects Internet gambling, which will no longer be allowed under Polish law. However, the enforcement of this aspect of the bill will inevitably prove much more difficult than even the removal of thousands of slot machines.” Around 50,000 slot machines, which can be found in places like bars and restaurants around the country, will be removed as a result of the new law.

Polish President Lech Kaczynski must still apply his John Hancock to the piece of legislation in order for it to become official. The Post quoted Poland’s Prime Minister as saying that he expects Kaczynski to sign by the end of the month. In addition to ridding the European country of 50,000 slot machines and potentially slowing the growth of internet gambling, the bill passed by Polish lawmakers also sets a legal gambling age of 18.

The Agence France Presse, or AFP news service, shed some light into this month’s vote: “The decision by parliament comes nearly a month and a half after [Prime Minister] Tusk was forced to sack several key ministers and political allies over allegations of influence peddling within his cabinet regarding the gambling legislation.” World Bulletin explained what a portion of the funds raised will be used for: “Tusk has said the restrictions will prevent young people from becoming addicted to gambling. The government will funnel tax revenues raised under the bill into foundations promoting physical education and culture.”

No general election is scheduled in Poland until 2011 and the scandal in question involved casino owners. The new bill also increases the tax rate on casinos, helping raise additional money for Poland’s government. On the TwoPlusTwo forums, a translated article that originally appeared on Bankier.pl revealed that the tax rate on tournament poker would also increase as part of the new measure, although this component was not reported by the AFP or World Bulletin. TwoPlusTwo poster “novahunterpa” commented, “Looks like every country is either trying to ban online poker and gambling or restrict it to state monopolies.”

One month ago, Poland saw the invasion of the PokerStars-sponsored European Poker Tour (EPT), which made its annual stop in Warsaw. The 25,000 PLN buy-in event was held at the Casinos Poland Hyatt Regency and French businessman Christophe Benzimra emerged victorious from the 203 player field. The online poker site claimed that EPT Warsaw was one of the largest poker tournaments ever held in Poland. No indication has been given as to whether the new law will affect the EPT’s Season 7 Warsaw stop.

Among those keeping a watchful eye on the situation in the European country was Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan, who told Poker News Daily, “The genie is out of the bottle when it comes to online gambling. Whether it’s restricting it for consumer protection or guaranteeing the franchise for Poland’s brick and mortar casinos, the fact is that the Polish people have already voted with their feet, their wallets, and their computers by seeking out online gambling. Poland is going to have a hard time putting the genie back in the bottle, as would any country.”

Notable poker personalities hailing from Poland include Poker Hall of Fame member Henry Orenstein, a WSOP bracelet winner who also invented the hole card camera. Orenstein was born in Hrubieszów and currently lives in the United States. Michael Gracz was born in Warsaw and, like Orenstein, now calls the USA home.

Spencer Bachus, Jon Kyl Issue Letter to Timothy Geithner, Ben Bernanke

Recently, two high-powered, longtime opponents of internet gambling issued a letter to Federal Reserve Chairman Ben Bernanke and U.S. Treasury Secretary Timothy Geithner calling for the compliance date of the Unlawful Internet Gambling Enforcement Act (UIGEA) regulations (December 1st) to be enforced.

The date is now 10 days away and approaching rapidly. Last month, the Poker Players Alliance (PPA) teamed up with the National Thoroughbred Racing Association and American Greyhound Track Operators Association to issue a letter to the same two government officials. Following the letter by the PPA was one authored by 19 Congressmen belonging to the House Financial Services Committee, of which Barney Frank (D-MA) is the Chair.

Congressman Spencer Bachus (R-AL) and Senator Jon Kyl (R-AZ) explained in their own letter, “We strongly oppose this request and believe there is no justification for delaying the compliance deadline of the UIGEA regulations.”

The letter, dated earlier this month, outlines the passage of the UIGEA and the approval of its regulations, which went into effect on January 19th as so-called “midnight rules” by the outgoing Bush administration. The Republican duo notes, “If the Final Rule represented an ‘unreasonable burden on regulators and the financial services industry,’ as certain other Members have claimed, then the Treasury Department and the Federal Reserve could have reconsidered the regulations.” The letter adds that the Truth in Lending Act, whose regulations were issued in August, accommodated the UIGEA.

All told, Kyl and Bachus, staunch opponents of internet gambling, give their stance on the letter writing campaign by the PPA and Financial Services Committee members: “This is a blatant attempt to circumvent the democratic process by influencing the Treasury Department and the Federal Reserve to take action that cannot possibly be enacted by Congress.” On Capitol Hill, the United States legislative body is in the midst of a debate about massive health care expansion.

Two bills, both introduced by Frank, have the potential to change the landscape of the internet gambling industry in the United States as December approaches. The first, HR 2267, establishes a full licensing and regulatory framework for the online gaming outfits in the United States. The measure received its 63rd co-sponsor last week after its introduction in May. The second piece of legislation, HR 2266, delays mandatory compliance with UIGEA regulations by one year to December 1st, 2010. HR 2266 is up to 53 co-sponsors on both sides of the aisle. The House Financial Services Committee has scheduled neither HR 2266 nor HR 2267 for markup.

The letter from the two lawmakers concludes, “Simply delaying the compliance date serves no interest except that of the internet gambling enterprises that have long evaded American gambling laws and will continue to do so until effective enforcement is in place.” Kyl is a third term Senator from Arizona and the current Senate Minority Whip. His counterpart in the Western state is also a Republican, former Presidential candidate John McCain. Bachus was elected to the House of Representatives in 1992 and is the Ranking Member of the Financial Services Committee, which includes 30 Republicans and 42 Democrats.

Neither Geithner nor Bernanke has responded to any of the three letters as of the time of writing. John Pappas, Executive Director of the PPA, told Poker News Daily that a January markup of HR 2267 is a possibility, although no timetable has been set in stone. Blocking of legal online gambling transactions led the two horse racing organizations to become involved. Similarly, in North Dakota and New Hampshire, major credit card companies denied legal online lottery purchases due to “overblocking.”

The effect that the December 1st deadline will have on the industry is not yet known. Stay tuned to Poker News Daily for the latest poker legislation headlines.

CNBC Closing Bell Tackles Internet Gambling

The Global Gaming Expo is currently unfolding from Las Vegas and, as part of its coverage of the event, CNBC’s “Closing Bell” aired a four-minute segment entitled, “Odds Favor Online Gambling?”

Two industry experts joined CNBC “Closing Bell” host Melissa Francis on Thursday, Andrew Parmentire of Height Analytics and David Katz, an Oppenheimer gaming analyst. The former began the discussion, which did not take in a debate form, but rather featured both parties agreeing that legalized internet gambling in the United States is inevitable. Parmentire explained, “Barney Frank has put a bill out there and the stars are lining up in a lot of ways. Harrah’s has shown that they have an online strategy, Congress and states are in desperate need for money, and $50 billion can offset a lot of social programs that Democrats are pushing these days.” The proposed health care initiative, for example, could come with a price tag approaching $1 trillion.

Katz told CNBC viewers, “Gambling in the U.S. has become a far more acceptable consumer product than it was five or ten years ago. That said, we really are much more focused on the publicly traded companies and that would be the brick-and-mortars like Harrah’s as well as the game providers and the technology companies that support those industries.” Katz added that Harrah’s has become a major proponent of licensing online gaming. The Las Vegas-based private company recently launched Harrah’s Interactive Entertainment (HIE), based on Montreal, to oversee its online brand, with former Party Gaming CEO Mitch Garber as its lead figure.

Harrah’s inked an agreement with 888, the parent company of Pacific Poker, to fill its online gaming needs. 888 is a publicly traded company in London, where it can be found under the same three-number acronym. Katz explained that with casinos slowly reaching their limits in the live space, the switch to the Web is inevitable: “If you go to the Bellagio, they have a couple of hundred seats to sit in, so there’s a physical constraint. If you look at the number of states out there that are considering legalizing gaming, they’re going down every year. There’s a finite opportunity for the brick-and-mortar guys to expand in the United States and at some point, they have to start thinking globally.”

The CNBC spot occurred about two weeks prior to December 1st, the date by which the financial services industry in the United States must fall into line with the Unlawful Internet Gambling Enforcement Act (UIGEA). The Poker Players Alliance (PPA), the industry’s main lobbying voice, issued a letter to Federal Reserve Chairman Ben Bernanke and U.S. Treasury Secretary Timothy Geithner to postpone the date by one year while effective legislation can be crafted. However, the two government officials have not yet responded.

The UIGEA was passed during the waning moments of the 2006 Congressional session at the direction of former Senate Majority Leader Bill Frist (D-TN). It was approved by a 3:1 margin in the House of Representatives and by unanimous consent in the Senate after being attached to the SAFE Port Act. The Third Circuit Court of Appeals recently ruled that the UIGEA did not in and of itself make any sort of internet gambling activity illegal. Instead, the legality of an online activity depends on a player’s jurisdiction. Parmentire candidly explained, “There is a lot of anger as to how this happened in 2006.” The PPA has expanded its membership from 50,000 in 2006 to over 1.2 million today.

Concurrently with the Global Gaming Expo, 2009 World Series of Poker (WSOP) Main Event champion Joe Cada, who represents the online poker room PokerStars, has spread goodwill by appearing on mainstream outlets like the “Late Show with David Letterman,” ESPN’s “SportsCenter,” and USA Today. Cada, an online poker pro, became the youngest winner of the $10,000 buy-in tournament ever at age 21, breaking Peter Eastgate’s record of 22 years-old set in 2008.

Online Poker May Be Coming to Quebec, British Columbia

Quebec, British Columbia, and the four Atlantic provinces of Canada may soon see legalized and regulated online poker headed their way, according to an article that appeared in the Montreal Gazette newspaper.

Loto-Québec has submitted a proposal to the province’s government “for an internet wagering initiative in partnership with British Columbia and the four Atlantic provinces, which already have limited online gaming,” according to the Canadian news outlet. Loto-Québec claims that Canadians are currently placating more than 2,000 offshore internet gambling outfits, sending nearly $700 million in wagers away from the country each year, a number that will likely top $1 billion in three years.

Quebec plays home to the Kahnawake Gaming Commission (KGC), which is located on the Indian reservation of the same name outside of the city. Although the KGC is not currently linked to Loto-Québec’s endeavors, the organization’s Chairman, Dean Montour, told the Montreal Gazette, “The fact that Quebec is now entering the online gaming business in partnership with the Atlantic provinces and British Columbia is an indication that the industry is thriving and is gaining wider acceptance. For over 10 years, the Kahnawake Gaming Commission has had a positive working relationship with online gaming regulators throughout the world and looks forward to sharing its knowledge and experience with the Régie des alcools des courses et des jeux.”

The KGC is fresh off completing the investigating surrounding Ultimate Bet, an online poker site that recently changed its name to UB.com. In a September report, the KGC continued to finger former World Series of Poker (WSOP) Main Event champion Russ Hamilton as the mastermind behind the scandal and noted that 31 other individuals were involved, but would not identify who they were. The KGC also issued over 100 screen names associated with the misgivings, a list that included “nvtease,” “Sleeplesss,” and the infamous “NioNio.”

Given the seemingly “Wild West” atmosphere of the internet, Canadian control of the online poker industry will likely bring a considerable amount of validity: “The integrity of the online games often is dubious, as it was for some lotteries and VLTs before Loto-Québec was mandated by the government to funnel them into controlled circuits and oversee them,” noted Loto-Québec President and CEO Alain Cousineau. Loto-Québec added $1.4 billion to the bottom line of the province during the last fiscal year.

Potentially adding to the pressure of Loto-Québec to legalize and regulate the internet version of the age-old card game is a move towards licensing in the United States, spearheaded by Congressman Barney Frank (D-MA). Back in May, the lawmaker introduced HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, which establishes a full framework for legalized internet gambling in the USA. The measure is up to 63 co-sponsors, including Anthony Weiner (D-NY), who signed on four days ago. The Poker Players Alliance (PPA) expects HR 2267 to be marked up in the House Financial Services Committee, of which Frank is the Chair, in January. Other reports signal that markup is coming in December.

On December 1st, the financial services industry in the United States must fall into full compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA), which was passed three years ago. The PPA and other organizations have been feverishly working to delay the compliance date by one year, but so far, pleas to Federal Reserve Chairman Ben Bernanke, Treasury Secretary Timothy Geithner, and the U.S. Congress have not been heeded.

Earlier this year, it was revealed that the newly-created Harrah’s Interactive Entertainment (HIE), headed by former Party Gaming CEO Mitch Garber, would be based in Montreal. Former WSOP Commissioner Jeffrey Pollack was originally slated to be HIE’s President, but recently parted ways with the Las Vegas-based gambling giant.

Kentucky Cabinet Secretary Discusses Internet Gambling Battle

One month ago, the Kentucky Supreme Court heard arguments in a case that pits the state’s Justice and Public Safety Cabinet against the owners of 141 internet gambling domain names, including those belonging to industry titans like PokerStars and Fill Tilt Poker.

Heading the Cabinet is J. Michael Brown, who was present during oral arguments in the Frankfort courtroom and brought the legal action against the domain names in question one year ago. Brown told Poker News Daily that nothing discussed during the October 22nd hearing caught him off-guard. He added, “In discussing some of the procedural background, members of the court touched on some of the underlying issues, everything from whether a domain name is a device and how a device is defined to what measures the Commonwealth can employ to defend itself against unregulated internet gambling.”

Representing the internet gambling sites were a consortium of lawyers, including those from the Interactive Media Entertainment and Gaming Association (iMEGA), the Interactive Gaming Council (IGC), and several of the targeted sites. Despite the large presence of trade organizations during the proceedings, Brown and company questioned why no domain owners had come forth to defend themselves. The Secretary told Poker News Daily, “Who were the stakeholders on the other side? There didn’t seem to be anyone standing up saying that they represent these innocent owners. Their arguments were all over the map, from the First Amendment to likening it to a criminal proceeding. I was pleased that the court spent time looking at the underlying issues.”

Many in the industry have cautioned that the outcome of the Kentucky internet gambling case may set a precedent worldwide. More light could be shed on where domain names are located and who has rights to seize or regulate them as a result of the seven-member Kentucky Supreme Court’s decision. On the global implications of the Commonwealth’s actions, Brown frankly stated, “I’m only focusing on Kentucky. Our interest is in the unregulated gambling that we believe has been going on. I don’t know that our Supreme Court is ready to look at it as a worldwide precedent because a lot of the underlying facts haven’t been completely developed.”

Influencing the Commonwealth is the presence of a booming horse racing industry in Kentucky, headlined every May by the running of the Kentucky Derby. The spectacle, which unfolds from Churchill Downs in Louisville, generates a considerable amount of revenue for the State, bringing in high rollers, celebrities, politicians, and horse racing fans from around the globe.

The 141 internet gambling domain names are owned by companies located in places like Costa Rica, Gibraltar, Canada, and Isle of Man. Brown explained, “You have people who own and operate domain names. In order to regulate them, you have to go to the registrars because the actual owners are all offshore.” Registrars include giants like GoDaddy.com, which features Team PokerStars Pro member Vanessa Rousso as one if its spokesmen.

When the Kentucky Supreme Court will hand down a decision in the case is not yet known. Joe Brennan, Chairman of iMEGA, told Poker News Daily that he would set an over/under of March, 2010. Rich Muny, Kentucky State Director for the Poker Players Alliance (PPA), contrastingly, expected a decision to be rendered by Christmas.

The 141 internet gambling domain names were seized in September of 2008 on the grounds that they were illegal “gambling devices,” a term that traditionally refers to tangible objects like slot machines and roulette wheels that you’d find in an underground casino. Judge Thomas Wingate upheld the Commonwealth’s actions one month later before the industry sought the intervention of the Kentucky Court of Appeals. The judicial body ruled against the State by a two-to-one margin in January, setting up October’s showdown in the Kentucky Supreme Court.

Stay tuned to Poker News Daily for the latest from the Commonwealth of Kentucky.

Joe Cada Praised by National Media for WSOP Main Event Win

Following his victory in the 2009 World Series of Poker (WSOP) Main Event, which aired on ESPN on Tuesday night, Joe Cada received an overwhelming amount of praise from U.S. media outlets.

The Detroit Free Press, Cada’s hometown paper, reported on their hero’s run through the 2009 WSOP Main Event, which ended with a heads-up showdown against Darvin Moon. The newspaper cautioned against other Michigan natives looking to strike it rich in the world of poker: “Cada wants anyone thinking about making a living at playing cards to be warned: For every high, he has experienced the lowest of lows.” Cada told the media outlet, “It definitely can be a living, but it’s one of those things: You have to be very careful when you decide to make it a living. More people lose than win.” Cada became the youngest WSOP Main Event winner ever late Monday night and earned $8.5 million.

The Detroit News was also on-hand in Las Vegas to cover the local participant. The youngster told the paper, which noted that Cada was a severe underdog in chips at the final table, “It helped being down before and having no chips earlier at the final table. I thought about that and I continued to stay focused and tried not to make any mistakes. I just remained calm and it worked out well.” After doubling up CardPlayer Magazine Editor Jeff Shulman with A-J against A-K, Cada’s stack sank to 2.3 million, or less than five big blinds.

TIME Magazine candidly explained, “This time last year, Joseph Cada couldn’t legally order a cocktail. But today, the Shelby Township, Mich., native sits on top of the poker world as the champion of the World Series of Poker’s Main Event.” Playing online, as well as trips to Canada and Costa Rica, helped fund the underage Cada’s bankroll before he turned 21.

Even the Poker Players Alliance (PPA) chimed in on Cada’s win, noting that the PokerStars-sponsored player wore the lobbying organization’s patch throughout the Main Event final table. A press release distributed by the PPA on Tuesday featured Chairman Alfonse D’Amato praising the Michigan native: “On behalf of PPA members, I congratulate Joe on his historic WSOP win and thank him for being such a strong advocate for the game, especially online poker.” Cada added, “Poker is not gambling. There is decision-making, there’s logic, there’s math, and I think that taking away online poker takes away peoples’ rights. I am very supportive of the Poker Players Alliance.”

On the PocketFives.com online poker forum, poster “illinicubs23” weighed in on a debate as to whether Cada’s victory will improve or deride poker’s reputation as a skill game given his improbable run: “cada will at least continue to be seen around the tournament circuit – something moon wouldnt have done – and help promote pokerstars. hopefully he will inspire a lot more young 20 somethings to take up the game and help feed the poker economy for years.”

While online poker players salivated at the thought of new blood entering the game, the Michigan media continued to caution against those expecting the same success as Cada. Dennis Martell, Coordinator of Health Education at Michigan State University, told the Free Press, “What worries me more is that we’ve got a perfect storm going with this Michigan economy, and a point-and-click generation that wants instant gratification, that thinks they can get lucky and, in many cases, really needs the money.” In September, Michigan’s unemployment rate topped 15%, which the Free Press noted was the highest in the United States.

Prior to play beginning on Monday, Cada told Poker News Daily what it was like seeing his image plastered across Detroit newspapers: “It’s a lot different seeing the newspaper and actually seeing you in it. It’s been fun.”

ESPN.com Poker Editor Andrew Feldman, who spent a week in Las Vegas covering the finale of the 2009 WSOP Main Event, summed up his thoughts on the industry’s new face: “Last week, Cada was just another player from Michigan. On ESPN’s WSOP coverage, he said, ‘I’m just a kid with a dream.’ Now, he is ‘The Kid’ and a poker superstar. Congratulations on your run to WSOP gold, Joe. We’re looking forward to seeing what you have to offer as your poker career truly begins now.”