Poker News

Joe Cada Dons PPA Logo for 2009 WSOP Main Event Final Table

When viewers tune into tonight’s broadcast of the 2009 World Series of Poker (WSOP) Main Event on ESPN, they’ll see eventual winner Joe Cada don a logo for the Poker Players Alliance (PPA), the industry’s grassroots lobbying force.

Over one million members of the PPA comprise its rank and file and the organization is based in Washington, D.C. On the level of exposure that Cada will bring the PPA when tonight’s two-hour plus broadcast airs, PPA Executive Director John Pappas told Poker News Daily, “We’re very excited that he wore our logo. Not only did he wear it, but he’s also expressed an interest in supporting the PPA and our mission. He’d bee an ideal spokesperson to reach out to the younger demographic, the young internet player who may be skeptical as to what the PPA is and what we’re trying to accomplish.”

The PPA has been working feverishly to delay the implementation of the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA). As it currently stands, the financial services industry in the United States must fall into full compliance with the muddled 2006 law by December 1st, which is now just three weeks away. Pappas noted that Cada’s presence might help bolster the organization’s legitimacy: “Someone with his poker skills and reputation is helpful to have promoting our cause.”

PPA Membership Director Bryan Spadaro roved the halls of the Rio on Saturday morning when play saw the November Nine become only two. Spadaro came armed with a handful of PPA patches, telling players and agents alike why they should be worn. In the end, Cada, Kevin Schaffel, James Akenhead, and Eric Buchman all wore PPA patches. Curiously, Akenhead obliged even though he’s British and Pappas explained, “The game itself isn’t an American game. Even in Europe, they’re starting to see some of the ideas of monopolies and protectionism. We’d like to see us being a global force at some point.”

About 1,500 fans turned out for Monday’s finale at the Penn and Teller Theater at the Rio, which saw the cards hit the air shortly after 10:00pm local time. The action from the green felt was broadcasted on two large video projection screens in the venue, meaning that all 1,500 fans were exposed to the PPA logo for hours on end. Heads-up play lasted for two hours and 21 minutes and the final table’s time of 17:16 marked the longest in WSOP Main Event history by nearly three hours. The longest WSOP table on record belongs to the 2008 WSOP Europe Main Event, which lasted 19 hours.

The PPA teamed up with the National Thoroughbred Racing Association and the American Greyhound Track Operators to author a letter to Federal Reserve Chairman Ben Bernanke and U.S. Treasury Secretary Timothy Geithner urging the delay of UIGEA regulations until December 1st, 2010. A similar outcome is the goal of Congressman Barney Frank’s (D-MA) HR 2266, the Reasonable Prudence in Regulation Act.

The industry will take a wait-and-see approach with the effects of the UIGEA’s regulations. One thing is for sure, however. The PPA is likely to receive a sizable membership boost as a result of the extended exposure on ESPN this evening. Free memberships to the lobbying organization are available.

The action begins at 9:00pm ET tonight on ESPN and will run for at least two hours. The network did not institute a “cutoff” time for programming, but the episode is not expected to last more than two and a half hours.

Bump in the Road for Online Poker

Bump in the the Road for Online Poker

Berman and Lakes Entertainment to Invest in Ohio Casinos

Tueday’s state election in Ohio brought good news for Lakes Entertainment and its Chairman Lyle Berman. A ballot initiative to bring casinos to four major Ohio cities passed by a 53% margin on Tuesday and Berman and Lakes Entertainment stand to profit from all four of the newly approved Ohio casino projects.

The casino initiative, known as Issue 3 on this year’s Ohio ballot, was a polarizing issue within the Midwestern state, with those opposing the initiative suggesting that it stands to benefit casinos, but not the people of Ohio. Those in favor of the bill pointed to the presence of casinos in the neighboring state of Indiana and suggested that Ohio is missing out on a viable revenue source during this economic recession.

In the end, casino supporters won out and new casinos are scheduled to be built in Cincinnati, Toledo, Cleveland, and Columbus. The two groups behind the new gaming establishments are Penn Ventures and Rock Gambling Ventures, but Lakes Entertainment has a stake in all four of the properties as well. Berman and Lakes tried to spearhead a failed effort to bring gaming to Ohio in 2008 and recently cut a deal with both Rock Gambling and Penn shortly before Election Day to ensure they would be involved in this latest attempt. The deal stipulates that Lakes will fund 10% of the cost of the ballot initiative and, in turn, will have the option to own a 10% share in each of the new casinos.

According to a report from the Associated Press (AP), Lakes filed the deal with the Securities and Exchanges Commission (SEC) on October 29th, just days before the November 4th election. The AP also reported that campaign finance documents of Issue 3 show that the campaign cost $35 million. The SEC filing indicated that Lakes already made an initial payment of $1.9 million to Penn Ventures and $2.4 million to Rock Gambling. Penn will oversee the construction and operation of the Columbus and Toledo casinos, while Rock will handle the Cincinnati and Cleveland sites.

Bob Tenenbaum of the Ohio Jobs and Growth Committee spoke with the AP about Berman’s involvement in the campaign. “At the time this was raised as a campaign issue, which was Oct. 6, Berman had no role in any of this,” he explained. “He never became involved in the campaign, but he did reach out to both Penn National and Rock Ohio Ventures in the last week of the campaign and asked if he could become involved.”

The union between Berman and Penn is an unexpected one considering the two were bitter rivals during the previous campaign to bring gambling to a single destination in Clinton County. The campaign turned so ugly that Berman and Lakes filed a defamation lawsuit against Penn, which counter-sued for defamation, libel, and slander. The AP reported that both suits have since been dropped, but that does not mean Berman and Lakes will have extensive involvement in the day-to-day operations of the new casinos.

A spokesperson for Rock, the business development company of Cleveland Cavaliers owner Dan Gilbert told the AP that Lakes would be playing a purely financial role in the casino projects. Berman and Lakes are not new to gaming in the Midwest and South. They currently own and operate several properties, including the Vicksburg Casino in Mississippi, the Four Winds Casino outside of Chicago, and the Cimarron and Ioway City Casinos in Oklahoma.

Internet Gambling Revenue Analysis Released by Joint Committee on Taxation

Today, Congressman Jim McDermott (D-WA) released a study by the Joint Committee on Taxation (JCT) revealing that up to $41 billion could be generated by regulating and taxing the internet gambling industry over a 10-year period.

This is one of several studies to be released by various outfits, but is the first to be handed down by an agency of the United States Government. On the importance of the JCT’s findings, McDermott commented in a press release distributed on Thursday, “I suspect that many of my colleagues… will take more interest in this issue once they see $41 billion available that they can match up with any number of worthy programs.” Being debated on Capitol Hill is major health care reform, one social program that could conceivably be funded through internet gambling.

McDermott continued, “I would suspect it’s only a matter of time before Congress appropriately moves to regulate the industry in order to protect consumers and reverse the flow of billions of dollars currently lost offshore as Americans gamble billions online despite attempts to prohibit the activity.” In May, the Washington Congressman unveiled HR 2268, the Internet Gambling Regulation and Tax Enforcement Act. The measure imposes a fee of 2% of deposits on licensed internet gambling operators.

HR 2268 is a companion bill to Congressman Barney Frank’s HR 2267, which establishes a comprehensive framework for companies to solicit U.S. customers. The two bills were introduced on the same day and HR 2267 is up to 62 cosponsors on both sides of the political spectrum. Safe and Secure Internet Gambling Initiative (SSIGI) spokesperson Michael Waxman told Poker News Daily, “This is a very significant development in support of the push to regulate the industry. We would expect that there will be more conversation and more interest in internet gambling regulations as Congress is attempting to figure out funding for health care and other various programs.”

Today, Democrats in Congress unleashed health care reform that comes with a price tag of nearly $900 billion. While not able to cover the full amount, legalizing internet gambling could, in theory, put a dent in the price tag. The JCT’s analysis does not include online sports betting, which is barred in Frank’s legislation. Moreover, the findings assume that states will not opt out of HR 2267. A February study by the U.S.-based firm PricewaterhouseCoopers revealed that up to $52 billion could be raised by taxing internet gambling companies over a 10-year period.

On the significance of a $4 billion per year revenue stream when programs like health care run over 200 times that total, Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan explained, “It’s realistic to see it packaged with a number of revenue enhancers. As a standalone, in my opinion, it’s not enough money to be able to get people off the mark who have been against this in the near-term.”

Information released today by the SSIGI noted that Frank planned to hold a markup hearing on HR 2267, but the House Financial Services Committee has released no official information. For the balance of the week, Frank’s committee will be bogged down in discussion of systematic regulation, overdraft protection, and investor protection. The grizzly state of the U.S. economy has been the committee’s main focus since September of 2008.

Frank has also introduced HR 2266, the Reasonable Prudence in Regulation Act. The measure delays industry compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) by one year. As it stands, the financial services industry in the United States must come into full compliance with the 2006 law by December 1st, which is just five weeks away. The Poker Players Alliance (PPA), the industry’s main lobbying force, has been working feverishly to delay the deadline through other means, including appealing directly to U.S. Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke.

The JCT study assumes that wagering taxes will be levied and that HR 2267 will be amended so that internet gambling companies doing business in the United States must also be incorporated in the United States. Read the full internet gambling study.

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

Anurag Dikshit’s Sale of Party Gaming Stock Receives Mixed Reaction

One of the major poker headlines this week was the news that Party Gaming Cofounder Anurag Dikshit would divest himself of nearly 114 million shares of the company’s stock, which is traded in London under the symbol “PRTY.” Now, the industry has had a chance to react.

The internet gambling think tank sported mixed reactions to the news, as Dikshit’s departure meant that a man who admitted to violating U.S. law in a New York courtroom one year ago would no longer hold any interest in the company. Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan told Poker News Daily, “The thing to take away is that this is probably good overall for Party Gaming. When you have one of their founders pleading guilty, if and when things start to get normalized in the U.S. and Party Gaming comes into the market, they need to clear it off the books. The fact that he’s exiting the company is good for its future.”

When internet gambling will be legalized and regulated in the United States is anyone’s guess. Congressman Barney Frank (D-MA) introduced HR 2267 in May as one solution. The bill outlines a framework for the explicit legalization of the industry and, although the measure is up to 62 cosponsors, it has not yet been scheduled for markup in the House Financial Services Committee.

On how members of Congress and others outside of the industry would react to Dikshit’s exit, Brennan explained, “If Dikshit leaving Party Gaming can be a benefit to that company, I would say that it does the same broadly for the industry.” Financial analyst Nick Batram told Bloomberg that Dikshit’s departure meant that Party Gaming “may also find it easier to raise funds from institutional investors rather than the founders for large sports gambling acquisitions.” The Wire Act of 1961 has historically been interpreted to mean that online wagering on sports is not permitted in the U.S.

Dikshit will purportedly turn over the proceeds of his sale, which will likely total more than ?188 million, to his charitable foundation. On the TwoPlusTwo online poker forums, posters questioned Dikshit’s charitable motives: “If he donated to an established charity that could not be mistaken for a front, then that would be impressive,” one skeptic noted. Some have speculated that tax benefits are the real reason behind his actions. Brennan told Poker News Daily, “He wants to get out of the business and focus on his charitable endeavors.”

The sale of two-thirds of Dikshit’s stake sent shares of Party Gaming plummeting. Trading above 284 pence on October 19th, the stock dove to 240 pence in 24 hours, a dip of 15%. PRTY closed trading on Friday on the London Stock Exchange fetching 243 pence, 135 pence above its asking price one year ago.

An article in the Financial Times summed up the reaction from most of the industry: “The truth, however, is that while the distancing of Mr Dikshit can’t be bad for Party Gaming, it is still frustratingly unclear what the odds are on a successful return to the U.S. market.” In five weeks, the financial services industry in the United States must fall into full compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA). The impact of the December 1st deadline remains to be seen, but the Poker Players Alliance (PPA) recently authored a letter to U.S. Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke asking for the UIGEA’s regulations to be delayed by one year.

Party Gaming Cofounders Ruth Parasol and Russ DeLeon, a husband and wife team, have not yet announced their intentions to sell stock or formulate a plea agreement with the U.S. Government.

Poker Industry Reacts to Kentucky Internet Gambling Hearing

On Thursday, attorneys representing the owners of 141 internet gambling domain names took to the floor of the Kentucky Supreme Court. Their goal: prevent the forfeiture of URLs belonging to industry giants like PokerStars, Ultimate Bet, and Full Tilt Poker.

Twenty-four hours later, the online poker industry has had an opportunity to digest the proceedings, which played out in Frankfort. Among those looking on via a live webcast of the 90-minute oral arguments was Poker Players Alliance (PPA) Executive Director John Pappas, who told Poker News Daily from Washington, D.C., “Aside from wishing I could be down there, I think the presentation of the prosecution was extremely weak and there were a lot of holes in it in that the Supreme Court justices pointed out. The attorneys for the side of the online sites did a very good job of presenting compelling, reasonable reasons for dismissing this case.”

Word of the seizure broke last September and sent shockwaves throughout the internet gambling industry. If successful, the action by the Commonwealth would render the 141 domain names inaccessible not just in Kentucky, but also worldwide. Interactive Gaming Council (IGC) attorney Ian Ramsey told Poker News Daily, “We felt very good about the arguments we presented. We felt we had the opportunity to present the material issues for this court to consider and welcome a well-reasoned decision.” When the Kentucky Supreme Court will hand down a decision is anyone’s guess; timelines have ranged from 60 days to four months.

Present in the courtroom on Thursday with Ramsey was PPA Kentucky State Director Rich Muny, who has been intricately involved at the local level in the case. Muny took time out from lunch shortly after the hearing and noted, “I thought it went really well. The justices heard from both sides and asked informed questions of everyone. We had great legal counsel in the case and it seemed like questions were targeted more at the Commonwealth than at us, which may indicate which way they’re leaning. It would be worse if we got peppered with difficult questions.” Ramsey added that the six justices present asked considerably more questions than they have in past hearings.

Interactive Media Entertainment and Gaming Association (iMEGA) counsel Jon Fleischaker was the third attorney to take to the podium on Thursday. His animated testimony seemed to speak volumes about the frustrated nature of the industry, which has several of its most well-known domain names at risk. iMEGA Chairman Joe Brennan told Poker News Daily, “John brought the passion today that a lot of people in the industry have felt. This is something that’s just plain wrong and it was great to see that today in court.” Fleischaker called the prosecution’s arguments “unheard of” and “wrong.”

On whether anything in Thursday’s hearing took Brennan and company by surprise, the iMEGA executive commented, “I thought everything went according to plan. We knew the cards that the Governor and the Secretary’s attorneys had with their briefs. They came out of the gate with a weak hand. They continue to make assertions and misrepresent the law and the status of internet gambling.”

In the process, Commonwealth attorney Eric Lycan labeled iMEGA and the IGC “illegal gambling trade associations.” Lycan added that the confiscated domain names would be put up for public auction, following similar action undertaken in the past by the IRS.

A two-to-one ruling by the Kentucky Court of Appeals in January in favor of the internet gambling industry prompted the Justice and Public Safety Cabinet to appeal.

Barney Frank, 18 Others Issue Letter to Geithner, Bernanke about UIGEA Rules

The fight to delay the implementation of the Unlawful Internet Gambling Enforcement Act (UIGEA) rules continues. Recently, 19 Congressmen, including Barney Frank (D-MA), issued a letter to Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke.

The news comes on the heels of a letter sent by the Poker Players Alliance (PPA) in conjunction with the National Thoroughbred Racing Association and the American Greyhound Track Operators Association to the same two government individuals. In fact, the letter sent by the Congressmen alludes to the PPA’s petition directly, encouraging Geithner and Bernanke to use the Administrative Procedure Act to delay the implementation of the UIGEA rules by one year to December 1st, 2010. As it currently stands, the financial services industry must fall into line with the 2006 law six weeks from now.

Frank’s letter explains that the UIGEA rules were officially approved on January 19th, one day before current U.S. President Barack Obama took office. It implores, “We realize this is not a task you requested. We also believe this is an unreasonable burden on regulators and the financial services industry at a time of economic crisis, and it contradicts the stated intent of the Financial Services Committee.” Last year, Frank pushed HR 6870, which would seek to clarify what activities were permissible under the UIGEA, through the Financial Services Committee. However, any action on the bill was halted, as the crisis on Wall Street began shortly thereafter. Frank has been the Chairman of the Financial Services Committee since 2007.

The letter notes, “At our hearing in April 2008, the testimony of regulators and the industry indicated that it would be particularly difficult to craft workable regulations to effectively enforce the statute without having a substantial adverse effect on the payments system.” Instead of creating a “laundry list” of activities that are allowed online, the UIGEA instead defers to a muddled web of federal, state, and local laws. As a result, credit card companies like Visa and MasterCard began “overblocking” in an attempt to comply with the measure, leading to legal online lottery purchases being denied in states like New Hampshire and North Dakota.

The letter is signed by 19 Congressmen, all of whom are members of the Financial Services Committee: Frank, Peter King (R-NY), Luis Gutierrez (D-IL), Ron Paul (R-TX), Melvin Watt (D-NC), Judy Biggert (R-IL), Gary Ackerman (D-NY), Leonard Lance (R-NJ), Michael Capuano (D-MA), William Lacy Clay (D-MO), Paul Hodes (D-NH), Ron Klein (D-FL), Ed Perlmutter (D-CO), Bill Foster (D-IL), André Carson (D-IN), Walt Minnick (D-ID), Steve Driehaus (D-OH), Jim Himes (D-CT), and Dan Maffei (D-NY). Four Republicans are among the signers, who also include two Subcommittee Chairmen.

Frank introduced HR 2266 in May. The measure, affectionately dubbed the Reasonable Prudence in Regulation Act, would delay financial services industry compliance with the rules and regulations of the UIGEA by one year until December 1st, 2010. The measure was introduced in May and has generated 51 cosponsors. However, while the letter explains that HR 2266 is “likely to move,” Frank’s committee has been bogged down with the struggling U.S. economy, which boasts near-double-digit unemployment. As of the time of writing, no discussion of the bill is scheduled.

Frank also introduced HR 2267 in May, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act. The bill establishes a complete licensing and regulatory framework for the internet gambling industry in the United States. HR 2267 blocks wagers on sports under the Professional and Amateur Sports Protection Act (PASPA) and has attracted 62 cosponsors. As its name implies, HR 2267 places a considerable amount of emphasis on providing consumer protection in an effort to placate to those in Congress who are fearful of underage and problem gambling.

Barney Frank, 18 Others Issue Letter to Geithner, Bernanke about UIGEA Rules

The fight to delay the implementation of the Unlawful Internet Gambling Enforcement Act (UIGEA) rules continues. Recently, 19 Congressmen, including Barney Frank (D-MA), issued a letter to Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke.

The news comes on the heels of a letter sent by the Poker Players Alliance (PPA) in conjunction with the National Thoroughbred Racing Association and the American Greyhound Track Operators Association to the same two government individuals. In fact, the letter sent by the Congressmen alludes to the PPA’s petition, encouraging Geithner and Bernanke to use the Administrative Procedure Act to delay the implementation of the UIGEA rules by one year to December 1st, 2010. As it currently stands, the financial services industry must fall into line with the 2006 law six weeks from now.

Frank’s letter explains that the UIGEA rules were officially approved on January 19th, one day before current U.S. President Barack Obama took office. It implores, “We realize this is not a task you requested. We also believe this is an unreasonable burden on regulators and the financial services industry at a time of economic crisis, and it contradicts the stated intent of the Financial Services Committee.” Last year, Frank pushed HR 6870, which sought to clarify what activities were permissible under the UIGEA, through the Financial Services Committee. However, any action on the bill was halted, as the crisis on Wall Street began shortly thereafter. Frank has been the Chairman of the Financial Services Committee since 2007.

The letter notes, “At our hearing in April 2008, the testimony of regulators and the industry indicated that it would be particularly difficult to craft workable regulations to effectively enforce the statute without having a substantial adverse effect on the payments system.” Instead of creating a “laundry list” of activities that are allowed online, the UIGEA instead defers to a muddled web of federal, state, and local laws. As a result, credit card companies like Visa and MasterCard began “overblocking” in an attempt to comply with the measure, leading to legal online lottery purchases being denied in states like New Hampshire and North Dakota.

The letter is signed by 19 Congressmen, all of whom are members of the Financial Services Committee: Frank, Peter King (R-NY), Luis Gutierrez (D-IL), Ron Paul (R-TX), Melvin Watt (D-NC), Judy Biggert (R-IL), Gary Ackerman (D-NY), Leonard Lance (R-NJ), Michael Capuano (D-MA), William Lacy Clay (D-MO), Paul Hodes (D-NH), Ron Klein (D-FL), Ed Perlmutter (D-CO), Bill Foster (D-IL), André Carson (D-IN), Walt Minnick (D-ID), Steve Driehaus (D-OH), Jim Himes (D-CT), and Dan Maffei (D-NY). Four Republicans are among the signers, who also include two Subcommittee Chairmen.

Frank introduced HR 2266 in May. The measure, affectionately dubbed the Reasonable Prudence in Regulation Act, would delay financial services industry compliance with the rules and regulations of the UIGEA by one year until December 1st, 2010. The measure was introduced in May and has generated 51 cosponsors. However, while the letter explains that HR 2266 is “likely to move,” Frank’s committee has been bogged down with the struggling U.S. economy, which boasts near-double-digit unemployment. As of the time of writing, no discussion of the bill has been scheduled.

Frank also introduced HR 2267 in May, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act. The bill establishes a complete licensing and regulatory framework for the internet gambling industry in the United States. HR 2267 blocks wagers on sports under the Professional and Amateur Sports Protection Act (PASPA) and has attracted 62 cosponsors. As its name implies, HR 2267 places a considerable amount of emphasis on providing consumer protection in an effort to placate to those in Congress who are fearful of underage and problem gambling.

Harrah’s Earns Seven Awards for Sustainability

The continued greening efforts by Harrah’s have paid off, as the resort company recently earned seven gold medals from Travelife, an organization that promotes sustainability in tourism.  Gold medals were doled out to several of Harrah’s Las Vegas properties, including the Rio, Caesars Palace, and Bill’s Gambling Saloon.

The medals are designed to reward properties that make an effort to minimize negative impact on the environment, take advantage of locally-based companies when selecting vendors, and make a concerted effort to hire locally based individuals to better the social lives of people within the community.

Travelife is an organization set up by the European Union through the Federation of Tour Operations to advise travelers on companies and hotels that make efforts towards greening their company.  Harrah’s was the only gambling-related company to receive accreditation for multiple Las Vegas resorts, taking home eight total medals.  The gold medals went to the Rio, Caesars Palace, Bill’s Gambling Saloon, Flamingo, Paris, Bally’s, and Harrah’s, while Imperial Palace received a silver medal.

Gary Loveman, the Chairman and Chief Executive Officer of Harrah’s, commented on the honor in an official press release from the company: “I’m proud that each of our resorts in Las Vegas achieved this distinction. We’ve invested heavily in sustainability at Harrah’s and made it a core business principle that drives business strategy and operations.”

According to numbers found in Harrah’s press release, the company has launched more than 110 conservation projects across its numerous properties.  These efforts have resulted in the reduction of 77,850 tons of carbon dioxide emissions.  Some of the projects include the installation of water filtration systems in Harrah’s restaurants to cut down on bottled water use and the implementation of a new Las Vegas laundry facility that severely cuts down on the number of gallons of water used each year.

Even the Harrah’s-owned World Series of Poker (WSOP) is taking part in sustainability efforts.  An eco-friendly poker table designed by EGM Green was put on display as part of the 2008 WSOP festivities.  The table was made of 98% sustainable materials and was awarded to that year’s Main Event Champion, Peter Eastgate.  The table was auctioned off for charity this past July at the Friends of Eastgate fundraiser.  Casinos that install the EGM table can earn Leadership in Energy and Environmental Design (LEED) credits.

Harrah’s has also received several other green honors over the past year, including an Environmental Quality Award, which is the highest level of recognition bestowed by the Environmental Protection Agency (EPA).  Harrah’s partnered with the EPA last year to take part in the Climate Leaders project and recently teamed up with the organization again for the Water Wise project.

In September, the casino conglomerate announced it would be joining forces with Dell, SC Johnson, Starbucks, and Wrigley to form “Team Earth.”  Run by Conservationists International, the team is designed to bring together corporations, non-profit organizations, scientists, and educators to discuss environmental issues.

Poker Players Alliance Issues Letter to Timothy Geithner, Ben Bernanke

With the December 1st deadline rapidly approaching for industry compliance with the Unlawful Internet Gambling Enforcement Act (UIGEA), the Poker Players Alliance (PPA) has coauthored a letter to prominent members of the Treasury and Federal Reserve.

The PPA letter is dated in September and addressed to Secretary of the Treasury Timothy Geithner and Federal Reserve Chairman Ben Bernanke. Its purpose is straightforward: encourage the postponement of the UIGEA’s regulations by one year. The letter explains, “An extension of the compliance date is necessary because a significant number of institutions subject to the Final Rule will not have in place the necessary policies and procedures mandated by the Final Rule on December 1, 2009, the current compliance date.”

In May, Congressman Barney Frank (D-MA) introduced HR 2266, the Reasonable Prudence in Regulation Act. The measure pushes back mandatory UIGEA compliance by one year to December 1st, 2010 and has generated 51 cosponsors. However, with Frank’s committee bogged down in financial reform and near double-digit unemployment, HR 2266 has not yet seen the light of day. Rich Muny, PPA State Director for Kentucky, told Poker News Daily, “The hope is that we would pass legislation or would work with the Treasury to get them to accept something like an administrative law judge to determine what is legal and illegal under the UIGEA. The judge, for example, could include the fact that the Wire Act doesn’t apply to online poker.”

The PPA authored its letter in conjunction with the National Thoroughbred Racing Association and American Greyhound Track Operators Association. The letter concludes by explaining what the three groups have in common: “Given a choice between subjecting themselves to liability under the Act for processing transactions involving unlawful internet gambling and subjecting themselves to no liability for overblocking, regulated institutions have indicated to our members that they intend to overblock.” In New Hampshire and North Dakota, overblocking by credit card companies like Visa and MasterCard of legal online lottery transactions occurred as financial institutions rushed to comply with the UIGEA.

The letter comes as the PPA scrambles to delay the UIGEA regulations by any means necessary and takes advantage of the Administrative Procedure Act, which governs the way regulations are implemented. Muny explained, “There are two laws that give the Treasury the right to make sure that regulations it implements are understandable. The UIGEA rules were a last-minute decision by the Bush Administration, so they could make a feasible case that they were created in haste.” The regulations of the UIGEA were passed as “midnight rules” by the Bush Administration and took effect on January 19th, one day before U.S. President Barack Obama took office.

The two horse racing outfits express concern in the letter over legal transactions being prohibited. It notes, “The UIGEA regulations could result in confusion among members of the financial services community, leading to a devastating impact on electronic wagering as authorized by the [Interstate Horseracing Act], which produces some $100 million in prize money for horsemen and millions of dollars of state and local tax revenue.”

Whether the UIGEA’s regulations will have any impact on the internet gambling and online poker industries in the United States after December 1st is not yet known. Noted online gambling expert Nelson Rose told Poker News Daily in a July interview, “Basically, the whole program focuses on due diligence on new accounts. If you’re crazy enough to set up a bank account with an American bank, they’ll ask if you’re involved in illegal internet gambling.” He added that payment processors have already devised ways to skirt the 2006 law.

Stay tuned to Poker News Daily for the latest PPA news.

iMEGA Readies for Kentucky Supreme Court Internet Gambling Hearing

In one week, attorneys for the Interactive Media Entertainment and Gaming Association (iMEGA) will take to the floor of the Kentucky Supreme Court to argue why the Commonwealth did not have jurisdiction to seize 141 internet gambling domain names, including those belonging to PokerStars and Full Tilt Poker.

Next Thursday marks an important day for the internet gambling industry in Kentucky and around the world. One year ago, the Kentucky Justice and Public Safety Cabinet, under the leadership of J. Michael Brown and the direction of Governor Steve Beshear, seized domain names belonging to some of the online poker industry’s giants. Arguments are scheduled for 11:00am on Thursday, October 22nd. Each side has 15 minutes to state its case and the proceedings are the final order of business on the docket for next week, leading iMEGA officials to believe that arguments may run longer than the scheduled time.

iMEGA Chairman Joe Brennan told Poker News Daily, “Since there’s no law as to how to approach this, the Governor and his attorneys went out and came up with a process on their own. They never named who was being served and basically asked people to come to court and identify themselves.” A total of 141 internet gambling domain names were seized under the grounds that they were “gambling devices,” a term that commonly refers to roulette wheels, dice, and other tangible items found in an underground casino.

In January, the Kentucky Court of Appeals ruled by a 2:1 margin that the Commonwealth did not have jurisdiction to act, while the lone dissenting judge argued that a domain name was part of a larger “gambling device.” Brennan explained, “Appellate Courts tend to take a conservative, narrow, statutory look. The gambling device statute is one thing, but there is ample case law regarding due process. I am absolutely certain that you’re going to see the Governor’s attorneys get up and talk about what crooked operators we’re dealing with.”

The trade organization argues that the Commonwealth violated due process by seizing the 141 domain names in question. Its brief to the Kentucky Supreme Court explains, “No real defendants were named, no process was issued, and no owner of any domain names was notified. In short, this was an action by the Commonwealth to seize property without the slightest pretext of complying with the fundamental dictates of due process.” Judge Thomas Wingate upheld the Commonwealth’s actions in a court ruling submitted last October.

Kentucky law describes a “gambling device” as “a machine or mechanical device… designed and manufactured primarily for use in conjunction with gambling.” iMEGA added in its brief that if Kentucky does not wish to permit internet gambling within its borders, then it should pass laws through the General Assembly. Brennan expects a decision by the Kentucky Supreme Court to be handed down in “a matter of months” following Thursday’s hearing, which will take place in Frankfort. A diverse group of organizations have submitted amicus briefs, including the Poker Players Alliance (PPA), American Civil Liberties Union (ACLU), the Center for Democracy and Technology, the Electronic Frontier Foundation, the Internet Commerce Association, eBay, and Network Solutions.

iMEGA is fresh off a mostly positive ruling in the Third Circuit Court of Appeals, which clarified the Unlawful Internet Gambling Enforcement Act (UIGEA) by noting that internet gambling’s legality depends on the laws of individual states. iMEGA claims that legal internet gambling is possible in 44 states, while its brief to the Kentucky Supreme Court explains that eight criminalize the industry to some degree: Illinois, Indiana, Washington, Louisiana, Oregon, Nevada, Montana, and South Dakota.

The Third Circuit disagreed with iMEGA’s assertions that the UIGEA trampled on First Amendment and privacy rights and dismissed the notion that it should be void for vagueness. Neither the Federal Government nor the trade organization has announced an appeal to the U.S. Supreme Court.

We’ll have a full recap of the iMEGA Kentucky Supreme Court hearing right here on Poker News Daily.

Online Poker Industry Nearing December 1st UIGEA Compliance Deadline

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). Working to delay the deadline is the Poker Players Alliance (PPA).

In May, Congressman Barney Frank (D-MA) introduced HR 2266, more commonly known as the Reasonable Prudence in Regulation Act. Frank’s piece of legislation pushes back the looming compliance date from December 1st, 2009 to December 1st, 2010, essentially extending the status quo by one year. In the interim, lawmakers on Capitol Hill could, in theory, devise a lucrative method for taxing and regulating the internet gambling industry in the United States, potentially reaping over $60 billion in revenue in the process.

HR 2266 currently boasts 48 cosponsors, including Andre Carson (D-IN), Jerrold Nadler (D-NY), Bennie Thompson (D-MS), and Melvin Watt (D-NC), who signed on to open the month of October. Despite the outpouring of support, PPA Executive Director John Pappas told Poker News Daily that other avenues besides the legislative process are being pursued since the December 1st deadline is rapidly approaching: “We are working with Barney Frank and others for a non-legislative solution to clarifying or delaying the UIGEA regulations. Given everything on the Chairman’s plate, one thing off of it is a good thing. We’re hoping to see a delay.”

One strategy the PPA is potentially pursuing is utilizing the Administrative Procedure Act. According to About.com, the law is typically used by federal agencies to create regulations to enforce laws passed by Congress. The Administrative Procedure Act was passed in 1946 and Pappas noted that the measure “allows for individuals and organizations like the PPA to weigh in with the Department of the Treasury and ask for a delay of a proposed rule.” As many poker players remember, the regulations of the UIGEA were rubber-stamped as “midnight rules” by the outgoing Bush Administration. They were officially adopted on January 19th, one day before U.S. President Barack Obama assumed office.

Working against the industry as the December 1st deadline approaches is the precarious state of the U.S. economy, which saw unemployment rise to 9.8% in September. In addition, Obama and others on Capitol Hill have been steadfastly pushing health care reform, which has also taken center stage. Consequently, issues like internet gambling have fallen by the wayside. Pappas explained, “The reality is that our country is facing a lot of challenges. From a poker player’s perspective, the UIGEA may be the top priority, but it’s not the top priority of Congress. Until Barney Frank can solve the issues facing his Committee, ours is not going to take precedence.” Frank chairs the Financial Services Committee.

Also expected is a letter authored by Frank and two-dozen other politicians to Treasury Secretary Timothy Geithner calling for a delay of the UIGEA regulations. As of the time of writing, no such letter has come to fruition. Others, including gambling law expert Nelson Rose, question whether the industry will see any changes after the December 1st deadline passes. In a July interview, Rose told Poker News Daily, “The whole program focuses on due diligence on new accounts. If you’re crazy enough to set up a bank account with an American bank, they’ll ask if you’re involved in illegal internet gambling.”

Frank has also introduced HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act. The measure has attracted 60 cosponsors, including Shelley Berkley (D-NV), Steve Cohen (D-TN), Ron Paul (R-TX), and Robert Wexler (D-FL). HR 2267 was introduced on the same day as HR 2266 and establishes a complete licensing and regulatory framework for the internet gambling industry in the United States.

Stay tuned to Poker News Daily for the latest poker legislation headlines.

Poker Law — Barney Frank Urges Regulators to Delay UIGEA

Emilio Gomez Steps Down from Party Gaming Board of Directors

Party Gaming lost a member of its Board of Directors last week, when Non-Executive Directors Emilio Gomez stepped down from his post for personal reasons.  The official statement from Party Gaming announcing his resignation made no mention of a future replacement and noted a balance between Executive and Non-Executive members of the Board in the wake of Gomez’s departure.

Now that Gomez has moved on, the Board consists of seven members, including Chief Executive Officer Jim Ryan, Non-Executive Chairman Rod Perry, and Finance Director Martin Weigold.  Gomez first began his tenure as one of the group’s Non-Executive Directors in December of 2007 and served as the representative for Party Gaming co-founder Anurag Dikshit.

In December of 2008, Dikshit became the first online gambling mogul to face legal action in a U.S. Court when he agreed to forfeit $300 million in earnings from the company after admitting to breaking laws related to the Wire Act in conjunction with Party Gaming.  In exchange for the monetary settlement, Dikshit avoided jail time until at least December of 2010 and continues to reside in Gibraltar, where Party Gaming is based.  Dikshit stepped down from the Board of Directors in 2006 to serve as the company’s Head of Research and Special Projects.  There has been no announcement as of yet as to how Gomez’s departure will influence Dikshit’s influence on the Board.  Party Gaming can be found on the London Stock Exchange under the symbol “PRTY.”  It is the parent company of the popular online poker site PartyPoker.

Gomez’s resignation is just the latest in a long list of changes for Party Gaming this year.  The company’s purchase of World Poker Tour Enterprises (WPTE) in August as well as numerous business-to-business ventures like the purchase of the online bingo company Cashcade and the launch of an Italian online poker site in tandem with Intralot have headlined a busy 2009 for Party Gaming.  In its mid-year financial report, Ryan said the company would continue to pursue these profitable business-to-business deals and invest more time and effort in Party Casino, its online casino business.

In the week following Gomez’s announcement, PRTY shares have seen a slight drop in value, falling from a high of $282 on September 23rd to a low of $263.80 towards the end of day on the 24th.  At the close of the business day on Friday, shares were trading at $267.60. Despite the slight drop this week, Party Gaming stocks have been on a rise as a whole in 2009, increasing in value from $195 in January to a high of $283 in May to its current trading price of $267.60.

Senator Wyden Withdraws Proposal to Use Internet Gambling to Fund Health Care

The debate on Capitol Hill rages on over health care reform, which, according to Senator Orrin Hatch (R-UT), will likely come with a nearly $1 trillion price tag. Senator Ron Wyden (D-OR) proposed using internet gambling revenue to defray some of the cost, but withdrew his amendment this week.

In a column that appeared in the Deseret News, Hatch noted, “At a time when we have trillion-dollar-plus deficits and an unemployment rate reaching double digits, [this health care reform] is a colossal mistake I cannot support.” With the massive cost turning many off, Wyden suggested using tax revenue from Congressman Barney Frank’s (D-MA) Internet Gambling Regulation, Consumer Protection, and Enforcement Act (HR 2267). The bill establishes a full licensing and regulatory framework for the internet gambling industry in the United States.

Michael Waxman, spokesperson for the Safe and Secure Internet Gambling Initiative, commented in a press release shortly after the amendment was introduced, “We applaud Senator Wyden’s proposal to collect and put to good use tens of billions in internet gambling revenue that would otherwise be lost in the underground marketplace. The Senate Finance Committee should approve this resolution, finally putting to an end a failed prohibition on Internet gambling that leaves Americans unprotected and unlicensed offshore operators as the only beneficiary in a thriving marketplace.”

HR 2267 was introduced in May and has attracted 58 cosponsors, the newest of which are William Lacy Clay (D-MO), Christopher Murphy (D-CT), and Adam Schiff (D-CA). Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan told Poker News Daily, “There are not many places you can go to find ‘free money’ right now. Internet gambling is one of them. You’re not going to have many industries wanting to be taxed.” Also in Congress is HR 2268, the Internet Gambling Regulation and Tax Enforcement Act. The measure, introduced by Congressman Jim McDermott (D-WA), assesses a tax of 2% of deposits on licensed internet gambling outfits in the United States. HR 2268 was introduced on the same day as HR 2267 and has attracted four cosponsors.

A recent study by PricewaterhouseCoopers indicated that over $60 billion could be generated from taxing the internet gambling industry over a 10 year period. However, that figure includes legalized online wagering on sports. On Wednesday, “The Hill” published an article noting that Wyden had withdrawn his proposed amendment. The Senator’s Communications Director told the publication, “The last thing Senator Wyden wants to do is make it more difficult to expand subsidies for working families by introducing a new contentious issue to the debate. So when he offers the amendment, he will do it with other funding mechanisms.”

Wyden’s attempt to demonstrate tangible uses for internet gambling revenue comes on the heels of McDermott’s introduction of HR 6501 in July of 2008. McDermott’s bill, dubbed the Investing in Our Human Resources Act, provided up to $40 billion in assistance for those currently or formerly in foster care and those in declining job markets. HR 6501 was not acted on during the 110th Congress. McDermott’s proposal was not well-received, as Congresswoman Shelley Berkley (D-NV) labeled it “a classic case of putting the cart before the horse.” Former Congressman Jon Porter (R-NV) piled on, saying that HR 6501 marked “a frivolous attack on the gaming community to pay for services that local governments, states, and the federal government should already be providing.”

Last month, Senator Robert Menendez (D-NJ) introduced S 1597, the Internet Poker and Games of Skill Regulation, Consumer Protection, and Enforcement Act. The bill, as its name implies, focuses on licensing games such as poker, bridge, chess, mahjong, and backgammon “in which success is predominantly determined by the skill of the players.” Menendez’s measure has not attracted any cosponsors.

Congress is targeting October 30th as its adjournment date for the 2009 calendar year.

NEOVIA Reports H1 2009 Revenue Loss of 9%

Global payments processor NEOVIA Financial PLC reported a 9% fall in revenue for the half-year ending on June 30th, 2009. The company, which owns the popular e-wallet Neteller, posted group revenue of $32.6 million, down from $35.9 million at the same time last year. Net loss for the first-half was $6.7 million, or $0.06 per diluted share, compared to net profit of $1.15 million, or $0.01 per share, a year ago. The company is traded on the London Stock Exchange under the symbol NEO.

“The first half’s trading results were in line with management’s expectations given the continuing difficult market conditions that prevailed throughout the period,” said Dale Johnson, Chairman of NEOVIA. “We expect trading conditions to remain tough in the second half, with the Company delivering revenue similar to the first half, with prospects for 2010 looking promising.”

NEOVIA’s focus for improvement is centered on adding more consumer and merchant scale to its business and rolling out a new e-wallet business platform called NewTeller, which is scheduled for completion next year.

“The NewTeller platform will launch fully in early 2010 as anticipated, creating much needed flexibility for developing functionality to meet evolving market needs,” Johnson added. “During this period, the Group faces both challenges and opportunities, but remains focused on maximizing revenues, controlling costs, and preserving cash to deliver value for shareholders.”

On a positive note, revenues from the NETBANX Europe and Asia businesses performed better in 2009, up 12% compared to the same period in 2008. Revenues from the Asian business alone grew 40% to $6.9 million. Active e-wallet users were up 3% to 95,492 by June 30th. Average daily deposit volume was up 20% to $475,266 from last year’s mark of $396,413.

NEOVIA CEO Mark Mayhew, who took over the position on September 1st, isn’t worried by the decrease in revenue. “I am very pleased to have joined NEOVIA and am reassured by these results, which demonstrate the resilience of the Company’s business model even in the toughest of economic environments,” said Mayhew. “I shall be concentrating on creating substantial shareholder wealth in the future and the board is fully supportive of this aim. Over the next few months, one of my prime objectives is to focus the Group’s efforts on re-energizing our offering in order to grow revenues demonstrably.”

NEOVIA also announced completion of the investigation by the United States Department of Justice and the handing over of a copy of the Notice of Dismissal of the complaint filed against Neteller. The company received notice that it no longer faced the possibility of legal prosecution after the expiration of its Deferred Prosecution Agreement from the U.S. Attorney’s Office. In such an agreement, proceedings in a criminal case are put off for a period of time, subject to certain conditions. At the end of the time period, if all conditions have been met, the charges are dismissed. Neteller was forced to surrender $136 million in July of 2007 after admitting to operating an “unlicensed money transmitting business” and participating in the promotion of “unlawful transactions” between gaming operators and their customers in the United States.

Kentucky Supreme Court to Hear Internet Gambling Case

In January, the Kentucky Court of Appeals ruled by a 2:1 margin that the Kentucky Justice and Public Safety Cabinet did not have jurisdiction to seize 141 internet gambling domain names. In October, the Kentucky Supreme Court will hear the case.

The Cabinet appealed immediately following the Court of Appeals decision, which kicked off the 2009 calendar year in the online poker world. Now, attorneys for the Interactive Media Entertainment and Gaming Association (iMEGA) and Commonwealth of Kentucky will take to the floor of the state’s Supreme Court on Thursday, October 22nd at 11:00am local time. On the 10-month turnaround, iMEGA Chairman Joe Brennan told Poker News Daily, “My understanding is that the October 22nd date is fairly expeditious when it comes to the Kentucky Supreme Court. Usually, appellate courts don’t hear things that quickly when there’s nothing driving it. The fact that the court is going to hear oral arguments so soon confirms that it has an interest in the subject matter.”

A bevy of organizations have submitted documents supporting iMEGA’s challenge against the Commonwealth of Kentucky, including the Poker Players Alliance (PPA), eBay, and the American Civil Liberties Union (ACLU). iMEGA is represented by Jon Fleischaker of Dinsmore and Shohl, which is based in Louisville, Kentucky. Brennan forecasted, “We saw the briefings that the Governor’s attorneys brought to the table and they don’t have a lot they can hang their heads on other than making a claim for a Federal ban on internet gambling that doesn’t exist. There’s no Federal law against gambling on the internet and no law in Kentucky. I’m pretty sure we’re going to beat them again.”

Last September, the Commonwealth seized the 141 internet gambling domain names in question, including those belonging to PokerStars, Full Tilt Poker, and Ultimate Bet, on the grounds that they constituted “gambling devices,” a term traditionally reserved for physical objects like dice and slot machines that you’d find in an illegal casino. In October, Judge Thomas Wingate upheld the Commonwealth’s actions, which were prompted by Governor Steve Beshear. iMEGA then sought the intervention of the Court of Appeals, which agreed with the trade association by a 2:1 vote in January.

The news comes on the heels of iMEGA falling short in its constitutional challenge of the Unlawful Internet Gambling Enforcement Act (UIGEA). A three-judge panel in the Third Circuit Court of Appeals disagreed with many of the organization’s basic arguments, but ruled that internet gambling may be legal in the U.S. dependent upon state law. On the UIGEA, the Court declared, “The Act itself does not make any gambling activity illegal. Whether the transaction… constitutes unlawful internet gambling turns on how the law of the state from which the bettor initiates the bet would treat that bet, i.e., if it is illegal under that state’s law, it constitutes ‘unlawful internet gambling’ under the Act.” IMEGA claims the decision could pave the way for legal internet gambling in 44 states.

iMEGA can appeal the Third Circuit’s ruling, although no decision has been made as to whether the organization will pursue that course of action. Brennan explained, “If we were to do something, it’d be applying to the Supreme Court or starting a new challenge against the UIGEA regulations. At this point, I wonder what the best use of our resources is. The Government managed to get the UIGEA upheld in a way that the states have a right to determine what kind of gambling is allowed within their borders.” The Third Circuit dismissed iMEGA’s claims that the UIGEA should be “void for vagueness” and that the 2006 law tramples on privacy rights, among other arguments.

Kentucky’s economy thrives on the presence of horse racing, whose premier event is the annual Kentucky Derby, held each May in Louisville. The parent company of Churchill Downs, the venue of the Derby, also owns and operates TwinSpires.com, which accepts real money wagers from Kentucky residents. Moreover, the state’s lottery offers an online second chance option.

Stay tuned to Poker News Daily for the latest from the Kentucky internet gambling case.

KGC passes judgment on UltimateBet scandal

Tokwiro Enterprises was also fined $1.5 million over the incident.

"Despite the unfortunate circumstances that resulted in this cheating, we are satisfied that the actions taken by the Commission provided an equitable result for affected players - our first priority," said KGC Chairman Dean Montour.

"We remain optimistic that this experience and the lessons learned from it will result in a higher standard of gaming regulation for companies licensed and regulated within the Mohawk Territory of Kahnawake and elsewhere."

According to the decision, the ability to view hole cards was enabled by illicit software placed on the UltimateBet servers prior to November 2005. A third party account was then used to view players hole cards and the information passed on to the offending players.

The user names on the accounts maintained by those responsible were changed often in an apparent attempt to avoid detection.

The Commission named 1994 WSOP Main Event champ Russell Hamilton as the individual it believes is primarily responsible, adding that there were 31 individuals who were associated to varying degrees with Hamilton when the alleged cheating took place.

Names were not released to the public.

In total, the KGC's investigation revealed 23 accounts with 117 different usernames were used to facilitate the cheating and the money was disbursed using player-to-player transfers on the site.

The Commission has provided the results of its investigation to law enforcement authorities, who will determine whether criminal charges should be laid against one or more of the individuals involved.

The KGC noted that UltimateBet has taken significant steps to modify its control systems to prevent cheating and other improprieties in the future.

To read the full text of the release click here.

Ultimate Bet Investigation Report Released by KGC

Earlier today, the Kahnawake Gaming Commission (KGC) released a final report on their investigation into the cheating scandal involving Ultimate Bet (UB) and several online poker players. The story first broke in January of 2008, when complaints started filtering in about possible fraudulent activities taking place on Ultimate Bet’s tables. When it was discovered that all of the issues were with the same group of players, the KGC immediately launched an investigation into Ultimate Bet’s operations.

In the document released today, it was revealed that Tokowiro, UB’s owner, has refunded over $22 million to players affected by the illegal activities, as well as paid $1.5 million in fines to the Kahnawake Gaming Commission to fund the investigation. Tokowire will also remain on a one-year probation period, during which time they must make all of their records completely available to the KGC.

As many in the online world expected, Russ Hamilton was the man responsible for the majority of the shady dealings, with nearly all of the IP addressed in question somehow connected to his name. Overall, there were 23 accounts, 117 usernames, and 31 other individuals (whose names were not released) used to scam money out of loyal Ultimate Bet players. All information has been passed on to law enforcement officials, who will now determine whether there is enough evidence to file criminal charges.

Although the whole situation has no doubt left a stain on Ultimate Bet’s reputation, the KGC’s Chairman had this to offer about moving forward:

Despite the unfortunate circumstances that resulted in this cheating, we are satisfied that the actions taken by the Commission provided an equitable result for affected players - our first priority. We remain optimistic that this experience and the lessons learned from it will result in a higher standard of gaming regulation for companies licensed and regulated within the Mohawk Territory of Kahnawake and elsewhere.

The full text of the KGC’s report can be found here: www.kahnawake.com/gamingcommission

iMEGA, Poker Players Alliance React to UIGEA Ruling

Twenty-four hours ago, the Interactive Media Entertainment and Gaming Association (iMEGA) came up short in its bid to overturn the Unlawful Internet Gambling Enforcement Act (UIGEA). In the process, internet gambling may now become an industry governed by state law.

The Third Circuit Court of Appeals emphasized that the legality of internet gambling transactions may ultimately depend on where the bettor and operator are located. If the industry is permitted in both jurisdictions, then online poker players may be able to return to the felts in droves. The opinion, which was penned by Judge Dolores Sloviter, read in part, “Whether the transaction…constitutes unlawful internet gambling turns on how the law of the state from which the bettor initiates the bet would treat that bet, i.e. if it is illegal under that state’s law, it constitutes ‘unlawful internet gambling’ under the Act.”

In a press release distributed by iMEGA following Tuesday’s historic ruling, Chairman Joe Brennan noted, “The court made it clear - gambling on the internet is unlawful where state law says so. But there are only a half-dozen states which have laws against Internet gambling, leaving 44 states where it is potentially lawful. It’s not perfect, but it’s a good start.” Internet gambling law varies by state based on the type of transaction, number of times the consumer is raked, and game type, among other factors. Several states allow online lottery transactions and wagering on horse racing, while others like Utah and Hawaii ban all forms of commercial gambling.

What happens next is anyone’s guess. States may soon find it prudent to clarify laws and statutes related to internet gambling. In the meantime, a push by the Poker Players Alliance (PPA) on Capitol Hill for legalized and regulated online poker may come to fruition through future passage of a bill by Congressman Barney Frank (D-MA). PPA Executive Director John Pappas told Poker News Daily, “While I am disappointed that iMEGA’s full arguments did not prevail, it was encouraging to see the courts reaffirm that the UIGEA does not make playing internet poker illegal. The PPA and our legal team have long argued that the UIGEA should not force banks to block poker transactions in a vast majority of states. This decision might very well help as banks make those determinations on what to block; simply follow state law.”

On handing over the determination of whether internet gambling is permissible to the states, Brennan commented in the same press release, “States have always held the power to regulate gambling in this country, not the Federal government. The court’s ruling seems to say ‘back to the future’ when it comes to regulating internet gambling, so we will turn our attention to the states to make the case that this industry can be properly regulated and produce badly needed tax revenue.” Land-based gambling is already governed at the state level, with Nevada, New Jersey, and Mississippi leading the way. A bevy of riverboat casinos have also sprung up in states like Illinois, Indiana, and Missouri.

Brennan told Poker News Daily that the organization has not yet decided whether it will appeal the three-judge panel’s decision. The magistrates dismissed iMEGA’s claims that the UIGEA violated the First Amendment, Tenth Amendment, privacy rights, and treaty obligations over the course of its 10-page ruling. In the end, the cloudy law, which was passed during the waning moments of the 2006 Congressional session, was not declared unconstitutional, as iMEGA had hoped. However, the court’s ruling may have ultimately led to the same endgame, clarification of the legality of internet gambling and online poker in the United States.

Stay tuned to Poker News Daily for the latest reaction to iMEGA’s UIGEA challenge.

UIGEA Clarified: Legality of Internet Gambling Depends on State Law

A three-judge panel disagreed with many of the arguments made by the Interactive Media Entertainment and Gaming Association (iMEGA) on Tuesday as to why the Unlawful Internet Gambling Enforcement Act (UIGEA) should be deemed unconstitutional. In the process, however, internet gambling may now be a states’ rights issue.

The Third Circuit Court of Appeals passed down the historic ruling on Tuesday morning, which included the following text that should be of interest to online poker players: “It bears repeating that the Act itself does not make any gambling activity illegal. Whether the transaction… constitutes unlawful internet gambling turns on how the law of the state from which the bettor initiates the bet would treat that bet, i.e., if it is illegal under that state’s law, it constitutes ‘unlawful internet gambling.’” In essence, internet gambling apparently may be treated the same as brick-and-mortar gambling, which is governed at the state level. As it currently stands, six states have laws on the books outlawing internet gambling to various degrees.

The judges also indicated that the legality of internet gambling also depends on where the company accepting the wager is located: “The Act prohibits a gambling business from knowingly accepting certain financial instruments from an individual who places a bet over the internet if such gambling is illegal at the location in which the business is located or from which the individual initiates the bet.”

The panel, while seemingly clarifying the 2006 law, rejected iMEGA’s claims that the UIGEA was “void for vagueness” and violated First Amendment rights. On the latter point, the court explained that “acceptance of a financial transfer” is not a First Amendment right.

Despite the UIGEA not being overturned as a result of Tuesday’s actions, iMEGA Chairman Joe Brennan told Poker News Daily, “The judges went to pains to clarify that the law did not make internet gambling itself illegal. The UIGEA made no act illegal other than the payment processors taking money. The UIGEA defers to state laws to make the determination.” As long as the bettor and the internet gambling outfit are both located in jurisdictions where the activity is not outlawed, the UIGEA is not violated.

Brennan told Poker News Daily that he had not determined whether iMEGA would appeal the Third Circuit’s decision. It is also unclear whether the U.S. Government would appeal. Still also at issue is the Wire Act of 1961, which some would argue makes online poker and other forms of internet gambling illegal in the United States at the federal level. Brennan explained, “The Wire Act only affects businesses. Is the Wire Act still a problem? Yes, but it doesn’t make it illegal.” A feature by the CBS news program “60 Minutes,” for example, labeled online poker illegal multiple times, even though organizations like the Poker Players Alliance (PPA) contend that the 1961 law does not apply to internet poker.

The three-judge panel also rejected iMEGA’s claims that the UIGEA violated privacy rights and the Tenth Amendment. The latter asserts, “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.” The Third Circuit instead claimed that as a third party, iMEGA lacked standing to argue the point.

What effect Tuesday’s decision will have on the internet gambling industry in the United States remains to be seen. Congress returns from session after Labor Day, when the PPA plans to push Barney Frank’s (D-MA) HR 2266, which delays financial services industry compliance with the regulations of the UIGEA by one year to December 1st, 2010. The measure has 35 co-sponsors and was introduced in early May.

iMEGA plans to release additional analysis on its UIGEA challenge later today. Stay tuned to Poker News Daily for the latest poker legislation headlines.

National Council on Problem Gambling Comments on Menendez Bill

Earlier this month, Senator Robert Menendez (D-NJ) introduced S 1597, the Internet Poker and Games of Skill Regulation, Consumer Protection, and Enforcement Act. The bill includes provisions to address problem gambling.

Menendez’s measure calls for the licensing and regulation of internet games of skill like online poker in an effort that is narrower than Congressman Barney Frank’s (D-MA) HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act. At the end of Menendez’s legislation, $14.2 million per year over a five-year period is prescribed for problem gambling awareness, treatment, and research. National Council on Problem Gambling Executive Director Keith Whyte told Poker News Daily, “We think, overall, it’s responsible that if you’re going to have a bill that expands gambling, you put in money to address gambling problems.”

The text in Menendez’s bill comes from HR 2906, the Comprehensive Problem Gambling Act of 2009. The measure was introduced by a bipartisan contingent of Congressmen Jim Moran (D-VA), Lee Terry (R-NE), and Frank Wolf (R-VA) in mid-June amid support from the Council. Whyte explained, “We’re pleased that there’s a responsibility to mitigate problem gambling and we’re glad it’s the language from HR 2906. However, this would still only be the first ever federal funding for prevention and treatment programs. There is a lot more language in our House bill than what Menendez added. It’s not the entire bill.”

The Poker Players Alliance (PPA), the 1.2 million member strong lobbying group, was one of the driving forces behind the introduction of S 1597, which debuted shortly after the conclusion of National Poker Week. PPA Chairman and former three-term Senator from New York Alfonse D’Amato called Menendez’s bill “another powerful step towards protecting internet freedom, protecting consumers, and protecting online poker.” S. 1597 allocates $200,000 per year for awareness, $4 million per year for research, and $10 million per year for treatment.

Whyte revealed that the National Council on Problem Gambling plans to introduce a companion bill to HR 2906 in the Senate. In the meantime, Congress is currently on recess until after Labor Day in the United States. He noted, “We met with Menendez’s staff and asked him to introduce a companion bill to HR 2096 in the Senate. We did not specifically request that our language be included in his bill, but this is a good step.” The National Council on Problem Gambling does not support Menendez’s bill, however, because it calls for an expansion of gaming.

Much to the delight of online poker players, Menendez’s bill specifically identifies the game as a legal activity. It defines “internet skill games” to mean “an internet-based game in which success is predominantly determined by the skill of the players, including poker, chess, bridge, mahjong, and backgammon.” Frank’s HR 2267 boasts 54 co-sponsors after being introduced in early May along with HR 2266, which calls for the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) to be delayed by one year. As it currently stands, the financial services industry must come into full compliance with the 2006 law by December 1st. HR 2906 has attracted 10 co-sponsors, including Frank and Congresswoman Shelley Berkley (D-NV).

The National Council on Problem Gambling is based in Washington, DC. Text on the organization’s website reveals that it was founded on two mantras, “that the organization would be the advocate for problem gamblers and their families and that it would take no position for or against legalized gambling.” Its annual Awareness Week occurred from March 1st to 7th this year and included the organization reaching out to problem gamblers through popular social mediums like YouTube.

Stay tuned to Poker News Daily for the latest on Menendez’s bill to regulate online poker in the United States.

Mark Mayhew Named CEO of NEOVIA

NEOVIA, an online payment business that operates Neteller, Netbanx, Net+, and 1-Pay, announced that the search for its new President and Chief Executive Officer (CEO) has come to an end. Mark Mayhew will be stepping in to run the company starting in September.

NEOVIA’s previous CEO, Ron Martin, resigned from the position in March citing “family reasons” and ceased working at the end of May. The company’s Chairman of the Board, Dale Johnson, stepped in as the interim CEO while NEOVIA conducted a thorough search to find a replacement. In the end, the company settled on Mayhew because of his extensive background in payment operations. Prior to accepting the position with NEOVIA, Mayhew served as the Head of U.K. Consumer Banking at Morgan Stanley and the leader of CIMS, described by NEOVIA as “the individual membership business of Cendant.” Most recently, Mayhew served as the CEO of Debrett’s Ltd., a company that specializes in social etiquette.

Johnson had nothing but positive things to say about the new CEO in a statement released by NEOVIA earlier this month: “Mark is a very accomplished executive and his proven credentials in strategy formulation, operational development, and Plc governance, coupled with his deep financial services and payments expertise, uniquely qualify him to lead NEOVIA at this exciting time.”

Mayhew was equally enthusiastic when discussing his new position: “The company has a strong track record and also an eventful history, but I am excited by the opportunity to drive NEOVIA’s next phase of growth, building on the Group’s vision to deliver bold payment solutions to selected e-commerce communities.”

One challenge NEOVIA won’t have to worry about is future legal action stemming from processing payments from online gambling sites to U.S. customers. NEOVIA previously faced prosecution from the United States Attorney’s Office (USAO) following the passage of the Unlawful Internet Gambling Enforcement Act (UIGEA) in 2006 when it was still operating under the name Neteller. The USAO seized $60 million in Neteller funds in January of 2007 to use as evidence in a pending court case. Eventually, the company reached a Deferred Prosecution Agreement (DPA) with the USAO. As part of the agreement, Neteller consented to pay $136 million and take steps to prevent U.S. customers from transferring funds to and from online gambling sites via Neteller.

In the two years following the DPA, NEOVIA has complied with the terms of the settlement. Accordingly, the USAO announced earlier this month that the agreement has expired and the original complaint filed by the Southern District of New York has been dismissed.

With the last remnants of its legal troubles behind it, NEOVIA can now focus on the future. Customers located outside of the United States still use Neteller and NEOVIA’s other payment services to transfer funds on and off of online poker and other gambling-related sites. NEOVIA’s Neteller brand maintains close ties with the online poker community, most recently sponsoring June’s Poker in the Park event in London.

NEOVIA is a publically traded company on the London Stock Exchange, where it can be found under the symbol “NEO.”

World Poker Association Offers Health Insurance for Poker Players

It’s been a busy year for the World Poker Association (WPA), which has seen “Captain” Tom Franklin assume the role of Chairman. Poker News Daily sat down with the World Series of Poker (WSOP) bracelet winner for the latest developments, which include a health care plan designed for poker players.

Poker News Daily: Tell us about the WPA’s activities since you became Chairman.

Franklin: The WPA wants to continue to stick up for poker players and have a say in rules and regulations. We’re also trying to put things together that will benefit players. For example, during the WSOP, we had health insurance available. For being a member of the WPA, you can have better health insurance and better dental insurance.

We also heard complaints on rule interpretations so that players can have a place to make their voices heard. We’ll then take it up with whomever we need to on the tournament staff. We’re also trying to write up a rulebook that will be accepted. The only time you have a gray area in poker is when you have misinformation. If everyone gives you the right information, it’s not a gray area; it’s absolute.

PND: We’ve heard about the health insurance program. How has it been received by current and prospective WPA members?

Franklin: Anyone who is a member of the WPA can get it. They can call up, say that they’re a member of the WPA, and ask how much it costs. When we get to 20 or 30 players taking advantage of it, we can have the best pricing possible. A lot of poker players don’t have the opportunity to receive any other health insurance since they don’t have a formal job. The insurance we receive is pretty reasonable. You can get really good comprehensive insurance for $350 per month.

PND: Can you talk more about your membership drive?

Franklin: Right now, we’re sending out e-mails. At the WSOP, we had a deal that if you bought a WPA membership, you got a ticket for a raffle. We’re going to go to a couple more tournaments and have a booth. We’re also trying to get a few companies to become premium members of the WPA.

PND: What kinds of companies would make good fits for WPA memberships?

Franklin: Poker rooms, casinos, and anything to do with gaming and/or poker would be good fits. We talked to some of the websites, but we can’t work with them because of the laws.

PND: Jesse Jones did an admirable job of getting the WPA off the ground. Will there be any changes in strategy now that you’re in charge?

Franklin: The philosophy of the WPA is the same. Our biggest goal is to centralize the rules so that they’re the same in any venue. First, we’re trying to get the perfect rulebook and I think we’re close. In Mississippi, I wrote the standards for every Grand Casino in the state, including poker. When they’re absolute, they’re great rules.

The next step is to have penalties for those who break the rules. It’s just like disciplining a child. If you tell a child that you’ll break their arm, it has no effect because you won’t actually break it. If you say you’ll put them time out for 30 minutes and then do it, it has an effect. In Mississippi, we brought down all of the poker room managers to be in on the discussion. I interpreted the rules for them. We did it all together so that everyone interpreted the rules the same.

Check out the official website of the World Poker Association.

Poker News in Brief: Aug 17-23, 2009

As part of PokerListings' ongoing News in Brief feature, we've compiled a list of those stories below.

This week an NHL star is playing poker for charity, Absolute Poker is sending players to the Bahamas, PKR is celebrating a birthday and more.

((WPT)) gets another offer

As reported on PokerListings last week, a privately held investment group under the name Gamynia Limited agreed to pay $9,075,000 plus a percentage of future revenues for almost all of the WPT's assets, including its television, sponsorship, distribution and licensing units.

The deal was awaiting stockholder approval, but in the interim, another buyer has stepped up to the plate.

After filing a preliminary proxy statement with the SEC, the WPT's Board of Directors received an alternative offer and is forced by SEC guidelines to consider it.

Details regarding the new offer and where it came from were not released publicly.

Absolute sending players to Atlantis

Absolute Poker is running online qualifiers for The Sports Legends Challenge at the Atlantis resort on Paradise Island in the Bahamas.

Dubbed a sports fan's ultimate fantasy, The Sports Legends Challenge will feature four days of casino gaming, poker, and golf tournaments with 25 of the world's greatest sports superstars Sept. 14-17.

Already confirmed are mixed martial arts legends Chuck Liddell and Randy Couture, skateboard icon Tony Hawk, hockey legend Mark Messier, Troy Aikman, Sugar Ray Leonard, Richard Petty, Kareem Abdul-Jabbar, Joe Namath, Reggie Jackson and more.

Absolute's $200+15 online qualifiers will run each week Wednesday through Sunday at 10:45 p.m. ET until Sept. 6 awarding a minimum of one Sports Legend package per tournament.

Lecavalier hosting charity poker tournament

NHL star Vincent Lecavalier will be hosting a charity tournament at The Casino de Montréal Sept. 1.

Several NHL greats are expected to be on hand in Montréal, Canada for the event, including Guy Carbonneau, Stéphane Quintal and Vincent Damphousse.

The buy-in is $350 with a $150 optional rebuy and a total of $60,000 in prizes will be up for grabs.

Lecavalier will be the honorary chairman of the tournament and proceeds will go to the Vincent Lecavalier Foundation to support financially-at-risk youth.

Registration will be taken at the Casino de Montréal's Poker Reception Desk or by telephone at 514-392-2720 or 1-800-665-2274.

Happy Birthday PKR

PKR celebrated its third birthday and the registration of its 3,000,000th player this week.

The 3,000,000th player registered on PKR Aug. 16, just 24 hours before the site's third anniversary of real-money play.

Over one million new players joined PKR this year alone.

"We're very pleased with the year's achievements, and it's especially exciting to see us maintain such a high rate of growth," PKR Marketing Director Simon Prodger said.

Gary Kaplan Pleads Guilty in BetOnSports Case

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

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

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

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

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

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

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

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

Sammy George to Play Tom Dwan in London Durrrr Challenge

Sammy “Any Two” George will square off against online poker sensation Tom “durrrr” Dwan in the Million Dollar Challenge that will take place in London next month. George is the first player to take Dwan up on his unique proposition bet. Three more will be announced.

A total of 500 hands will be played between George and Dwan heads-up. The buy-in is a scant $500,000 and blinds will be set at $500/$1,000. According to Matchroom Sport, which is promoting and organizing the festivities, “No player can leave the contest until either the 500 hands are up or the player has bust.” Dwan is currently battling against Full Tilt Poker pro Patrik Antonius in the online version of the Million Dollar Challenge. However, there has been no action in the high-stakes contest since June, leaving many to wonder if the Durrrr Challenge will see an ending.

George hails from London and told Matchroom Sport, “I’m buzzing – what could be sweeter than playing in the world’s biggest heads-up match against Durrrr? I’m stepping up to the plate and putting my money where my mouth is and it will be an honor to represent my country against the best the U.S. has to offer.” George has appeared on “Poker Million,” finishing sixth in its semi-final last December for $20,000 after battling against a talented table that included David “Devilfish” Ulliott, Marty Smyth, Roy Brindley, and Tony G. George finished 21st in the 2009 World Poker Tour (WPT) Bellagio Cup for $23,000. Alexandre Gomes, a member of Team PokerStars Pro and one of the finest Brazilian poker players in the world, won the $15,000 buy-in tournament.

The Durrrr Challenge between Dwan and Antonius kicked off in February on the virtual felts of Full Tilt Poker. The duo has logged 20,647 hands of $200/$400 Pot Limit Omaha and need 50,000 to finish. When the requisite number of hands has been completed, if Dwan is ahead by at least $1, Antonius must pay up $500,000. If Antonius is up by at least $1, Dwan will shell out $1.5 million. In addition, bragging rights for years to come are on the line, as are the spoils of the 50,000 hands. However, mid-June marked the last action in the Million Dollar Challenge, leaving many to doubt its future.

In July, Dwan announced that a live version of the Million Dollar Challenge would be held in London this September. Four players will take him on in the European city in what will surely be one of the most unique live poker promotions ever held. In George, Dwan will battle against a top-tier cash game player who regularly hits the felts in high-stakes games venues around London. No date or location for the spectacle has been announced.

On September 18th, the WSOP Europe tournament series will kick off at the Casino at the Empire in London. The £10,000 buy-in Main Event begins on September 26th. It’s a five day tournament that will feature two starting days. In 2007, Team Betfair pro Annette “Annette_15” Obrestad brought home the gold in London, while John Juanda claimed victory last year.

Antonius was one of 500 players shut out of the $10,000 buy-in WSOP Main Event in Las Vegas after Day 1D sold out in July. Also left out in the cold were five-time bracelet winner Ted Forrest, Poker Hall of Fame member T.J. Cloutier, and “Captain” Tom Franklin, the Chairman of the World Poker Association.

Three more challengers are waiting in the wings for Dwan in London. We’ll have breaking news on the Tom Dwan Million Dollar Challenge as it becomes available right here on Poker News Daily.

Sammy George to Play Tom Dwan in London Durrrr Challenge

Sammy “Any Two” George will square off against online poker sensation Tom “durrrr” Dwan in the Million Dollar Challenge that will take place in London next month. George is the first player to take Dwan up on his unique proposition bet. Three more will be announced.

A total of 500 hands will be played between George and Dwan heads-up. The buy-in is a scant $500,000 and blinds will be set at $500/$1,000. According to Matchroom Sport, which is promoting and organizing the festivities, “No player can leave the contest until either the 500 hands are up or the player has bust.” Dwan is currently battling against Full Tilt Poker pro Patrik Antonius in the online version of the Million Dollar Challenge. However, there has been no action in the high-stakes contest since June, leaving many to wonder if the Durrrr Challenge will see an ending.

George hails from London and told Matchroom Sport, “I’m buzzing – what could be sweeter than playing in the world’s biggest heads-up match against Durrrr? I’m stepping up to the plate and putting my money where my mouth is and it will be an honor to represent my country against the best the U.S. has to offer.” George has appeared on “Poker Million,” finishing sixth in its semi-final last December for $20,000 after battling against a talented table that included David “Devilfish” Ulliott, Marty Smyth, Roy Brindley, and Tony G. George finished 21st in the 2009 World Poker Tour (WPT) Bellagio Cup for $23,000. Alexandre Gomes, a member of Team PokerStars Pro and one of the finest Brazilian poker players in the world, won the $15,000 buy-in tournament.

The Durrrr Challenge between Dwan and Antonius kicked off in February on the virtual felts of Full Tilt Poker. The duo has logged 20,647 hands of $200/$400 Pot Limit Omaha and need 50,000 to finish. When the requisite number of hands has been completed, if Dwan is ahead by at least $1, Antonius must pay up $500,000. If Antonius is up by at least $1, Dwan will shell out $1.5 million. In addition, bragging rights for years to come are on the line, as are the spoils of the 50,000 hands. However, mid-June marked the last action in the Million Dollar Challenge, leaving many to doubt its future.

In July, Dwan announced that a live version of the Million Dollar Challenge would be held in London this September. Four players will take him on in the European city in what will surely be one of the most unique live poker promotions ever held. In George, Dwan will battle against a top-tier cash game player who regularly hits the felts in high-stakes games venues around London. No date or location for the spectacle has been announced.

On September 18th, the WSOP Europe tournament series will kick off at the Casino at the Empire in London. The £10,000 buy-in Main Event begins on September 26th. It’s a five day tournament that will feature two starting days. In 2007, Team Betfair pro Annette “Annette_15” Obrestad brought home the gold in London, while John Juanda claimed victory last year.

Antonius was one of 500 players shut out of the $10,000 buy-in WSOP Main Event in Las Vegas after Day 1D sold out in July. Also left out in the cold were five-time bracelet winner Ted Forrest, Poker Hall of Fame member T.J. Cloutier, and “Captain” Tom Franklin, the Chairman of the World Poker Association.

Three more challengers are waiting in the wings for Dwan in London. We’ll have breaking news on the Tom Dwan Million Dollar Challenge as it becomes available right here on Poker News Daily.

Online Poker Warrants to be Unsealed as Judge Sides with Gambling911

In breaking news out of the Southern District of New York, Judge Laura Swain has sided with Costigan Media, the parent company of Gambling911, and ordered the warrants and affidavits associated with the seizure of over $30 million in funds destined for online poker players to be unsealed.

Swain submitted 14 pages in support of Costigan Media and the online poker community. In Tuesday’s ruling, she decreed, “The Court is required to order disclosure absent compelling reasons to deny access and even then must employ the least restrictive means of doing so.” Several sections of the warrants and affidavits are redacted, while the complete versions will remain under seal. In addition, Judge Swain mandated, “The Government is directed to make a report to the Court… as to the status of the relevant investigative and seizure activities, within 120 days… and in any event within seven calendar days of any occurrence that obviates the need for continued redaction.”

Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan told Poker News Daily why Judge Swain’s ruling on Tuesday was groundbreaking: “Costigan Media was afforded the same right of access that the New York Times and Washington Post sometimes receive. The Department of Justice has to report back to the Court on an ongoing basis in order to determine whether the remaining information can be released.” On what information was axed from the warrants and affidavits before they were made public, Brennan speculated, “It’s more than likely names of people who are cooperating witnesses or the targets of investigation.”

Poker News Daily has obtained a copy of the affidavit sworn to by FBI Special Agent Dana Conte for the seizure of funds located in a Wells Fargo branch in California. It reads, “There is probable cause to believe that the Defendant Account Services contains property involved in actual or attempted money laundering transactions… In addition, there is probable cause to believe that the Defendant Account contains property that constitutes or is derived from proceeds traceable to the operation of an illegal gambling business.”

The affidavit reveals that the FBI has been tracking “illegal internet gambling businesses” since 2006. The target sites offer online poker, sports betting, and casino games. A six-page section outlining the issuing of payment checks and funds transfers was marked out. Conte’s document concludes with, “I also respectfully request that this Affidavit be sealed until further order of the Court, so as to not jeopardize the investigation of this case.” Conte swore to the affidavit on June 2nd. The document was signed by Judge Theodore Katz, who then ordered it sealed until further notice.

The affidavit filed by Conte relating to funds held in a Union Bank branch discusses the Wells Fargo seizure that took place three weeks prior. On the offshore internet gambling outfits, Conte comments, “Although these gambling businesses are based offshore, the vast majority of their customers are in the United States. Consequently, the internet gambling businesses necessarily rely on the United States financial system to move funds.” Once again, a six-page section was redacted from the record. The Union Bank affidavit was filed on June 24th, 12 days after the actual seizure occurred, and signed by Judge Henry Pitman.

Brennan explained that attorneys for Costigan Media will review the redacted documents and can appeal: “They could appeal to have the documents fully released. Their legal team will take a look at it and decide.” Each affidavit is 13 pages long; half is redacted.

Judge Swain had originally indicated that she would release a decision on the motion to unseal the records last week after lawyers for both sides debated the issue on July 27th. On Thursday, Costigan Media issued a letter to Judge Swain outlining the indictment of Account Services’ Douglas Rennick on bank fraud, money laundering, and illegal gambling charges.