Poker News

California Intrastate Online Poker Update

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

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

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

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

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

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

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

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

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

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

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

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

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

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

PND: Give us an update on your Florida endeavors.

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

Players Alliance backs Colorado appeal

"Given the Weld County District Court judge's ruling that poker is gambling because of the small element of chance in the dealing of cards, one could easily presume that any game that depends even a little on chance - from Monopoly to Yahtzee to Candy Land - is gambling and therefore illegal in the state of Colorado," said John Pappas, executive director of the PPA.

"We clearly think this is the wrong interpretation of the law, especially in regard to poker."

In 2008, five people were arrested and charged with illegal gambling at a $20 buy-in No Limit Hold'em tournament held in a Colorado bar, including tournament organizer Kevin Raley.

After arguing that poker is a game of skill, and therefore not gambling, Raley was acquitted and charges were dropped against the other four defendants.

During the trial, University of Denver professor Bob Hannum was called to testify that poker is indeed a skill game.

In an effort to clarify Colorado's laws regarding poker, the state appealed the ruling that Hannum be allowed to testify.

On Aug. 4 a County District Court Judge ruled poker is already considered gambling under Colorado law and Hannum's testimony should not have been allowed.

Although the state will not re-file the charges, Raley is now planning to appeal of the decision in the Colorado Supreme Court.

"The choice to petition the Colorado Supreme Court is about more than me or my friends," Raley said. "It's about all poker players' opportunity to ensure that current Colorado law recognizes that poker is a game of skill and is based on much more than the luck of the draw.

"So much has changed regarding poker and how the game is perceived publicly; it is disheartening to see this great game treated as a crime because of a misapplication of the law."

The PPA has more than one million U.S. members including more than 13,000 in Colorado and is standing firmly behind Raley.

"The PPA is going to do everything in its power to support Mr. Raley's efforts in order to protect PPA members and all poker players in the state of Colorado," said the PPA's Colorado State Director, Gary Reed.

"I am especially alarmed because this ruling ignores the abundance of research that proves poker is a game of skill and confuses rather than clarifies the matter for law enforcement."

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Jim Tabilio Leaves Poker Voters of America

With the organization growing leaps and bounds, Jim Tabilio has left his post after founding the Poker Voters of America, an advocacy group that promotes protection of online poker players in California and around the United States.

Tabilio founded Poker Voters of America two years ago. He was well-suited for the role, having served as a poker player and political consultant. Now, Melanie Brenner has assumed the role of Executive Director and told Poker News Daily why Tabilio stepped down: “Jim has a family and is at a point in his life where he has other things he wants to do. This has been extremely time consuming, especially when the decision was made that we could do this in other states. It was a unique opportunity since states are looking for revenue.” Tabilio will remain on in an advisory role.

California is one of many states actively searching for new forms of revenue in the wake of budget shortfalls caused by a severe economic downturn. Brenner explained what could occur: “There are going to be big budget shortfalls that may make a lot of the challenges against legalized online poker evaporate. When you’re able to say to a legislator that it’s about revenue, they know the state needs it. You’re spending millions of dollars protecting live poker players, but there are a lot of other players not being protected online.” Brenner noted that she expects movement towards legalized and regulated intrastate poker in California in the near future.

According to eGaming Review and H2 Gambling Capital, legalizing intrastate online poker in California could generate $250 million per year for 10 years and $625 million per year after that. Brenner added that Poker Voters of America is also hard at work in Florida pushing for intrastate online poker. As such, she is constantly traveling back and forth to promote the organization’s agenda. Brenner explained, “The biggest pushback we get is that legalizing online poker is just the tip of the iceberg. With that kind of mentality, nothing gets done.”

During National Poker Week, over 30 State Directors of the Poker Players Alliance (PPA) and a handful of the game’s elite descended on Capitol Hill in Washington, DC to call for the legalization and regulation of online poker in the United States. Poker News Daily was also on the scene in the nation’s capital. Several obstacles we ran into were Congressmen and their staffers not understanding how to play online poker, what safeguards are in effect to combat underage and problem gambling, and how deposits and cashouts work. Brenner told Poker News Daily, “The major challenge hasn’t been on the legislative side, it’s been educating the stakeholders on how online poker works. It’s been fascinating talking with legislators about online poker.”

In addition to California and Florida, the Poker Voters of America is directing its attention towards New York, New Jersey, Pennsylvania, and Louisiana. In each case, local casinos would likely be able to open their own online poker rooms, although Brenner noted that several are apprehensive for fear that it will cannibalize their live business. The Bicycle Casino in Bell Gardens, California is set to play host to the World Poker Tour’s (WPT) Legends of Poker Main Event on August 22nd. The $10,000 buy-in tournament will crown a champion four days later. In February, the WPT returns to the state for the Commerce Casino’s L.A. Poker Classic. A Celebrity Invitational follows the $10,000 buy-in event.

Membership to the Poker Voters of America is free and requires a person’s first name, last name, e-mail address, and mailing address. Becoming a part of the PPA is also free, although a premium membership is available for $20 per year.

Online Poker Payment Processor Indicted in New York

Douglas Rennick, who worked with the internet gaming payment processors KJB Financial Corporation, Account Services, My ATM Online, Alenis Limited, and Check Payment Financial, has been indicted on bank fraud, money laundering, and illegal gambling charges.

The announcement came via a press release distributed by the U.S. Department of Justice on Thursday. U.S. Attorney for the Southern District of New York Lev Dassin and FBI Assistant Director Joseph Demarest headed the indictment, which charged Rennick with “bank fraud and other offenses stemming from his role in processing more than $350 million for Internet gambling companies.” Rennick is a Canadian citizen who was involved in the business of processing payments for various companies since 2007. The investigation into his activities was concluded in June, coinciding with the seizure by the Southern District of New York of over $30 million in funds destined for online poker players.

When Rennick and company opened the accounts in question, they stated that funds would be used for activities like “issuing rebate checks, refund checks, sponsorship checks, affiliate checks, and minor payroll processing,” according to the statement from the Department of Justice. In addition to processing online poker payments, Rennick’s accounts were also used to issue winnings for online blackjack, slots, and other casino games. No mention of sports betting was given. Funds were sent to U.S. residents under the names KJB Financial Corporation, Account Services, My ATM Online, Alenis Limited, and Check Payment Financial.

A bank in Cyprus funneled $350 million to U.S. bank accounts for the payment processing. Rennick was charged with one count of bank fraud, one count of money laundering, and one count of operating an illegal gambling business. He faces up to 55 years in prison combined, with bank fraud carrying up to a 30 year sentence, money laundering carrying up to a 20 year sentence, and illegal gambling carrying up to a five year sentence. He also faces up to $1.75 million in total fines for the three charges.

Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan told Poker News Daily just moments after the news broke this morning, “We’re taking a wait and see attitude instead of taking the knee-jerk reaction to defend the processor. We’re going to take a step back to see what the processor has been doing. If they’ve been engaged in bank fraud, then they are not doing the online poker world any favors.”

The Department of Justice is also seeking the return of $565,000 from Rennick as well as the funds in Union Bank and Wells Fargo branches under the name Account Services. That payment processor recently filed a motion for return of property of $14 million in funds seized from bank branches in California. Its hearing in the United States District Court for the Southern District of California is scheduled for August 21st, two weeks from tomorrow. The Poker Players Alliance (PPA) submitted a motion to contribute an amicus brief in support of Account Services and the organization officially has until Friday to submit it. PPA Executive Director John Pappas told Poker News Daily that the PPA will still file an amicus brief in the case that will focus on proving that poker is a game of skill.

On the future of the Account Services case, Brennan speculated, “It’s going to be difficult for them to do both things at once, to bring a civil action in California while Rennick is the target of a criminal indictment. It’s going to be difficult to proceed with both of the actions.” Pappas had no comment on Rennick’s indictment. Account Services counsel Michael Pancer was out of the office on Thursday.

A call placed to the U.S. Department of Justice revealed that no timetable has been set for the indictment from here. We’ll keep you posted on Poker News Daily.

Senator Menendez to Introduce Online Poker Legislation on Thursday

In breaking news from Capitol Hill, Senator Robert Menendez (D-NJ) will introduce legislation to license and regulate online poker in the United States on Thursday, according to Dow Jones Newswires.

During National Poker Week, which occurred from July 19th to 25th, it was revealed that Menendez would likely drop legislation during the festivities or the following week. Then, Poker News Daily learned that a bill similar to last Congressional session’s S 3616 would likely be introduced this week. Poker Players Alliance (PPA) Executive Director John Pappas stated during a working dinner to open National Poker Week, “Pushing poker will be an immediate lift and will be easier than [legalizing] other things.” He also reminded over 30 of the PPA’s State Directors, a handful of poker pros, and media in attendance, “Poker has always been played in people’s homes. We are the Poker Players Alliance. We aren’t the Roulette Alliance. We love the Menendez bill because it focuses on our core beliefs.”

The PPA had a draft of the bill in mid-July. Menendez’s S 3616 was introduced last September and dubbed the Internet Skill Game Licensing and Control Act. The bill’s definitions specifically included online poker, explicitly legalizing the game in the United States: “The term ‘Internet skill game’ means an Internet-based game that uses simulated cards, dice, or tiles in which success is predominantly determined by the skill of the players, including poker, bridge, and mahjong.” The bill called for the legalization of skill games not backed by the house, meaning that the action was primarily player versus player. Online poker rooms like PokerStars and Full Tilt Poker raise revenue by taking a percent of each pot or tournament buy-in, dubbed the “juice” or “rake.”

In order to apply for a license to operate a skill game online and solicit customers from the United States, complete financial information was required. Also required were an outline of an organization’s corporate structure and the “names of all persons directly or indirectly interested in the business of the applicant and the nature of such interest.” Background checks of individuals and directors associated with each licensee would have been conducted and betting on sports was specifically prohibited. S 3616 vanished from the record after the 110th Congress adjourned.

According to the PPA, the legislation to be introduced by Menendez on Thursday will be similar to S 3616. The Dow Jones report notes, “It would establish a regulatory framework that would allow online poker companies to register in the U.S.” A 10% tax on deposits would be added, 5% to State Governments and 5% to the Federal Government. During the last Congressional session, Congressman Robert Wexler introduced a similar measure in HR 2610, the Skill Game Protection Act, which exempted poker and other skill games from existing internet gambling legislation.

At the beginning of May, Congressman Barney Frank (D-MA) introduced HR 2266, which would delay industry compliance with the Unlawful Internet Gambling Enforcement Act (UIGEA) by one year to December 1st, 2010. In addition, the Massachusetts lawmaker unveiled HR 2267, which establishes a comprehensive licensing and regulatory framework for the internet gambling industry in the United States. HR 2267 currently boasts 54 co-sponsors, while HR 2266 has 35.

We’ll have full details on Menendez’s new Senate bill as soon as it’s released right here on Poker News Daily.

Poker’s march on Washington works

July 19-25 was the first National Poker Week organized by the Poker Players Alliance and the results speak for themselves.

Over the span of the week the PPA collected over 375,000 signatures on a petition to President Barack Obama supporting the legalization of online poker, nearly 200,000 letters/emails were sent to U.S. representatives and members of the PPA attended over 100 congressional meetings.

Even radio host Howard Stern signed up as a member of the PPA.

"I think we made a very strong impression on lawmakers who weren't aware of online poker or maybe even opposed it," said PPA executive director John Pappas. "We raised the overall understanding of the situation."

Pappas, PPA Chairman Alfonse D'Amato, 33 PPA state directors and seven poker pros including Andy Bloch, Annie Duke, Jan Fisher, Howard Lederer, Dennis Phillips, Linda Johnson and Greg Raymer all made the trip to Washington, D.C. to show their support for legislation that would legalize and regulate online poker in the United States.

"I truly feel we are winning on this issue and the time is ripe for pro-poker legislation to pass into law," said the aforementioned Bloch.

It has been an uphill battle, according to Pappas, but the group finally seems to be making some headway.

"There is obviously a great fear when it comes to online gambling," he said. "People are concerned about having a casino in every home. That's not necessarily the case as we are bringing a skill game into people's homes.

"This isn't anything new. People have been playing poker in their homes for their entire lives. This way the government would be able to collect tax revenue from it."

The organization put a great deal of support behind Rep. Barney Frank's Internet Gambling Regulation, Consumer Protection and Enforcement Act (HR 2267) which was originally scheduled for a hearing in July.

The proposed hearing was postponed to September, but the PPA was still able to convince seven more representatives to co-sign the bill, which is now up to 54 co-sponsors. Rep. Betsy Markey, Rep. Bill Pascrell and Rep. Russ Carnahan were all among the recent co-sponsors.

"We had several goals in Washington and I think we exceeded them all," Pappas said. "It was a great success. The only thing we weren't able to do is actually meet with President Obama and present him the petition with signatures. We hope to accomplish that later this year."

Despite the fact that National Poker Week is over, the PPA will continue to educate politicians about the game.

"We will continue to talk to people and promote the game," said Pappas. "We hope to set the stage for Frank's bill in early to late September.

"We also have the short-term goal of getting poker excluded from the current Unlawful Internet Gambling Enforcement Act, which will officially be enforced as of Dec. 1, 2009. We want them to leave poker out of that legislation because poker is a skill game."

Pappas went on to say that New Jersey Senator Robert Menendez will finally be dropping his long-awaited poker-only bill tomorrow (August 6).

In the end, when it comes to the future of online poker, Pappas was optimistic.

"I think it's going in the right direction," he said. "For the first time we are on the offensive when it comes to legislation. We're seeing numerous pro-poker bills and I haven't seen a single anti-poker bill introduced for months.

"The bills that have been introduced lately have all been about extending poker player's rights."

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Barney Frank’s Internet Gambling Bill Breaks 50 Co-Sponsors

This week saw Congressman Barney Frank’s (D-MA) HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, officially break 50 co-sponsors. The bill establishes a complete licensing and regulatory framework for internet gambling outfits to solicit U.S. customers.

The addition of two Congressmen officially pushed the support to over 50 co-sponsors. On July 27th, just a few days removed from the conclusion of National Poker Week, Congressman Mike Thompson (D-CA) lent his name to the bill to become co-sponsor #50. One day later, Congressman Dan Maffei (D-NY) joined on. Flanking Thompson and Maffei are Congressmen from both sides of the aisle. Each has come out to support legalizing the internet gambling industry in the United States and reaping tax revenue in return. Here is a full list of HR 2267’s co-sponsors, as given by the Safe and Secure Internet Gambling Initiative (SSIGI), along with the political party each belongs to (Democrat or Republican):

Alaska
Don Young (R)

Arizona
Raul Grijalva (D)

California
Michael Thompson (D)
George Miller (D)
Michael Honda (D)
Linda Sanchez (D)
Bob Filner (D)

Colorado
Jared Polis (D)
Ed Perlmutter (D)

Connecticut
Joe Courtney (D)

Florida
Robert Wexler  (D)
Alcee Hastings (D)

Hawaii
Neil Abercrombie (D)

Idaho
Walt Minnick (D)

Illinois
Luis Gutierrez (D)
Bill Foster (D)

Indiana
Andre Carson (D)

Massachusetts
James McGovern (D)
Barney Frank (D)
Michael Capuano (D)
William Delahunt (D)

Michigan
John Conyers (D)

Nevada
Shelley Berkley (D)

New Hampshire
Paul Hodes (D)

New Jersey
Robert Andrews (D)
Frank LoBiondo (R)
John Adler (D)
Steven Rothman (D)

New York
Tim Bishop (D)
Steve Israel (D)
Peter King (R)
Carolyn McCarthy (D)
Gary Ackerman (D)
Joseph Crowley (D)
Jerrold Nadler (D)
Edolphus Towns (D)
Mike McMahon (D)
Charles Rangel (D)
Paul Tonko (D)

North Carolina
Melvin Watt (D)

Ohio
Steve Driehaus (D)
Tim Ryan (D)

Oregon
Earl Blumenauer (D)

Tennessee
Steve Cohen (D)

Texas
Ron Paul (R)
Ciro Rodriguez (D)

Virginia
Bobby Scott (D)
Tom Perriello (D)
James Moran (D)

Washington
Jim McDermott (D)

HR 2046, introduced during the last Congressional session and labeled the Internet Gambling Regulation and Enforcement Act, garnered 48 co-sponsors. Frank unveiled it to the world in April of 2007, but it was not acted upon. The new version forbids gambling on any event that would violate the Professional and Amateur Sports Protection Act. However, Poker Players Alliance (PPA) Executive Director John Pappas noted during National Poker Week that sports leagues are seeking clearer language in the bill. He explained, “Changes need to be made to explicitly outlaw sports betting.”

HR 2266 was introduced on May 6th, the same day as HR 2267, and calls for industry compliance with the 2006 Unlawful Internet Gambling Enforcement Act (UIGEA) to be delayed by one year to December 1st, 2010. The measure is dubbed the Reasonable Prudence in Regulation Act and is up to 32 co-sponsors. On its sister bill reaching the milestone 50th co-sponsor, SSIGI spokesperson Jeff Sandman commented in a press release, “Reaching this milestone illustrates that momentum is growing for a shift in U.S. policy and a rewrite of U.S. internet gambling laws. We also expect an increased spotlight on internet gambling as a way to augment federal revenues and help cover the cost of necessary policy initiatives.”

During a Fly-In orchestrated by the PPA as part of National Poker Week, over 100 meetings were held with Congressmen and their staffs from around the United States. Attendees included 33 PPA State Directors and a handful of poker’s elite, including Poker News Daily Guest Columnists Annie Duke and Linda Johnson, PokerStars pros Dennis Phillips and Greg Raymer, Full Tilt Poker pros Andy Bloch and Howard Lederer, and online poker sensations Chris “Fox” Wallace and Jordan “iMsoLucky0” Morgan.

Over 375,000 concerned players signed an online poker petition, which was presented to U.S. President Barack Obama last week. In addition, nearly 200,000 letters and e-mails were sent to Representatives and Senators during National Poker Week. The PPA’s Randy Law admitted that just 80,000 were sent during the entire 2008 calendar year. The organization currently has over 1.2 million members after boasting only 50,000 in mid-2006.

I’m Going to Be a Lobbyist in My Next Lifetime

I recently returned from a trip to Washington, DC in which I was privileged to be part of the Poker Players Alliance’s (PPA) National Poker Week Fly-In. Part of this event included a gathering of 33 PPA State Directors, a handful of poker celebrities, and various lobbyists and media members. Our goal was to gain support for favorable online poker legislation and specifically for House Financial Services Chairman Barney Frank’s HR 2267, which would establish federal licensing and regulation of online poker.

My first impression of Capitol Hill is that I have never seen so many men and women dressed in business attire, scurrying from one building to another, carrying files and folders, all with an agenda to fulfill. The experience of actually seeing our government at work and being part of the process was incredible.

The Fly-In started out with a working dinner at which the participants got a chance to network with each other and hear brief speeches from Alfonse D’Amato, Congressman Robert Wexler, and John Pappas, Executive Director of the PPA.  Afterwards, we were given our meeting schedules for the next two days. My list of appointments included Senators Charles Schumer and Dianne Feinstein, and Representatives Tim Bishop, Shelley Berkley, Dina Titus, and Lynn Westmoreland. I had been given a list of talking points and became comfortable with them through many role-playing scenarios with Jan Fisher and my brother Rich Plante, who accompanied me on the trip.

At each of our meetings, we were taken into an office or small boardroom and allowed to make a presentation about why we believe that online poker should be completely legal, licensed, and regulated in the United States. Most times, there was a lobbyist with us and two or more PPA representatives present. I actually preferred the meetings without a lobbyist, as this gave us more time to personalize our stories and yet were still able to present the persuasive positive points about our position.

Here are some of the facts we presented in our meetings to encourage support of HR 2267:
1. More than 10 million Americans play online poker.
2. If online poker sites were licensed, American citizens would be protected from scam artists who don’t operate their sites with integrity. In addition, we would have legal recourse in U.S. courts if problems occurred.
3. Studies show that approximately $3.3 billion in tax money would be raised annually if online poker were regulated.
4. HR 2267 would provide effective protection to keep underage children from gambling online.
5. HR 2267 provides help to compulsive gamblers.
6. 75% of Americans oppose a ban on internet poker.
7. Poker is a game of skill. State courts in South Carolina, Pennsylvania, and Colorado have recently come to this conclusion.
8. Licensing and regulating online sites would create jobs. I know many people who lost their jobs as marketing directors and party planners when the Unlawful Internet Gambling Enforcement Act (UIGEA) passed.

We also made personal pleas to Senators, Congressmen, and staffers. For instance, I brought up how embarrassing it is that in the “Land of the Free,” we don’t have the same right to fund an online poker account and play in our own homes that citizens of most other countries in the world have. I also brought up the fact that my brother, who lives in Utah where there are no casinos, will eventually have to leave his home state if he wants to play poker unless we get the law changed. There are millions of physically-challenged and infirmed citizens who aren’t able to travel to a casino to play poker. Instead, playing online in their homes can bring them happiness in an otherwise depressing, painful life.

I believe that we helped sway opinions in a positive way through our Congressional meetings. Lots of questions were asked and answered that made it obvious that licensing and regulation is the best way to go regarding online poker. Since the Fly-In, three members of Congress (Representatives Linda Sanchez, John Conyers, and Mike Thompson) have signed on to co-sponsor HR 2267, bringing the total to 51. Many more will follow suit… it only makes sense!

The trip wasn’t all business, though; we had some time for fun in between our meetings. A special treat was lunch at the Pentagon in the Army Executive Dining Room hosted by a Brigadier General friend of mine. After lunch, we were given a tour of the 9/11 Memorial and the Tomb of the Unknown Soldier at Arlington National Cemetery.

I also got to play in a charity poker tournament along with 35 patients from Walter Reed Army Medical Center. Celebrities in attendance included Andy Bloch, Annie Duke, Jan Fisher, Howard Lederer, Dennis Phillips, Montel Williams, and members of Congress and their staff. The PPA donated $25,000 to seed the effort and another $10,000 was raised through rebuys, bounties, and donations. My trip to Washington, DC was truly a top-ten event in my life.

***

Linda,
Nice job. Thank you so much for your efforts. You covered all the primary points that legislators need to be aware of.

There is one more factor that may sway some who are still “on the fence;” taking note of the stakes levels that are routinely played.

There may be a misperception about who is playing poker online and the stakes they are playing for. TV, our good friend in promoting poker, may be presenting a distorted picture of who is playing and what kinds of risks they are actually taking. You hear this when various anti-poker politicians talk about how they worry that people would routinely be putting their economic futures at risk if online play were legalized.

As it is, the overwhelming proportion of players only play at the microstakes levels. They enter games with less money than it takes to buy a hot dog at a baseball game. There is precious little financial risk in these games.

It is easy to see this. Just for fun, I scrolled over the NLH games in progress at Poker Stars. Here are the numbers of tables in action at each of the levels.

$25/$50(and higher)…. 2 tables
$10/$20….. 6 tables
$5/$10……28 tables
$3/$6…….26 tables
$2/$4…….72 tables
$1/$2…..201 tables
$.50/$1…..496 tables
$.25/$.50…..456 tables
$.10/$.25…..696 tables
$.05/$.10…..516 tables
$.02/$.05…..288 tables
$.01/$.02…..576 tables

The game is played, as you noted, mainly for recreation and amusement by people who prefer this kind of competitive interaction and find it to be more stimulating, intellectually challenging and engaging than watching reruns on cable TV.

Best,

Arthur

Motion in Online Poker Seizure May Be Decided Next Week

The motion by Costigan Media to unseal the warrants and affidavits associated with the seizure of over $30 million in online poker funds may be ruled on next week. Lawyers for the parent company of Gambling911 and the U.S. Government took to a New York courtroom on Monday.

The funds in question belonged to a Wells Fargo branch in San Francisco and were part of a seizure that affected over 24,000 online poker players. Costigan Media’s motion notes, “Although the warrant was issued a month ago and although the funds are now safely under the control of the government and in no danger of dissipation, the affidavit submitted in support of the warrant still remains under seal. So do any supporting documents relating to this Court’s decision to seal the warrant application.” FBI Special Agent Dana Conte swore to the affidavit, while Magistrate Judge Theodore Katz issued the warrant.

Interactive Media Entertainment and Gaming Association (iMEGA) Executive Director Joe Brennan, who spoke to Costigan Media representatives following Monday’s hearing, told Poker News Daily, “The judge had a hard time understanding why she should keep a warrant sealed after it’s been served. She said that she could understand the Government not wanting to reveal names of informants, but other than that, she didn’t understand why it should be kept sealed.” Following the hearing, attorneys for the U.S. Government met with the judge for an hour and 15 minutes behind closed doors. A decision should be handed down next week.

Many in the industry have expressed concern about the contents of the warrants and affidavits. However, according to Brennan, they are important in order to prevent future seizures by the Southern District of New York and other bodies: “The Government has seized $40 million from payment processors, but it’s actually online poker players’ money. No one knows why the Government did it. I think the players would want to know why their money has been seized. It’s better to know if the Southern District of New York will go after more money.”

Costigan Media, which owns the popular website Gambling911, filed a motion to open the warrants and affidavits associated with the seizure citing First Amendment rights. Brennan explained, “After a warrant is served, it’s supposed to be public record. The Government wants to keep it secret for some reason. That’s a violation of everyone’s rights.” Costigan Media’s motion cites cases involving other media outlets such as the Baltimore Sun, New York Times, Newsday, and Gannett, the latter of which publishes 84 daily newspapers in the United States.

At the helm of Costigan Media is Chris Costigan, who was upbeat following yesterday’s hearing. Brennan noted that the judge did not look down upon Gambling911 bringing a complaint under the First Amendment. Instead, she carefully tried to ascertain why the Government would want to keep documents under wraps. Brennan revealed, “The fact that the judge did not look down at Costigan Media doing business as Gambling911 was encouraging. Instead, she thought, ‘I have a media outlet that is making a First Amendment application and am taking them very seriously.’”

The United States Government cited “law enforcement concerns” as a contributing factor to keeping the seal on the warrants and affidavits. It also charged that First Amendment rights do not apply to seizure warrant applications. Now, it will be up to the judge in the case to decide if the reasons for the online poker funds seizure in early June will be brought into the public spotlight.

Stay tuned to Poker News Daily for more information.

Account Services Online Poker Hearing Scheduled for August 21st

A hearing involving the seizure of $14 million in online poker players’ funds from payment processor Account Services will take place on Friday, August 21st at 1:30pm. The location: the United States District Court for the Southern District of California.

The hearing for return of property, namely over $14 million in online poker funds, was originally scheduled for Friday, August 14th at 1:30pm Pacific Time. However, it has now been pushed back one week. In addition, the motion filed by the 1.2 million member strong Poker Players Alliance (PPA) to submit an amicus brief has been accepted. The Southern District’s memo reads, “The court has considered the application of third-party Poker Players Alliance to appear in this matter as amicus curiae in support of Movant Account Services Corporation.” The PPA must file its amicus brief by August 7th, one week before the hearing.

Looking forward to the Accounts Services hearing four weeks from now is PPA Executive Director John Pappas, who told Poker News Daily, “This is a very important hearing. The PPA will be submitting an amicus brief for it and will be available to testify as well. We think that the arguments outlined in Account Services’ brief are excellent and should prevail.” The PPA is fresh off holding a wildly successful National Poker Week and Fly-In event in Washington, DC. Over 100 meetings with lawmakers and their staffs were held to push for the legalization of online poker in the United States.

The PPA’s brief will focus on why poker is a game of skill. When asked why that point was important to convey, Pappas explained, “Under most state laws, the predominance test is applied. The test would say that gambling statutes do not cover games predominantly of skill. If we can get that adopted on a national level, it would be a very significant move.”

The PPA’s brief will likely focus on a December study by Cigital and PokerStars revealing that, out of 103 million cash game hands studied on the world’s largest online poker site, three-quarters did not go to showdown. Instead, the process of betting and bluffing took down pots. Of the remaining 25% of hands, only half were ultimately won by the player holding the best five card poker hand. In other instances, players folded the best hand prior to showdown.

The funds in question were held in a Union Bank branch in San Diego and a Wells Fargo branch in Escondido. The latter funds were seized on June 2nd, while the Union Bank assets were not seized until 10 days later. The Account Services motion for return of property states, “The warrant [for Union Bank] was issued 12 days after the seizure, on the basis of an affidavit filed under seal by Dana Conte, Special Agent of the Federal Bureau of Investigation. The affidavit remains under seal. As of the date of this filing, no criminal or civil action, including forfeiture, has been initiated with regard to this seizure.”

Account Services had checks on-hand for 13,800 online poker players totaling over $14 million. The seizure allegedly occurred due to Illegal Gambling Business Act infractions. Account Services’ motion explains, “Neither Account Services, the operators, nor the individuals whose funds have now been seized violated [the Act]. Thus, the Government had no legal authority to seize the funds in question and this Court should order the seized property returned.”

Today, attorneys for Costigan Media (the parent company of Gambling911) and the Southern District Court of New York will debate whether the warrants and affidavits used for the online poker funds seizures should be unsealed.

Stay tuned for the latest on the online poker funds seizure right here on Poker News Daily.

PPA Files Amicus Brief Motion in Online Poker Funds Seizure

Just before heading to the nation’s capital for National Poker Week, representatives of the 1.2 million member strong Poker Players Alliance (PPA) were hard at work drafting a motion to file an amicus brief for the lawsuit by Account Services to recoup $13 million in online poker player funds.

The money was seized at the beginning of June under direction of the Southern District of New York. As the primary representative of players, the PPA filed a motion to submit an amicus brief in the case in order to prove that poker is a game of skill and, therefore, should be treated separately under the law. PPA Executive Director John Pappas, who served as the master of ceremonies at a charity poker tournament benefiting the USO of Metropolitan Washington on Tuesday night, commented in a press release, “As the voice of online poker players, PPA should be granted the opportunity to provide evidence and legal briefings on why online poker is a game of predominant skill and not considered illegal gambling under the law.”

The PPA’s motion to file an amicus brief reads, “If the Government is successful in seizing the funds at issue here… PPA members’ ability to continue to play online poker without fear that the funds they use to play poker will be unlawfully seized will be greatly impacted.” The document asserts that Account Services, which allegedly processed funds destined for online poker players, “is not in the best position to present arguments and evidence as to why poker is a game of skill and thus not prohibited under federal or state law.”

The motion for return of property by Account Services was filed on July 10th. It declares that “the majority” of funds seized belonged to law-abiding online poker players, that online poker is not illegal gambling, that the company will suffer “irreparable harm” if the $13 million is not returned, and that its Fourth and Fifth Amendment rights were violated. The funds in question were held in a Wells Fargo branch in Escondido, California and a Union Bank branch in San Diego. The Union Bank funds were seized without a warrant, which was ultimately filed 12 days later.

The PPA has been involved in several court cases at the state level arguing that poker is a game of skill. Rulings in Pennsylvania, Colorado, and South Carolina have overwhelmingly declared that poker is predominated by skill, a sentiment that PPA State Directors from around the country took to Capitol Hill as part of National Poker Week. Their efforts were effective, as Congressman Lynn Westmoreland (R-GA) told online poker forum PocketFives.com in an exclusive interview, “Poker is a sport of skill. If you don’t believe that, you need to watch some of the tournaments on television and understand that these are very talented people. They can win a hand with a lot worse cards than anybody else. It is a game of skill and not just what cards fall.”

Among those who participated in poker trials around the United States was World Poker Tour (WPT) Host and Poker News Daily Guest Columnist Mike Sexton. In South Carolina, Sexton came armed with video footage from WPT tournaments showing how the process of betting and bluffing took down pots. University of Denver Statistics Professor Robert Hannum presented the results of a joint study by Cigital and PokerStars revealing that 75% of 103 million hands did not go to showdown. Of the remaining 25% of pots, the player who held the best five card hand only won 50% of the time.

The PPA’s motion was filed in the Southern District Court of California. Its submission notes, “The Department of Justice has informed the PPA that it takes no position on the PPA’s application at this time.” We’ll have updates as they become available right here on Poker News Daily.

Annie Duke Comments on National Poker Week

As part of National Poker Week, Ultimate Bet pro Annie Duke appeared as part of a charity tournament sponsored by the Poker Players Alliance (PPA) benefiting the USO of Metropolitan Washington. Poker News Daily caught up with Duke during the second of two breaks.

PND: Tell us about your experience at the PPA charity poker tournament benefiting the USO of Metropolitan Washington.

Duke: This is really fun. It’s to support the USO. My brother [Howard Lederer] and I were in a rebuy competition and I might have edged him out. As soon as the rebuy period ended, I lost with aces to 10-9.

PND: We heard about that. Can you relive your bust out story for us?

Duke: It went 600, 600, I made it 3,100 total with aces and, of course, I got called by 10-9. The board came 5-4-4 with two hearts and I went all-in. I looked at the other person and said, “You think you have two overcards and a flush draw, but you don’t. Not only do I have a heart in my hand, but you also don’t have two overcards. You’re over a 2:1 dog.” I overbet the pot and told him, “You’re not even getting 2:1 odds. You should fold.” I was being honest. He says, “I don’t care.” A heart came on the turn, but I had the ace of hearts and couldn’t suck out. I felt like I was back in the World Series of Poker (WSOP).

PND: Does it feel good to be able to donate to charity?

Duke: I had three veterans at my table, so I announced to my table that anytime the veterans went broke, I would rebuy them. [Former PokerStars Marketing Director] Dan Goldman took up a little bit of the slack and [PPA Executive Director] John Pappas rebought one person. Dan Walsh and the Interactive Gaming Council picked up some too. I could have gone out for about $2,000, but instead I think I donated $1,500. I was saved by a little bit of generosity.

PND: You met with several Congressional members and staffers today. Tell us how it went.

Duke: I had two meetings with allies. Those are, “Thank you. We really appreciate your support.” I had two other meetings, one with Barbara Boxer (D-CA) and one with Patrick Leahy (D-VT), who has traditionally been very anti-gambling because Vermont really doesn’t want casinos. It was a lot of explaining the differences between casino gambling and internet gambling and talking about some of the judiciary committees. The meeting wasn’t with him; it was with one of his aides, but the aides are very powerful.

It’s definitely different than a year and a half ago. Then, it was a lot of education and telling people what the Unlawful Internet Gambling Enforcement Act (UIGEA) is. Now, I think people are much more familiar with the legislation’s problems. They realize that it’s a piece of legislation that doesn’t work. It’s fortuitous timing with the health care reform because you get to talk about how it’s going to get paid for. When you point out that internet gambling can bring in a conservative estimate of $3 billion per year, they listen.

PND: What are your thoughts on the November Nine now that you’ve had a chance to evaluate them?

Duke: You have Darvin Moon, who has 30% of the chips in play. That obviously gives him a 30% chance to win. When people have 50% of the chips in play going into the final table, they think they’re a lock to win, but they’re just 50% to win assuming they’re a par player.

It’s so good for poker that Phil Ivey is at the final table. He only has 10 million in chips, but he’s Ivey. I think last year, when Mike Matusow and Phil Hellmuth were knocked out, the ratings really dropped, so Ivey being in there until the final table is incredible.

It’s a weird final table because the top two spots have so many of the chips. It’s always very strange when the chip averages are really skewed. I’m more interested to see if Darvin Moon is going to take a logo deal. I hear that he doesn’t want to do press and doesn’t want a logo deal. We’re all also waiting with baited breath to see what happens with Jeff Shulman.

PPA Charity Poker Tournament Raises $35,000 for USO

On Tuesday night as part of National Poker Week, the Poker Players Alliance (PPA) held a charity tournament to raise money for the USO of Metropolitan Washington. In the end, the event generated $35,000, including a generous $25,000 donation by the PPA.

The cards were in the air on Tuesday night at the Hyatt Regency Capitol Hill at 7:00pm ET for a special charity poker tournament sponsored by the PPA benefiting the USO of Metropolitan Washington. A capacity crowd of 150 players turned out as well as 30 alternates who eventually found their way onto the tournament’s tables. Poker pros in attendance included Jan Fisher, Poker News Daily Guest Columnists Linda Johnson and Annie Duke, Full Tilt Poker pros Howard Lederer and Andy Bloch, and PokerStars pros Greg Raymer and Dennis Phillips. Talk show host and 20 year poker veteran Montel Williams also lent his name to the tournament, which was free to enter and featured $100 rebuys.

Ivan Neville kicked off the festivities by signing the National Anthem, while a representative from the USO issued the traditional “Shuffle up and deal” command to begin play. Two tables called for rebuys in the first four minutes of action, while Lederer was responsible for rebuying four times in the first 20 minutes. Many of the pros in attendance financed rebuys for the 35 veterans from the Walter Reed Army Medical Center who played. Each person was issued a starting stack of 10,000 and blinds began at 50-100, escalating every 15 minutes. The price of poker ultimately went up every 10 minutes towards the end of play.

The grand prizes at stake were two round trip tickets to Las Vegas plus a three night stay at Caesars Palace as well as a $1,900 gift certificate to the World Series of Poker (WSOP) Academy. Other parting gifts included two autographed Daniel Negreanu poker books, a copy of Microsoft Office, VISA gift cards, Nickelback tickets, a copy of HALO 3, a signed Washington Capitals hockey jersey, a JAQK Cellars package, and two six-inch LCD picture frames. Also awarded to two players were one year subscriptions to the training site PokerXFactor.com. One of its instructors, Chris “Fox” Wallace, played in the event and told Poker News Daily, “We thought it would be a nice thing for the bubble person and the first person eliminated to receive PokerXFactor subscriptions. We wanted to show our appreciation for the people who played and, at the same time, help out the PPA and USO.”

Credit cards and cash were accepted for rebuys. In addition to the poker pros in the Ticonderoga Room, a bevy of Congressmen also turned out. They included Shelley Berkley (D-CA), Lynn Westmoreland (R-GA), Steve Cohen (D-TN), Ed Perlmutter (D-CO), and Xavier Becerra (D-CA). In one pot, Raymer explained the concept of a string bet to tablemates, but folded in the hand when his opponent showed A-J on a rag board. Duke came armed to her table with a stack of $100 bills and told Poker News Daily that she contributed around $1,500 to the cause. Duke and PPA Executive Director John Pappas were seated together, as were PPA Kentucky State Director Rich Muny and Bloch. Phillips and his agent also met as foes at the same table.

Several players had bounties on their heads, including former PokerStars Marketing Director Dan Goldman and tournament emcee Bryan Spadaro, who also serves as the PPA’s Memebrship Director. The Interactive Gaming Council (IGC) funded rebuys for the first 10 players who busted out, while a flurry of exciting hands took place. When five tables remained, Goldman’s pocket kings defeated pocket queens and another player with pocket kings after four diamonds hit the board. Wallace lost a $50 last longer bet with online poker pro Jordan “iMsoLucky0” Morgan after his K-9 suited lost to A-10. The final board included two aces and Wallace was sent to the rails.

All in all, the tournament marked a successful fundraiser for the USO of Metropolitan Washington. For those involved, it represented a unique opportunity to play alongside 35 wounded veterans. After the tournament, Johnson told Poker News Daily that those in uniform hold a “special place in my heart.”

Stay tuned to Poker News Daily for the latest from National Poker Week.

PPA begins National Poker Week with Howard Stern

PPA chairman Alfonse D'Amato went on the air to discuss the PPA's plight and after the show, the popular radio host and TV personality decided show his support for the cause by joining the PPA.

"I can't think of a more fitting way to kick off National Poker Week than having my friend, Howard Stern, become a member of the PPA," said D'Amato.

"I thank him for having me on his show this morning and supporting the PPA's efforts to protect the freedom of American citizens to play the great game of poker at the time and place of their choosing - a freedom Congress voted to take away."

National Poker Week runs from July 19-25 and over 30 of the PPA's State Directors and several established poker pros are scheduled to meet with representatives in Washington, D.C.

Players like Greg Raymer, Andy Bloch and Howard Lederer have already met with Rep. Robert Wexler and many more meetings are scheduled for later this week. Recent Celebrity Apprentice runner-up Annie Duke will also be making an appearance.

Many players are championing Rep. Barney Frank's H.R. 2267 bill, which would see online poker officially legalized, regulated and taxed.

In support of National Poker Week the PPA has also run full page ads in Roll Call and Politico advocating the legalization and regulation of online poker.

"National Poker Week is a way to shine the spotlight on this injustice and educate my former colleagues on why licensing and regulation of Internet poker is a much more effective - and revenue generating - alternative than an outright ban of this great American pastime," D'Amato said.

PPA Executive Director John Pappas is also scheduled to be on BBC Radio later today to discuss National Poker Week.

The driving force of National Poker Week, however, is an online petition that asks U.S. President Barack Obama to exempt poker from the Unlawful Internet Gambling Enforcement Act (UIGEA), license and regulate internet poker in the America and respect the rights of law-abiding Americans who wish to play the game.

You can sign the petition here. You can also learn more about National Poker Week by visiting the PPA's official website at www.theppa.org.

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Robert Wexler Speaks at PPA National Poker Week Fly-In Dinner

On Monday night at the Poker Players Alliance (PPA) Fly-In held as part of National Poker Week, a working dinner featured Congressman Robert Wexler (D-FL), PPA Chairman Alfonse D’Amato, and PPA Executive Director John Pappas.

A host of poker pros were in attendance at the Capitol Room inside the Hyatt Regency Capitol Hill in Washington, DC. They included 2004 World Series of Poker (WSOP) Main Event Champion Greg Raymer, Full Tilt Poker pros Andy Bloch and Howard Lederer, Tournament Directors Association Co-Founder Linda Johnson, former World Poker Tour (WPT) statistician Jan Fisher, and “Celebrity Apprentice” runner-up Annie Duke.

D’Amato kicked off the festivities by noting, “One person at the forefront… and has stood up specifically for… player versus player, and not versus the house, games – No one has been stronger than Bob Wexler.” The audience of about 50 people erupted into a chorus of applause after Wexler’s name was spoken. The Florida Congressman and former author of the Skill Game Protection Act last session called D’Amato a “class act in the finest sense of the word.” Wexler then outlined the goal of National Poker Week and the PPA Fly-In: “To put a face on the issue is very important.” He continued, “It’s an apple pie issue. Poker is a game that has been played in the White House, the Supreme Court, and… by some of the biggest names in American history.”

Wexler also reminded Fly-In attendees, which included 30 of the PPA’s State Directors, that follow-up contact is critical: “When you go meet with your Congressmen, your job is only half done. When you get back home, follow up with your local office. You can’t imagine how important that is. Spend 15 minutes with the director of the local office.” Wexler called the Unlawful Internet Gambling Enforcement Act (UIGEA), which was passed in 2006 and attached to an unrelated port security measure, an “absurd law” and labeled Congressmen Barney Frank an “important ally.” He then hit up the buffet to grab a snack before exiting with a staff member.

D’Amato then returned to the podium to rally the troops: “I’m very hopefully we’ll be able to get one of the staunchest allies we have to be supportive of legislation that will give you the right to play poker on the internet.” He labeled an unspecified meeting this afternoon a “major breakthrough.” The PPA’s Chairman emphasized the importance of letting Congressmen and staffers know how many members the organization boasts. D’Amato added, “This is about civil rights and civil liberties.” A hearty round of applause followed that comment. He also recalled a bad beat story in which he was busted from a seniors’ poker tournament with pocket jacks after an opponent spiked an ace on the river. He concluded with, “Thank you for coming. Don’t get discouraged. We are making progress.”

An overview of briefing packets given out to Fly-In attendees followed. Stats highlighted included that 10 million Americans play online poker, while 70 million compete in poker. Guests were encouraged to arrive 10 to 15 minutes before their scheduled Congressional meetings in order to go through security. Pappas encouraged attendees to convey their personal story and ask support for HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, which was introduced in May. Pappas also gave updates on upcoming Senate legislation to legalize online poker in the United States, over-blocking by credit card companies of internet transactions, and the Southern District of New York seizing over $34 million from more than 27,000 online poker players.

We’ll have more for you from the Fly-In, including complete coverage of Tuesday’s charity tournament, right here on Poker News Daily.

Howard Stern Joins Poker Players Alliance

Representatives from the Poker Players Alliance (PPA), the one million member strong lobbying force for the industry, announced that controversial talk show host Howard Stern became its newest member.

The news marks the kickoff to National Poker Week, which takes place until Saturday, July 25th. PPA Chairman Alfonse D’Amato commented in a press release distributed by the organization on Monday, “I can’t think of a more fitting way to kick off National Poker Week than having my friend, Howard Stern, become a member of the PPA. I thank him for having me on his show this morning and for supporting the PPA’s efforts to protect the freedom of American citizens to play the great game of poker at the time and place of their choosing – a freedom Congress voted to take away.”

D’Amato appeared on Stern’s talk show, which airs on Sirius Satellite Radio, on Monday to discuss National Poker Week in its first media efforts. Interactive Media Entertainment and Gaming Association Executive Director Joe Brennan caught the show during his daily breakfast on Monday. Brennan told Poker News Daily, “It’s good exposure for them. Obviously, Howard has a fairly big and sometimes politically active audience. It would have been good if there was more awareness that D’Amato would be on the show this morning, but it’s a real coup for the PPA.” D’Amato’s spot lasted around 50 minutes, with about one-quarter of that time devoted to the game itself.

The PPA has revamped the website of National Poker Week to include an online letter to Congressmen with the subject, “Please Protect My Right to Play Poker on the Internet.” It can also be sent as a printed letter and editable for submissions to both the Senate and House of Representatives. A person’s first name, last name, e-mail address, mailing address, city, state, zip code, and phone number are required in order to submit a letter to Congress.

Meanwhile, the online poker petition entered National Poker Week with 355,000 signatures after eclipsing 300,000 one week ago. Freerolls for those who have signed the petition have been running on sites like Cake Poker, Full Tilt Poker, and PokerStars to significant fanfare. It calls for the following: “Please: 1) exempt poker from the Unlawful Internet Gambling Enforcement Act (UIGEA) and 2) license and regulate internet poker in the U.S. 3) Respect the rights of law-abiding Americans who love to play this great game of skill.”

Poker News Daily is onsite at the PPA Fly-In, which is taking place in Washington, DC at the Hyatt Regency Capitol Hill. “Celebrity Apprentice” runner-up Annie Duke was among those who participated in a panel discussion surrounding proper regulation of online poker. The event kicked off in Room 2237 of the Rayburn House Office Building this afternoon and featured Duke, Wired Safety Executive Director Parry Aftab, Cigital Vice President Stuart Dross, and the former executive with International Game Technology Paul Mathews.

Stay tuned to Poker News Daily for the latest updates from the PPA Fly-In.

Poker News Daily Heads to National Poker Week

Sunday marks the official start of National Poker Week. The seven day affair features a concerted effort calling for the legalization and regulation of online poker in the United States. Poker News Daily will head to the nation’s capital as part of the Week’s Fly-In organized by the Poker Players Alliance (PPA).

Thirty of the PPA’s State Directors and at least a half-dozen poker pros will be in attendance, meeting with Congressmen and Senators on Capitol Hill. The PPA is targeting both poker-friendly lawmakers and those still on the fence in an effort to drum up support for HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, and HR 2266, the Reasonable Prudence in Regulation Act. The former establishes a comprehensive licensing and regulatory framework for the internet gambling industry in the United States, while the latter delays compliance with the Unlawful Internet Gambling Enforcement Act (UIGEA) by one year.

A message posted on the official website of National Poker Week states, “Join the thousands of poker players from across the country who will raise their voices to help keep America’s most popular game legal during National Poker Week.” State Directors, poker pros, and media from around the United States will check in during the day on Monday to the Fly-In’s official hotel, the Hyatt Regency Capitol Hill. A panel discussion will be held in the afternoon in Room 2237 of the Rayburn House Office Building. The group will be discuss how the industry can be properly regulated and features Wired Safety Executive Director Dr. Parry Aftab, Cigital Vice President Stuart Dross, and a former executive with International Gaming Technology, Paul Matthews.

At 6:00pm on Monday at the Hyatt, a working dinner will be held featuring comments by Congressman Robert Wexler (D-FL). A reception precedes dinner. The gala will focus on appropriate talking points for attendees meeting with Congressmen on Tuesday and Wednesday. Poker News Daily will likely have media access to several meetings on Capitol Hill to give our readers an in-depth look at common talking points for conversing with lawmakers. State Directors were given literature outlining discussion points as well as a comprehensive overview of HR 2267, which was introduced by Congressman Barney Frank (D-MA) in May and boasts 47 co-sponsors.

On Tuesday night, Poker News Daily Guest Columnist Annie Duke, Andy Bloch, Jan Fisher, Linda Johnson, Howard Lederer, and 2008 November Nine member Dennis Phillips will host a charity poker tournament benefiting the USO of Metropolitan Washington. The invitation-only event is free to enter and features $100 rebuys. The PPA is fronting the entire cost of the event and will be making its own donation to the tournament’s benefactor. Prizes for the winners include travel packages and poker tutorials. Poker News Daily will be on-site during the event, which will be held in the Ticonderoga Room of the Hyatt at 7:00pm. Congressional representatives, soldiers, and poker players alike will take to the felts in this unique event.

On Wednesday, continental breakfast will precede meetings with Congressmen. State Directors are encouraged to check out after 5:00pm and then enjoy the city of Washington, DC. The PPA reserved a block of rooms at the Hyatt for the event and, around July 1st, all but a handful were booked in what is expected to be a widely-attended Fly-In. National Poker Week was announced in June as part of a press conference held at the Rio during the 2009 World Series of Poker (WSOP).

An online poker petition will be presented to President Barack Obama on Wednesday. How it will be given to the Commander in Chief is not yet known, but the petition has attracted 345,000 signatures after clipping the 300,000 mark on July 14th. PPA officials were aiming to eclipse 500,000 signatures by Monday.

Look for updates from National Poker Week in the next few days right here on Poker News Daily.

Poker Petition Breaks 300,000 Signatures

The petition put forth by the Poker Players Alliance (PPA) as part of National Poker Week currently stands at 300,428 signatures. The measure broke through the 300,000 threshold overnight.

Players have turned out in droves to sign the poker petition. The process takes less than 30 seconds and involves a person entering in their first name, last name, e-mail address, street address, city, state, zip code, and a special authentication code. Its text begins, “I am a voter and a fellow poker player asking for your support of my right to play games of skill like poker on the internet.” On July 22nd, the petition will be presented to President Barack Obama, who is in St. Louis this evening to throw out the first pitch of the Major League Baseball All-Star Game at Busch Stadium.

The language of the petition notes that regulation of online poker was the top technology topic in the Citizens’ Briefing Book, which asked Americans what issues they wanted to see addressed by the new Obama Administration. The entry, which appeared on Change.gov, was entitled “Boost America’s Economy with Legal Online Poker” and received support from around the industry. Specifically, the petition asks President Obama to “1) exempt poker from the Unlawful Internet Gambling Enforcement Act (UIGEA) and 2) license and regulate internet poker in the U.S. 3) Respect the rights of law-abiding Americans who love to play this great game of skill.”

The petition is one of several components of National Poker Week, which takes place from July 19th through 25th. Thirty of the PPA’s State Directors and a handful of poker pros will travel to Washington, DC to meet with Congressmen and push for the legalization of online poker. Congressman Barney Frank (D-MA), Chairman of the House Financial Services Committee, has introduced two measures that State Directors and poker pros will push. HR 2267 establishes a full framework for the licensing and regulation of internet gambling in the United States. HR 2266 delays industry compliance with the UIGEA by one year until December 1st, 2010. The measures sit at 42 and 25 co-sponsors, respectively, after being introduced on May 6th.

Congresswoman Shelley Berkley (D-NV), PPA Chairman Alfonse D’Amato, and PPA Executive Director John Pappas unveiled National Poker Week at a press conference on June 22nd during the 2009 World Series of Poker (WSOP). The PPA will welcome poker pros Howard Lederer, Andy Bloch, “Celebrity Apprentice” runner-up Annie Duke, Jan Fisher, Linda Johnson, and 2008 WSOP November Nine member Dennis Phillips to the Capitol Hill next week for the festivities.

On Tuesday night, the PPA will host a charity poker tournament. The event will be held at the Hyatt Regency Capitol Hill and begins with a reception at 6:00pm. The tournament kicks off at 7:00pm, with funds raised being donated to the USO of Metropolitan Washington. According to an invitation sent out by the PPA, which is fronting the costs of the event, players can win “travel packages, poker tutorials by pros, and other great prizes.” Members of the U.S. Armed Services will play alongside some of the industry’s top poker players.

The PPA has also set up MyPokerStory.com, a site that allows players to submit videos outlining why poker is critical to their lives. Professional poker players including World Poker Tour (WPT) Host Mike Sexton, “Cowboy” Kenna James, and Lederer have all submitted videos to the cause. Sexton’s submission reveals, “I have been playing poker since I was 13 years-old… I’m a die-hard poker guy and I hope you like to play as well.”

Poker News Daily will be camped out in Washington, DC during National Poker Week, so stay tuned for a full recap of events.

National Council on Problem Gambling Announces 2010 Portland Conference

The National Council on Problem Gambling has announced plans to hold its annual conference in Portland, Oregon from June 10th to 12th, 2010. The organization is fresh off its Indianapolis convention, which attracted 350 industry representatives.

For National Council on Problem Gambling Executive Director Keith Whyte, one of the highlights of the Indianapolis conference was a session on “gambling court.” Essentially a diversion program for first-time gambling offenders, the court is one-of-its-kind and makes its home in New York. A judge from the gambling court traveled to the Indiana capital for an educational session and held five vignettes. However, the audience was in for a surprise at the conclusion of the final skit. Whyte recalled, “The fifth case was actually real. Fourteen members of the person’s family came down from Buffalo. He actually graduated during the session and his sentence was expunged. He received a standing ovation from the audience.”

A total of 350 people attended the conference and, although the number was down by 40% from the 2008 version, Whyte remained optimistic due to the sluggish economy. He remarked, “We were still really pleased with the turnout. The majority of the attendees were counselors. We had some good corporate support, including every segment of the Indiana gaming industry: lottery, tracks, and casinos.” A New York Times award-winning author was also in attendance.

State chapters of the Council bid to host the conference each year. This time around, the Oregon and Washington delegations teamed up to pitch an event in Portland. According to Whyte, Oregon boasts the highest funded problem gambling program per capita. In addition, he explained, the Western state has “one of the most widely distributed gambling environments including card rooms, video lottery machines, and tribal casinos. They have more non-casino gaming machines than almost every other state. In spite of the risk factors, they seem to have made a big impact.” The Oregon conference will be held concurrently with the Portland Rose Festival, which takes place every June.

Last month right before the conference, Whyte and the National Council on Problem Gambling successfully lobbied for the introduction of HR 2906, the Comprehensive Problem Gambling Act. The groundbreaking piece of legislation currently boasts seven co-sponsors, including Congressmen Barney Frank (D-MA) and Jim McDermott (D-WA). Whyte explained, “We’re trying to take the offensive with this bill. We’re showing that, if you’re concerned about problem gambling at all, this is how we would address it. We’re hoping to show that there are possibilities regardless of a person’s personal or political opinion on gambling. Every Congressman supporting Frank’s bills should be on ours as well.”

The Council has sent letters to co-sponsors of Frank’s HR 2266 and HR 2267 calling for their support of HR 2906. The former bill delays industry compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) until December 1st, 2010. HR 2267 outlines a licensing and regulatory framework for the internet gambling industry in the United States. Whyte and company have also contacted co-sponsors of HR 2268, McDermott’s Internet Gambling Regulation and Tax Enforcement Act. The measure currently has two co-sponsors, Frank and Earl Blumenauer (D-OR).

HR 2906 calls for $14.2 million per fiscal year to be allocated towards funding public awareness, research, and treatment of problem gambling. The piece of legislation was introduced by Congressmen Jim Moran (D-VA), Lee Terry (R-NE), and Frank Wolf (R-VA) and referred to the House Committee on Energy and Commerce. The bill’s text notes that six million adults met the criteria for problem gambling in 2008. In addition, the social cost of problem gambling approached $7 billion last year.

Visit the website of the National Council on Problem Gambling for more information.

Third Circuit Court of Appeals Hears iMEGA UIGEA Case

On Tuesday, lawyers from the Interactive Media Entertainment and Gaming Association (iMEGA) argued in front of the Third Circuit Court of Appeals in Philadelphia. The objective: prove that the Unlawful Internet Gambling Enforcement Act (UIGEA) is unconstitutional.

iMEGA’s case was the second on the docket on Tuesday in the Third Circuit behind a legal battle over whether a Yeshiva school could be constructed on the grounds of a synagogue based on zoning rights. One of the central issues discussed by the trade organization and counsel  for the United States Attorney General’s Office was where a bet placed online actually occurs. iMEGA Executive Director Joe Brennan explained, “We argued that the bet took place in another country like Costa Rica. When a person enters into a bet, it comes from an account already placed on the site.” However, it could be argued that bets originate on a person’s computer, on a server, or somewhere along the way in cyberspace.

Also at the forefront of the debate on Tuesday was whether iMEGA had standing to sue, something Brennan noted was preserved at the District Court level. iMEGA has online poker sites and individual players as members. Brennan recalled, “There was a ruling from the Third Circuit that concluded whether or not third parties could come forward if members were harmed, but [U.S. Attorney General counsel] Nicholas Bagley wasn’t familiar with it.” On his overall impressions, Brennan admitted, “It’s tough to tell. The three judge panel spent a lot of time with us. They didn’t spend as much time with the Government’s attorneys.”

Also questioned was whether it would have been advantageous for iMEGA to find an internet gambler who was harmed to appear in court. It’s a similar quandary that the Poker Players Alliance (PPA) has found itself in with regards to the online poker funds seizure in New York. In essence, anyone who stepped forward would be required to testify under oath that they played online poker. Brennan noted, “We said that, per the language of the statute, a person would essentially incriminate themselves in order to challenge the UIGEA. While there are no criminal sanctions, there are civil penalties for players.”

Judges Dolores Sloviter, Thomas Ambro, and Kent Jordan listened to attorneys for iMEGA and the Federal Government on Tuesday. The panel will now deliberate and return one of a wide variety of verdicts. One of the questions posed concerned the status of bills to license the industry in the United States and delay the implementation of the UIGEA’s regulations. Both were introduced on May 6th and referred to the House Financial Services Committee. HR 2266, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, is up to 40 co-sponsors. HR 2267, the Reasonable Prudence in Regulation Act, has attracted 23 co-sponsors. Neither has been scheduled for mark-up or discussion on the floor of the House of Representatives. One possible outcome is the Third Circuit deferring a resolution until Frank’s bills are acted on.

Many in the industry are now scrambling to ascertain when the Third Circuit will hand down a decision. Brennan revealed that the court’s average turnaround time is three months and iMEGA does not expect to hear back in the next 30 days. At the District Court level, the organization was left in the dark for nearly six months.

In the meantime, iMEGA will turn its attention to the Commonwealth of Kentucky, where briefs were filed to the state’s Supreme Court in May. To open the year, the Kentucky Court of Appeals in Louisville overturned a lower court ruling by a two to one margin and asserted that the Commonwealth did not have jurisdiction to seize 141 internet gambling domain names. The State quickly appealed. There has been no word on whether the Kentucky Supreme Court will take the case.

Visit the official website of iMEGA.

Costigan Media Files Suit to Open Warrant in Online Poker Funds Seizure

Amid the fanfare of the 2009 World Series of Poker (WSOP) Main Event in Las Vegas, Costigan Media, the parent company of Gambling911, has filed suit to open warrants in the case involving the seizure of $30 million in online poker player funds by the U.S. Attorney’s Office for the Southern District. It is the first legal action brought after the Southern District acted in June.

The reason for the Federal Government’s seizure remains a mystery. In the past, media outlets have been authorized to file legal action in matters of public record. Costigan Media’s filing notes, “Resolution of this issue will require the Court to define the scope of the public’s and the media’s First Amendment and common law rights of access to judicial documents.” The Southern District seized well over $30 million last month, adversely affecting more than 24,000 online poker players. Many rooms reimbursed players for difficulties cashing out and, in some cases, awarded an extra 10% cash bonus for any inconvenience.

Costigan Media is seeking the unsealing of the warrant, the affidavit for the warrant, and any other relevant documents that remain under wraps. The warrant in question was used to seize funds from a Wells Fargo branch in San Francisco, California on June 2nd. Magistrate Judge Theodore Katz signed the document, with an affidavit sworn to by Dana Conte, a Federal Bureau of Investigation (FBI) agent. Costigan Media’s filing reveals that Katz stated, “I am satisfied that there is probable cause to believe that the property so described is subject to seizure and civil forfeiture.” The parent company of Gambling911 added that the order sealing the warrant is also sealed, further complicating the situation. Funds were held in account 7986104185 under the name Account Services. The case is numbered 09-MAG-1320.

Gambling911 boasts affiliate links for UltimateBet, Players Only, Doyle’s Room, Absolute Poker, and a host of online sports betting sites. Noticeably absent are Full Tilt Poker and PokerStars, two of the heaviest hit sites by the funds seizure. Interactive Media Entertainment and Gaming Association (iMEGA) Executive Director Joe Brennan told Poker News Daily, “The government can’t even make a substantive claim that Gambling911 is acting on its own financial interest because of its own affiliate marketing. Instead, they want the news and opportunity.”

The court filing also questions, “The narrow but important issue presented in this case is whether the well-established First Amendment and common law rights to public proceedings and access to documents that ordinarily apply to judicial documents extend to a civil seizure warrant that has already been executed, but where no criminal charges have been brought.” On the media conglomerate’s chances of successfully opening the seizure warrants, Brennan told Poker News Daily, “It depends on who does the asking and where they do the asking. This is a little different in that there’s not a lot of precedent for new media outlets. It is a little groundbreaking for them to be doing this, but the precedent varies from district to district.”

Costigan Media also questions the reason for document being sealed. It speculates that “secrecy in ongoing investigations to protect confidential sources,” and “concerns of all of the un-indicted parties implicated by the Conte Affidavit” may be to blame. The company explains, “The public’s interest in criminal prosecutions should not be held hostage by a government’s blanket unsupported assertion of confidentiality or privacy concerns.” Brennan noted that the legal matter will take at least 10 days, which may be elongated by the upcoming Fourth of July holiday weekend in the United States.

Costigan Media is represented by Baruch Weiss and Matthew Trokenheim of Arent Fox in New York City. The action is dated July 2nd, just one day before the start of the 2009 WSOP Main Event from the Rio All-Suite Hotel and Casino in Las Vegas. The $10,000 buy-in tournament kicks off today with the first of four starting days.

Stay tuned to Poker News Daily for the latest news surrounding the online poker funds seizure.

The PokerNews Interview: PPA Executive Director John Pappas, Part 2

PokerNews: Around the end of 2009, banking regulations called for under the UIGEA are scheduled to be fully implemented. Will the landscape for online...

The PokerNews Interview: PPA Executive Director John Pappas, Part 1

Poker Players Alliance Executive Director John Pappas is a native Arizonan who’s been involved in politics for his entire adult life...

Judges for iMEGA UIGEA Challenge Announced

The three judge panel from the Third Circuit Court of Appeals that will hear the Interactive Media Entertainment and Gaming Association (iMEGA) argue why the Unlawful Internet Gambling Enforcement Act (UIGEA) is unconstitutional has been named. The Third Circuit will hear the case on July 7th at 10:00am ET.

At the District Court level, Judge Mary L. Cooper disagreed with many of iMEGA’s reasons why the UIGEA should be declared unconstitutional. However, she granted the trade organization standing to sue, prompting an appeal to the Third Circuit. Now, over a year later, lawyers for iMEGA will receive their day in court. Democratic Presidents appointed two of the three judges named to the Court of Appeals panel, leaving many in the industry optimistic that the UIGEA challenge may be successful.

President Jimmy Carter appointed Judge Dolores Sloviter to the Third Circuit in 1979. She is the veteran of the panel and served as the Third Circuit’s Chief Judge from 1991 to 1998. iMEGA Executive Director Joe Brennan told Poker News Daily, “I think this is an interesting panel. Judge Sloviter was part of the panel that blocked the Communications Decency Act, which is a landmark case in internet law.” The panel in question ruled that the Act, which dealt with internet pornography, was unconstitutional under the First Amendment.

President Bill Clinton appointed Judge Thomas Ambro to the Third Circuit in 1999 and Congress approved him one year later. Brennan noted, “Judge Ambro’s best known decisions have consistently upheld First Amendment rights and civil liberties.” Besides First Amendment rights, iMEGA notes that the UIGEA should be “void for vagueness.” Online poker players know all too well that the UIGEA failed to identify what activities are permissible. In response, credit card companies such as Visa and MasterCard have blocked legal online lottery purchases in New Hampshire and North Dakota. To iMEGA, this “over-blocking” is an example of the shortcomings of the 2006 law.

The third and final judge to make up the panel that will hear lawyers for iMEGA and the U.S. Department of Justice debate the constitutionality of the UIGEA is Kent Jordan, appointed by George W. Bush. On whether any residual influence from the Bush Administration will affect Jordan’s views, Brennan commented, “Even Judge Jordan, with his extensive corporate law background, may potentially recognize the undue burden that UIGEA places on banks and credit card companies. Despite assumptions the industry may make on his being nominated by President Bush, who signed the UIGEA, or his religious background, I think this is a good panel.”

Taking the case on behalf of iMEGA is Eric Bernstein, who argued the case in front of Judge Cooper, and Stephen Saltzburg, former Deputy Attorney General of the United States. Nicholas Bagley and Jacqueline Coleman will represent the U.S. Department of Justice, Federal Trade Commission, and Federal Reserve, who collectively serve as the defendants in the case. In a press release distributed by iMEGA, Brennan noted that he is looking forward to an objective panel: “This law will finally have to stand on its own two feet in court, free from politics and all other outside influences. We feel very confident that when the judges take a look at the law, they will see just how defective it is and they will overturn it.”

The organization is fresh off a victory in Minnesota, where the state’s Department of Public Safety rescinded orders to 11 of the world’s largest internet service providers that called for the blockage of 200 internet gambling domain names. iMEGA filed suit to stop the action, effectively ending the Department of Public Safety’s attempts at censorship. If successful, USA-friendly sites like Bodog, Full Tilt Poker, and Players Only would have been inaccessible by Minnesota residents. In addition, a host of online poker rooms that do not accept U.S. customers would also have been blocked.

Stay tuned to Poker News Daily for the latest from the iMEGA legal challenge.

Poker Players Alliance Announces National Poker Week

Mark your calendars now for the first ever National Poker Week, which kicks off on July 19th and runs through the 25th. The grassroots initiative is the brainchild of the Poker Players Alliance (PPA), the industry’s one million member strong lobbying force.

The PPA unveiled National Poker Week at a press conference on Monday inside the Rio All-Suite Hotel and Casino during the 2009 World Series of Poker (WSOP). The gala featured Congresswoman Shelley Berkley (D-NV), whose Internet Gambling Study Bill was introduced during the 110th Congress, but failed to be marked up by the House Judiciary Committee. Also in attendance were PPA Chairman and former three-term Senator from New York Alfonse D’Amato, Poker News Daily Guest Columnist and Tournament Directors Association Co-Founder Linda Johnson, and 2004 WSOP Main Event Champion Greg Raymer. Following the press conference, Berkley issued the “Shuffle Up and Deal” command to start play in the Amazon Room.

PPA Executive Director John Pappas told Poker News Daily about Monday’s press conference announcing the initiative: “I thought it went very well. Shelley Berkley was magnificent with her command for the issue and stated why it’s important for poker players to get involved in a meaningful way. She explained that the poker community should rally around the initiatives that the PPA is putting forth in order to make sure that legislation like Barney Frank’s bill will get passed.” Frank has two measures in Congress: HR 2267 establishes a licensing and regulatory framework for the internet gambling industry in the United States. HR 2266 delays the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) from being implemented for one year to December 1st, 2010.

The PPA will fly in of over 30 of its State Directors to Washington, D.C. as part of National Poker Week. While in the nation’s capital, the State Directors will meet with their elected officials to pitch support for legislation like HR 2266 and HR 2267. In addition, the crew will deliver a petition to U.S. President Barack Obama calling for exemption of poker from the UIGEA. Over 10,000 concerned players have signed the virtual poker petition, which will be delivered on July 22nd. It opens with a simple statement regarding the rights of poker players: “I am a voter and a fellow poker player asking for your support of my right to play games of skill like poker on the Internet.” In order to sign the petition, a person’s first name, last name, e-mail address, and mailing address are required. As I wrote this paragraph, 20 players have lent their names.

Professional poker players slated to be part of the event include Howard Lederer, Andy Bloch, Poker News Daily Guest Columnist Annie Duke, Jan Fisher, Linda Johnson, and 2008 November Nine member Dennis Phillips. On July 21st, a charity poker tournament benefiting the United Service Organizations (USO) and the Malone House at Walter Reed Army Medical Center will take place. The PPA is fronting the costs for the event in order to ensure that all of the money raised goes directly to the beneficiary organizations. The prizes and buy-in for the tournament were not available at the time of writing.

A key element leading up to National Poker Week is the launch of MyPokerStory.com, which invites poker players from around the country to submit a video of why the game is important to them and why the U.S. Government should legalize the Great American Pastime. All videos will be entered into a drawing for a two night Las Vegas package complete with airfare for two people. A total of 16 amateur videos are currently posted, including a clip from Congressman Joe Barton (R-TX). In addition, World Poker Tour Host Mike Sexton, “Cowboy” Kenna James, and Lederer have all submitted recordings. Interested WSOP spectators and players can produce their own videos at the PPA’s booth outside the Amazon Room.

Media present at the 45 minute long event on Monday received a tutorial on the PPA’s new National Poker Week web tools. In addition, it was revealed that a variety of telephone and e-mail campaigns will take place.

Comprehensive Problem Gambling Act Introduced by Moran, Terry, Wolf

Last week, Congressmen Jim Moran (D-VA), Lee Terry (R-NE), and Frank Wolf (R-VA) introduced bi-partisan legislation to curb problem gambling in the United States. The bill, HR 2906, is dubbed the Comprehensive Problem Gambling Act of 2009.

Revolutionary legislation, the Comprehensive Problem Gambling Act allocates $71 million over five years for problem gambling public awareness, research, and treatment. The Substance Abuse and Mental Health Services Administration is charged with overseeing the program. The National Council on Problem Gambling has been the major driving force behind the legislation, which is among the first of its kind.

The organization’s Executive Director, Keith Whyte, shared his thoughts on why no serious solution for problem gambling has been approved on a national level: “It’s surprising and frustrating. Part of the blame is on us. We’ve been around for 37 years, but part of that reflects the real stigma people have in seeing problem gambling as a preventable and treatable disorder. In addition, by and large, most people believe that gaming should be regulated and taxed at the state level. They are not as quick to see a Federal role.”

HR 2906 is divided into three parts, allocating funds annually to each. The Comprehensive Problem Gambling Act allocates $200,000 per year towards public awareness. Information on problem gambling is directed through television, radio, cable, and print advertising. Funds are authorized to focus on “the business sector of the United States” and “professional sports organizations and associations.” Sporting and gambling events are targeted in the campaign, which is directed by the Secretary of Health and Human Services.

HR 2906 also directs funds towards research of problem gambling. A total of $20 million over five years is allocated towards research, which will be coordinated among several Federal agencies including the National Institute of Health, the National Science Foundation, the National Institute of Justice, the Bureau of Justice Statistics, and the Substance Abuse and Mental Health Services Administration. Recommendations of the National Gambling Impact Study Commission should also be taken into consideration.

This is not the National Council on Problem Gambling’s first go-around with legislation supporting the organization’s goals. Whyte told Poker News Daily, “We’ve had bills introduced in previous Congresses and this is our third go-around. Building support has been incredibly difficult. I think it’s a good example of folks that don’t understand gambling issues in general.” A total of 3% to 4% of the American adult population fits the criteria for problem gambling, or more than six million people, according to the National Council on Problem Gambling’s press release.

Finally, $10 million per year is allocated towards the treatment of problem gambling. The bill notes, “The Secretary may make grants to States, local, and tribal governments, and nonprofit agencies to provide comprehensive services with respect to treatment and prevention of problem gambling issues and education about problem gambling issues.” Grants are permitted for various organizations to target their share of the $10 million up for grabs every year.

One of the original co-sponsors of the bill is Congressman Barney Frank (D-MA), who introduced a pair of bills on May 6th to alter the landscape of internet gambling in the United States. On Frank’s support of the Comprehensive Problem Gambling Act, Whyte told Poker News Daily, “It’s appropriate that Frank is a co-sponsor. He was a co-sponsor of our previous efforts and has been consistent on this, so it’s not just because of his bills this year. He has been concerned about these issues in the past. We hope to get 25 co-sponsors in total.” Besides Frank, Congressman Howard Berman (D-VA) is one of HR 2906’s four original co-sponsors.

HR 2906 was referred to the House Committee on Energy and Commerce. We’ll have more news as it develops right here on Poker News Daily.

Utah Transit Authority Cracks Down on Internet Gambling

According to a story that appeared on Fox 13 in Salt Lake City, the Utah Transit Authority (UTA) is cracking down on its riders’ internet usage. Now, viewing pornography or gambling online will result in a $300 fine.

Fox 13’s Arikka Von broke the story, which appeared last week. When asked why UTA management implemented the new rules, Von explained, “UTA says it’s not because they had a bunch of complaints. The old ordinances are just that: old, at least 10 years old, so they have some new policies that include some of the new services like free WiFi.” On a national scale, online poker players have faced the same difficulties interpreting age-old laws like the Wire Act, which was enacted in 1961, nearly 50 years ago. The Wire Act, although passed before the advent of the internet, has been largely extended by the U.S. Department of Justice to include many forms of internet gambling.

Von noted, “A train ticket gets you free internet once you agree to the Terms of Service. That means no online gambling or viewing pornography. The UTA now has a new ordinance that fines passengers for illegal or offensive internet use on the train. The first violation is $300. Do it again and it could cost you $500.” The UTA is one of a growing number of transit systems to include internet onboard. American Airlines recently debuted Gogo Inflight Internet on cross-country trips. The service is available for a fee.

Enforcement of the UTA’s ban on internet gambling and pornography is done by the organization’s police force. Fox 13 noted, “These are real police officers,” and explained, “An officer will always try to educate first and foremost. Riders say they’ve never seen anyone watching porn on the train.” UTA has enacted a full appeals process if riders feel they were targeted unfairly. A representative of the transit system admitted that identifying what is acceptable and what is not can be a complicated process: “The definition can be very difficult to pin down for everyone.”

Interactive Media Entertainment and Gaming Association (iMEGA) Executive Director Joe Brennan told Poker News Daily, “I’m surprised that they’re going to waste anyone’s time enforcing internet gambling. I’m also disturbed with the constant association with pornography. Our opponents try to make that linkage constantly between gambling and pornography. All you have to do is look at the acceptance of all things gambling. There is no comparison between the two activities.” The term “internet gambling” is mentioned in the Fox 13 story just once, while references to pornography pervade the rest of the two and a half minute piece.

With regards to enforcement of the UTA’s guidelines through law enforcement personnel roving the trains, Brennan commented, “They’ll have police officers looking over the shoulders of riders. This announcement is someone grandstanding politically. The claim on internet gambling is dubious. The claim on pornography is also misguided.” Brennan added that viewing pornography is typically done in private, not in the middle of a commuter train in a major metropolitan area.

According to text found on the UTA’s website, the internet service provided by the transit system filters content automatically: “UTA’s service providers use content-filtering software that attempts to restrict access to offensive sites; however, no content-filtering software is totally effective. Please use the same precautions you would use accessing any public wireless network.” The service is available for riders age 18 and over.

iMEGA is fresh off filing a lawsuit against the Minnesota Department of Public Safety (DPS), which attempted to force the censorship of 200 internet gambling domains by its residents. The DPS served notice to 11 of the world’s largest internet service providers (ISPs) calling for the blockage. However, after iMEGA’s suit, it rescinded its notice.

PPA to Announce National Poker Week on June 22nd at 2009 WSOP

The Poker Players Alliance (PPA), the industry’s main lobbying force, will announce its plans for National Poker Week on Monday at the 2009 World Series of Poker (WSOP). An press conference to be held at 11:00am Pacific Time will feature Full Tilt Poker pro Howard Lederer, Congresswoman Shelley Berkley (D-NV), former three-term Senator from New York and current PPA Chairman Alfonse D’Amato, and PPA Executive Director John Pappas.

The announcement of Poker Week comes on the heels of the seizure of $30 million belonging to online poker payment processors by the U.S. Attorney’s Office for the Southern District of New York at the beginning of June. The news rocked the online poker industry and, although echecks recently reappeared as a deposit option on PokerStars, over 24,000 players were affected; many are now gun-shy about cashing out. Bank accounts in Arizona and California were targeted at the PPA is currently engaged in dialogue with the Southern District over the contents of the funds that were frozen. No formal lawsuit has been filed by attorneys for the PPA, payment processors, or the Interactive Media Entertainment and Gaming Association (iMEGA), which has been keeping a close eye on the situation.

So what is National Poker Week? The PPA’s website explains that the event is “a coordinated grassroots advocacy effort focused on educating lawmakers in Washington, D.C. on the benefits of protecting the game of poker.” Lederer, Berkley, D’Amato, and Pappas will kick off the festivities on Monday, June 22nd in Pavilion 11 of the Rio All-Suite Hotel and Casino, just down the hallway from the massive Amazon Room, which is playing host to the 2009 WSOP. New advocacy tools will be rolled out, which Poker News Daily has learned includes new forms to contact Congressmen on Capitol Hill. Pappas will walk media members in attendance through the PPA’s new features at the conclusion of the event, which will also consist of a question and answer session.

Media were sent two e-mails about the event, the second of which announced the attendance of Lederer, a longtime supporter of the PPA. While many media outlets are expected to be in attendance, it is not clear whether the event is open to the general public.

Berkley is a co-sponsor of Barney Frank’s HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, which was introduced on May 6th. A total of 33 other members of Congress have also stepped up to co-sponsor the bill, which establishes a complete licensing and regulatory framework for the internet gambling industry in the United States. Frank’s HR 2266, the Reasonable Prudence in Regulation Act, is up to 19 sponsors. HR 2266 delays the compliance date of the Unlawful Internet Gambling Enforcement Act’s (UIGEA) regulations by one year to December 1st, 2010.

Representatives from Poker News Daily will be in attendance at the Rio on Monday for the 11:00am press conference, which comes nearly 10 days removed from the beginning of the 2009 WSOP Main Event. The feature tournament kicks off on July 3rd with the first of four starting days and plays down to its final table on July 15th. The action will then break for 100 days, resuming on November 7th. The spectacle will play down to a winner on November 10th inside the Penn and Teller Theater at the Rio and air on cable station ESPN that evening.

Poker News Daily has learned that Frank is slated to issue the “Shuffle Up and Deal” command for one of the starting days of the 2009 WSOP Main Event. Last year, Congressman Robert Wexler (D-FL), whose Skill Game Protection Act would have exempted poker, bridge, mah jong, and other player versus player games from the Wire Act and UIGEA, issued the call in the Amazon Room.

The PPA is a one million member strong organization based in Washington, D.C. that fights for the rights of poker players, both in the live and online arenas. In 2006, the then-nascent organization stood at just 50,000 members. It took just two years for the PPA to cross the seven-figure mark.

PokerStars Traffic Slips 9% After Cashout Issues

Traffic on PokerStars, the largest online poker site in the world, has slipped 9% in the last two weeks, likely due to potential cashout issues for its players, according to PokerScout.com. PokerStars has recommended bank wires for players seeking cashouts.

On the first Thursday of June (the 4th), PokerStars saw a peak of 37,523 real money ring game players. By June 11th, one week later, that number had dropped to 34,692, a fall of 8%. Yesterday (June 18th), the site hosted a peak of 34,207 cash game players, representing a 1% decline week over week and 9% drop since June 4th. As further evidence of a slowdown, on June 13th, PokerStars recorded a peak player count of 28,455, the first time it had slumped below 30,000 since December 31st, 2008.

However, traffic on the site is up during the first 18 days of June in comparison to the same period in May despite the ongoing World Series of Poker (WSOP). During the first 18 days of May, PokerStars boasted an average peak player count of 34,626 at its virtual cash game felts. In the same period this month, it has seen an average of 34,872, a gain of nearly 1%. Throughout the month of May, PokerStars had an average peak volume of 34,886 players. An article released by PokerScout on June 14th noted that traffic on Stars had fallen 5% in the last week alone to the “lowest level so far this year.” Year over year, however, the world’s most popular online poker site has experienced a 54% growth in activity.

On Full Tilt Poker, the average peak player volume over the first 18 days of May stood at 16,801. In June, that figure has ballooned to 17,736, a growth of nearly 6%. During the same period when traffic on PokerStars fell by 9%, player counts on Full Tilt rose by 2%. The site will bring back its Sit & Go Madness promotion this weekend, offering nearly $200,000 for players competing in the popular single-table tournaments. Between April 19th and May 10th, the peak number of cash game players on Full Tilt Poker exceeded 18,000 just once. During the first 18 days of June, the 18,000 plateau has been breached eight times, including four straight days between June 15th and June 18th. Year over year traffic at Full Tilt Poker is up by 59%.

At the CEREUS Network, which includes Absolute Poker and Ultimate Bet, cash game traffic has remained steady. During the first 18 days of May, an average peak of 3,144 real money ring game players could be found on the CEREUS Network. Over the same period in June, that number grew slightly to 3,148. Over the last 30 days, the Network has hosted fewer than 3,000 real money ring game players just five times and has not attracted a peak of fewer than 2,000 since April 30th. According to PokerScout, CEREUS is the fifth largest Network worldwide with a seven day running average of 2,300 real money ring game players.

Finally, traffic on PartyPoker, which does not accept players from the United States, is up significantly. PokerScout.com claims the spike in player volume by the longtime industry staple may be due to the Million Dollar Hand promotion. During the first 18 days of May, the average peak cash game traffic was 7,351 players. During the same period in June, the figure skyrocketed to 9,410, a jump of 28%.

Interactive Media Entertainment and Gaming Association (iMEGA) Executive Director Joe Brennan gave Poker News Daily his reaction to the drop in traffic on PokerStars: “Operators know the burden is on them to make sure the players have the money due them. Any operator that would have problems will likely lose share to companies that don’t. But, it’s too early to say any one company is having major problems and no reason to think that all of the operators who have been affected aren’t working overtime to resolve slow pay problems. There is no need to panic.” iMEGA has not yet become involved in the situation legally. So far, it has allowed the Poker Players Alliance (PPA), the main lobbying force for the poker industry, to take the lead.

PPA Director Reacts to U.S. Government Seizing Online Poker Funds

The month of June has been a roller coaster ride for the Poker Players Alliance (PPA), the poker industry’s primary lobbying group in the United States. Last week featured a seizure of over $30 million in online poker payment processor funds by the U.S. Attorney’s Office in the Southern District of New York.

The move marked one of the first shots fired at the online poker world, as past enforcement has focused squarely on sports betting. PPA Executive Director John Pappas told Poker News Daily, “We were confused by it and also believe the Government is on shaky legal ground in terms of being able to justify doing this under any act that has to do with gambling.” According to the PPA, the Southern District claimed that the Wire Act of 1961 and Illegal Gambling Business Act were both violated. Now, over $30 million and at least 24,000 online poker players are affected.

The PPA told the Wall Street Journal that 10 million Americans play poker on the internet and wager $6 billion annually. Although no formal legal action has been filed, Pappas questioned whether the Federal Government’s Wire Act charge would hold up in court: “The highest court to rule has concluded that the Wire Act applies to internet sports betting. Not to mention, in the state of New York, statutes say it’s not unlawful for players to place a wager. There are a lot of hurdles they have to face.”

Assistant U.S. Attorney for the Southern District Arlo Devlin-Brown has emerged as the driving force behind the seizures. The PPA sent a letter to Devlin-Brown questioning whether due process was violated in the seizure of funds from Citibank, Goldwater Bank, Alliance Bank of Arizona, and Wells Fargo. In addition, poker players have been speaking up in droves, firing off letters and e-mails to their Congressmen from the PPA’s website. Pappas revealed several key talking points: “Please cite the authority and precedent for the Southern District of New York to go after poker players’ winnings. Please cite the authority and precedent that playing poker on the internet is an unlawful activity. The appropriate response to all of this is to make policy to license and regulate the industry, not force poker players to be criminals and have their money seized.”

Jeff Ifrah, attorney for the payment processors affected, speculated to Poker News Daily that the seizure may have been timed to coincide with the running of the 2009 World Series of Poker (WSOP), which began back on May 27th. In response to the adversity, online poker sites such as Full Tilt Poker and PokerStars have fully reimbursed players and in some cases offered a 10% bonus for the inconvenience of a bounced check. Many poker players have recently reported that their checks and echecks are once again clearing without setback. On the online poker sites compensating customers, Pappas lauded, “It bolsters our argument that we’re not dealing with a rogue industry that is cheating people out of their money. It’s an industry that cares about its customers.”

In the meantime, the PPA and attorneys for payment processors are engaged in dialogue with the Southern District. On the possibility of a lawsuit or court order, Pappas told Poker News Daily, “It’s not a situation where poker players are out of money. Should there be further seizure attempts going forward, then perhaps we’d be forced to jump into it with a legal injunction, but the facts of it right now leave us to believe that we can come to some sort of immediate solution through dialogue.”

Congressman Barney Frank (D-MA) has introduced the Internet Gambling Regulation, Consumer Protection, and Enforcement Act to establish a complete licensing and regulatory framework for the industry in the United States. The measure was unveiled to the world on May 6th and has since attracted 30 co-sponsors, including four new additions on Friday.