Poker News

National Council on Problem Gambling Holds HR 2906 Press Conference

Last Thursday, the National Council on Problem Gambling held a press conference in the Canon House Office Building to debrief media and Congressional staffers on HR 2906, the Comprehensive Problem Gambling Act.

Congressmen Jim Moran (D-VA), Lee Terry (R-NE), and Frank Wolf (R-VA) introduced the bill back in June. Since then, a dozen cosponsors have signed on, including Congressman Barney Frank (D-MA), who is pushing bills to delay the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) by one year to December 1st, 2010 (HR 2266) and to establish a comprehensive licensing and regulatory framework for internet gambling in the United States (HR 2267).

Congressmen Moran and Wolf turned out for the press conference and issued opening remarks. Also in attendance was Congressman Patrick Kennedy (D-RI). A total of 25 interested parties were present, including members of the media and staffers from offices around Capitol Hill. National Council on Problem Gambling Executive Director Keith Whyte told Poker News Daily, “It was bigger than we thought. It seems that there is a heightened level of interest in problem gambling and gambling in general. Part of it is people thinking about Frank’s internet gambling bills. We want to talk about the hope and help around this problem rather than just about the negatives. Hopefully, that’s a message that Congress will hear a lot more.”

Whyte spoke during Thursday’s proceedings, as did Tim Christensen, President of the Association of Problem Gambling Service Administrators, and Chuck Maurer, President-Elect of the National Council on Problem Gambling. Two problem gamblers also took to the podium. In the wake of the successful turnout, National Council on Problem Gambling officials are seeking a Senate sponsor of HR 2906. Whyte explained, “We may be within a couple of weeks of taking it on in the Senate. It’s been referred to the Energy and Commerce Committee, which is currently working on health care reform. Everything else is competing for scarce time. The more cosponsors we get, the more likely we’ll be able to get committee time.”

Two films were shown last week following the one-hour long affair. “Shake ‘M Up Break ‘M” told the story of gambling addiction through song, while “Game Over” served as a promotional vehicle for the Washington State Problem Gambling Helpline. HR 2906 allocates up to $14.2 million per year for problem gambling public awareness, research, and treatment for the fiscal years 2010 to 2014. Its language was used in Senator Robert Menendez’s S 1597, the Internet Poker and Games of Skill Regulation, Consumer Protection, and Enforcement Act.

HR 2906 notes that over six million adults in the United States met the criteria for problem gambling last year. The estimated “social cost” from legal proceedings and financial distress as a result of problem gambling was $6.7 billion in 2008, and “there are no agencies or individuals in the Federal Government with a formal responsibility for problem gambling.” The organization characterizes problem gambling as a health disorder.

Several individuals, including Joseph Dunne and Robert Custer, founded the National Council on Problem Gambling 37 years ago. According to its website, the Council seeks “to increase public awareness of pathological gambling, ensure the widespread availability of treatment for problem gamblers and their families, and to encourage research and programs for prevention and education.” Each March, the organization hosts the National Problem Gambling Awareness Week and, in 2009, utilized social media outlets like Facebook and YouTube for the first time in order to disseminate its message.

Read the text of HR 2906 on the Library of Congress website for more information.

Legal Online Poker’s Biggest Obstacle: Nanny Democrats

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

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

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

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

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

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

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

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

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

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

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

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

Denmark Upholds Lower Court Ruling, Taxes Online Poker Winnings

Denmark, home to reigning World Series of Poker (WSOP) Main Event Champion Peter Eastgate, is notorious for having one of the most heavy-handed taxation codes of any country in the European Union. Eastgate, who took down $9.1 million when he captured the WSOP Championship Event bracelet last November, was taxed at a 45% rate for the first $4 million he earned and at 75% for the remainder of the money, leaving the youngest WSOP Main Event champion with an estimated $2.5 million. Now, the long arm of the Danish tax police has taken down another player.

The Danish Supreme Court ruled that a 35 year-old unemployed man, who allegedly had been earning a living as an online poker player, would have to be taxed as a “professional gambler” and subjected to a similar tax rate as Eastgate. Over the past year, the Danish man in question, who has not been identified in court documents, allegedly earned approximately €26,000 from playing at several online poker rooms. Although the Supreme Court refused to enforce a DKK5000 fine issued by a lower court, the resulting tax bill amounts to €11,700 for the unemployed poker player.

The case is a highlight of the schizophrenic nature of Denmark when it comes to the issue of poker, be it online or live, and its treatment of players. According to the Danish press, a poker organizer was allowed to organize tournaments after the Supreme Court determined that he wasn’t violating any existing laws on the Danish books. They did state, however, that the rule applied to live games and not the online version, which Denmark has been vigilant against since earlier this decade.

As the online gaming world began to take form in 2002, Denmark was one of the first countries to introduce a state-sponsored gaming system. Known as Danske Spil (similar to Sweden’s Svenska Spel), the state owned and operated casino and poker room prohibited outside companies, such as PartyPoker, 888 Pacific Poker, PokerStars, and Full Tilt Poker, from freely competing for the Danish gaming market. For most of this decade, Denmark has been in a battle against the European Union over potential violations of free trade agreements.

In a move that shocked many, Denmark decided in 2008 that it would open its doors to outside gaming vendors and put in place a free-trade online gaming practice within the next two years. Denmark has demonstrated its commitment to this goal by recently opening up Hollywood Poker to access by Danish citizens. In addition to allowing Danes to play on the site, the Danish government has listed Hollywood Poker as a no-tax website. This is an important part of the addition to Denmark’s accessible list, as the Danish tax authority has a very exclusive set of poker rooms where players can be assured that their winnings will not be taxed.

UIGEA Upheld by US Court

Sad news for online gamblers in the US this week as the 3rd Circuit Court upholds the Unlawful Internet Gambling Enforcement Act, rejecting the argument that the law is unconstitutional and should be repealed. The case was brought back to the court by The Interactive Media Entertainment and Gaming Association (IMEGA), who say they are considering filing an appeal.

UIGEA Upheld by US Court

Sad news for online gamblers in the US this week as the 3rd Circuit Court upholds the Unlawful Internet Gambling Enforcement Act, rejecting the argument that the law is unconstitutional and should be repealed. The case was brought back to the court by The Interactive Media Entertainment and Gaming Association (IMEGA), who say they are considering filing an appeal.

National Council on Problem Gambling Comments on Menendez Bill

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

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

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

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

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

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

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

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

“Martonas” with a Swing Again - Down $690k

Ilari Sahamies is known to have some serious swings, but Swedish “martonas” might be even bigger swinger. These both online gamblers are known to lose a million in a night and win another over the next session.

Not a rare sight. “Martonas” with a cool million on the table.

“Martonas” is known to seek challenge and he can be found playing head’s up with the top online pros. This time “martonas” collided with Brian Hastings. These two very aggressive players met at a $300/$600 NLHE table at Full Tilt Poker last night.

After the last hand Brian Hastings was the big winner as he left the table with a nice $690k profit. Although “martonas” is still up over $800k for the month, his downswing is brutally deep.

Just a few hands from the late session:

Hastings hits the straight for $258k

All the action on the turn,  $155k

Source: Highstakesdb

You just read Poker News from HighStakesNews.com

“Martonas” with a Swing Again - Down $690k

‘The Brunson 10’ Hopes to Take DoylesRoom to New Heights

Welcome to all new DoylesRoom — home of the legend and the next generation. For the past five years, Doyle Brunson’s site has embraced its reputation as the home of the old-time gamblers, sporting a cowboy look and the faces of Doyle and Todd Brunson, Mike Caro, and Hoyt Corkins. Now, with a clean new site

Senator Robert Menendez Introduces S 1597 Legalizing Online Poker

On Thursday, Senator Robert Menendez (D-NJ) officially unveiled S 1597, the Internet Poker and Games of Skill Regulation, Consumer Protection, and Enforcement Act. Congress remains on recess until after Labor Day in the United States.

As its name implies, Menendez’s legislation explicitly legalizes and regulates games of skill like online poker, which should come as a welcome sign to players in the United States who question the legality of the game. The bill notes that poker, bridge, mahjong, backgammon, and chess are examples of games in which a player’s skill dominates the outcome: “While each of these games contains an element of chance, over any substantial interval, a player’s ultimate success is determined by that player’s relative level of skill.” Menendez’s measure weighs in at a hefty 89 pages.

The bill focuses heavily on online poker, noting, “Poker is part of the cultural and recreational fabric of the United States and has been since the founding days of the United States. United States poker aficionados have included presidents, judges, and statesmen.” S 1597 calls for the continuance of laws against sports betting online in a similar fashion to Congressman Barney Frank’s (D-MA) HR 2267, which establishes a complete licensing and regulatory framework for the internet gambling industry in the United States. HR 2267 was introduced exactly three months ago and is up to 54 co-sponsors.

The Secretary of the Treasury is responsible for overseeing the licensing process for skill game operators and prescribing regulations. Each applicant for a license must submit a comprehensive financial background, an outline of the company’s structure and that of its affiliates, criminal and credit histories of executives, and how each licensee plans to combat underage gambling and compulsive gambling. In addition, they must convey how the games offered will be fair. All gamblers must be at least 21 years-old.

Licenses run for five years and can be renewed at the end of each term. Like other recent internet gambling legislation, Menendez’s S 1597 calls for a list of “persons self-excluded from gaming activities at all licensee sites.” States have a period of 90 days to opt out of the legislation after it becomes law; Indian tribes can also exempt themselves from the bill. S 1597 addresses problem gambling, allocating $14.2 million per year between 2010 and 2014 for awareness, treatment, and research.

S 1597 clearly states, “Nothing… shall be construed to repeal or amend any provision of State or Federal law prohibiting, restricting, or otherwise addressing bets or wagers on sporting events.” Professional sports leagues like the NFL have expressed a desire for Frank’s HR 2267 to contain clearer language outlawing sports betting. During a working dinner as part of National Poker Week, the Poker Players Alliance (PPA) claimed it was part of a “broad coalition” that included the NFL.

The Federal Government and State Governments will each reap 5% of a licensee’s deposits during each calendar month in taxes. Unauthorized gambling is subject to a 50% fee. Menendez’s S 1597 is similar in scope to last session’s S 3616, the Internet Skill Game Licensing and Control Act. However, Thursday’s version focuses on consumer protections. The PPA reviewed a draft of the bill in mid-July with what the organization called a “commitment” from Menendez to introduce it. The online poker measure was scheduled to be released before August 1st. However, it was ultimately revealed to the world on Thursday.

The 1.2 million member strong PPA will likely push its members to call their Senators and urge support of Menendez’s S 1597. As of the time of writing, no companion bill exists in the House of Representatives. Frank’s HR 2267 encompasses all forms of internet gambling except sports betting, whereas Menendez’s only legalizes games of skill. Congressman Robert Wexler (D-FL) introduced the Skill Game Protection Act (HR 2610) during the last Congressional session. It exempted player versus player games from internet gambling law, including the Wire Act of 1961 and Unlawful Internet Gambling Enforcement Act (UIGEA).

The PPA had not released an official statement on S 1597 as of press time. We’ll have full industry reaction to Menendez’s online poker legislation on Poker News Daily.

Phil Ivey’s prop bets revealed: Millions on the line!

One of the biggest favorites in the World Series of Poker Main Event is Phil Ivey. He is undoubtedly the most skilled and well-known of the nine finalists and despite of his characteristic quiet personality the whole poker media have focused to this seven-time WSOP bracelet winner druring the past month.

The $8.5 million first prize is a life changing amount to each of the Main Event finalist, even to Ivey as it would nearly double up his tournament career winnings.

Yet it has now come to public that Ivey has prop bets going on for over $3 millions extra cash.

-Ivey making more millions

Recently Tom Dwan revealed that he’s one of the people who have laid a bet with Ivey. Dwan has to pay million dollars to Ivey if Ivey should win. Sounds big, but these two play for these kind of pots frequently on the high-stakes tables.

Next is Phil Gordon who took the bet which didn’t make his spouse happy at all. Gordon, who is a WPT winner and poker author, told that they are “quaking in their boots” on a recent Full Tilt Podcast.

Gordon also revealed that Andy Bloch has gotten into trouble as well. It seems that Bloch can lose a massive $2 million dollars. Gordon said that “Andy is quaking about 20 times more than I am”, which reveals quite a lot about the total sum of the bets.

After Gordon’s comments Bloch was forced to confirm the story. It seems that the prop bets were made when there were 2.400 players remaining in the Main Event. Getting the odds of 99-1, Andy bet $20.000 which’ll mean that he has to pay Ivey $2 million if Phil will Win.

We still don’t know all of the prop bets and we probably will never know the total sum, but it’s hard to think that players such as Patrik Antonius, Ilari Sahamies, or the well-known high-stakes gambler Sammy Farha wouldn’t have made some prop bets of their own.

Ivey is renowned to place high stakes prop bets at tournaments which apparently is a motivational thing for him because he has to leave the juicy high-stakes games for a while. If Ivey should win the Main Event he would most likely be confirmed as the richest professional poker player in history. He might gain such a big popularity through endorsement deals and tv appearances that he might be the first professional player to be known as a professional athlete.

Source: Flopturnriver

You just read Poker News from HighStakesNews.com

Phil Ivey’s prop bets revealed: Millions on the line!

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

Greg Raymer, Chris Ferguson, Andy Bloch Speak on PPA Fly-In

The Poker Players Alliance (PPA) will host a fly-in in two weeks as part of National Poker Week. Greg Raymer, Chris Ferguson, and Andy Bloch are among a handful of poker pros that will meet and greet representatives of Congress in an effort to legalize and regulate the game in the United States. Poker News Daily caught up with the trio at the 2009 World Series of Poker (WSOP).

2004 WSOP Main Event Champion Greg Raymer

On Washington lobbyists:
“The whole thing is such a joke. If you look at the people who say they’re against gambling on moral grounds, the money funding those groups is from other gambling interests that are against online poker or online gambling. The horse lobby, which wants people to come to the physical racetracks, is giving money to the conservative Christian group that says they’re anti-gambling.”

“Online poker is easier to regulate than live poker. It’s impossible for the live venues to do some of the things you can do online in terms of tracking. On PokerStars, we can save every hand you’ve played and know how much money you put into the pot, how much you won or lost, and the hours you’re playing. We can even track the IP addresses to know where you logged in from. There’s so much tracking we can do, so if you’re worried about minors slipping in or problem gamblers who want to be stopped, the online sites can deal with those issues. We can do it more effectively than a brick-and-mortar casino.”

On why the issue is important: “I’m a Libertarian in terms of my general philosophy. I don’t think the government should ever tell me what to do with my own time and money. If you’re committing a crime against me, that’s where the government is supposed to stop you, but if you’re going to be at your own home doing something by yourself, the government shouldn’t have anything to say no matter what you’re doing. If a child is there, the government should step in and make sure you’re not doing something that’s harmful. The child is not old enough to give their consent to certain activities.

“Even things that I find totally ridiculous like methamphetamine, the government shouldn’t be stopping people from doing it. I think you’re a total idiot if you do that, but if you’re an adult and you want to do something stupid, it’s not the government’s job to step in.”

Full Tilt Poker Pro Andy Bloch

On the PPA Fly-In:
“It’s going to be a busy couple of weeks for me. Hopefully I’ll make it to the WSOP Main Event final table. If not, I’m flying to London for a poker event and then on the way back, I’m stopping in Washington, DC for four days. The PPA did a fly-in last year and it was a great success. I think we’re going to bring in more people and be able to talk to more Congressmen this year.”

On why being active politically is important:
“I went to law school because I thought I wanted to get involved in politics or human rights. If the government can stop you from playing online poker in your own home, what can’t they stop you from doing? That’s one of the reasons why Barney Frank is one of our biggest supporters: He believes in personal freedoms. That’s why we have Ron Paul and other Republicans supporting us. If the government can come in and say you can’t play $0.05-$0.10 poker or $5 sit and gos in your living room, what can’t they stop? Where does it end? They can tell you what you can do, what you can buy, what clothes you can wear, and what kind of food you can eat. I don’t want to live in a world like that.”

Full Tilt Poker Pro Chris Ferguson

On the PPA Fly-In:
“There has really been an attack on poker, particularly on online poker, during the last few years. We really think it’s unjustified. We think poker is a wonderful game and everyone should have the right to play it. We have casinos all over the United States where you can play poker. Why can’t you play online? What we’re doing is very good for poker and it’s going to bring the game to thousands of people all over the world.”

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.

2009 WSOP: Abe Mosseri Claims Event #55 2-7 Triple Draw Gold

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From the Poker Vaults: The Boss Gamblers of Bexar County

For the most part the boss gamblers who thrived in Texas in the 1950s and 1960s were congenial to outsiders who wanted to sit in their games...

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WSOP Scandal: Marked Cards?

Marked cards bring a clear advantage to the player who can indentify them. When playing with an old set of cards with friends, without a real bet, it can be understood to some extent. However, the same happening in WSOP is unheard of.

According to Andy Bloch the card above was used in the $5,000 NLHE Shootout. It is nearly impossible to say if it’s a made by a cheater or just is a bad product. During WSOP thousands of decks are used, so it is quite likely that a bad one ends in the mix.

Some observations support the cheating

Theory that the card was marked on purpose is also one of the possibilities. Similar things have supposedly already taken place in the World series of the year. Normally the marked card risk is bigger when playing big buy-in mixed-tournaments.

For example, in the $10k Deuce to Seven Draw a player was specifically taken under supervision due to suspected marking. In some of the decks of that tournament, there was found clear marks, made with nails.

How many card frauds really take place in grand tournaments such as WSOP or EPT, is impossible to know. By a rule of thumb players are for fair play, but regrettably there seems to be a number of scammers among the gamblers.

Source: Pokerati

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WSOP Scandal: Marked Cards?

Focus on the Family Reacts to Barney Frank Internet Gambling Bills

Dr. James Dobson founded Focus on the Family in 1977, an organization that works to strengthen family bonds. Recently, it has come out against Congressman Barney Frank’s (D-MA) Internet Gambling Regulation Consumer Protection and Enforcement Act, HR 2267. The bill outlines a comprehensive framework to license regulate the internet gambling industry in the United States. Poker News Daily sat down with Focus on the Family’s gambling spokesperson Chad Hills to discuss the new measure.

Poker News Daily: Explain the general response of Focus on the Family to Frank’s comprehensive internet gambling legislation.

Hills: We see gambling as something that causes addiction and it’s an industry that seeks to exploit the weaknesses of people in order to gain money. What we see from our perspective is an estimated 15 million people who are either problem or pathological gamblers in the U.S.; that’s no small number to ignore. What concerns us is that addiction is followed by bankruptcy. When someone goes bankrupt and they hit the bottom of the barrel, they get desperate. They have nothing else to lose and so turn criminal to keep feeding the addiction or to pay off their debts.

From our perspective, internet gambling represents one of the most invasive and highly addictive forms of gambling. You have availability 24/7 and most gamblers online play on three to five sites at a time. Add those things together and then put that in the privacy and secrecy of your home and you have a perfect storm for gambling addiction. If you walk into a casino, people know the addicts and kick them out. There is public accountability. Online, it’s the click of a mouse.

PND: Does Focus on the Family subscribe to the notion that regulation of an industry ultimately means better protection against underage and problem users?

Hills: We’ve been doing a lot of research on countries conducting legal internet gambling and can pull up three to eight different headlines almost every day where one of them is being hit up for corruption or being investigated. I haven’t seen a system yet that is childproof. I haven’t seen a system that can stop white collar crime from going on.

The Unlawful Internet Gambling Enforcement Act (UIGEA) has effectively dropped the number of internet gambling sites in the U.S. by about 50%. The prevalence of problem gambling is three to five times higher in internet gambling than in land-based gambling. You bring 2,000 casinos into someone’s home and you’re going to have huge addiction troubles. If we legalize this, we’re only going to open Pandora’s Box.

The Poker Players Alliance (PPA) says they have one million members. That’s nice, but for every member they have, there are 15 to 20 people estimated to have a pathological or problem gambling addiction. Each of them affects another 10 to 17 people negatively. One PPA member means that we have 15 to 20 addicted folks and another 250 people affected in total. There are a small number of people that want to play poker online. There is no choice in the matter.

PND: Respond to critics who say that the UIGEA is vague and consequently places unnecessary burdens on the financial services industry.

Hills: It’s not any more of a burden than it would be to verify that someone is of a certain age to purchase something else online. The banks will have to verify that an entity is a licensed gambling industry. Right now, none of those offshore foreign entities are licensed in the U.S. These groups could be funding terrorism. All you have to do is have a couple of techies, a warehouse, and some software and you have an online casino.

PND: What about legal forms of online gambling, like state lotteries, which have experienced a blockage of funding as a result of the UIGEA?

Hills: In terms of blocking legal entities, it’s going to be a process that the industry will have to go through. Once the UIGEA is truly implemented in December, things like online lotteries will have an effective verification certificate that they can show financial institutions. Barney Frank introducing HR 2266 (Reasonable Prudence in Regulation Act) is only going to delay the process.

PND: Talk about the background of Focus on the Family for those who are not familiar with it.

Hills: Focus on the Family is an organization that was founded by James Dobson. It is classified as a Christian ministry and we have a two-pronged approach: To strengthen and nurture families and defend them from dangerous policy. We try to preserve traditional family values and beliefs as they pertain to law, policy, and human conduct. We have different analysts who look at the incoming research, media headlines, and reports.

Andres Iniesta robs Ilari Sahamies!

Ilari “Ziigmund” Sahamies, gambler like he is, played little sports betting about UEFA Champions League semifinal matches. First match, Arsenal versus Manchester United went wrong when he bet a draw and United won easily, but the second semifinal between Chelsea and Barcelona was the match that drove Sahamies mad.

Sahamies tilts again.

Sahamies was hanging out with his friends and watching the game with some snacks. He was relaxed and in good mood. Ziigmund had bet for Chelsea and everything looked fine after a good start and early leading goal for Chelsea. But in the end disaster struck.

Game was already on the injury time when Barcelona midfielder Andres Iniesta fired a huge shot from just outside the penalty box that found the way in to Chelsea’s goal (check the video from below) and put Barcelona in the final.

That goal tilted Sahamies so bad that he soon found himself playing a heads-up match against Tom “durrrr” Dwan. In the first hand Dwan rivered a $200k pot with 6-outer and that was the final nail in Ilari’s coffin: He was officially tilting.

Well, we all know what happens when Sahamies is tilting and soon Ziigmund was feeling nothing but relaxed anymore. Eventually he lost $650k that day and for sure he still wonders why everything went like it did. Still, it was a nice goal:

Source: coinflip.com

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Andres Iniesta robs Ilari Sahamies!

PPA Director John Pappas Appears on Bloomberg

This week, Poker Players Alliance (PPA) Executive Director John Pappas appeared on Bloomberg television to break down Congressman Barney Frank’s (D-MA) Internet Gambling Regulation Consumer Protection and Enforcement Act.

The bill, numbered HR 2267, was introduced on Wednesday and calls for a complete licensing and regulatory framework for the internet gambling industry in the United States. Although similar to a bill that Frank introduced during the last Congressional session, HR 2267 focuses on how proper regulation can mitigate the perceived social ills of gambling. Pappas told Bloomberg’s television outlet, “We want to make sure that the Federal Government puts the standards in place so that there is safety for minors, that there are services for problem gamblers, and that adult consumers can enjoy the game without fear of fraud or abuse. A prohibition never stopped a child from getting online. A prohibition never stopped a problem gambler. Regulation is the only way to do it.”

Congressman Spencer Bachus (R-AL) and others have argued that a computer with the ability to gamble online may provide the outlet for children in the United States to begin playing at a young age. Bachus even quoted a non-existent McGill University study during a House Financial Services Committee meeting last July, claiming that one-third of college students who gambled online attempted suicide. Pappas explained that online poker sites currently employ safeguards to combat underage gambling: “Most of the online sites today already are using very high-tech, sophisticated age verification technologies. They have no interest in having children on their websites playing against adults. They want adult consumers playing on their sites. The only way to ensure that all sites have that is to pass a bill like Barney Frank’s.”

Pappas’ appearance on Bloomberg also included a discussion of whether playing online poker is illegal in the United States. Poker players can vividly recall the CBS News program “60 Minutes” stating that the game was against the law on multiple occasions after show producers allegedly contacted the Justice Department. However, Pappas revealed what the legal status of the game in the United States is: “For the U.S. player, it’s not illegal for them to go online and play internet poker. What the law in 2006 attempted to do was to make illegal the transactions. It puts the burden on the financial institutions, not the actual player.” The law in question is the Unlawful Internet Gambling Enforcement Act (UIGEA), which was ushered through Congress in the waning moments of the 2006 Congressional session by then-Senate Majority Leader Bill Frist (R-TN). The UIGEA’s text gave no indication of what was legal or illegal under it. Instead, it deferred to existing State and Federal laws.

Some would cite the Wire Act of 1961 as grounds that playing online poker is not allowed in the United States. However, the 48 year-old measure traditionally applies to online sports wagering. Pappas told Bloomberg, “The Wire Act states that illegal gambling is being in the business of betting or wagering. An internet poker site isn’t in the business of betting or wagering. They’re simply allowing a venue in which people can compete in games of skill like poker against each other.”

In recent months, the PPA has seen judges in Pennsylvania, Colorado, and South Carolina conclude that poker is a game of skill and therefore should be treated separately from online casinos, Bingo parlors, and sports betting outfits. During the last Congressional session, Congressman Robert Wexler (D-FL) introduced HR 2610, the Skill Game Protection Act, which would have exempted poker, bridge, chess, mahjong, and other player versus player games from the UIGEA and Wire Act.

At the time of writing, HR 2267 has 16 co-sponsors, including Wexler, Shelley Berkley (D-NV), Steve Cohen (D-TN), Peter King (R-NY), Jim McDermott (D-WA), Ron Paul (R-TX), and Melvin Watt (D-NC).

Frank reveals online gambling legislation

The Internet Gambling Regulation Consumer Protection and Enforcement Act of 2009 would establish a federal regulatory and enforcement framework for Internet gambling operators who want to accept U.S. customers.

"We applaud [Financial Services Committee] Chairman Frank's strong leadership to advance a common sense approach to regulate Internet gambling and reverse the intrusive, ineffective and burdensome prohibition," said Jeffrey Sandman, spokesperson for the Safe and Secure Internet Gambling Initiative.

This legislation is similar to what Frank introduced in 2007 in response to the Unlawful Internet Gambling Enforcement Act, which attempts to block money transfers from banks and other financial institutions to online gambling sites.

Frank has previously said he believes restricting online gambling is an inappropriate interference on the personal freedom of Americans and his hope is to reverse the UIGEA.

Along with the act to overturn the UIGEA, Frank is also going one step further, introducing separate legislation today to delay the implementation of UIGEA regulations set to go into effect Dec. 1, 2009.

The legislation will stop Federal regulators from enforcing the UIGEA until Congress has a chance to decide national policy.

"Despite the current prohibition, millions of Americans wager more than $100 billion annually with offshore Internet gambling operators," Sandman said.

"Rather than tell Americans what they can and cannot do online in the privacy of their homes, Chairman Frank's approach to regulate Internet gambling would protect consumers and allow the U.S. to generate billions in new revenue to fund critical government programs."

One of the stipulations for licensing under the new legislation is that companies must maintain effective protections against underage gambling, compulsive gambling, money laundering and fraud, and enforce prohibitions or restrictions on types of gambling prohibited by states and Native American Tribes.

The companies will also be subject to review of their financial condition and corporate structure, business experience, suitability and criminal background. They will also have to agree to be subject to U.S. jurisdiction.

The bill also grants the Treasury the authority to enforce the regulations. They can revoke or terminate the license of any online gambling site that fails to comply with the bill's provisions, and violators could be fined or imprisoned for up to five years, or both.

The Poker Players Alliance agreed the new legislation will do a better job of protecting U.S. consumers who choose to gamble online.

According to the PPA, the UIGEA was overly vague and wasn't actually protecting U.S. citizens as it was intended to do.

This new legislation will go much further towards keep children and problem gamblers off these sites, at the same time allowing for strong consumer protections for adult consumers who enjoy playing online poker and other online gambling activities, the PPA claims.

"Online poker is a legal, thriving industry and poker players deserve the consumer protections and the freedom to play that are provided for in this legislation," PPA Chairman and former Senator Alfonse D'Amato said.

"We are grateful for Chairman Frank's leadership and will be activating our grassroots army made up of over one million members to help him drive legislation."

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40 years of the WSOP: The beginning

From its beginnings as a small invitation-only gathering of exclusively male, U.S. gamblers, the WSOP is now the richest international, equal-opportunity sporting event in the world.

But before we start that journey, we need to go back even further, 21 years earlier, when the future father of the WSOP, Benny Binion, was presented with an interesting request.

Nicholas "Nick the Greek" Dandolos, the son of wealthy Greek parents, had a huge bankroll and the desire to play the best poker player around in a marathon heads-up match.  Binion set up the contest, choosing the legendary Texas-born Johnny Moss.

Beginning in January, and ending sometime in May, the two men played every form of poker imaginable. In a brilliant marketing move, the match was held in the front lobby of the Horseshoe, luring curious onlookers to the casino.

For the first time, Poker had become a spectator sport.

But it was not until 21 years later at the Holiday Hotel and Casino in Reno, Nevada that the seeds of the WSOP really began to germinate.

For those outside the poker world, 1969 is remembered as the year of anti-war protests, the beginning of Richard Nixon's presidency and Neil Armstrong's infamous walk on the moon.

For poker players, however, it was the year that the World Series of Poker had its beginnings.

A weeklong convention dubbed the "Texas Gambler's Reunion" was organized by Tom Moore, who had recently purchased the Holiday Hotel and Casino.  He invited the top gamblers of the day to a week-long re-buy poker tournament as part of the convention.

Those who attended the multi-day gathering were not exclusively from Texas, but were all seasoned poker players.

They included Doyle "Texas Dolly" Brunson, "Amarillo Slim" Preston, Johnny Moss, Crandell Addington, Puggy Pearson, Jimmy "The Greek" Snyder, Jack "Treetop" Straus, Felton "Corky" McCorquodale, Brian "Sailor" Roberts, Aubrey Day, Jimmy Casella, Bill Boyd, Syd Wyman, Long Diddie, Benny and Jack Binion and even Minnesota Fats.

"There was no such thing as one game for the championship," Addington told PokerListings.

"These were all cash games, they didn't follow the format that you see now where you have a certain buy-in and once that buy-in is gone, you're out of the tournament.  It was a tournament, a competition.  All the top players were there, but they were entirely cash games."

Addington won the most money that week and was named Mr. Outside, a title awarded to the best road gambler.

He still has the silver trophy given to him by Moore, but it certainly wasn't his focus at the time.

"Poker players back then weren't playing for trophies or bracelets," he explained. "We were playing for the money."

When Benny and Jack Binion learned that Moore was not planning to hold another reunion, they decided to hold their own at the Horseshoe the very next year.

Renamed the "World Series of Poker," the 1970 event was attended by many of the same gamblers who had participated at the Holiday convention the year before.

At the time, there were fewer than fifty poker tables in all of Las Vegas. Binion's Horseshoe actually had no poker room and so three tables were squeezed into the small baccarat area.

Just 38 poker players participated.

Over the next week and a half, they played Five-Card Draw, Deuce-to-Seven Draw, Seven-Card Stud, Razz, and No-Limit Hold'em.

Legend has it that Addington, Brunson, Carl Cannon, Moss, Pearson, Amarillo Slim, and Brian Roberts all voted for who would be named the winner in the end and Moss won.

But according to Addington, this was not exactly how the decision was made.

Addington claims the Binions decided to announce a winner simply because there was so much interest from the press.

"Jack Binion went around to all the poker players and asked them to vote on who was the best player and every poker player said, 'Me.'" He said.

"Well, that wasn't going to work, so he went around to see who would get the most votes for second place. Moss got the most votes for second place - except some of us refused to vote.

"Slim screamed bloody murder and said 'This is absurd. We're not voting on who's the best player. The best player is the one who won the most.'"

In the end however, the objectors were overruled, Moss was awarded a silver cup and is forever listed as the winner of the first WSOP.

As the festivities were wrapping up, Ted Thackery, a reporter for the Los Angeles Times sent to cover the first WSOP, gave Benny and Jack some advice.

He said the key to getting even more press involved was turning the World Series into a real sporting event with some structure - A real tournament with real life drama.

The next year the Binions began the freeze-out tournament structure, added prize money and a bracelet and a real sporting event it became.

The current structure of the WSOP was born. And this time, without any question, Johnny Moss came out on top.

Next article:  40 years of the WSOP: The 70s

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Minnesota Department of Public Safety Discusses Internet Gambling Ban

John Willems, Director of the Minnesota Department of Public Safety’s Alcohol and Gambling Enforcement Division, is leading the effort to compel internet service providers (ISP) to block state residents' access to at least 200 websites. He sat down with Poker News Daily to discuss the written notice served to ISPs this week.

Poker News Daily: The basis for the blockage is that internet gaming sites are illegal under the Wire Act, which has traditionally applied to online sports betting. In addition, the list of 200 websites has not yet been made public. What can you share with us about what sites will be affected?

Willems: The Wire Act has been used in other arenas as well. The list, which is only 200 out of literally thousands of websites, was selected at random without regards to what type of internet gambling each site is engaged in. Online poker would fall within that possibility.

This is a new process for everyone involved. There are differing opinions on the issue and we respect that. We initiated a civil notice. We haven’t seized property or discontinued service. We requested that the telecom companies not allow Minnesota customers, and only Minnesota customers, to be able to access them. Online gambling has been held to be illegal by the past three Attorney Generals and Minnesota is one of the first states to take action.

PND: Do you plan to pursue any of the internet gamblers directly or just use ISP blockage to stunt the industry?

Willems: We’re not pursuing any of the bettors and we’re not keeping people from accessing their money. We wanted to let everyone in the world know what we were up to in order to be transparent. We wanted to let them know that if we were successful, it might impact their ability to get funds they may have online. The last thing that we wanted to do was surprise everyone. Our actions have also increased the level of conversation on this topic.

PND: Minnesota has tribal casinos, card rooms at racetracks, and a state lottery, among other forms of gambling. Is the move, at least in part, due to wanting to protect the explicitly legal versions?

Willems: The motive is to deal with sizable illegal gambling activity and to use the most reasonable tool we can to deal with it. We are an enforcement agency that has very few tools available. As the contraction of the telecom industry has occurred, this statute seems much more viable today than it was before.

PND: What feedback has the Department of Public Safety received so far?

Willems: I hope we’ll have a mutually satisfying outcome to whatever occurs and I hope we’ll get good public policy because of it. It appears to me, based on voice messages and phone conversations, that the Poker Players Alliance must have contacted their membership because I’ve gotten a lot of feedback. I respect their viewpoint and understand it. As much as I can, I try to take the calls, but there are too many of them. I do understand their concerns and I’m not disrespectful of that, but there is a difference of opinion. If they want to make their case, they should also do so to the state’s policy makers.

PND: The press release notes, “U.S. code cited [for] first time in effort to halt illegal online gambling.” Talk about being the first such state to take action.

Willems: We can’t find any precedent elsewhere and we are doing it in a different way, on a different scale, and with a different attitude than has been done in the past. We understand there is a controversial aspect to it and we’re sorry for that. We’re enforcing the laws. If there is illegal gambling, we have to do our best to deal with it. That’s created some pushback by some people. Even in our own state, we have social card games, which are given direct instructions as to how they can operate, but they have not yet expanded online. The policy makers of Minnesota may want to dive into it.

Minnesota attacks online gambling

The State's Department of Public Safety served notice on 11 national and regional telephone and Internet service providers this week telling them to prohibit access of all Minnesota-based computers to those gambling sites.

The DPS contends that online gambling is illegal in all U.S. states.

Under a federal statute enacted in 1961 that recognized the states' need to control illegal gambling, the state has the authority to use its law enforcement agencies to stop illegal online gambling activity.

The DPS said it believes this is the first attempt by a state to employ the federal statute to restrict access to online gambling sites.

"In Minnesota, and for Minnesotans, the primary issues are legality, state self-governance and accountability," said John Willems, director of the DPS Alcohol and Gambling Enforcement Division.

"In broader context, the long-running debate on online gambling continues to raise significant issues, including absence of policy and regulation, individual rights, societal impact, international fair-trade practices, and funding for criminal and terrorist organizations."

Not only will Internet Service Providers be asked to block computers in Minnesota from the list of online gambling sites, the written notice also provides the sites' telephone numbers so Minnesotans can't call those numbers either.

"We are putting site operators and Minnesota online gamblers on notice," Willems said

"Disruption of these sites' cash flow will negatively impact their business models. State residents with online escrow accounts should be aware that access to their accounts may be jeopardized and their funds in peril."

According to the DPS, a response from the notified ISPs is expected within two to three weeks, at which time issues of non-compliance will be referred to the Federal Communications Commission.

The list of specific online gambling sites isn't being made available until the DPS confirms it is legal to release it.

However, Willems told PokerListings the list is not defined by type of gambling.

"Staff prepared a sample list at my request, so it may or may not include poker," Willems said. "Please keep in mind this is about 200 sites, which is a small representation of the larger number that operate."

Willems anticipates the program will expand to address thousands of online gambling sites depending on the compliance of the telephone companies and ISPs. He said the required technology to restrict geographic access to particular sites is a relatively straightforward procedure for service providers.

"The state of Minnesota has not to this point explored regulating this business. Perhaps that will happen in the future," Willems said.

"However, as of now, this form of gambling is unlawful in our state."

Matt Werden, the Minnesota state director of the Poker Player Alliance, has already stepped up to defend online poker.

"This isn't simply a heavy-handed tactic by the government; this is a clear misrepresentation of federal law, as well as Minnesota law, used in an unprecedented way to try and censor the Internet," Werden said.

"I don't know what U.S. Code they're reading, but it is not illegal to play this great American pastime online, and we're calling their bluff."

Werden claims online poker isn't illegal, is not criminal, and can't be forcibly blocked by "a state authority looking to score some political points."

"We see headlines like this coming from communist China but never expect that it could happen here in Minnesota," Werden said. "The good news is groups like the Poker Players Alliance are here to protect the rights of poker players and set the record straight when government reaches too far."

Werden said the issue is more than just about protecting poker. It is about keeping the Internet free of censorship and ensuring that law-abiding citizens can enjoy a game of Texas Hold'em in the comfort of their own home, either online or with a group of friends.

"The PPA will take any action necessary to make sure our members and the general public are aware of these oppressive and illegal actions, and to make sure the game of poker - in all it's forms - is protected in the state of Minnesota," he said.

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Minnesota Seeks to Block Internet Gambling Sites

Fresh off a similar incident that has been appealed to the Kentucky Supreme Court, the Minnesota Department of Public Safety has notified internet service providers (ISPs) that they must prevent access by the state’s residents to 200 internet gambling sites.

The total number of sites to be blocked currently stands at 200. However, at press time, the affected domain names are not yet known. According to the internet gaming press release, Written notice was given by the Minnesota Department of Public Safety’s Alcohol and Gambling Enforcement Division to AT&T, Charter, Comcast, Direct TV, Dish Network, Embarq, Sprint, Frontier Communications, Qwest, Verizon, and Wildblue Communications. John Willems, Director of the Division, commented in a press release distributed on Wednesday, “We are putting site operators and Minnesota online gamblers on notice and in advance. Disruption of these sites’ cash flow will negatively impact their business models. State residents with online escrow accounts should be aware that access to their accounts may be jeopardized and their funds in peril.”

The press release cites the Wire Act of 1961 and overtly charges, “Online gambling is illegal in all U.S. states.” The Interactive Media Entertainment and Gaming Association (iMEGA) has already dispatched a legal team specializing in First Amendment rights to Minnesota to combat the Department of Public Safety. Its Chairman, Joe Brennan, told Poker News Daily, “I'm somewhat troubled by the shaky legal premise on which Minnesota has based this order. They are asserting that there is some blanket Federal prohibition against gambling on the internet, when in fact none exists. In a similar fashion to Kentucky, you have the aggressor citing assertions that are not supported by the laws that are on the books.”

The letters to ISPs were delivered on Monday. The companies have “two to three” weeks to respond. Then, the Department of Public Safety has pledged to take the complaint to the Federal Communications Commission. In addition to the 200 sites whose access may be at risk in the immediate future, the Division expects further expansion: “Willems anticipates the program expanding to address thousands of sites, depending on compliance.” In Kentucky, a total of 141 domain names are in limbo as part of a forfeiture hearing that may be heard by the Kentucky Supreme Court. In Minnesota, no such seizure occurred. Instead, the Department of Public Safety is merely seeking that ISPs block access. Internet gambling is identified specifically.

In addition to their websites being inaccessible, the Department of Public Safety is also calling for the 200 companies’ phone numbers to be blocked. It explained, “For more than two decades, telecoms have shut down telephone numbers at the request of law enforcement agencies when believed to be involved in illegal activities, such as sports book-making telephone numbers.” iMEGA and the 1.2 million member strong Poker Players Alliance (PPA) are among those seeking to prevent the blockage from becoming a reality. In Kentucky, the American Civil Liberties Union (ACLU) and Bluegrass Institute rallied behind the internet gambling industry. In January, the Kentucky Court of Appeals in Louisville overturned a lower court ruling that upheld the seizure order by a two to one margin. The Commonwealth, led by Justice and Public Safety Cabinet J. Michael Brown, immediately appealed.

Matt Werden, the PPA’s State Director for Minnesota, commented in a press release on Wednesday, “This isn’t simply a heavy-handed tactic by the government; this is a clear misrepresentation of Federal law, as well as Minnesota law, used in an unprecedented way to try and censor the Internet. I don’t know what U.S. Code they’re reading, but it is not illegal to play this great American pastime online and we’re calling their bluff.”

Grover Norquist, President of the Americans for Tax Reform, added, “This is nanny-statism at its worst – the government barging into a private matter because people are supposedly too stupid to make decisions and take care of themselves. Individual liberty should not be supplanted by the whims of politicians looking to soak even more money from an over-taxed, over-regulated population while feigning concern over safety issues.” Brennan told Poker News Daily that early speculation revealed that pressure from Indian casinos may be behind the move, although this was not verified. PokerXFactor.com instructor and Minnesota resident Chris “Fox” Wallace speculated that fledgling legal card rooms at racetracks may be to blame.

Willems admitted to the Minneapolis Star Tribune that he did not know how many Minnesota residents gambled online nor provided an estimate. Instead, he stated that he has had gamblers claim they lost $200,000 and needed to borrow money. The Department of Public Safety’s press releases closes by asserting that the internet gambling industry may provide “funding for criminal and terrorist organizations.”

A call placed to press release author Dennis Smith of the Minnesota Department of Public Safety was not returned as of press time. Stay tuned to Poker News Daily for the latest on this developing story.

Isaac Haxton Interview with Poker News Daily

Poker News Daily: You finished as the runner up to Ryan "Daut44" Daut in the 2007 PokerStars Caribbean Adventure, banking $861,000. Critique Daut’s play during that tournament.

Haxton: I thought he played really well. Going into the final table having played against all of those guys, he was the one who I knew the least about and was the least concerned with. He seemed to be playing pretty tight and straightforward and continued to do that until we got heads-up. I think he’s maybe a little bit too ABC in terms of playing, but he knows what he’s doing and played well.

PND: How did you get started in poker?

Haxton: The first time I played poker was with friends in high school. I started going to the local casino in upstate New York, Turning Stone, and played a bit in some home games in college. Then, I started playing online. When I put money online, I started taking poker more seriously.

PND: Was there a moment you realized that poker could be more than just a hobby?

Haxton: I started taking it seriously because it was something I could make money doing. I took a summer to play full-time. In that period, I moved up from playing $3-$6 Limit Hold’em to $30-$60 and occasionally bigger. I ran really well. In all honesty, I wasn’t good yet and I don’t think I’d be beating $3-$6 with that kind of skill level today. I thought I would get my degree, go to graduate school, and become a professional academic. I changed my mind about three years into college.

PND: Have your parents been supportive of your poker career?

Haxton: They have been supportive. It’s mostly been one less thing to worry about. It’s nice to have the support of your parents regardless of what you’re doing. I know a lot of my friends have to put up with a lot of crap from their parents who think they’re wasting their lives being professional gamblers. My parents understood it right off the bat. They’re both bright, mathematically inclined people. They had no trouble understanding that skill predominates in poker and the best player is a big favorite to make money in the long-run.

PND: Whose tournament game do you respect the most and why?

Haxton: All of the standard answers I agree with. In terms of players that people might not have heard about, there’s a guy who has been crushing $25-$50 on PokerStars, Deldar182. His real name is David Eldar and he’s from Australia. He was a teenage Scrabble champion and has been killing PokerStars over the last few months. Phil “Jman28” Galfond would also be near the top of the list.

PND: What advice do you have for beginners?

Haxton: Don’t go broke. Almost no one practices good bankroll management when they start out in poker. That’s why most of the professional players I know were very successful in the first six months when they started playing. In small-stakes games, you should have 40 buy-ins for a No Limit Hold’em game and 500 to 600 big bets for a Limit Hold’em game.

PND: Does being computer-oriented give you a leg up on the competition in poker?

Haxton: It’s helped. I have a reputation as a math guy that I don’t 100% deserve. It’s not like I’m sitting in front of my computer running simulations and crunching numbers all night. I play as much by feel as just about anyone else does, but at the same time, I think I understand the math more than my peers.

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PPA Chairman D’Amato Sees Bipartisan Support for Internet Gaming Bill

In a recent letter authored by Poker Players Alliance (PPA) Chairman Alfonse D’Amato to The Hill, the former three-term Senator from New York forecasted bipartisan support for Congressman Barney Frank’s (D-MA) upcoming internet gambling legislation.

In a recent interview with The Hill, Frank alluded to introducing legislation favorable to internet gambling next week after Congress returns from its Easter recess. During the break, the PPA, the main lobbying organization for the poker industry, has gone on the offensive, headlined by D’Amato’s recent contribution to The Hill. The PPA surpassed the one million member mark last year in part due to the visibility and involvement of the former high-profile Senator.

D’Amato claims that both Democrats and Republicans have reason to disapprove of the Unlawful Internet Gambling Enforcement Act (UIGEA), which was attached to the SAFE Port Act and passed during the waning moments of the 2006 Congressional session. He noted in his letter to The Hill, “It does nothing to prevent children and problem gamblers from playing online; it overly burdens the banks, making them, not the federal government, policemen of the internet; it costs the taxpayers billions in unearned revenue, not to mention the loss of capital and jobs when these companies are forced to move out of the U.S.; and it’s simply unenforceable.” The UIGEA was not debated in the Senate; instead, the SAFE Port Act was passed by unanimous consent.

Frank was originally slated to introduce internet gambling legislation in March. However, a faltering economy has delayed the announcement of a bill that may outline a complete licensing and regulatory framework for the industry. The previous version was HR 2046, the Internet Gambling Regulation and Enforcement Act. It was introduced in 2007, but was not enacted into law. According to D’Amato, “Both conservatives and liberals alike know that UIGEA was simply a bad bill turned into worse policy, and it must be redone in order to put a more effective system in place.”

Frank’s two previous attempts to clarify the UIGEA both came with bipartisan support. The Massachusetts Congressman and former Republican Presidential Candidate Ron Paul sponsored HR 5767, the first version of the Payments System Protection Act. The bill was struck down in the House Financial Services Committee, of which Frank is the Chairman, last June. An amendment introduced by Congressman Peter King (R-NY) that called for a list to be developed of what was illegal and legal under the UIGEA failed by virtue of a 32-32 tie vote. The bill itself was then put to an oral vote, where the “Nays” outweighed the “Yays.”

HR 6870 marked the second version of the Payments System Protection Act. It was passed by a 30-19 vote in Committee last September. King once again spoke on behalf of the bill in its mark-up hearing, as did Congressman William Lacy Clay (D-MO). King was its lone co-sponsor, but despite bipartisan support, HR 6870 did not see time on the House floor due to the then-emerging financial crisis. A study recently released by PricewaterhouseCoopers noted that up to $52 billion could be generated by regulating and taxing the internet gambling industry over a 10 year period, although that figure relies heavily on the involvement of professional sports leagues.

The PPA held fundraisers at both the Democratic and Republican National Conventions prior to the general elections in the United States last year. In addition, the organization hosted a booth at the Conservative Political Action Conference in February. D’Amato concluded his call for bipartisan legislative support saying, “Now is the time to do what’s right for all interested parties, not based on party politics. That means protecting internet freedom and the public interest through taxation, licensing, and regulation - not prohibition.”

Finnish Government Launches Online Poker Room

Raha-automaattiyhdistys (RAY) is a gambling company owned by the government in Finland. They have monopoly on slot machines and other casino games that are put out in night clubs in Finland. RAY also own and run the casino in Helsinki. They are now also planning to launch a Finnish online poker room to attract all the Finnish poker players to their brand.

RAY was founded in 1938 and they are the only gambling company who are licensed to run gambling operations in Finland. If a night club owner wants to open up a roulette table in their club they will need to go through RAY who will put the table in place and use their own employers to run it. They also offer slot machines to the night clubs and cut them in on a bit of the profit for being allowed to place them in the night clubs. The profit from these machines goes to charitable causes and some of the money is used to get help for problem gamblers.

The Finnish minister of culture and sports, Staffan Wallin, announced that RAY is going to launch their own online poker room within short. All the technical preparations have been made and they expect to be able to launch before the end of the year. The government of Finland will need to change the current law a bit before they are able to be able to fully launch and accept players.

Finland have around 120.000 online poker players so there is definitely a market for a new poker room but it will also be very hard to try to get customers since not many new poker rooms have had a lot of success after the poker boom 5 years ago. It will obviously be very hard for them to compete with poker rooms like PokerStars and FullTilt Poker.

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