Poker News

PartyPoker Starts New Hit Or Run Promotions

One thing PartyPoker has done extremely well in its history is provide some of the best promotions for its customers. With its popular Cash Machine set to end on January 31st, PartyPoker had to come up with another promotion that would continue to capture the interest of its players. That new promotion, called Hit Or Run, will start on February 1st.

The Hit Or Run promotion gives players an opportunity to earn over $10,000 per day throughout the month of February. Players on PartyPoker already earn PartyPoker points that can be used to enter tournaments, buy items in the PartyPoker Store, and turn the points into cash. The Hit Or Run promotion is offered as another way that players can use their PartyPoker points.

For every 20 PartyPoker points a player earns on their real money tables, PartyPoker will give players $1 that they can take to play Hit Or Run. Once a player enters into the Hit Or Run arena, they are dealt two hole cards to play heads-up against the PartyPoker system. If a player wins the first hand, that $1 is doubled and the player is given the option of playing again, or taking another “Hit.” The game continues until the player is beaten in the game or the player decides to “Run” with what they have won.

Players can earn up to ten entries per day to play the PartyPoker Hit Or Run game. If a player is able to win ten straight heads-up hands, they will take away $1,024. If a player does this ten times per day and wins every hand, that player would walk away with $10,240. Of course, a player can, at any time, opt to take whatever money they have earned by hitting the “Run” button.

The new Hit Or Run promotion is simply the latest offering that PartyPoker has for its players. Currently, PartyPoker is also running satellites for entries into February’s World Poker Tour (WPT) L. A. Poker Classic and Celebrity Invitational. PartyPoker also offers its popular $1 million Guaranteed the first Sunday of each month and has a $300,000 Guaranteed every other Sunday when the Million Guaranteed isn’t running.

PartyPoker continues to reign among one of the leaders in the online poker industry. Up until 2006, it was the largest poker room in the industry, but the passage of the Unlawful Internet Gambling Enforcement Act (UIGEA) in 2006 forced the parent company of PartyPoker, Party Gaming, to pull the plug on players from the United States. Since that time - and catering to players outside of the U. S. only - PartyPoker has slipped behind such sites as PokerStars and Full Tilt Poker, which still continue to accept American action. PartyPoker vies against the iPoker Network for third place in the online poker industry, according to PokerScout.com.

PartyGaming Co-Founder Anurag Dikshit Severs Ties With Stock Sale

Ending a relationship that dates back to the beginning of the online poker industry, Party Gaming co-founder Anurag Dikshit has divested himself of any ownership in the company with the sale of his remaining stock on Tuesday.

According to the London Stock Exchange and the British newspaper The Telegraph, Dikshit owned slightly more than 38.8 million shares of Party Gaming PLC, which is traded in London under the symbol PRTY. Because of his ownership of the stock, Dikshit held voting rights that would have continued to hold a significant influence on the company’s track. With the sale, however, Dikshit has fully divested himself of any connection with the company he helped start back in the late 1990s.

The 38.8 million shares of Party Gaming stock held by Dikshit amount to £114 million and helped to drive the price of Party Gaming PLC up during trading on Tuesday and Wednesday. Opening at 277.10p at the start of trading Wednesday, Party Gaming PLC trended up 14.2p over the course of the day, finishing at 292p.

It is estimated that Dikshit has cashed out stock in the company that eclipses £700m in value. Through his involvement with Party Gaming, Dikshit has also become one of India’s wealthiest citizens. With the sale of his remaining ownership in the company complete, Dikshit is expected to return to the many philanthropic trusts that he oversees, including those that fund medical and educational interests in India.

Since the creation of Party Gaming in the late 1990s, Dikshit had been a formative figure in the company. Along with husband and wife Russ DeLeon and Ruth Parasol as well as Vikrant Bhargava, Dikshit – who was the creator of the Party Gaming software that the company uses – drove the company to reach the pinnacle of the online poker industry with PartyPoker. By 2005, when the foursome took Party Gaming public on the London Stock Exchange, PartyPoker had even become a force in the live poker world with a sponsorship deal at the World Series of Poker (WSOP).

2006 proved to be a pivotal point for the company, however. With the passage of the Unlawful Internet Gambling Enforcement Act (UIGEA) by the American government, Party Gaming was forced to prohibit American players from participating on PartyPoker (as a publicly traded entity, it could not violate the laws of another country and remain on the LSE). Since that time, Party Gaming has been passed in the online poker industry by two rooms that still accept American players, PokerStars and Full Tilt Poker, and battles for the third spot consistently with another non-U.S. facing entity, the iPoker Network.

Dikshit has been the only founder of Party Gaming to ever face American authorities as far as their gaming actions are concerned. After the passage of the UIGEA, The Telegraph reports that Dikshit was “increasingly worried about the ramifications of the company’s operations being declared illegal in America” and stepped down as the director of Party Gaming. This led to his admission of guilt in December 2008 in a U. S. court to violating laws regarding online gaming. Still facing the possibility of two years in jail for his guilty plea, Dikshit has paid $300 million in fines and, according to Justice Department officials, has been assisting them in their ongoing investigations. Whether Dikshit will face any jail time when the case is reviewed in December 2010 is still unknown.

The sale of Dikshit’s remaining stake in PartyGaming comes at a time when the company is looking at several merger options, according to The Telegraph. The outlet states that PartyGaming is “continuing to hold discussions with a number of companies in the gaming sector regarding potential consolidation opportunities” and speculates that industry competitor bwin is a possible merger partner.

Andy Bloch Discusses Rush Poker Strategy

Recently, Rush Poker made its debut on Full Tilt Poker. The fast-paced style of cash game allows players to move from one table to another as soon as their action in a hand is finished. As such, players have been able to see upwards of 300 hands per hour. Poker News Daily sat down with Full Tilt Poker pro Andy Bloch to get his take on the new addition to the site’s already impressive lineup, his goals for 2010, and his thoughts on the online poker phenomenon known as Isildur1.

Poker News Daily: Thanks for joining us. What were your first impressions of Rush Poker?

Andy Bloch: I think it’s great and it’s had a great reception so far. Sure, there were people who found fault with it at first, but once you get used to it, it’s great. I tried it out a couple of months ago and thought it was amazing. Back when I first started playing, I remember training software that was like this. When you folded, a new hand started right away, so you’re always making decisions. This is how poker really should be.

PND: Some players we’ve talked to critiqued that Rush Poker creates ABC poker players. Is there a different overarching strategy to it?

Andy Bloch: To some degree, it’ll train people more to play ABC poker. You’ll have less of a reason to play speculative hands because you can fold and get a new hand right away, but that creates more opportunities. There will be a lot of people taking advantage of the tight play and playing a lot more hands pre-flop. There’s no need to worry about getting a reckless image.

You can raise every hand on the button, for example, whereas at a regular cash game table, you wouldn’t do that because people would pick up on it. You could also just raise pre-flop in Rush Poker every time the action folds to you. In Rush Poker, therefore, taking notes becomes really important. If you see any unusual play, you’ll want to make a note and tag a player. It might come in handy later on.

PND: How have you fared so far and what stakes did you play?

Andy Bloch: It seems like my opponents have been hitting sets on me after we get the money in, but I don’t know if I’m up or down. I’ve played all of the stakes they offer, including play money. It seems like people play better at the Rush Poker play money tables than at the normal play money tables. They are less likely to play every hand because they know they can just fold, so they’re marginally more selective.

PND: Would you like to see Rush Poker added for MTTs and sit and gos?

Andy Bloch: I’d love to see Rush Poker added for heads-up play, tournaments, sit and gos, and different forms of poker like Stud. You have to pay attention to the up-cards in Stud, so it’s hard to multi-table.

PND: What poker goals do you have for 2010?

Andy Bloch: I’m going to the L.A. Poker Classic and hopefully playing some of the earlier events. They have a HORSE tournament and a Chinese Poker tournament. They also have a heads-up event and an Ironman no-break tournament.  I’ll probably play about the same number of tournaments as last year, but I want to play more online. I had a bad year last year. Whenever I have a bad year, I just try to work on my game and go over my strategy. My goal is to win a bracelet on June 1st. That is the end of the $50,000 Player’s Championship and the final day of the first three open events at the World Series of Poker (WSOP).

PND: Are you still planning to be involved with organizations like the Poker Players Alliance (PPA) this year?

Andy Bloch: Absolutely. This year coming up is an important year. It looks like we can finally get a law passed, get rid of the Unlawful Internet Gambling Enforcement Act (UIGEA), and get online poker regulated. If we can get that done, it’d be great for everyone in the poker world, from the grinder to the recreational player to someone who has dreams of being sponsored by a site.

PND: Talk about the rise and fall of Isildur1 on Full Tilt’s nosebleed cash game tables.

Andy Bloch: That story is crazy in a lot of ways. It happens from time to time in poker and in other games too. Unless Isildur1 follows it up with another run, you can chalk it up to luck. He’s a good player, but he jumped into the high-stakes games too quickly, not realizing the type of talent that’s out there. He made himself a target and wasn’t willing to back down. It’s a great story and I hope he comes back and shows people that it wasn’t a fluke.

PND: Was there any possibility of Andy Bloch facing off against Isildur1?

Andy Bloch: I don’t have much experience in Pot Limit Omaha. I need to work on that too and that’s another one of my goals for 2010. I need to get into a position where I can feel comfortable sitting down in any limit game.

Poker Players Alliance Pushing for February Markup of HR 2267

The Poker Players Alliance (PPA), the industry’s one-million member strong lobbying organization, is ramping up for what could be a monumental 2010 legislative year. At stake is the future of online poker in the United States.

As the industry treks into the new decade, Congressman Barney Frank’s (D-MA) HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, is up to 65 co-sponsors. In the first two weeks of January, the measure saw two new lawmakers lend their names in support, Congressmen Eliot Engel (D-NY) and Charlie Melancon (D-LA). HR 2267 was introduced in May and, in the beginning of December, was discussed in the House Financial Services Committee.

No markup of HR 2267 occurred during the December 3rd hearing, which took place one week following officials from the U.S. Treasury and Federal Reserve delaying mandatory compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) by six months to June 1st, 2010. However, according to PPA Executive Director John Pappas, a markup may be in the offing: “The big next step for us is the markup. We’ve built out who our targets are for that committee and are pursuing them. We think it might happen in February, but there are no guarantees.”

According to Pappas, Frank expressed his desire to hold a markup hearing next month, which could lead to discussion of HR 2267 on the floor of the House of Representatives later this year. From there, Frank and the PPA could elect to attach the measure to another piece of legislation, similar to how the UIGEA became a part of an unrelated port security bill in 2006. Pappas noted, “One of our biggest challenges will be to make the vote in the committee bipartisan. That’s going to be our challenge and I think we can do it. Winning big in the Financial Services Committee will help us advance the bill in any other capacity.”

In the next month, the PPA also expects information to be released concerning the amount of money that could be raised should Senator Robert Menendez’s (D-NJ) S 1597 be approved. The bill, dubbed the Internet Poker and Game of Skill Regulation, Consumer Protection, and Enforcement Act, regulates online skill games. S 1597 was introduced in August, but has yet to garner any co-sponsors.

On the difficult road that lies ahead in the U.S. Senate, Pappas commented, “The Senate has been a tougher ground for us to plow so far, so we’re trying to do what we can there. It’s not because the topic isn’t of interest or important, but rather because they operate differently. The House operates quickly, whereas the Senate is more deliberate.”

The UIGEA was not discussed in the Senate four years ago; instead, it was approved by unanimous consent. Then, the PPA was in its infancy, boasting around 50,000 members during the 2006 World Series of Poker (WSOP). Now, it has grown into the seven-figures and seen players like UB.com pro Annie Duke and 2004 WSOP Main Event winner Greg Raymer champion its cause. In 2010, the PPA expects to work with a variety of organizations in the industry for membership drives, following the blueprint of its recent promotion with Card Player Cruises that awarded one player a trip for two to the Caribbean.

Finally, Pappas gave his take on the proposed intrastate internet gambling bill introduced in New Jersey by State Senator Raymond Lesniak. On the model for other states to follow to legalize online wagering, Pappas told Poker News Daily, “For poker players in New Jersey, it presents an interesting opportunity to play on a licensed site. The issue is what sites they’ll be able to play on. Will it be on the brands they know? Having Atlantic City casinos undertake building their own software and player bases will take quite a long time.” According to PokerScout.com, PokerStars, the largest online poker site in the industry, boasts a seven-day running average of 33,200 real money ring game players.

Stay tuned for the latest news from the PPA right here on Poker News Daily.

David Carruthers Gets 33 Months Jail Time in BetOnSports Case

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

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

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

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

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

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

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

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

Online Poker Funding Methods for the U.S. Player

It is the year 2010. The Unlawful Internet Gambling Enforcement Act (UIGEA) has been on the books in the United States since late 2006. While the deadline for implementing its regulations has been pushed back to the middle of this year, many financial institutions have already begun clamping down on transactions to online poker rooms. Options for American players have become limited. In this article, I will present several funding methods that are still available to U.S. online poker players. Even though they aren’t all inexpensive, foolproof, or even widely available, there should be suitable options for everyone.

Credit/Debit Cards

Most online poker rooms accept VISA and MasterCard credit cards nowadays, as well as debit cards with the VISA or MasterCard logo. These are hit or miss, though, as many card issuers block online gambling transactions. Before the UIGEA passed, credit and debit cards were actually oddities as deposit methods for Americans, as there were plenty of reliable e-wallets to use. Many card companies didn’t allow gambling transactions on their cards back then, not because of any laws, but because they didn’t want to expose themselves to increased chargeback risks. Post-UIGEA, as other funding methods began to dry up, online poker rooms began looking for ways to get credit and debit card transactions to go through.

e-Checks

Personally, I have found e-Checks to be the easiest and most reliable online poker funding method at those poker rooms that use it. The two largest online poker rooms, Full Tilt Poker and PokerStars, readily accept e-Checks, which is likely one contributing factor to their market dominance.

e-Checks are just what they sound like, electronic checks. You just enter the information found on your check, including the bank account number and routing number, and the funds hit your poker account instantly.

e-Wallets

Back in the day, before that nasty UIGEA, most online poker players used e-Wallets to fund their poker accounts. For those unfamiliar with the concept, an e-Wallet is an online account from which you can transfer money to and from poker rooms and your bank. It really is just like a wallet; you take money from your bank account, put it in your wallet, and then take that money and use it at a store. With online poker, you transfer money from your bank to your e-Wallet and then move some or all of it to a poker room. E-Wallets are great for keeping track of your online poker funds, as you can stash your bankroll all in one place and quickly move it in and out of poker rooms.

Unfortunately, most of the good e-wallets, namely Neteller and ePassporte, have left the U.S. market since the UIGEA. The ones that do accept U.S. customers are now few and far between (eWalletXpress is one that several poker rooms still use). The big problem is that they all are typically fee-heavy; there are fees to move funds from your bank to the e-Wallet and fees to transfer funds out. There are no fees, however, to transfer to and from online poker rooms. To minimize the impact of fees, I recommend making the largest deposit you are comfortable making when you are being assessed a flat fee.  Also, some deposit fees are lower or even eliminated if you are willing to wait for your transfer to clear rather than having the funds appear in your account instantly.  If you can be patient, you can save a little bit of money.

Western Union/MoneyGram

If you don’t want to give your bank account information to an online poker room or e-Wallet and don’t want to try a credit card, then sending money via Western Union or MoneyGram can work very well. I won’t go into the whole procedure here, but in a nutshell the poker room will give you their recipient information, which you then take with your cash to a Western Union or MoneyGram location. When that’s done, you log into your poker account with some additional information from the retail location and you’re all set. As with e-Wallets, there are fees involved, but you can usually deposit $1,500 or more per day, so if you max it out, the fees aren’t too bad. You actually have to leave the house to do it, however, which can be a drawback for some players.

The four deposit options I just detailed aren’t the only ones out there, but they are the most common and usually the quickest. In today’s online poker environment, sometimes we just have to take what we can get.

Poker2Nite Welcomes Poker Tournament Director Matt Savage

This week, the UB.com-sponsored poker news franchise “Poker2Nite” welcomed acclaimed tournament director Matt Savage. The creator of the Iron Man tournament and former director of the World Series of Poker (WSOP), Savage assessed the industry entering 2010.

First up on “Poker2Nite,” which airs on Wednesday at 11:00pm ET, was an evaluation of several of the high-stakes world’s top names. On Isildur1, who has been largely absent from the virtual felts of Full Tilt Poker following a run-in with CardRunners instructor Brian Hastings, “Poker2Nite” co-host Scott Huff noted, “He’s won huge amounts for sure, but he’s lost a lot of it back and that, to me, just means it’s on the level.” According to PokerTableRatings.com, Isildur1 is out $2.6 million since November after being up as much as $5 million.

Then, “Phil’s Best Blowups” took center stage. The segment recaps some of the top escapades of UB.com poker pro Phil Hellmuth. This week’s was “an oldie, but a goodie,” as it panned out at the World Poker Tour (WPT) stop at Foxwoods in 2005. Hellmuth explained, in G-rated terms, “This lucky son of a gun hit running sevens on me after starting completely dead and then raised me on the flop with nothing.”

Hellmuth held J-9 against Hoyt Corkins’ J-7 and the flop came nine-high, giving the 11-time WSOP bracelet winner top pair. Hellmuth bet 25,000, Corkins raised it to 70,000 with air, and Hellmuth called. The turn brought a seven, giving Corkins second pair, and the action went check-check. The river was another seven, improving the DoylesRoom pro to trips, and Hellmuth led out for 80,000. Corkins min-raised to 160,000, Hellmuth called, and jumped out of his chair when he saw the bad news. WPT commentator Vince Van Patten observed, “It looks like his pants are on fire.” The odds of Corkins hitting running sevens were 314:1.

Savage succinctly explained the role of a tournament director to Huff and show co-host Joe Sebok: “My job is to keep order in tournaments.” One of his recent creations is the Iron Man format, a no-break tournament with three meals served at the table and a $10,000 seat added to the prize pool. Its first running clocked in at 19 hours and 20 minutes. Savage recalled, “The camaraderie at the table was great. I stayed up for the whole event and will again in February.” Next month, a $2,100 buy-in Iron Man tournament will play out during the annual L.A. Poker Classic.

The Unlawful Internet Gambling Enforcement Act (UIGEA), passed in the final moments of the 2006 Congressional session, led to several of the world’s top online poker sites fleeing the U.S. market. Accordingly, Savage revealed where he’d like to see the game headed as we enter 2010: “We’d like to see the UIGEA overturned and that’d be a big difference for us. We’ve [leveled] a little bit in the U.S., but it’s growing globally.”

A feature on Credit Card Roulette aired featuring former Bodog pro Justin “ZeeJustin” Bonomo, Isaac Haxton, Stephen “MrTimCaum” O’Dwyer, UB.com’s Adam “Roothlus” Levy, and Scott Seiver, with a $1,500 bill up for grabs. If you’ve never played the game, everyone seated tosses their credit cards into a hat and, one by one, the strips of plastic are drawn. The last person to have their credit card selected foots the bill for the entire meal. This time, Haxton was the poor, unfortunate soul and told “Poker2Nite” cameras, “Defeat is always painful.”

“Poker2Nite” closed with Absolute Poker pro and show correspondent Lacey Jones interviewing Shaun Deeb about his future in poker. Deeb commented, “I expect to take six months to a year, if not longer, to stay away from playing tournaments in general. I decided that, looking at what I was doing, I was spending too much time playing poker [tournaments]. So, I decided to quit them and play cash games with more flexible hours so I can do a lot more things with my time.” Deeb is a former number one player on the PocketFives.com Online Poker Rankings.

Catch “Poker2Nite” every Wednesday at 11:00pm ET on Fox Sports Net.

Poker2Nite Welcomes Gavin Smith

The final UB.com sponsored “Poker2Nite” of 2009 aired on Wednesday night and featured Gavin Smith along with a recap of the outgoing calendar year. In addition, Justin “ZeeJustin” Bonomo broke down a hand from the 2008 World Series of Poker (WSOP) on the Fox Sports Net poker news franchise.

“Poker2Nite” hosts Joe Sebok and Scott Huff ticked off their top three poker stories of 2009. For Sebok, the WSOP Main Event final table came in at number three, as he told viewers, “It had more suckouts than a Blow Pop factory.” Huff added, “It finally proved that the November Nine format can work.” Number two on Sebok’s best of 2009 list was the arrival of Isildur1, who stormed onto the high-stakes online poker scene late in the year. Sebok noted, “For somebody to come out of the mystery and take over is pretty unbelievable.” Sebok’s top story of 2009 was Phil Ivey, who won two WSOP bracelets and reached the final table of the Main Event. He also appeared on the cover of “ESPN: The Magazine.”

Huff then shared his top three poker news stories of the year. First up for the “Poker2Nite” host was Lada Gaga introducing her hit song “Poker Face” to the world. Huff explained, “You have the biggest pop star in the world making a song about her poker face.” Number two was the WSOP Main Event Day 1D lockout, which saw 500 players shut out of poker’s most prestigious tournament when it reached capacity. Huff questioned, “How do you shut people out of the Main Event of the WSOP?” Number one for Huff was the compliance delay of the Unlawful Internet Gambling Enforcement Act (UIGEA). As it stands, the financial services industry in the United States has until June 1st to comply with the 2006 law.

“Poker2Nite” correspondent Lacey Jones interviewed players at the Doyle Brunson Five Diamond World Poker Classic asking what their New Year’s resolutions are for 2010. Shawn Buchanan stated that he wanted to win a WSOP bracelet, while Shaun Deeb explained that he’d rent a house in Europe. Vivek “Psyduck” Rajkumar vowed to study the game more, while Steve “MrTimCaum” O’Dwyer desired to be more organized. Finally, UB.com pro Adam “Roothlus” Levy told Jones that he would lose weight in 2010.

Smith, a Full Tilt Poker pro, then joined the show. He described 2009 as, “Awful. Atrocious. Terrible. It’s my very first ever losing year in tournament poker.” He added, “I don’t think I ever tried to win.” Smith took home $120,000 from an episode of NBC’s “Poker After Dark” and earned $30,000 at the 2009 WSOP. A man known for prop betting, Smith explained the origin of a tattoo featuring the initials “J.S.” on his shoulder: “At the L.A. Poker Classic a few years ago, [Sebok and I] had a last longer bet and the loser was supposed to get the other man’s initials on his butt.” Smith, upon hearing how painful a tattoo on his rear would be, instead immortalized Sebok’s initials on his shoulder.

Bonomo appeared in a segment entitled “In the Tank,” breaking down a hand from the 2008 WSOP against David “Chino” Rheem and Roland de Wolfe. The Bodog pro described his thought process on every street, although Bonomo ultimately dropped the pot to de Wolfe, who picked off Bonomo’s bluff. Bonomo bet after the river brought three clubs to the board, explaining, “Roland has to be afraid of that card,” but de Wolfe called with an underpair to the board.

Dana Workman doled out the “Weekly Misdeal,” a satirical look at recent poker headlines. Workman chose to recap the top offbeat stories of 2009, including Ivey’s numerous side bets involving bracelet wins at the 2009 WSOP, the Poker Hall of Fame nomination of Tom “durrrr” Dwan, and UB.com pro Annie Duke’s feud with comedian Joan Rivers.

“Poker2Nite” airs on Wednesdays at 11:00pm ET on Fox Sports Net. Check your local listings for more information, as the show is often pre-empted due to local sports programming.

2009 Poker News Story of the Year

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

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

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

Isildur1 Ignites High-Stakes Poker Scene
By Brett Collson

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

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

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

WPT Sold to Party Gaming
By Earl Burton

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

UIGEA Compliance Deadline Delayed
By Dan Cypra

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

Pitbull Poker/Eurolinx/BetOnBet Closures
By Tom Jenkins

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

Top Ten Poker Stories of the 2009: #10, Online Poker Legislation Making Progress

2009 Online Poker Industry Trends

With the Unlawful Internet Gambling Enforcement Act (UIGEA) looming overhead and watchdog groups trying their best to curb internet gaming, many felt that the online poker industry would do nothing but regress in 2009. However, the opposite proved to be true.

Those same pundits used the weak global economy as the proverbial “nail in the coffin” and all but predicted that the online poker industry would collapse by the end of the year.  Now that we’ve reached the conclusion of 2009, we can clearly see that these so-called experts were completely wrong in their assessments.  Poker News Daily sat down with Dan Stewart, manager of PokerScout.com, to discuss the online poker industry trends of 2009.  PokerScout.com is a traffic reporting website that has kept records for all of the major sites.

Poker News Daily: Who was the big winner in terms of gaining market share in 2009? Has the market grown or shrunk during the year?

Dan Stewart: The big winner for the year was Full Tilt Poker, doubling in size and increasing its market share from 15% to 23%.  The market has grown 35% in 2009.  A large part of that growth came in the second half of the year since summer is traditionally a slow time for online poker.

PND:  We've noticed solid growth from Full Tilt Poker. Has the site’s increase in traffic closed the gap between Full Tilt and PokerStars?

Dan Stewart: Full Tilt Poker has gone from 40% of the size of PokerStars at the beginning of the year to 65% now.

PND:  It seems like there's a decent-sized gap between the 12 major online poker networks and #13 (Svenska Spel).  Is there any site or network on PokerScout.com ranked 13th or lower that is on its way up and might become a major player in 2010?

Dan Stewart: Of the sites ranked below 12th, only “win2day” has managed to grow at a rate equal to the overall market.  All of the other sites are either shrinking or growing slower than the market.

PND: What can you make of the rumors about a potential bwin - Party Gaming merger? If they did merge, where would that put their network in terms of traffic worldwide?

Dan Stewart: It’s hard to say exactly how a potential merger would play out and how much overlap there is between customer bases.  However, if you just add the two player pools together, the combined entity would easily move into third place ahead of iPoker.

PND: Can you talk a little bit about industry consolidation?

Dan Stewart: There is definitely a critical mass effect at work.  The sites that have the most players attract the most players because they offer more action around the clock.  Already, the top two sites (Full Tilt Poker and PokerStars) have about 60% market share.  However, the effect is slow to work and there are still at least 15 sites and networks with enough players to remain healthy.  Unless there is a wave of consolidation, players outside the U.S. will likely have a large number of viable options for years to come.

PND: We've talked about winners in 2009. Who are the big losers of the year?

Dan Stewart: In a growing market, “loser” is a relative term.  Many of the non-U.S. sites have had a hard time keeping up with the growth of the market overall.  In terms of actual player loss, the biggest loser has been Svenska Spel, down 9% for the year.  Svenska Spel is run by the Swedish government and they may have been handicapped by some internal disagreement as to how aggressively the government should be promoting online poker.

PND: What's in the future for PokerScout in 2010?

Dan Stewart: There are some exciting new features coming in January.  The traffic report will be expanding and we’ll be partnering with one or more rakeback providers to offer great rakeback deals to our visitors.

We would like to thank Dan Stewart and PokerScout.com for their very insightful information and data.  If you wish to read more detailed reports about online poker traffic, be sure to visit PokerScout.com.

Top Ten Poker Events of the Decade: Part 2

We’ve reviewed half of the top ten poker events of the soon-to-be-completed decade. Now, let’s take a look at the top five events that have shaped the game as we know it during the past ten years.

5. Taking America’s Game to the World

As the middle of the decade approached, poker, and more particularly tournament poker, was still primarily an American pastime. With the introduction of the European Poker Tour (EPT) in 2004, the rest of the world increased its awareness of the game. Like its predecessors in the United States in the World Series of Poker (WSOP) and World Poker Tour (WPT), the EPT brought the game to a new audience and further heightened the “poker boom.”

The EPT, developed by the online poker giant PokerStars, started small in 2004 with only seven events on its schedule. By the time it was in its fourth year, the EPT had grown to 11 tournaments with buy-ins that rivaled its brethren in the U.S. and had proved that a poker tournament schedule outside of the United States could be tremendously successful. It also led to the creation of many of the international tournament schedules that exist today, including the Asia Pacific Poker Tour (APPT), Latin American Poker Tour (LAPT), and Grosvenor U.K. Poker Tour (GUKPT).

4. Poker Faces its Strongest Challenge, the UIGEA

The steamroller that online poker had become would, in 2006, face its strongest challenge ever. Passed through the halls of Congress in the United States as a rider to a key port security bill, the Unlawful Internet Gambling Enforcement Act (UIGEA) threatened to kill the growth of online poker just as it was reaching its pinnacle. Since that time, the poker world has, at the minimum, reached a plateau.

While many inaccurately suggest that the UIGEA makes online poker illegal in the United States, the bill successfully scared many people who would either enter into the game or who had played it. It also had a significant effect on many poker tournaments in the United States; the WSOP Main Event has never returned to its peak numbers of 2006 and other poker tours have either seen a drop in the number of entrants or no growth.

3. Lights, Camera, Action… Poker Comes to Television

Turning on the television at the start of the decade to watch poker was literally impossible. The 2000 and 2001 WSOP Main Events were filmed as documentary-style broadcasts instead of an actual sporting event and appeared on the Discovery Channel. There were no other poker television broadcasts that could be found.

Perhaps sensing the coming wave, ESPN bought the rights to the television broadcasts of the WSOP and, in 2002, presented a more sports-friendly coverage of the tournament series. In 2003, ESPN expanded even further, covering preliminary events and dedicating extensive coverage to the Main Event. After the “Moneymaker Effect” of that year and the ensuing “poker boom,” ESPN has stuck with the WSOP and, in 2009, signed an extension of its broadcast contract with Harrah’s that ensures the WSOP will be on ESPN airwaves well into the next decade.

Add into the mix the wealth of celebrity poker shows, the debut of “High Stakes Poker” on GSN, and network television’s continued dalliance with the game and there is now poker on the “idiot box” at all hours of the day.

2. World Poker Tour Comes into Existence

In 2002, the entrepreneurial minds of Steve Lipscomb and Lyle Berman convinced the Travel Channel to sign on to an innovative idea of a worldwide poker tour, much like what professional golf has. Their creation, the WPT, took viewers to exotic locales that people might never have a chance to experience. In coordination with these picturesque areas, the broadcast of high-stakes poker tournaments captivated audiences. When it hit the airwaves, the WPT forever changed what had once been the exclusive world of high-stakes gambling.

In the eight years since it first was broadcast, the WPT has not only made poker players household names, but also created the first exposure to poker that many people had experienced. The WPT has also created many new millionaires from previously unknown poker players and pointedly exposed the strategy of the game through the innovative “hole card” camera. Without the creation of the camera, it is entirely likely that the WPT would have never seen the light of day.

1. The Birth of Online Poker

In 2000, there were literally only a handful of poker rooms in existence and, with a few exceptions, none of them made an impact on the world of poker. As more poker rooms opened, more people became accepting of a virtual “poker world.” As internet connections became more reliable, the online poker world was the major impetus for many to enter into any involvement with the sport.

As of 2009, there are hundreds of online poker rooms with tentacles that reach every corner of the globe. Poker enthusiasts can now hook into the internet and play with millions of like-minded people at any time, day or night. Add into the online poker room explosion the wealth of poker training sites, forums, and news outlets and it is easy to see that, without the internet and online poker, we may never have seen the renaissance in the first decade of the 21st century.

Poker Leads Way to PartyGaming Profits

“Returning poker to growth has been a key focus for us,” PartyGaming CEO Jim Ryan said in a statement released Friday.

“We are pleased to see that initiatives released throughout the year are now feeding through into both operation and financial performance with increased player numbers and average net daily revenues versus the previous quarter, despite continued competition from illegal US-facing sites and the difficult macroeconomic climate.”

PartyPoker made headlines earlier this year when it acquired the World Poker Tour. The site also released a major software revamp to its poker client that added a variety of new features.

Ryan went on to say changes in licensing and regulation in both Italy and France could potentially lead to a new source of long-term revenue.

Poker wasn’t the only positive development for PartyGaming, which also saw its casino, bingo and sports book put up strong numbers in the last quarter of the year.

PartyGaming, a publicly traded company, was hit hard when the U.S. passed the Unlawful Internet Gambling Enforcement Act in 2006. The site pulled out completely from the country and its player base subsequently dropped dramatically.

CNBC Investigates Illegal Gambling, Online Poker

A one-hour CNBC program entitled “The Big Business of Illegal Gambling” aired on Wednesday night, featuring discussion of “illegal” land- and internet-based operations. “The Call” anchor Melissa Francis hosted.

The show began with Francis telling viewers, “The same computer used to connect with work or friends can be used to wager outside the law.” In 2005, when the Chicago White Sox won baseball’s World Series, a man simply named “Vegas Runner” bet $4,000 on 50:1 odds that the team would take down the sport’s most coveted title. He told CNBC cameras, “It’s a gray line. Sports betting is the one topic no one wants to talk about, but everybody does it.”

R.J. Bell, founder of PreGame.com, told CNBC that just 1% of wagering on sports comes from Las Vegas, meaning that the other 99% is purportedly illegal. Meanwhile, a man known solely as “Paul,” whose face was not shown on camera, runs his own online sports betting website in Nevada as part of a conglomerate based in Costa Rica. He revealed that he makes between $80,000 and $100,000 per year and that collecting on bets is the most difficult part of the job.

CNBC’s attention then turned to the Chicago Mob, including Nick Sarillo, whose van was blown up because of illegal gambling, but he survived. Francis narrated, “Illegal gambling is the Mob’s number one moneymaker, the grease that keeps the wheels turning.” Meanwhile, Scott Damiani, the Executive Director of the Outreach Foundation, relayed his tale of excessive gambling, eventually losing his house and business. Upon owing members of a football league $50,000 at the end of 1994, Damiani attempted to drive his car off of a bridge, but hit a guardrail and was unsuccessful.

Attention then turned to Jay Cohen, the first American prosecuted for running an online bookmaking operation under the Wire Act of 1961. From his home in Antigua, Cohen told CNBC cameras, “We didn’t feel we were doing anything illegal. We were not hiding from anyone. We were using our real names and operating in plain daylight.” The site in question, World Sports Exchange, booked more than $200 million in wagers at its peak and received favorable press in publications like the Wall Street Journal and Washington Post.

In 1998, the U.S. Attorney’s Office indicted Cohen, who faced up to five years in prison. Cohen voluntarily traveled to the United States to fight his case, claiming that the Wire Act did not apply to the internet. However, a jury disagreed and he found himself behind bars for 21 months.

Upon passage of the Unlawful Internet Gambling Enforcement Act (UIGEA) in 2006, Antigua lodged a complaint with the World Trade Organization (WTO) alleging unfair gaming practices by the United States. The tiny island nation was successful, but the U.S. ignored the decision. Cohen remarked, “The last administration was so intellectually dishonest about all of this that even when Antigua won, they put out press releases claiming victory.”

Attention then turned to the cheating scandals at the online poker sites Ultimate Bet and Absolute Poker. Todd “Dan Druff” Witteles, who appeared on the CBS news program “60 Minutes” in November of 2008, discussed his encounter with “Graycat” on Absolute Poker: “This was someone who seemed that he had no clue what he was doing. He was playing all the wrong strategy to be able to win.” Then, David Paredes battled “NioNio” on the virtual felts of Ultimate Bet, telling CNBC, “This player was playing a wide variety of hands. It’s so hard to play profitably playing so many hands.”

CNBC claimed that UB.com was “operating in violation of U.S. law” and then the COO of the site’s parent company, Paul Leggett, explained who Russ Hamilton was. Hamilton declined to talk to CNBC despite being fingered as the main person responsible for the multi-million dollar cheating scandal on Ultimate Bet. The now-infamous RawVegas.tv footage of Hamilton leaving a Las Vegas golf course also aired. To date, no one has been prosecuted in either cheating incident.

Finally, two Congressmen took to the airwaves, Jim McDermott (D-WA) and Bob Goodlatte (R-VA). McDermott candidly explained, “Usually, when we talk about putting a tax on people, we get all kinds of [pushback]. They’re saying, ‘Legalize it, please, and tax it.’” Goodlatte, one of the brains behind the UIGEA, evaluated the law: “It certainly hasn’t eliminated all internet gambling by any means, but surveys that I’ve seen indicate that fewer than half as many online gambling operators are offering their services in the U.S. than before this law was passed.”

Recognized in the credits were a variety of industry veterans, including World Series of Poker Media Director Nolan Dalla, Poker Players Alliance Executive Director John Pappas, Sue Schneider, and iGamingNews.com.

CNBC Illegal Gambling Feature to Air on Wednesday

On Wednesday night at 9:00pm ET, CNBC will air a one-hour exposé entitled, “The Big Business of Illegal Gambling.” The report from CNBC’s Melissa Francis will put the multi-billion dollar industry into focus and include a segment on internet gambling.

Wednesday’s show marks one of the most high-profile television programs about internet gambling since “60 Minutes” aired a feature on the cheating scandals at the online poker rooms Ultimate Bet and Absolute Poker one year ago. According to a preview found on CNBC’s website, the show will “take viewers inside this high-stakes business that brings some people immense wealth, while others pay the ultimate price.” Francis is co-anchor of the CNBC show “The Call,” which airs for one hour beginning at 11:00am ET during the week.

The CNBC description begins, “The one-hour program delivers an in-depth look at just how mainstream illegal gambling has become.” Francis will speak with a bevy of industry representatives, including a bookmaker simply named “Paul” and a professional gambler named "Vegas Runner." Among those CNBC will speak to with a first and last name is Nick Sarillo, whom the show describes as “a restaurant owner who freelances as a bookie [and] crosses the Mob and pays a heavy price.” These three will likely be offline gamblers.

Then, Francis and company will explore the world of internet gambling. The preview of the CNBC special explains, “Technology has made illegal gambling much more accessible and the same computer used for work or to connect with family and friends can also be used to wager outside the law.” Among those to be interviewed is Jay Cohen, the co-founder of the World Sports Exchange who was found guilty of violating the Wire Act of 1961. He was sentenced to 21 months in jail and fined $5,000; World Sports Exchange boasted revenues of $200 million and he was freed in 2004.

Also featured is Scott Damiani, the Executive Director of the Outreach Foundation. The show’s website explains, “Illegal gambling costs Scott Damiani is home, business family... and almost cost him his life. After hitting rock bottom, he picked his life back up and now devotes his time to helping other gambling addicts as the Executive Director of the Outreach Foundation.”

Poker News Daily has also learned that Tokwiro Chief Operating Officer Paul Leggett filmed an interview for the CNBC program. The two Tokwiro-owned online poker rooms, Ultimate Bet and Absolute Poker, were at the heart of a ten-minute feature by the CBS news program “60 Minutes” over Thanksgiving weekend in 2008. The report questioned why no one had been prosecuted in the case and ended with segment reporter Steve Kroft calling Russ Hamilton’s home in Las Vegas. Hamilton, who won the 1994 World Series of Poker (WSOP) Main Event, was fingered as the main man responsible in the Ultimate Bet cheating scandal. To date, no one has been convicted.

Finally, Francis will dive into a high-spirited internet gambling debate featuring Congressmen Jim McDermott (D-WA) and Bob Goodlatte (R-VA). Online poker players can thank the latter for helping to bring the Unlawful Internet Gambling Enforcement Act (UIGEA) to life back in 2006. McDermott, meanwhile, has authored legislation seeking to extract 2% of deposits from licensed internet gambling companies in the United States under legislation proposed by Congressman Barney Frank (D-MA). Curiously, Frank’s name does not appear on the preview for the CNBC program despite being legalized internet gambling’s number one proponent on Capitol Hill. Also absent is the Poker Players Alliance (PPA), the industry’s main lobbying group.

Poker News Daily will have a recap of the show after it airs on Wednesday night. Video clips, slideshows, and even an illegal gambling quiz can be found on CNBC’s website.

Bwin Downplays Party Gaming Merger Talks

Party Gaming and Austria-based gambling group Bwin are allegedly involved in merger discussions, according to stories published in The Times and Sunday Times over the weekend. The move would potentially create a £2 billion online poker, casino, and sports betting company.

Shares of Party Gaming and Bwin jumped 2.5% and 4.1%, respectively, on Monday morning after the reports broke. Both companies have similar market value; Party Gaming is worth £1.1 billion, while Bwin is valued at about €1.3 billion.

Party Gaming and Bwin have refused to confirm the story, according eGaming Review. Bwin, Europe's biggest sports betting provider, said it wanted to take part in sector consolidation, but added that it is in talks with everyone in the industry on an ongoing basis and was not in advanced talks with Party Gaming. The Austrian group also told Reuters that it is not in advanced merger talks with anyone.

Party Gaming, meanwhile, has been looking for a major sports betting platform for years despite acquiring Gamebookers in 2006 for £102 million. The company has openly stated its determination to hunt for a bigger target in order to become a leading sports book operator and complement its online poker, casino and bingo platforms.

James Hollins at brokerage Daniel Stewart said a Bwin-Party Gaming merger would be “exceptionally strategically compelling," adding, "the combined groups' poker operations would drive clear scale economies and liquidity to compete squarely against the U.S.-facing giants of PokerStars and Full Tilt.”

Analyst Nick Batram at KBC Hunt is confident that a large deal is in the near future: "There was lots of press comment over the weekend suggesting that Bwin and Party Gaming have held informal merger talks. This doesn't come as a surprise, as online groups frequently talk informally. However, we believe that the recent sector consolidation will gain momentum through 2010 and it is only a matter of time before we see further sizable deals."

Party Gaming has been busy in deal making talks as several countries are in the process of regulating online gambling, most importantly the United States. In November, Party Gaming purchased the World Poker Tour (WPT), with many believing the company was attempting to set itself up for a return to the U.S market. Party Gaming’s Chief Marketing Officer, Chris Welch, later verified that idea: “This is the first step toward us returning to the United States."

WPT announcer and PartyPoker spokesperson Mike Sexton agreed, saying, “We all think [the Unlawful Internet Gambling Enforcement Act is going to be reversed] at some point. It’s just a matter of when. I’m convinced we’re going to see another poker explosion like we saw six years ago. It’ll be second to none.”

Party Gaming was reportedly involved in buyout talks with GigaMedia Limited earlier this year, but nothing developed. GigaMedia is the company behind the online poker site Everest Poker. Party Gaming purchased Cashcade, owner of the Foxy Bingo website, in July to enhance its own online bingo site, PartyBingo.

Andreas Oscarsson Murder May Be the Result of Extortion Attempt

A 44 year-old man linked to the Swedish version of the Hells Angels accused of “aggravated extortion” may be involved in the murder of PokerListings.com founder Andreas Oscarsson, according to several Swedish news outlets.

In August, Oscarsson was found dead in his Swedish home after taking a trip to the European country with his son. According to Poker.se, “Oscarsson was one of those people who was scheduled to testify in a trial in Stockholm a few weeks.” Purportedly, the Hells Angels member became involved after parties may have attempted to extract $2 million from Oscarsson.

In 2003, Oscarsson sold PokerListings.com to a Swedish company and when that group tried to sell, it found that its value was less following the passage of the Unlawful Internet Gambling Enforcement Act (UIGEA) in the United States in 2006. Then, extortion allegedly occurred, whereby individuals who may or may not have been associated with the company attempted to recoup some of the lost revenue at the expense of Oscarsson. Stefan Bengtsson was the head of the company that purchased the popular poker information site, but denied any involvement in Oscarsson’s death. He told the Swedish media outlet Aftonbladet, "I do not comment on the investigation, but obviously we had nothing to do with blackmail."

In addition, Aftonbladet reported that no one associated with Bengtsson’s company was suspected of being involved with the murder of Oscarsson four months ago. The Swedish news outlet added, “Police suspect now that Andreas Oscarsson's testimony may have been a motive for his murder. But no one has yet been arrested.” The 44 year-old was allegedly going to split any money drawn from Oscarsson; the shareholders would receive the remaining portion of the funds.

Prior to Oscarsson’s murder, another man with the same name was killed in the Swedish town. In addition, according to SpelaCasino.se, “It is also alleged that Oscar's economic adviser was attacked, shot and wounded in the leg, a crime for which two men subsequently were arrested. The accused man also threatened Adviser via both telephone and SMS, many times.” The UIGEA, attached to the SAFE Port Act, an unrelated port security measure, drove many sites with publicly traded parent companies out of the market, including PartyPoker (owned by Party Gaming), Pacific Poker (owned by 888), and Paradise Poker (owned by Sportingbet).

According to an article published on Poker News Daily last month, the value of Bengtsson’s share of PokerListings.com fell from 50 million Swedish Kronor to 36 million, a slide of nearly 30%. It’s been believed that Oscarsson’s murder was a contract killing, a theory that has been supported by the recent developments in the case. Oscarsson was murdered overnight while his son slept nearby. It wasn’t clear whether or not his son was awake at the time of his father’s death and police had initially questioned the youngster. A father asleep nearby did also not awaken when the murder occurred. Gas was suspected, although it was not clear if it was used to subdue Oscarsson's father and son.

PokerListings.com currently has reporters dispatched to the World Poker Tour’s (WPT) Doyle Brunson Five Diamond World Poker Classic, which kicks off on Monday from the Bellagio in Las Vegas. PokerListings.com staff will then head to the PokerStars Caribbean Adventure in January, followed by the WPT Southern Poker Championship. Stay tuned for the latest on the Andreas Oscarsson murder investigation right here on Poker News Daily.

Bodog Founder Calvin Ayre Featured in National Post

On Saturday, the National Post ran an article entitled “Calvin Ayre online gaming tycoon,” a profile of the founder of the popular online poker room, casino, and sports book Bodog. Ayre donned a Bodog Fight shirt for the interview’s image.

Diane Francis was tasked with interviewing Ayre in Antigua and the news outlet described the internet mogul as “semi-retired.” The article begins with Francis asking Ayre about the 2006 Unlawful Internet Gambling Enforcement Act (UIGEA), approved by better than a 3:1 edge in the House of Representatives before being attached to the SAFE Port Act at the urging of then-Senate Majority Leader Bill Frist (R-TN). When asked if Canadian authorities had pursued Ayre in any capacity related to the 2006 law, he told the Post, "No. I haven't lived in Canada for ten years or been in the Canadian tax system. The legal system did not allow me to do this in Canada. Now I like living in the tropics.”

Ayre revealed that he owns the rights to the domain name Bodog.com and licenses the rights to the network to affiliates located around the globe. In the United States, for example, Morris Mohawk Gaming Group, a Canadian outfit, owns the rights to market the brand. After recently releasing “Survivor: China” castaway Jean-Robert Bellande, Bodog’s stable of poker pros currently stands at three: Evelyn Ng, Justin “ZeeJustin” Bonomo, and David Williams.

The Post then inquired about Bodog’s revenue figures. Ayre explained, "My current deals aren't revenue based and are all different structures which I don't talk about. Forbes audited our books and based the number on the same multiple that the British public companies were trading at, or more than $1.5 billion. In 2006, Bodog made US $320 million in revenues and 25% profit." After the UIGEA was passed into law, online poker sites with publicly traded parent companies like PartyPoker and Pacific Poker exited the market, leaving sites like Bodog, PokerStars, and Full Tilt Poker to pick up the slack.

On the current legality of online poker in the United States, Ayre told the Post, “Poker is not illegal to bet online in the U.S. because it's considered a skilled game. It's a gray area, but there are lots of American companies with poker sites.” This year, Bodog forged its own poker network and will purportedly begin accepting non-Bodog domains into its ranks next year. Jonas Odman, Vice President of the Bodog Network, told Poker News Daily that a “unique solution” to rakeback will help differentiate the family of sites from others in the industry.

In September, Ayre served as the keynote speaker at the Budapest Affiliate Conference. He told event organizers at the time, “I’m very flattered to have been asked to be this year’s keynote speaker in Budapest. The iGaming space is the birthplace of the Bodog brand, and it remains one of the must dynamic and fascinating sectors in the entertainment space.” In addition to Morris Mohawk, Bodog’s licensees include Bodog Europe and Bodog Asia. The former recently opened its doors to Canadian online poker players.

According to PokerScout.com, which keeps tabs on online poker room traffic, Bodog is the 15th largest site or network worldwide with a seven-day running average of 860 real money ring game players. During its peak hours, around 1,500 cash game players call the site home. Its traffic is comparable with that found on PKR and every Sunday, the site hosts its $100,000 Guaranteed, a $162 buy-in event that kicks off at 4:00pm ET. The tournament regularly sees a $20,000 to $30,000 overlay, with $29,000 kicked in by the site last week.

Read the entire Calvin Ayre interview with the National Post.

WSOP Champ Joe Cada Heads to Capitol Hill

Tuesday will mark a busy day in the life of 2009 World Series of Poker (WSOP) Main Event Champion Joe Cada. The youngest winner of the $10,000 buy-in tournament ever, Cada will travel to Capitol Hill flanked by the Poker Players Alliance (PPA).

The PPA has seen its own string of victories as of late, including achieving a six-month delay of the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA). Now, the 1.2 million member strong lobbying organization will bring the current face of the game to Capitol Hill. Cada told Poker News Daily in an exclusive interview, “I’m meeting with Congressmen for the PPA. I’m still trying to get used to all of this.” PPA officials will accompany Cada around Capitol Hill and the youngster, who is now 22 years-old, will join the Sports Junkies radio show at 10:15am ET on WJFK.

Cada will visit with several lawmakers in pre-planned meetings, including Congresswoman Linda Sanchez (D-CA), who, according to the PPA, plays poker herself and is a friend of UB.com pro Annie Duke. Cada will also spend time with Senator Debbie Stabenow (D-MI), who hails from the Main Event winner’s home state. He’ll be brought to the members’ dining room on Capitol Hill for lunch, where Cada will be introduced to those in attendance.

After lunch, Cada will meet with Congresswoman Candice Miller (R-MI), who represents Michigan’s 10th Congressional District. According to Cada’s agent, Miller will introduce him to entire House of Representatives on the chamber’s floor in a once-in-a-lifetime experience. He’ll then head to the offices of another Republican, Joe Barton (R-TX), the Ranking Member of the Committee on Energy and Commerce and a poker player. Finally, Cada will meet with members of the Nevada delegation in Washington, D.C. and the PPA will escort the $8.5 million winner around town before he heads for the airport.

On Cada’s itinerary, PPA Executive Director John Pappas told Poker News Daily, “We know that these members are interested in poker. They’re poker players themselves. This is to tell the story of the World Champion, the youngest winner in Main Event history.” Cada warmed up for the whirlwind of meetings by playing in Pappas’ home game on Monday night, a $40 rebuy tournament that saw him fade J-Q multiple times. About 10 players could be found at the game last night.

Local media and press on Capitol Hill were expected to join Cada during the day. He recently flew cross-country from Los Angeles to Washington, D.C. after filming the “PokerStars.net Million Dollar Challenge.” Cada was one of the poker pros scheduled to appear on the show, but did not play against a PokerStars qualifier. Cada told Poker News Daily, “It was good, but I didn’t get to play at all because the qualifiers couldn’t get past the celebrities. I was supposed to play after that. I got to meet a few celebrities like Joanna Krupa and a lot more.”

The PPA saw several members of the WSOP Main Event final table don patches for the tournament’s conclusion, which aired on ESPN in mid-November. On the organization’s fight for the rights of poker players in both the online and offline versions of the game, Cada explained, “I’m all for what they’re doing. I haven’t had too much contact with them, but hopefully that can change very soon. It would be good to meet a bunch of Congressmen and speak with the PPA a lot more. It’s something I hope I can help with.”

In addition to his forthcoming appearances on Capitol Hill, Cada has made waves throughout mainstream media, including guest spots on the “Late Show with David Letterman” and the ESPN news franchise “SportsCenter.” He’s also become a hometown hero of sorts in Michigan, covered by nearly every local news outlet.

Internet Gambling Expert Reacts to UIGEA Regulations Delay

Over Thanksgiving, mandatory compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) was postponed six months to June 1st, 2010. Poker News Daily sat down with internet gambling expert Nelson Rose to get his take.

Poker News Daily: What were your thoughts on the postponement of mandatory financial services industry compliance with the regulations of the UIGEA?

Rose: When powerful Congressmen like Barney Frank (D-MA) and Harry Reid (D-NV) tell administrative agencies to do something, they’re going to pay a lot more attention to it than when out of power members of Congress like Jon Kyl (R-AZ) weigh in. They also know that the UIGEA is a piece of garbage that was dropped on their heads. That happens to administrators: Congress passes something undoable and makes agencies figure it out.

PND: Talk about some of the pressures put on the Federal Reserve and Treasury to make this decision.

Rose: It was the Federal Reserve and Treasury, but they made a big point of saying that they consulted the Department of Justice, which they were required to do. That means that the Attorney General of the United States signed off on this.

Under President George W. Bush, we had some right-wing religious fanatics who were anti-gambling in charge, but we also had the Department of Justice that understood there were higher priorities. They knew they didn’t have a lot of good law on their side, so they were running a war of intimidation. Now, we have a sane Department of Justice led by people who understand priorities and that internet gambling isn’t a big deal compared with all of the other criminal problems in the world. Yet, there are still offices that have gone further than they did during the Bush administration by seizing the money of online poker players.

PND: Do you foresee sensible internet gambling legislation being passed in the next six months?

Rose: I think that this is the start of the process. The Democrats won’t do what Bill Frist (R-TN) did and try to ram this through when no one is looking by attaching it to a must-pass bill. They’ll have hearings, but unfortunately for everyone who is interested in it, it’s still a very low priority.

PND: What would have happened if the December 1st UIGEA compliance deadline stood?

Rose: I think nothing would have happened. I’ve talked to some banks and payment processors. They’re taking it very seriously, but they understand that the UIGEA rules specifically say don’t look at individual transactions, so they’re not going to do that. They’re concerned with setting up new accounts and no one is setting up illegal gambling operations in the United States.

PND: Give us your thoughts on overblocking, which crept up when legal online lottery transactions in North Dakota and New Hampshire were being denied.

Rose: The regulations make it clear not to look at individual transactions, but there are a lot of operators involved in things like horse racing, skill games, and free entry games that they would not do business with if they didn’t have legal opinions like the ones I’ve been writing. That’s the reason I think the regulations are actually helpful: they create a safe harbor that the banks can use to say that they’re in compliance with the UIGEA because they’ve sought out legal opinions.

Poker Industry Reacts to House Financial Services Committee Hearing

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

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

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

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

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

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

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

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

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

UIGEA Hearing Held

Over the 90-minute hearing, Frank delivered his case for legalizing and regulating the poker industry while Republican Rep. Spencer Bachus opposed the idea of changing the Unlawful Internet Gambling Enforcement Act (UIGEA) that was passed in 2006.

Frank once again championed the two bills he introduced earlier this year, which would legalize and regulate the online gambling industry and delay the compliance date for UIGEA by one year.

The meeting was mostly informational and a number of witnesses took the floor including representatives from the Problem Gambling Council, the Morongo Band of Mission Indians, the Wired Safety Group, the Independent Community Bankers of America and Youbet.com.

The majority of the witnesses appeared to support Frank's proposed legislation and the idea of legalizing and regulating the online gaming world.

Speaking in opposition, Bachus revealed a letter from the FBI, claiming it suggested there were several ways to cheat at online poker and legalizing it would be opening up a pandora's box of corruption.

After the meeting concluded, the Poker Player’s Alliance said Bachus' argument sounded more like one to legalize and regulate online gaming than anything else.

“Every concern the letter raises is better addressed by licensing and regulation than by prohibition,” said John Pappas, executive director of the PPA. “The letter misconstrues much about the current state of online poker, but it does so in a way that clearly makes the case for why federal oversight is necessary.”

Although the hearing was adjourned without a vote, it does appear there will be more discussion on the topic as Committee Chariman Frank finished saying, “We will be returning to the subject next year.”

Poker2Nite Recaps UIGEA Compliance Delay

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

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

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

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

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

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

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

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

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

Internet Gambling Discussed in House Financial Services Committee

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

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

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

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

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

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

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

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

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

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

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

Internet Gambling to be Discussed in House Financial Services Committee

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

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

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

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

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

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

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

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

National Council on Problem Gambling Head Discusses Internet Research

Given that compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) has been delayed six months to June 1st, 2010, research on the effects of online gaming may now take center stage as lawmakers craft sensible legislation. At the helm of the National Council on Problem Gambling is Keith Whyte, who sat down with Poker News Daily to discuss the internet side of problem gambling research.

In June, Congressmen Jim Moran (D-VA), Lee Terry (R-NE), and Frank Wolf (R-VA) introduced HR 2906, the Comprehensive Problem Gambling Act. The bill boasts 26 co-sponsors on both sides of the aisle and allocates $71 million over five years for problem gambling awareness, research, and treatment. Its language was incorporated into Senator Robert Menendez’s (D-NJ) S 1597, the Internet Poker and Game of Skill Regulation, Consumer Protection, and Enforcement Act.

Poker News Daily: Thank you for joining us. Talk a little bit about the differences between live and online problem gambling research.

Whyte: A lot of the research we have is not online and there may be some significant differences between online and live players. When we think about online players, one of the ways I try to break it down is to look at the risk factors for gambling problems: high speed of play, social isolation, use of credit cards, higher limits, and easy access. Those can all be found in the online arena. All of the studies have found that internet gambling users tend to be younger and male. Also cited is that online gamblers are not necessarily losing a lot of money; they are just on there 14 hours a day to the detriment of their work and family life. Problem gambling is not just about the money.

PND: Online gamblers have access to a wide variety of options like poker, blackjack, sports, and casino carnival games. Does that increase, decrease, or not affect the propensity for problem gambling to occur?

Whyte: It’s a pretty robust finding that the more types of things you gamble on, the more likely you are to have a gambling problem. The fact that online gamblers tend to play more types of games means that they are more likely to develop a gambling problem.

PND: Is an online problem gambling study in the works?

Whyte: As we work on Capitol Hill, there are a lot of people asking questions about the online environment. One of the reasons we haven’t done the research is funding and resources. As an advocacy organization for programs that assist problem gamblers, a lot of our focus is on prevention and treatment. For example, we’re still trying to build a safety net for problem gamblers at the state level. We are keen on trying to understand this better and I’d like to see the National Council in a position to support that research.

PND: Have any online poker or internet gambling sites come to you looking for research or offering assistance?

Whyte: bwin has collaborated with Harvard University. Other examples have included the involvement of eCOGRA, but it’s nothing that we’ve done directly.

PND: Will regulation of the industry through a bill like Congressman Barney Frank’s (D-MA) HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, deter problem gambling?

Whyte: That’s one of the concerns we have at the state level right now. We have no confirmation that regulated gambling is more responsible; it’s how that regulation is done. We’ve had problems with state governments not collecting and releasing information, which makes it much more difficult for us to act.

Inside the Treasury and Federal Reserve UIGEA Regulations Delay

Last week, the U.S. Treasury and Federal Reserve announced that mandatory compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) had been delayed until June 1st, 2010. Let’s take a look at the agencies’ reasoning.

The seven-page document issued by the Treasury and Federal Reserve on Wednesday begins with an overview of the UIGEA and states that the two government agencies consulted with the U.S. Department of Justice prior to delaying the compliance date. The final regulations of the UIGEA were published on January 19th as so-called “midnight rules” by the outgoing Bush administration. One day later, sitting President Barack Obama assumed office.

The document gives a brief timeline of events since then, noting that on September 18th, the Poker Players Alliance (PPA), National Thoroughbred Racing Association, and American Greyhound Track Owners Association submitted a joint letter calling for compliance with the UIGEA regulations to be delayed by one year to December 1st, 2010. The two agencies explained, “Petitioners assert that many small regulated entities do not have the resources necessary to develop and implement appropriate policies and procedures by the December 1, 2009 compliance date and cite the possibility of confusion regarding the term unlawful internet gambling.” The latter three-word phrase was not defined in the UIGEA, which instead deferred to a muddled slate of state, federal, and tribal laws.

In October and November, members of Congress led by Barney Frank (D-MA) also asked for a delay, as did several organizations, including the American Bankers Association, Wells Fargo, the Credit Union National Association, and the National Association of Federal Credit Unions. On November 9th, other lawmakers including Senate Majority Leader Harry Reid (D-NV), whose home state serves as the epicenter for brick-and-mortar gambling in the United States, authored a letter purportedly expressing “an intent to consider legislation that would allow problematic aspects of the Act to be addressed.”

Meanwhile, Senator Jon Kyl (R-AZ) and Congressman Spencer Bachus (R-AL) weighed in, calling the reasons for a delay “speculative” in a November 3rd plea to the Treasury and Federal Reserve. Many of the groups clamoring for an extension feared overblocking, which could result in the denial of legal online wagering. In New Hampshire and North Dakota, credit card companies like Visa and MasterCard disallowed online lottery transactions, which received a carve out from the UIGEA. In Kentucky, horse racing outfits feared that internet bets on the sport would come to a screeching halt. Several weeks ago, Churchill Downs Incorporated purchased YouBet, further complicating the matter.

In the end, the two government entities asserted, “Neither petitioners nor commenters supporting the petition have provided the Agencies with sufficient data or documentation to justify a twelve-month extension of the compliance date. The Agencies believe that a six-month extension is sufficient for regulated entities to address issues related to the definition of unlawful internet gambling.” The agencies added that documentation provided by merchants to banks and other financial institutions should be sufficient to comply with the UIGEA.

The Treasury and Federal Reserve ultimately settled on using the Administrative Procedure Act to serve the delay on the grounds that the existing UIGEA rules are “impracticable, unnecessary, or contrary to the public interest.” Other pieces of law addressed were Executive Order 12866, the Regulatory Flexibility Act, and the Unfunded Mandates Reform Act. The document added, “The Agencies also believe that regulated entities need to be informed as soon as possible of the extension and its length in order to plan and adjust their implementation process accordingly.”

On Thursday, the House Financial Services Committee will discuss HR 2266 and HR 2267. No markup will occur during the informational hearing, which will be held in Room 2128 of the Rayburn House Office Building at 10:00am ET. HR 2267 establishes a comprehensive framework for regulating the internet gambling industry in the United States and, if passed, may mark the beginning of explicitly legal online poker in the North American country.

Are Poker Players a Good Fit for the Business World?

Perhaps focusing on a subject that many in the poker community would view as obvious, many news outlets have recently begun to discuss the skills of top poker players not only on the tables, but also in the business and financial worlds. They have also analyzed the pros of regulated internet gaming, reflecting that the added revenue could reduce strain on the budgets of state and federal governments.

One of the members of the 2009 World Series of Poker (WSOP) Main Event November Nine, Steven Begleiter, was a guest last week on Bloomberg Financial News. The sixth place finisher in the WSOP Main Event, who had a previous career on Wall Street as an employee at the now-defunct Bear Stearns stock firm, entertained questions from Bloomberg news hosts Mark Crumpton and Lori Rothman and stated that there were many players he met during his run who were qualified to work in the business field.

“I got to meet a lot of people in their 20s who were very good card players that, were we still at Bear Stearns, I would have tried to get them to come join the firm,” Begleiter opined. He especially pointed out that the overall skills of his coach, former World Poker Tour (WPT) Player of the Year Jonathan “FieryJustice” Little, would have made him an excellent businessman: “People like him would do very well here on Wall Street.”

In a November 25th article in the Newark Star Ledger, the discussion of poker players in the business world was discussed. In an interesting point, it was brought out that a number of hedge fund companies and brokerage houses were looking to the younger players in the poker world to be potential analysts. In the article, former poker pro Aaron Brown, who now works on Wall Street as a risk manager at AQR Capital Management, said, “Someone who has made a successful living as a poker player for a few years would more likely be a good trader than someone who hasn’t. They know to push when they have the edge and they know how not to bust, and that’s a tough combination to find.”

Meanwhile, another cable business program, CNBC’s “Closing Bell,” discussed what the world of poker could do for the country’s financial state. During a discussion last week on the Unlawful Internet Gambling Enforcement Act (UIGEA), two analysts, Andrew Parmentire of Height Analytics and David Katz, an Oppenheimer gaming analyst, agreed that the online poker world, if regulated and taxed by the government, would be a boon to the business world. The duo focused on tax benefits, stating that the extra revenue could be put towards several problematic issues and increase activity in the markets.

These thoughts are well-known by many in the poker community due to the number of players who have come from the business side and been successful in the world of poker. One of the top female players in the world, Kathy Liebert, graduated from college with a business and finance degree and worked with Dun & Bradstreet before embarking on a highly successful poker career. Phil Hellmuth and Howard Lederer are a couple of players who have been able to parlay their business acumen beyond poker.

Perhaps the success of not only the “Old Guard” of the poker world, but also its “Young Guns” is best explained by Brandon Adams, who teaches behavioral finance at Harvard University’s Department of Economics. In the article in the Ledger, Adams explains, “They’ve essentially been the survivors in the system, a very difficult system where 95 percent of people lose money. Anyone smart enough and disciplined enough to survive that system is probably going to do very well in the trading world.”

Poker Industry Reacts to UIGEA Regulations Delay

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

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

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

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

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

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

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

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

UIGEA delayed six months

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

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

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

Those hearings are schedule for Dec. 3.

Committee Chairman Barney Frank applauded Friday's announcement.

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

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

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

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