Poker News

Internet Poker may come to Florida

The upcoming legislative session in Florida will be the first time the group has considered how to draw revenue from Internet poker betting or whether to ban the activity all together.

Poker Pro Canada Magazine Announced

It is only five years old, but Poker Pro Magazine has already established itself in the poker world with a circulation in excess of 150,000 copies per month.  The publication is already available in the U.S. and Canada, but the company is now offering a something special for its Canadian readership.

Poker Pro Media recently announced it will be a launching a regional version of its popular magazine entitled Poker Pro Canada.  The Canadian edition will feature in-depth profiles of Canadian players, updates and news from the growing Canadian poker scene and, of course, strategy and tips from the pros.

Canadian Poker Pro Executive Editor magazine John “JohnnyQuads” Wenzel elaborated on the motivation behind launching the new magazine in an official press release:   “Some say this is a time of contraction for print media, but we’re bullish on the Canadian market.  The game is exploding in Canada and we intend to provide enthusiasts with a slick, upscale magazine that will be fun to read and will also improve their bottom line at the tables.”  Wenzel also serves as Editor-In-Chief of Poker Pro Magazine.

Wenzel makes a valid point, as there have been a number of popular events in Canada in the past few months, including the British Columbia Poker Championship (BCPC) and, more recently, the Fallsview Poker Classic in Niagara Falls, Ontario.  Several big names turned out for the respective events, including Full Tilt Poker’s Gavin Smith, UB.com pro Tiffany Michelle, Maria Ho, Scott “BigRiskky” Clements, Mike “SirWatts” Watson, and Brad Booth.  Smith had an exceptionally good showing at Fallsview, where he won a $2,500 buy-in event and placed fourth in a $5,000 buy-in tournament won by Simon “pokerbrat13” Charette.

“The Canadian poker scene is fascinating, but it doesn’t get a lot of publicity. We’re going to change that,” explained Wenzel.  The long list of top Canadian players includes Smith, Booth, Watson, Team PokerStars Pro member Daniel Negreanu, Full Tilt’s Greg “FBT” Mueller, Michael “Timex” McDonald, Nenad Medic, former European Poker Tour (EPT) Monte Carlo winner Glen Chorny, Steve Paul Ambrose, Evelyn Ng, Betfair pro Sorel “Imper1um” Mizzi, and Shawn Buchanan.  The country is also home to the popular Canadian Poker Tour (CPT) and the newly launched PokerStars North American Poker Tour (NAPT) also has plans to expand its tournament schedule into Canada.

This is not the first time that Poker Pro has branched out with a new publication.  The media company also produces Poker Pro Europe and Online Poker Pro, the latter of which is a publication dedicated entirely to the internet poker scene.  Poker Pro Canada will be sold at bookstores and convenience stores alike, gracing the shelves of stores 7-Eleven, Wal-Mart, Costco, Indigo/Chapters, and Shoppers Drug Mart.  It will also be available in casino poker rooms across the country.  The new magazine is set to launch in March and an accompanying website should debut in the coming weeks.

Poker Pro Magazine is not the only publication betting on Canada.  Back in September, Canadian Poker Player Magazine announced that it was planning to expand its media operation by launching a 24-hour online television station dedicated to the Canadian poker scene.  Modeled after the popular Poker Channel in the U.K., the site is supposed to feature poker-themed movies and television plus television coverage of past Canadian tournaments like the Canadian Open Poker Championships.

To date, the site has not gone fully live, but the project itself is another indication that many poker companies are setting their sights on the Canadian Poker scene.  Another indication is the recent announcement by PartyPoker that Kara Scott was joining its slate of sponsored pros.  Scott is supposed to promote the room in her home country of Canada by taking part in a number of CPT events.

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.

Tribes meet in city to discuss internet poker

After the California Nations Indian Gaming Association chairman called for unity at the Western Indian Gaming Conference on Wednesday, tribes began to tackle the complicated issue of legalizing Internet poker in the state.

Internet Gambling Bill Introduced in New Jersey

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

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

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

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

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

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

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

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

Joe Sebok Provides Update on UB Cheating

This past weekend, UB.com’s Joe Sebok provided the poker community an update on where things stand with disseminating hand histories to those players affected by the cheaters that “won” money from players on UltimateBet in 2006 and 2007. Unfortunately, this seems to have done little to appease those who are still livid about not just the cheating, but the way things have been handled by UB.

To backtrack, Sebok posted about the hand histories on his PokerRoad blog back in October 2009. At that time, he instructed players who wanted information about the times they played with superusers to e-mail UB security with their request. The players would then be sent two spreadsheets: one with the total hands and winnings or losses against each superuser account and another that goes into further hand detail without the hole cards. Players who wished to have the entire hand histories, complete with superuser hole cards, could then request them after receiving the first two spreadsheets. The PokerRoad founder and Poker2Nite host said that UB decided to do it this way because it would save a lot of unnecessary work, as many players would likely not request anything past the first two spreadsheets. Only those who specifically wanted the complete hand histories would get them.

Fast forward to January 10th. Sebok posted on his blog that there have been 131 requests for the first round of spreadsheets and 48 players followed up with requests for their complete hand histories. All but one, which was being pulled together as Sebok posted his message, had been e-mailed.

Sebok then went on to say that he knows many people are still frustrated with UB for not yet releasing the real names of all the cheaters. In his words:

“I still have hopes that more of the story will come out and we’ll be able to piece it all together with names sometime soon, but it’s a complicated process. I know everyone would like it to be simple and clean, but it’s just not that kind of situation. I know those out there are frustrated by that statement, but there is no company in the world that is just going to let everyone in on the inner workings of their business. It just doesn’t exist and I understand that from UB.”

Sebok continued, expressing his disappointment that people would question his integrity, honesty, and motives for taking the job with UB back in September 2009. When he announced he was joining up with UB, the prevailing opinion on internet poker forums such as Two Plus Two was that UB wanted him for image purposes and Sebok was just in it for the money. Even though he said that his goals were to make sure all the superuser screen names were made public, all relevant hand histories were made available to players, and all real names of the cheaters were released, people generally did not believe him, or at the very least they did not believe that UB would actually work with him on these issues. Whether it was deserved or not, Sebok faced an uphill battle with the online poker community.

Four months later, poker players are still critical of UB’s handling of the hand history distribution, which is why Sebok made his latest blog post. The real names of the cheaters, aside from Russ Hamilton, have not been released either, but the poker community seems slightly more understanding about that, although many are angry about it as well. Addressing the ill will towards him, Sebok said on his blog:

“It’s offensive to hear people say that I made everything up about wanting to correct things at UB and make sure it is a company we can all trust moving forward, and really just wanted the money. The fact is that it's a job that I have accepted and I am doing that job. Of course UB pays me, and I work with them to make it a reputable and honesty [sic] company. If I had no intention of doing any of that work that I said I was going to, I would have just signed, taken the money, and not said a word about it.”

“Everyone who has offered support”, he concluded, “I am indebted to you…”

FBI Issues Online Poker Findings; PPA Responds

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

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

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

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

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

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

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

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

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.

Preview of Dec. 3 Committee Hearing

Internet poker will be the topic Thursday on Capitol Hill as Rep. Barney Frank (D-Mass.) leads a hearing of his two poker-related bills in the House Financial Services Committee of which he is chairman.

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.

Haseeb Qureshi Comments on Isildur1 and High-Stakes Poker

Swedish newcomer Isildur1 has dominated the action on Full Tilt Poker in recent weeks, helping grow the eight largest pots in online poker history. One of his opponents, CardRunners instructor Haseeb “INTERNET POKERS” Qureshi, sat down with Poker News Daily to discuss Isildur1’s recent dominance.

Isildur1 has largely competed in Pot Limit Omaha against high-stakes Full Tilt regulars like 2009 World Series of Poker (WSOP) November Nine member Phil Ivey, Durrrr Challenge namesake Tom Dwan, Patrik Antonius, and Power Poker front man Ilari “Ziigmund” Sahamies. Qureshi has dropped $452,000 to Isildur1; according to PokerTableRatings.com, Dwan has lost 10 times that amount.

On the newcomer’s No Limit Hold’em game, Qureshi told Poker News Daily, “He doesn’t trip up nearly as often in No Limit Hold’em [as in Pot Limit Omaha]. Of course, one of the biggest differences in No Limit Hold’em is that you can bet larger than pot and it’s in his over-betting strategy, which has become his trademark, that he really differentiates himself.”

Many have questioned when and if Isildur1 would go broke, including a poll that appeared on the popular online poker forum TwoPlusTwo.com revealing that 18% of those who responded stated that the Swede would go bust before 2010. Qureshi weighed in: “He’s a high-stakes poker playing degenerate who is very good and wants action. As long as nobody busts him, he’ll keep playing. I’d say it’s more likely than not that he goes bust relatively soon, but it’s still quite likely that he manages to rage on for a very long time.” PokerTableRatings.com began tracking Isildur1 in mid-September. This month, the eight largest pots in online poker history have played out.

On what types of strategies players could use to overcome opponents like Isildur1, Qureshi revealed, “Every basic strategy you could come up with is all too small and naive to be used. You should wait for hands and yet beat his aggression with more aggression. You should make fearless calls and yet be cautious in big pots. Choosing one pole or the other is basically handing him the match before it starts.”

Antonius laid claim to the largest pot in online poker history, $1.3 million, at the expense of Isildur1. The Full Tilt Poker pro also defeated Isildur1 in a massive $878,000 pot, which took place one week ago. Isildur1’s win over Ivey in a $1.1 million pot, the second largest of all-time, helped right the ship. The Swede has taken down three of the top six richest pots ever, while Antonius has scooped two of the top three.

Qureshi is an instructor for the poker training site CardRunners.com and recently tackled the Isildur1 phenomenon in an informative blog entry. On how he got started in the game of poker, Qureshi recalled, “In the PartyPoker days, there was a free $50 signup bonus deal running. I got on that and somehow donked up my money to $200 and then I started my ‘poker career,’ per se, at $0.05/$0.10 No Limit Hold’em ring games. I worked my way up the old fashioned way with 20 to 30 buy-in bankroll management. There were no tournament scores or trust funds for me, unfortunately.”

Finally, Qureshi explained that he never would have thought he’d be part of something as historic as Isildur1’s entry onto the poker scene: “My dream was to be playing $1/$2 and by the end of the first year, I had made over $100,000 and was just moving up to play $5/$10 six-max games.” Besides Qureshi, others who have tangled with Isildur1 include David Benyamine, Phil “OMGClayAiken” Galfond, Brian Hastings, and Brian Townsend.

Eurolinx Poker Liquidation Update

This year, we’ve seen two major stories break on Poker News Daily involving small poker sites shutting down and player funds disappearing in the midst of scandals involving shady ownership groups.  Pitbull Poker was shut down amid dwindling player numbers and a superuser scandal, with many players out tens of thousands of dollars.  Perhaps the bigger story was the surprising shutdown and liquidation of Eurolinx Poker.

On September 17th, Poker News Daily interviewed sponsored pro and official affiliate Marc Karam.  His affiliation with Eurolinx went back to 2006 and he not only was a sponsored pro, but he also referred hundreds of players to the poker site.  Karam was made a lot of promises by Eurolinx manager and owner Jo Remme.  In mid-2008, Remme asked Karam to borrow $200,000 and in return, Eurolinx was supposed to cover all expenses related to launching a new poker skin just for Karam.  In the end, Karam lost hundreds of thousands of dollars and stated that he’s trying to put the situation behind him and get a fresh start in the world of poker.

On the TwoPlusTwo forums, there are two main threads dedicated to the Eurolinx scandal. The first was started by Karam, who recapped his Eurolinx story.  In September, several players made posts in this thread to the effect that they wanted to pool their resources together to help in the recovery of their funds.  This particular thread died in the end of September with most transitioning to the one entitled “Eurolinx w/d problems > UPDATE: Eurolinx seeks to put business into liquidation.”

This new thread, posted around the same time the previous one died, is where a lot of the actual discussion about bringing up charges against Remme in his native Norway takes place.  In the middle of September, a post was made allegedly posting a comment from MicroGaming itself.  The statement read that they were shocked and saddened that “this has happened to one of our licensees” and they were awaiting further information.

On September 23rd, a post was made by “ditou26” that came from a private investigator from Norway.  The message from the investigator said that it would cost someone €2,000 to hire him to find Remme and make a claim on the client’s behalf.  The investigator did warn that Remme has no more assets and is broke, in which case there would be nothing to take back from him.

On October 5th, an interesting post was made by “jdredd,” who claimed to be ‘Negativity’ on Eurolinx and had over $75,000 on the site.  On behalf of himself and an associate, they hired a lawyer in Malta, but moved the investigation to Curacao.  They moved an order of liquidation from the court, which was never responded to by Eurolinx.  Eventually, they moved the court so that they had to be paid if Eurolinx wished to keep its license.  Only a few days later, Microgaming wound up shutting them down.  For all of his international legal efforts, jdredd and his associate were out over $125,000.

In the most recent weeks on the same thread at TwoPlusTwo, it seems the steam has been taken out of this case and the cold reality of the situation has set in.  If a high-stakes player like jdredd, who searched all avenues and used his legal expertise couldn’t get a dime, chances are nobody else would either.  For the most part, it seems that nothing has changed with the Eurolinx scandal.

It goes without saying that the two major shutdown stories of 2009 involving Eurolinx and Pitbull Poker are tales of warning to internet poker players.  All players really have to assure them that their funds are safe are the historical reputations of the poker sites.  For now though, the players that are out funds on Eurolinx continue to search for any way to recover just a fraction of their lost funds.

Online Poker Discussed in Massachusetts Committee Hearing

On Thursday, the Massachusetts Joint Committee on Economic Development and Emerging Technologies held a hearing to review proposals to expand gambling within the Commonwealth. Speaking on behalf of the online poker industry was Poker Players Alliance (PPA) Massachusetts State Director Randy Castonguay.

The PPA representative traveled to Boston to speak at the Gardner Auditorium. The goal was to include language in any casino bill that licensed and regulated online poker, which will likely bring in over $40 million per year in revenues to the Commonwealth of Massachusetts, according to figures released by the PPA. Castonguay told Poker News Daily prior to Thursday’s hearing, “Initially, we tried getting internet poker put on this year’s ballot. We were going to have the voters decide whether it should be regulated and taxed to protect the consumer.”

The Boston Globe newspaper noted that 17 bills focused on gambling would be heard on Thursday and that lawmakers were expected to remain in the city “well into the night” listening to proposals. The PPA has 25,000 members in Massachusetts out of more than one million total.

When the Commonwealth took up the issue of gambling, a provision in the proposed casino bill made playing online poker a crime. Castonguay explained in his testimony, “While the game as evolved, the way politicians think about it has not. It is hard to believe that when gaming expansion legislation was introduced two years ago and again this year, the bills included provisions that make poker on the internet a crime punishable by two years in prison and a $25,000 fine.”

On this year’s version of the casino gambling bill, Castonguay told Poker News Daily, “We want to get the language criminalizing online poker out of the current casino bill. Essentially, they took last year’s bill, made a few changes, and put it back in. They didn’t take out the language that criminalizes internet poker. We think that’s ridiculous.” Massachusetts’ inclusion is similar to the Washington State’s stance on internet gambling. There, playing online poker constitutes a Class C felony.

Castonguay tried to submit a copy of a petition backed by the PPA that calls for the regulation of online poker in Massachusetts. He explained, “Unfortunately, our petition was not certified by the Attorney General’s office due to a disagreement with our language. Fortunately, however, this Committee and our State legislature can regulate internet gambling through the formal lawmaking process.” PPA Executive Director John Pappas explained that the disagreement was with “how the petition was drafted and whether it could be put into a sensible ballot initiative.”

Castonguay’s focus was on advocating online poker as opposed to broader initiatives like internet gambling or online wagering on sports. The Massachusetts State Director explained, “We are advocating regulation of internet poker, not internet craps or roulette. And as every member of this Committee knows, unlike craps or roulette, poker is a game of skill that has been played in the home since the dawn of the game.”

A separate Globe article noted that a new casino bill is expected in January. Proponents have argued that allowing casino gambling in Massachusetts will bring badly-needed jobs and revenue to the Commonwealth, while adversaries argue that addiction and other societal ills will increase.

Congressman Barney Frank (D-MA) has introduced a similar measure on the national level. HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, was introduced in May and has attracted 62 cosponsors. The measure outlines a complete licensing and regulatory framework for the internet gambling industry in the United States.

Read Castonguay’s online poker testimony.

Sebok seeks redemption as WPT Festa begins

A win in the $15k event last year began Team PokerStars Pro Bertrand "ElkY" Grospellier on the path towards WPT Player of the Year honors, but the Warsaw leg of the European Poker Tour will keep the French pro from returning to defend his title this time around.

Grospellier came into the final table last year with a rather sizeable chip lead and completely dominated a final six that included Nam Le, Osmin Dardon, Nenad Medic, Adam Levy and William Mietz to win the $1.4 million first place prize.

However, it was a hand on the event's penultimate day, one that would become one of the most talked about hands of the WPT's seventh season, that Grospellier later claimed propelled him to victory.

Joe Sebok, no stranger to WPT final table bubbles having finished seventh at both the Legends of Poker and Bay 101 Shooting Star in 2007, had the chip lead nine-handed and appeared to be a lock to finally make a televised final table on the tour.

Sebok fell back to the pack doubling up short stack Olav Prinz Von Sachsen losing a race with ace-king against sevens and a few minutes later, Grospellier raised his big blind from the small blind, just has he had been doing all day long.

This time Sebok decided to a take a stand, pushing all in with K 9 and without much hesitation, Grospellier made the call with the dominating A 9.

The board bricked out, Grospellier had the chip stack and table image needed to take a stranglehold on the Festa al Lago title and an utterly shocked Sebok was suddenly on the outside looking in.

For weeks after, Sebok's play was both criticized and lauded on Internet poker forums and his own PokerRoad radio show ad nauseam.

Now, a year later, as he headed back to Las Vegas looking for redemption and another shot at the WPT glory he was so close to attaining he could practically taste it, Sebok told PokerListings he's come to terms with it all.

"It makes me kind of sad that some of the most discussed hands in WPT history are ones that I've lost," Sebok said. "But seriously, it's one of those hands where it's still not really clear whether it was the right play or the wrong play."

In the aftermath, dozens of top pros have weighed in with advice on how Sebok should have played the hand, with opinions ranging from folding pre-flop to not changing a thing and everything in between.

But while Sebok staunchly defended his play in the weeks and months following the event, claiming he was well ahead of Grospellier's raising range and expected him to fold, even he is now looking at things a bit differently.

"When you take into account that it was getting to that point in the tournament where everybody was about to blow, because of the size of the stacks, given that, I guess now I would lean towards not playing the hand," Sebok said.

"It was really a big enough deal for me to make the final table that perhaps, in hindsight, I should have laid it down."

However, Sebok, who is now sponsored by UltimateBet, said he understands putting a questionable play behind you, even if it represented another lost opportunity at a WPT final table, is an important part of being a poker professional.

"Thankfully I've gone through a lot of these recoveries and each one gets a little shorter," he said. "It sucks not to have made it when you keep getting so close, but really, that's poker. What going are you going to do?"

Learning what he can from his past mistakes, Sebok is now solely focused on the Festa al Lago main event in front of him, not the one behind.

"The goal is always to get off to a good start, take advantage of everything you can and get to the final table," he said. "I've done everything right so far, minus the last part. Hopefully things will be different this time around."

To follow Sebok's progress and the entire WPT Festa al Lago main event from start to finish, click through to PokerListings' Live Updates beginning at 12 p.m. PST Wednesday.

Visit PokerListings.com

Bodog Poker Open IV Dates Announced

In the world of online poker tournament series, there are a few that are “must play” events for online professionals. The annual PokerStars’ World Championship of Online Poker (WCOOP) and the quarterly Full Tilt Online Poker Series (FTOPS) normally come to mind first, but Bodog has built its own franchise that has done very well, the Bodog Poker Open. Recently, the dates were announced for the fourth version of Bodog’s preeminent online tournament series and some special prizes have been added for the eventual champion.

The Bodog Poker Open IV is scheduled to start on November 1st and will wrap up one week later on November 8th. The weeklong schedule features several tournaments that will test the skills of the players involved in Limit, Pot Limit, and No Limit Texas Hold’em. It also has been split into two divisions that will enable anyone to get into the game.

The Bodog Championship Series features the seven main tournaments that run from a $50 rebuy to the $500 Championship Event. These tournaments should draw the cream of the internet poker world to battle it out on the virtual felt. The second division, called the Bodog Contender Series, features eight tournaments that cost 10% of the buy-ins of the main schedule, but will still be profitable for their eventual champions.

There are other additions that should make the Bodog Poker Open IV a schedule that will be well-attended. Each tournament in the Championship Series has money added to the prize pool, ranging from $2,500 for Event #6 ($150 Limit Hold’em) to the $25,000 that will be added to the Championship Event’s prize pool. In the Contender Series, two tournaments, the $10 No Limit Hold’em event (#1) and the Contender Championship Event, have money added to them.

Each player who wins one of the preliminary tournaments on the Championship Schedule will also earn a seat into the Championship Event along with a chunk of the prize pool. For those playing on the Contender Schedule, the winners of preliminary events will take home a seat into the Championship Series Main Event, while their final tablemates will earn a seat into the Contender Series Main Event. Finally, the eventual champions of both divisions’ Main Events will be featured in CardPlayer Magazine and Bodog’s online outlets, including the “Bodog Beat.”

For those who don’t want to pony up the full buy-in for either the Championship or the Contender Schedule, there are ways to qualify for the tournaments on the cheap through a very extensive satellite schedule. For as little as $0.50, players can work their way into the mix for playing in any of the Bodog Poker Open scheduled events on either side of the ledger. Players can even use Bodog Poker Points to enter into special satellite tournaments that can get them into a tournament for no monetary outlay.

Back on May 3rd, the Bodog Poker Open III wrapped up its Championship Event by crowning “biffsworld” as the victor. “biffsworld” vanquished the 279-player field, which included Bodog poker professionals Jean-Robert Bellande and Justin Bonomo, and took home the $40,283 first prize. “biffsworld” is expected back to defend his title, joining “scarface0928” (Mid-Main Event champion) and “winjack” (Mini-Main Event champion), who also earned titles during the Bodog Poker Open III. With the Bodog Poker Open IV less than two weeks away, the action should be picking up significantly as players attempt to win their way into the weeklong tournament series.

Federally Regulated Online Gaming May Take Years to Materialize

It's time for people to lower expectations on when licensed and regulated Internet poker will be available in the United States. It's not going to be this year. It probably won't be next year. But it likely will happen eventually, at the...

Doyle Brunson’s Twitter Account Gaining Fans by the Thousands

A recent tweet from Doyle Brunson “The Texas Dolly” summed up what many skeptics had to say when they learned the 10-time World Series of Poker (WSOP) bracelet winner has taken to the microblogging site Twitter: “Can it be that you guys really like the blonde jokes? My followers are going up at an alarming rate…never thought I’d be a tweeeter:-)”

If the parenthetical smiley face is any indication, Brunson, also known as @TexDolly on Twitter, not only uses the popular social networking site, but also is down with the Twitter lingo.  Brunson has been known to tweet at fellow users, bust out acronyms typically seen on internet poker forums, and even drop smiley faces from time to time, especially when doling out a stream of dumb blonde jokes.

As he alluded to in the aforementioned tweet, Brunson has seen a major spike in followers over the past month, jumping from 16,000 less than two weeks ago to nearly 45,000 as of Friday morning.  The recent jump puts Brunson ahead of other big name players like Phil Hellmuth and Daniel Negreanu and suggests that the “old timer” of the poker world still has a big influence on the industry.  In a statement from DoylesRoom, Brunson’s online poker site, the longtime pro suggested that his deep run in the WSOP Europe Main Event and an appearance at an affiliate convention in Budapest are to blame for the spike, but there may be more to Brunson’s popularity in the Twitterverse than just a heightened profile.

There are plenty of celebrities from Hollywood, the sports world, and the poker community on Twitter, but not all of them pick up huge followings.  Some suggest that the hit and miss nature of celebrity Twitter accounts depends on the types of things a person elects to tweet about.  If celebrities tweet infrequently or only post mundane details about their lives, they are less likely to have a large following, even if they are on the “A List.”  Brunson’s account has its fair share of run-of-the-mill fare like when cash games are running on DoylesRoom, but he also includes his thoughts on current events, responses to other people’s tweets, and jokes (lots of jokes).

The recent stream of blonde jokes is the result of Brunson losing a bet on a recent Monday Night Football game.  He explained his reasoning with a tweet from Tuesday that read, “Lost the Monday night football game. I’m gonna tell dumb blonde jokes until I finally win one!! ya, that’s right, suffer along with me.”  Since then, he’s posted seven blonde jokes, but has found time to respond to the tweets of others, including socialite Nicky Hilton, who is one of Brunson’s many followers.

While Twitter and Texas Dolly may seem like an unusual combination, it makes sense when you consider how long he has been posting in his popular personal blog.  Past posts have proven that Brunson does not bite his tongue on issues, as he has spoken out on everything from politics to poker and it seems that people are paying attention.  A recent blog in which Brunson proposed candidates for a “Poker Hall of Shame” criticized several of his fellow old school gamblers for their bad poker behavior was picked up by several poker media outlets as a newsworthy event.  His blog endorsing World Poker Tour (WPT) host Mike Sexton for the 2009 Poker Hall of Fame class has made its way into poker print as well.

Some of the other old school pros like Amarillo Slim prefer to lay low now that poker is part of the mainstream media, but the 76 year-old Brunson has elected to remain in the spotlight.  DoylesRoom’s team of online pros, dubbed the Brunson 10, are just another example of how the man who got his start playing cards in backrooms across the South keeps adapting and changing with the times.  The Brunson 10, which currently consists of Amit “amak316″ Makhija, Alec “traheho” Torelli, Zachary “CrazyZachary” Clark, and Chris “Moorman1″ Moorman, will feature online pros supposedly hand-picked by Brunson to represent his site.  The divide between live and online pros has been a major theme in the post-Moneymaker era of poker, but the Brunson 10 is the poker legend’s attempt to bridge the gap between the old and new guard of players.

Be it the Brunson 10, his blog, or his increasingly popular Twitter account, Brunson seems to have tapped into the younger generation of poker players and has become an unexpected new media success story.  While he still has a ways to go to catch some of Twitter’s most popular accounts, which possess more than one million followers, it seems as though Brunson may be onto something with those blonde jokes.

A Heads-Up Controversy

The world of internet poker is never lacking for controversy. The latest involves arguably the most respected online poker room in the industry, PokerStars.

Recently, the site held its annual World Championship of Online Poker (WCOOP) $215 Heads-Up Pot-Limit Omaha “second chance” tournament. When the tournament was down to 16 players, “Anti-Matter”, along with his opponent, “arbianight”, agreed to sit out for a while so that they could both watch a big boxing match on television. According to Anti-Matter, after about 20 minutes, he was declared the loser and arbianight advanced to the quarterfinals.

Upon chatting with PokerStars support, Anti-Matter, arbianight, and any railbirds in attendance found out that if two opponents in a heads-up multi-table tournament sit out for 250 consecutive hands, it would be automatically declared completed. In this case, since both players were sitting out and one player had to move on in the tournament, arbianight got lucky because he had slightly more chips than Anti-Matter as a result of the order in which their blinds had been passed back and forth. Despite both Anti-Matter´s and arbianight´s pleas, PokerStars would not allow them to play on. Anti-Matter requested he at least be paid what he calculated to be his equity in the tournament, but at that point, PokerStars was unable to do anything besides give him his payout for making the round of 16.

As frequently happens when an online poker player feels slighted by a poker room, Anti-Matter took his case to the community at the TwoPlusTwo forums. And, as frequently happens next, a mess ensued, with opinions flying from all angles.  Here are my thoughts on what each party did wrong in this situation:

Anti-Matter

He sat out during an important part of a lucrative tournament in order to watch a boxing match. Television programming took precedent over being one of the final 16 players in a heads-up tournament. Plus, both he and his opponent agreed to do this, making it look even worse. They did not have any intention of delaying the tournament or harming the players in any way, but they looked pretty bad for doing what they did.

Granted, PokerStars does have a rule on its website that states, “There is no rule against choosing to sit out; a player doing so will continue to have blinds and antes posted and cards dealt”, but in reality, the two players broke the spirit of the rule. This statement was made for cases where someone needs to take a bathroom break or answer the door, not so that two opponents in a heads-up tournament can watch a sporting event that could take an hour to complete. Put simply, it´s just not cool.

While the extremely deep stacks, slowly escalating blinds, and quality of players remaining made it likely that all of the matches would take a long time to complete, the fact of the matter is that Anti-Matter and arbianight might have held up the other players. Who´s to say that the other contests would not have ended relatively quickly? The two boxing fans might have caused the other advancing players to wait for more time than necessary.

Additionally, Anti-Matter accused PokerStars of “ripping him off” in the subject line of his forum post, saying that the site refused to pay him the approximately $900 he felt he was owed to make up the difference between his equity in the tournament and the amount he actually won. While his correspondence with PokerStars was fairly civilized, the way he made the issue public was not the correct approach.

PokerStars

It´s simple. PokerStars failed to make it known anywhere, be it on its website or in the poker software, that if the two opponents in a heads-up tournament match sit out for 250 hands, it will end automatically. In fact, as I mentioned above, Stars´ site explicitly states that players may sit out. Making this known, even if it was in the fine print on the website, would have made the whole debate unnecessary.

To be fair, there is a reason for the unwritten rule. In the past, PokerStars had found that there were often tables where both players didn´t show up, usually in play money tournaments. As a result, the matches would go on and on and on with no end in sight until other players noticed and got in touch with the tournament staff. What happened with Anti-Matter – two players sitting out for a long time deep in a high buy-in tournament – was unprecedented.

But if PokerStars is going to program the poker software to have such a dramatic effect on the tournament, that information should be posted somewhere. Better yet, post the rule and pop-up a big warning message should the players start getting close to the 250 hand mark.

Aftermath

It took a few days for PokerStars to come to a decision, but the poker room did pay Anti-Matter the extra $900 he requested. It has also added the rule to its website, although the part that reads “Two or more players may not make any agreement to sit out simultaneously whether at the same table or different tables”, brings into question whether or not an agreement to sit out for a very short period of time, say, if someone has to use the facilities, would really be a violation of the rules. I suppose it would be, according to the letter of the law, but it is doubtful that something like that would be enforced.

For his part, Anti-Matter apologized for the accusatory thread title and requested that a moderator change it.

PokerStars racks up another world record

The online giant drew 307,016 players on 42,814 tables Sept. 6, which was more than enough for a new world record.

According to the Guinness Book of World Records it was the most players ever recorded on an Internet poker room, breaking PokerStars own record by more than 100,000 players.

At this rate, PokerStars is only competing with itself for online traffic records and the site still holds the record for the largest poker tournament ever held at 65,000 players on July 19, 2009.

As the world's largest poker site, PokerStars has more than 27 million members worldwide and has dealt more than 33 billion hands since it launched in 2001.

The online site has since expanded to include a number of live poker tours including the European Poker Tour, ((Asian Pacific Poker Tour)) and the Latin American Poker Tour.

The PokerStars World Championship of Online Poker main event is also the world's most lucrative online tournament.

Yevgeniy "Jovial Giant" Timoshenko won $1.7 million for taking down the event Sept. 21.

Visit PokerListings.com

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

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

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

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

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

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

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

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

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

National Council on Problem Gambling Holds HR 2906 Press Conference

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

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

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

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

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

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

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

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

FullFlush, durrrr set to clash at PKR Heads Up

For months, Brit Luke "__FullFlush1__" Schwartz has been trash talking Internet poker poster boy Tom "durrrr" Dwan.

While each has his work cut out to get there, Dwan and Schwartz will finally meet face to face should each make the semifinals at the Slam.

But first, Schwartz will have to take on WPT Championship winner Yevgeniy Timoshenko and Dwan is matched up with 2009 WSOP Heads-Up runner-up John Duthie in the first round.

Other first round match-ups include 2008 WSOP Main Event champion Peter Eastgate taking on fellow Team PokerStars Pro and first lady of British poker Vicky Coren, while Academy Award nominated actress and WSOP bracelet winner Jennifer Tilly takes on the always entertaining Tony G.

In the meantime, should John Tabatabai beat Dave "Devilfish" Ulliott and Annette Obrestad defeat Ian Frazer in the first round, the two will meet in a rematch of the 2007 WSOPE main event final.

"There are some really exciting clashes lined up for the first round of the PKR Heads Up Grand Slam, but it's also interesting to see what could happen as the tournament develops," said Matchroom Poker's managing director Eddie Hearn.

"The connotations are endless but each match will carry plenty of drama."

The $10k buy-in event will feature just 32 players, including four PKR qualifiers.

The PKR Heads Up Grand Slam will take place from Oct. 8-10 in London's 3 Mills Studios. It will air in eight two-hour episodes on Sky Sports in the UK and be distributed to various International broadcasters.

Visit PokerListings.com

Morongo Tribe Postpones Online Poker Debate in CA

An effort between some California card rooms and the Morongo band of Mission Indians in Southern California to regulate online poker in the Sunshine State has been put on the backburner. An article by Debra Gruszecki of the Palm Springs Desert Sun reported on the issue earlier this week and cited growing concerns from the tribe and card rooms that the important issue was being rushed through the legislative process was the driving factor behind the decision.

While they are no longer pushing the online poker issue, they are not abandoning it altogether. Patrick Dorinson, a spokesperson for Morongo, spoke to Gruszecki about the decision. “Some concerns have been raised, and we want to make sure we address those concerns so this can benefit everyone,” he explained. “We are going to redouble our efforts and present this in January to the (state) Legislature.”

The crux of the proposed legislation centered on the formation of the California Tribal Intrastate Internet Poker Consortium. That group would retain the ability to license and regulate online poker ventures within the state of California. State Senator Darrell Steinberg spoke out against the bill last month not because he opposes online gambling in the state, but because he believes the state needs more time to review the potential revenue that could stem from such a venture.

The Morongo band and their card room partners have taken Steinberg’s words to heart and now plan on taking time to research and prepare before re-introducing the idea to the state legislators according to Dorinson and card room representative Waltona Manion. Both told the Desert Sun that their current timetable involves returning to the issue in January of 2010.

During the next three months, major issues that will likely be researched and discussed at length is exactly how much money the state stands to profit and whether or not the proposed consortium is in violation of any existing state or federal laws such as 2006’s Unlawful Internet Gambling and Enforcement Act (UIGEA). The Morongo tribe will also have to address the concerns of the numerous tribes, such as the Pechanga Band in Temecula, who are currently opposed to such legislation.

According to Gruszecki, many tribes fear opening up the intrastate online gambling issue in California may compromise the current exclusivity enjoyed by tribes to offer gambling within the state. David Quintana, political director of the California Tribal Business Alliance, expressed relief at the postponement of the legislation. In an interview with the Desert Sun, Quintana said he hoped this would allow time for all of the tribes and card rooms in California to have a more in-depth discussion about the issues at hand.

Though most of the reports about the Morongo band’s decision to relent on the online poker push have construed it to be a setback for the online gambling world, Poker Voters of America (PVA) Executive Director Melanie Brenner still believes the situation in California is a step forward for poker advocates. In an interview with Poker News Daily last month, Brenner explained why the Morongo partnering with some California card rooms was so important:

“What I think you’re seeing is a part of the political process. There are so many different parts to the process. One of the biggest challenges in California has been the opposition of the tribes not wanting online poker,” she explained. “One of the tribes now wants to run an online poker site. That’s a huge breakthrough.”

It remains to be seen whether the delay in action will allow the Morongo tribe time to persuade other Native American groups in California to endorse the online poker legislation, but the decision to drop the issue for the moment will certainly allow them more time to formulate a thorough argument to do just that.

Two Months, Two Million Moves to Wednesdays

After four weeks in its Sunday 9PM time slot, the G4 reality show “Two Months, Two Million” will be changing nights, moving to Wednesdays at 8PM for the remainder of its ten episode season. There will be no new episode on Sunday and the network will instead air a two hour marathon of the first four episodes from 9PM-11PM ET.

The show was facing stiff competition from NFL coverage and popular HBO shows “True Blood” and “Entourage.” In an effort to make sure the show finds its audience, the network relocated it to the Wednesday time slot where competition will theoretically be much less tough. The show will also have the benefit of picking up G4’s popular “Attack of the Show” as its lead-in. The program, hosted by Olivia Munn and Kevin Pereira, airs nightly at 8PM ET Monday through Thursday. The guys of “Two Months, Two Million” are already familiar to “Attack of the Show” since Dani Stern and Jay Rosenkrantz made an appearance on the show last week.

The next new episode of “Two Months, Two Million” is scheduled to air on Wednesday September 16th and Rosenkrantz gave some additional hints about what to expect in the new episode in his blog. The previews for next week’s show included footage of Stern doing some heavy partying with a group of young women and Brian Roberts logging plenty of hours in the house’s War Room where all the guys gather for their online poker sessions. Rosenkrantz, who offered his own makeshift titles for upcoming episodes in his most recent blog entry, referred to the episode as “Double Dates and Home Again.” Considering the latest promos for the new episode included Rosenkrantz expressing doubts about their $2 million goal, the latter half of the title suggests some time away from Vegas might be in the young pro’s future.

The show’s time change is not the only big move for those involved with “Two Months, Two Million” this week. A blog post from Stern officially announced that he would no longer be serving as an instructor for the online poker training site PokerSavvy. Stern’s short blog post wished the company well and thanked the site and its members for their support. PokerSavvy’s current roster of instructors includes Isaac Haxton, Tony “Bond18” Dunst, Mike “SirWatts” Watson and Mike “The Mouth” Matusow. Despite the good company, Stern still decided it was time to move on to bigger and better things.

“The launch of my new TV show has opened up some new promotional opportunities for me that make staying at PokerSavvy impossible right now”, Stern wrote in his blog. “As such, I’ve decided I need to move on to pursue those opportunities.”

He failed to disclose what those exact opportunities were, but the prevailing opinion on the popular internet poker forums is that Stern will defect to rival training site DeucesCracked. Rosenkrantz is one of the founders and owners of DeucesCracked and fellow “Two Months, Two Million” cast members Emil “whitelime” Patel and Brian “flawlessvictory” Roberts are affiliated with the site as well. In an interesting side note, even the show’s personal chef, Chef Robert, is listed as a coach on DeucesCracked’s official website, making Stern the only cast member who is not connected to the company.

WSOP Coverage on ESPN Spotlights Hellmuth and Ivey

Last night’s episodes of the World Series of Poker (WSOP) on ESPN spotlighted the two most recognizable Phils in poker: Phil Hellmuth and November Nine member Phil Ivey. Hellmuth was seated at the feature table for the coverage of Day 2B while the secondary feature table boasted a strong line up of Michael “The Grinder” Mizrachi and PokerStars Pros Dennis Phillips and Maria “Maridu” Mayrinck. Over the course of the two episodes the show included updates on cancer patient Kent Senter, actor Lou Diamond Phillips and NBA star Jordan Farmar amongst others, but perhaps the most interesting aspect of Tuesday’s show was the unorthodox play of Hellmuth. As co-host Norman Chad aptly put it, it was, “as if Phil’s body and soul has been occupied by some idiot from Northern Europe.”

The episode began by reminding the audience of Hellmuth’s epic entrance in full Roman regalia for Day 1 of play and Chad assured viewers that the 11-time bracelet winner would be full of surprises during Day 2.  Chad got the inside scoop from Hellmuth, who told the poker commentator he was, “going to be more active and not back down from big raises.” While ESPN chose not to air the verbal confrontation between Hellmuth and internet poker pro Todd “Dan Druff” Witteles regarding the Ultimate Bet cheating scandal, Chad did make mention of each player’s role in the scandal and subsequent investigation as part of his commentary.

Hellmuth stuck to his word during the first featured hand of the night when he called a raise from 22-year old Ben Sprengers holding 7c 8c and got it all-in against Sprenger’s two pair when the Jd-6c-5c flop brought him an open-ended straight flush draw. After Hellmuth hit his flush to double up, Sprengers, who would prove to be Hellmuth’s nemesis throughout the day, questioned the Ultimate Bet Pro’s play and Hellmuth responded by saying, “I didn’t come to lay down son. I came to play.”

A member of last year’s November Nine, Phillips, also came to play and did not take long to clash in a pot with his tablemate Mizrachi. It would be Mayrinck, not Mizrachi who would be featured in the most pots with Phillips, as Mizrachi hit the rail midway through Day 2B play. Phillips picked up pocket aces against the Brazilian pro twice and managed to get her to pay him off both times.

Phillips was not the only November Niner profiled. The show also featured a segment discussing year’s winner Peter Eastgate besting Hellmuth’s record of youngest Main Event Champion. Hellmuth won his Main Event title at age 23 while Eastgate was just 22-years old when he won the Main Event last year. The 2008 Player of the Year Erick Lindgren also made the coverage, as the cameras caught his pocket queens getting cracked by Craig Ivey’s pocket jacks to eliminate the Full Tilt Pro early on Day 2B.

Some of the other players featured last night included Robert Williamson III, Scotty Nguyen, Tom “durrrr” Dwan, Ville Wahlbeck, 2009 WSOP Player of the Year Jeffrey Lisandro, Hevad “Rain” Khan, Howard Lederer and Frankie Gay, who was playing in the Main Event to honor his late son who was a soldier killed in action overseas. While Gay did not survive to Day 3, he and his family felt the trip was an appropriate tribute to their beloved son.

Senter, whose dying wish was to play in the WSOP Main Event, fared better than Gay did on the felt and survived to Day 3 despite doubling up Billy Gazes late in the day. Some of the other players to survive Day 2B included Hachem, Phillips, Mayrinck, JC Tran, Anthrax guitarist Scott Ian, Eastgate and Phil Ivey.

Ivey did more than just survive Day 2B. He ended the day as one of the big stacks in the room thanks in part to a huge hand in which he got it all-in preflop holding pocket kings to Jonas Molander’s A-K. The kings held to give Ivey the 223,700 chip pot and vault him to the top of the chip counts.

This week’s “The Nuts” segment featured a chess game between Chad and Lederer. Chad didn’t have much time to interview Lederer, as his opponent made quick worth of the TV personality on the chess board. The PokerStars’ Straight From the Pros segment highlighted a hand Khan played against Jon Kalmar in the 2007 Main Event and the Full Tilt Poker-sponsored piece Deal Me In had Jennifer Harman offering insight on a hand she played in a WSOP Circuit event against Jean-Robert Bellande.

Next week’s episodes will feature coverage of Day 3, the first day the entire field will converge on the Rio at the same time.

iMEGA, Poker Players Alliance React to UIGEA Ruling

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

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

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

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

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

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

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

UIGEA Clarified: Legality of Internet Gambling Depends on State Law

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

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

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

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

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

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

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

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

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

National Council on Problem Gambling Comments on Menendez Bill

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

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

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

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

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

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

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

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

Online Poker Funds Remain Seized in Account Services Case

According to the San Diego Union-Tribune, online poker funds seized by the Southern District of New York belonging to Account Services will remain under guard for what the newspaper claimed “could be years.”

On August 21st, a hearing was originally scheduled featuring lawyers for the online poker payment processor Account Services arguing why $14 million should be returned to the company. The funds were seized as part of a June raid by the Southern District of New York and were contained in Wells Fargo and Union Bank accounts in California. Account Services filed a motion for return of property in the Southern District of California and the case was assigned to Judge Jeffrey Miller. However, the hearing was later cancelled indefinitely.

On Saturday, the Union-Tribune published a story claiming that Miller “denied a bid Thursday by lawyers for the company, Account Services Inc., and the Poker Players Alliance to return the money. The players group is an advocacy organization that represents some 1 million online poker players.” It added, “Now, after Miller ruled against them, it could be years before they see any of the money.” The Southern District of New York seized well over $30 million in total, affecting more than 24,000 online poker players.

Paper checks and e-checks began bouncing in June, leading to concern on popular online poker forums about the security of player deposits. In many cases, the online poker sites, including PokerStars and Full Tilt Poker, compensated players fully and oftentimes awarded a cash bonus for any inconvenience. The warrant to seize funds from the Union Bank accounts identified Full Tilt and PokerStars by name as clients of Account Services. The document read, “Account Services has previously provided payment services for companies providing online gambling services, including PokerStars and Full Tilt Poker, the largest internet poker businesses in operation.”

The Wells Fargo account was used to pay online poker players in 2008 and 2009. Still redacted (crossed out) in its warrant application is evidence that led the Southern District of New York to finger PokerStars and Full Tilt in the first place.

Account Services’ Douglas Rennick was indicted earlier this month on bank fraud, money laundering, and illegal gambling charges. He faces up to 55 years in jail and up to a $1.75 million fine plus forfeiture of funds obtained. The San Diego news outlet explains, “Prosecutors then argued the indictment made the San Diego lawsuit irrelevant and that Miller should not hear it. The judge agreed, saying the players could try to recover the money after the criminal case is resolved.”

Rennick is a Canadian citizen and, as of yet, has not surrendered to U.S. authorities. The indictment issued by the Southern District of New York revealed that Rennick had been in the business of processing internet gambling payments since 2007. Over $350 million was transferred from a bank account in Cyprus for this purpose and “Rennick… provided false and misleading information to various United States banks about, among other things, the nature of the internet gambling-related payments being processed by the companies under Rennick’s control in order to induce banks to engage in financial transactions that they otherwise would not have facilitated.”

The Poker Players Alliance (PPA) filed an amicus brief on behalf of Account Services despite Rennick’s indictment. The 1.2 million member strong organization argued that poker is a game of skill and therefore not illegal gambling. Account Services added that funds in the Union Bank accounts were seized without a warrant, which was issued about a dozen days after the asset freeze took place. FBI Special Agent Dana Conte swore to both warrant applications.

Poker News Daily is seeking comment from the PPA and Interactive Media Entertainment and Gaming Association (iMEGA).

PokerStars and Full Tilt Poker Named in Online Poker Warrant Applications

Last week, Judge Laura Swain of the Southern District of New York (SDNY) asked attorneys for the United States Government to explain how the indictment of Account Services’ Douglas Rennick affected information contained in the warrant applications used to seize over $30 million from more than 24,000 online poker players.

As a result of the document filed by the Government last Wednesday, new information was released on the background of Account Services, including the company’s association with PokerStars and Full Tilt Poker. Half of the warrant applications used to seize funds from California branches of Wells Fargo and Union Bank were redacted (crossed out) when the documents were unsealed and released last week. However, Judge Swain commented, “The Court finds that certain other previously redacted portions of the materials should now be unsealed.”

In a section of the warrant application entitled, “Account Services’ History of Providing Payment Services for Online Gambling Companies,” the text reads, “Account Services has previously provided payment services for companies providing online gambling services, including Pokerstars and FullTilt Poker, the largest internet poker businesses in operation.” Dana Conte, the FBI Special Agent who swore to the affidavits, noted that the Wells Fargo account was likely used to transfer payments from PokerStars and Full Tilt, both of which accept players from the United States.

The document also profiles Rennick’s involvement with Account Services. The newly-released warrant application reveals, “There are multiple links between the Defendant Account and Douglas Rennick, a Canadian citizen who has previously processed winnings for the internet gambling industry. Rennick is one of the signers of the Defendant Account. Rennick is also associated with Alenis Limited.”

Rennick had indicated that the funds contained in the bank accounts would be used for activities like processing rebate checks and affiliate checks. J.P. Morgan closed the Wells Fargo and Union Bank accounts in December of 2008. Rennick had been associated with KJB Financial Corporation, Account Services, My ATM Online, Alenis Limited, and Check Payment Financial.

International money transfers from Cyprus were used to finance the Account Services operation. Conte noted, “I also learned that in April 2009, the individuals who applied to have the Defendant Accounts opened instructed Union Bank to list ‘Check Payment Financial Co.’ as the entity issuing checks… rather than ‘Account Services Corp.’” The Union Bank warrant application is dated June 24th, nearly two weeks after the seizure of funds took place.

Still redacted is the SDNY’s evidence for identifying PokerStars and Full Tilt. After fingering the two online poker behemoths, the warrant application notes, “There is probable cause to believe that the Wells Fargo Account Services Account was providing payment services for these online gambling companies in 2008 and 2009.” Then, a page of redacted text appears. In the Wells Fargo warrant application, sections entitled “The Defendant Account is Used to Transmit Gambling Payout Checks,” which continues for several pages, is fully redacted.

In July, Account Services filed a motion for return of property, namely $14 million in funds destined for online poker players. A hearing in the Southern District of California is scheduled for this Friday in the matter despite Rennick’s indictment on bank fraud, money laundering, and illegal gambling charges. He faces up to 55 years behind bars and $1.75 million in fines. The Poker Players Alliance (PPA) has filed an amicus brief on behalf of Account Services asserting that poker is a game of skill and therefore not illegal gambling.

PokerStars and Full Tilt Poker are the two largest online poker sites in existence. According to PokerScout.com, which monitors online poker room traffic, PokerStars boasts a seven day running average of 25,000 real money ring game players, with a 24 hour peak of 35,239. Full Tilt owns a seven day running average of 15,400 cash game players, with a 24 hour peak of 22,259. Trailing the duo is the iPoker Network, a non-USA friendly family of sites operated by Playtech.