Poker News

ESPN Inside Deal Airs First Show of 2010

The ESPN poker franchise “Inside Deal” returned on Tuesday with the first episode of 2010. Joining the series, which emanated from a new set, were Poker Players Alliance (PPA) Executive Director John Pappas and 2009 World Series of Poker (WSOP) Main Event Champion Joe Cada.

The show began with a discussion of the CardPlayer and Bluff Player of the Year awards for 2009. CardPlayer named UB.com pro Eric “basebaldy” Baldwin as its winner, while Bluff crowned PokerStars’ Jason Mercier. On which publication was more accurate, “Inside Deal” host Bernard Lee explained, “Understand that this is not apples to apples. These are two completely different Player of the Year formulas. If you had to look at it, I think CardPlayer has it a little more open for most players.”

Lee noted that poker pro Amnon Filippi bumped him from the 2010 PokerStars Caribbean Adventure (PCA) Main Event, while Cada staked co-host Laura Lane into the ladies’ event. Now, Lee and the rest of the poker world have their sights set on the PokerStars-backed North American Poker Tour (NAPT), which resumes on February 20th at the Venetian: “I’ve said from the beginning that being able to qualify online is going to increase registration, prize pools, and interest in any tournaments. So far, over 160 players have qualified for the Venetian event. That’s more than some of the WSOP Circuit Events had all last year.”

Pappas joined “Inside Deal” via phone to catch listeners up on the good word from Capitol Hill. The Executive Director of the one-million member lobbying group explained the biggest challenge of 2010: “There is this continuing cloud of grayness as to what is legal and what is not legal. We have a six-month reprieve to get that Congressional clarification to make sure that it is clear that playing poker over the internet is not an unlawful internet gambling transaction.” The PPA is pushing for a markup of Congressman Barney Frank’s (D-MA) HR 2267 in February.

Cada, donning a festive array of PokerStars logos, told “Inside Deal” viewers that the pressure for him to perform has ramped up dramatically: “There is definitely more pressure now, especially because of the way I won my final table.” Cada hit the deck hard during the final table of the 2009 WSOP Main Event and defeated Maryland logger Darvin Moon heads-up.

One of the rumors flying around the poker world during the PokerStars Caribbean Adventure was that Cada was dating former Playboy Playmate of the Year Jayde Nicole. The rumors ultimately proved false, but Cada is still trying to wrap his head around his celebrity status: “I am still trying to get used to everything. The rumors are not so great. All my friends back home asked me about it and there are so many rumors going on.”

A comprehensive breakdown of a hand between Moon and Cada heads-up aired featuring Lee and ESPN.com Poker Editor Andrew Feldman dishing out strategy. The crew then asked Cada to reveal his mentality headed into heads-up play in poker tournaments: “I start off slow when I start heads-up because I don’t know how they play. A lot is their frequency of calls pre-flop and stack sizes. If the stack sizes are deeper, then you’re able to raise more from the button.” Cada was an online heads-up specialist prior to his win last November to become the youngest WSOP Main Event champion ever.

A new segment called “Snap Calls” featured discussion of Huck Seed’s chances to make it eight cashes in a row in the National Heads-Up Poker Championship, the number of new girlfriends Cada will have this year (Cada said under 1.5), the future of online poker legalization, whether Bernard Lee would claim a title in 2010, and whether Cada would win another bracelet in this year’s WSOP.

Online Poker Community Donates $1.5 Million to Haiti Earthquake Survivors

The online poker community has raised $1.5 million for victims of the magnitude 7.0 earthquake that rocked Haiti earlier this month, according to a press release distributed by the Poker Players Alliance (PPA).

Full Tilt Poker saw 22,785 donations come in from concerned members of the industry for total donations of $293,211. In a gracious showing, the world’s second largest online poker site doubled contributions from its patrons for a total donation of $586,423, or over one-third of the figure cited by the PPA. Aid for Haiti play and no-play tournaments were held on Full Tilt Poker and a special user account was created to accept incoming transfers benefiting the relief efforts.

As expected, PPA Chairman Alfonse D’Amato, a former three-term Republican Senator from New York, was elated to see the giving mood of the online poker community. In a press release distributed by the lobbying organization this week, D’Amato commented, “Like the rest of the world, the poker community is eager to do anything it can to aid Haiti in the wake of the devastating earthquake. I applaud PokerStars, Full Tilt Poker, and Cake Poker for providing poker players across the globe an easy way to make a contribution. The generosity online poker players are showing makes me even more proud to be part of this community.”

PPA Executive Director John Pappas echoed D’Amato’s sentiments in an interview with the online poker forum PocketFives.com, calling the massive effort “a tribute to the generosity of the poker community.” Pappas added that the seven-digit donation mark does not include private contributions made by poker pros and other members of the industry to organizations like the Red Cross and UNICEF, which hit the ground in Haiti shortly after the epic January 12th tremor.

The PPA revealed that 50,000 online poker players have donated a total of $760,000, an average of about $15 each. With online poker sites matching the funds dollar-for-dollar, the total amount generated surpasses $1.5 million. On PokerStars, donations are being accepted until January 31st at Noon ET. No-play Haiti Earthquake Relief tournaments have buy-ins ranging from $1 to $1,000. Text found on PokerStars’ website succinctly explains, “You will not need to play an actual tournament; instead, all of the 'entry fees' go straight to the fund.”

PokerStars, the world’s largest online poker site, also created a special player account called “Haiti Fund.” Users can transfer funds to the account and PokerStars will match all money raised for the relief effort. The website, which has campaigned for a variety of charitable causes like Ante Up for Africa over the years, reminded its clientele, “PokerStars has been quick to facilitate this after previous disasters, and once again it is giving you an easy way to donate cash.”

Meanwhile, Cake Poker, a USA-friendly site that features Lee Jones as its Poker Room Manager, is taking donations until Midnight ET on January 31st. Five “holding tanks” were created for players to donate to the cause in $5, $25, $100, $200, and $500 increments. Past charity efforts by Cake Poker include involvement in the Aces and Angels Celebrity Poker Tournament and Oregon’s West Side Poker Club.

Other sites, including RedKings, UB.com, Absolute Poker, and DoylesRoom held poker tournaments last week to raise money for the cause. On the CEREUS Network, 717 players turned out for a $5 rebuy benefiting earthquake victims. In addition, customers on the Network’s two sites, UB.com and Absolute Poker, can donate their player points in each room’s store. On DoylesRoom, a special Haiti Bounty saw Academy Award nominee Mickey Rourke hit the felts.

A magnitude 5.9 aftershock hit Haiti shortly after and the Red Cross noted that three million people may have been affected. We’d like to salute members of the poker community who donated.

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.

CNBC Investigates Illegal Gambling, Online Poker

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

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

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

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

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

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

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

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

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

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

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

Joe Cada Meets with More than 10 Lawmakers on Capitol Hill Visit

As the newest ambassador of the game, 2009 World Series of Poker (WSOP) Main Event champion Joe Cada met with more than 10 Congressmen on Capitol Hill on Monday in a visit sponsored by the Poker Players Alliance (PPA).

Cada could be found speaking with Representative Linda Sanchez (D-CA), Senator Debbie Stabenow (D-MI), Representative Allen Boyd (D-FL), Representative Kendrick Meek (D-FL), Representative Steve Cohen (D-TN), Representative Candice Miller (R-MI), Representative Joe Barton (R-TX), Representative Dean Heller (R-NV), Representative Gary Peters (D-MI), Representative Shelley Berkley (D-NV), and Senator Carl Levin (D-MI). Cada hails from Michigan and met with his two Senators and local Representative throughout the whirlwind one-day affair.

PPA Executive Director John Pappas told Poker News Daily, “There were a number of really good visits with lawmakers like Joe Barton and Linda Sanchez, who are avid poker players, so they got to talk a little poker and a little policy. Throughout the day, he probably met another half-dozen members of Congress.” Congressman Heller brought Cada onto the floor of the House of Representatives during a vote, giving the youngster a unique opportunity to witness the democratic process first-hand.

On Capitol Hill, Cada and his entourage bumped into Senator John Ensign (R-NV) and had a five-minute long conversation. Ensign serves as the counterpart to Harry Reid (D-NV), the current Senate Majority Leader. On Cada’s parade around Washington, D.C. on Tuesday, Pappas commented, “He doesn’t have the recognition that other pros we bring do, but he's just becoming a face on the scene. He was great from our perspective. He wasn't here to do the hard sell on public policy; he was here to give a good face to poker and tell his story.”

Cada became the youngest WSOP Main Event winner ever at age 21 in November, eclipsing Peter Eastgate’s standing record by one year. Cada and Eastgate are both card-carrying members of Team PokerStars Pro, which also includes other World Champions like Chris Moneymaker (2003), Greg Raymer (2004), and Australian Joe Hachem (2005). A bevy of news outlets met with Cada during the day, including Politico, The Hill, and Roll Call, popular Capitol Hill publications.

On the future of Cada’s relationship with the PPA, Pappas told Poker News Daily, “When we do fly-ins and other events, we want to be able to work with him and have him be a face for us in Washington, D.C. We'd love for him to continue to promote the PPA to the poker playing community, particularly to the younger online players who look up to Joe. He recognizes the importance of what we’re doing.” Cada’s post-WSOP Main Event media appearances have included the “Late Show with David Letterman” and ESPN’s “SportsCenter.” He’s also featured on the current cover of Bluff Magazine.

Next up for Cada is a trip to Las Vegas, where he will donate a two-hour training session to the prize pool of the All In For CP charity poker tournament, which will be held at the Hard Rock. Cada told Poker News Daily, "The PPA really treated me like a champion and made my stay very enjoyable. It was awesome meeting various politicians, especially the ones from Michigan. I placed third in John Pappas' home game, which was a huge cash for me of $110. I'm looking forward to supporting the PPA in the fight. Next stop: Bellagio."

Next up for the PPA is a push to pass legislation to legalize and regulate online poker in the United States. Pappas revealed, “We've built a lot of momentum at the end of the year and anticipate a Committee vote on HR 2267 in late January or early February. Right now, we're focusing on the targets we need to get this legislation through.” HR 2267, proposed by Congressman Barney Frank (D-MA), provides a framework for online gaming companies to solicit U.S. customers. It boasts 63 co-sponsors.

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

WSOP Champ Joe Cada Heads to Capitol Hill

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

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

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

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

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

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

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

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

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.

UIGEA Hearing Held

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

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

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

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

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

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

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

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

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Poker2Nite Recaps UIGEA Compliance Delay

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

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

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

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

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

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

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

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

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

Internet Gambling to be Discussed in House Financial Services Committee

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

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

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

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

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

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

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

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

UIGEA Regulations Officially Delayed Six Months

Online poker players in the United States have a lot to be thankful for this holiday season. On Friday, CNBC and the Associated Press confirmed that U.S. Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke had granted requests to delay the mandatory compliance date of the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) by six months to June 1st, 2010.

Word of a potential delay first broke on Wednesday from Interactive Media Entertainment and Gaming Association (iMEGA) Executive Director Joe Brennan. However, no official comment had been handed down from Geithner, Bernanke, the Poker Players Alliance (PPA), or the office of Congressman Barney Frank (D-MA). Around 12:15pm ET on Friday, cable station CNBC ran a segment touting the successful six-month delay and an Associated Press article had hit cyberspace 15 minutes earlier.

The six-month delay will take the internet gambling industry to June 1st, 2010. In the interim, the theory goes that sensible legislation governing the industry in the United States will be passed. Frank introduced HR 2267 back in May. The bill, which has attracted 63 co-sponsors, establishes a full licensing and regulatory framework for online gaming outfits to solicit U.S. customers.

An Associated Press article sourced both the Treasury and Federal Reserve as saying that the UIGEA’s regulations would indeed be pushed off until mid-2010. The news service explained, “The delayed rules would curb online gambling by prohibiting financial institutions from accepting payments from credit cards, checks or electronic fund transfers to settle online wagers. The financial industry complained that the new rules would be difficult to enforce because they did not offer a clear definition of what constitutes internet gambling.” Since the UIGEA was approved in 2006, a Third Circuit Court of Appeals ruling stated that the legality of internet gambling may depend on state law, similar to the way that the brick-and-mortar version is governed.

Next Thursday, December 3rd, the House Financial Services Committee will hold a hearing discussing the merits of HR 2266 and HR 2267. The former bill delays mandatory industry compliance with the UIGEA regulations by one year to December 1st, 2010. Its relevance given Friday’s confirmation that the regulations would be pushed back six months is up in the air. The hearing kicks off at 10:00am ET in Room 2128 of the Rayburn House Office Building. Witnesses for the informational hearing have not yet been announced and the proceedings can be followed via a live webcast accessible from the Committee’s website.

Potential overblocking by credit card companies like Visa and MasterCard led the PPA, two horse racing organizations, and members of Kentucky’s Congressional delegation to petition Geithner and Bernanke, urging that the regulations of the UIGEA be shuttled back to December 1st of next year. PPA Executive Director John Pappas told Poker News Daily, “Many believe what you’ll see is overblocking of legitimate transactions. It’s not a good thing for players. It won’t just affect poker; it’ll affect horse racing, lotteries, and other online entities.”

Around 1:00pm ET, the PPA confirmed the news. The organization’s Chairman, Alfonse D’Amato, commented in a press release, “The PPA is extremely pleased with the decision by the Federal Reserve and Treasury to grant the six month extension. This is a great victory for poker, but an even greater victory for advocates of good and fair public policy.”

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

No Markup Planned for December 3rd Internet Gambling Hearing

On Tuesday night, it was revealed that a hearing will occur next Thursday, December 3rd in the House Financial Services Committee. Taking center stage are two bills related to the Unlawful Internet Gambling Enforcement Act (UIGEA).

Poker Players Alliance (PPA) Executive Director John Pappas told Poker News Daily that no markup will occur at the hearing, which will be purely informational in nature: “It’s just an informational hearing. I don’t think the witnesses have been set yet and we’ve been in touch with the Committee about that. The PPA has been building the groundwork for this hearing for some time now. We look forward to it.” A representative from the House Financial Services Committee confirmed that no markup will occur. The hearing will take place in Room 2128 of the Rayburn House Office Building at 10:00am ET.

Depending upon the outcome of the internet gambling hearing next Thursday, either HR 2266 or HR 2267 could be scheduled for markup, potentially within a week. Congressman Barney Frank (D-MA) introduced both bills back in May. HR 2266 delays mandatory financial services industry compliance with the regulations of the UIGEA by one year to December 1st, 2010. It has attracted 53 co-sponsors on both sides of the aisle and is dubbed the Reasonable Prudence in Regulation Act. As it stands now, the financial services industry must fall into line with the UIGEA by Tuesday, December 1st.

When asked if the December 1st compliance date passing makes HR 2266 moot, Safe and Secure Internet Gambling Initiative (SSIGI) spokesperson Michael Waxman told Poker News Daily, “It could be unless Frank decides that the financial services sector needs a reprieve. Many companies have already expressed concern that the implementation of the law will be burdensome. I believe we’ll hear back from them again as they are forced to abide by the rules.”

HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, establishes a full licensing and regulatory framework for the internet gambling industry in the United States. It boasts 63 co-sponsors and, when coupled with a tax bill introduced by Congressman Jim McDermott (D-WA), could bring in as much as $42 billion over a 10-year period, according to a study by the Joint Committee on Taxation.

Many in the industry have pondered the status of the internet gambling and online poker industries in the United States after December 1st. Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan told Poker News Daily, “Poker players are going to have to get used to the kind of speed of deposit and withdrawal that online sports betters have had to get used to. To my knowledge, all of the top sports books have moved their processing offshore. I don’t expect there to be the wealth of electronic transfer methods and you’re probably going to see an increased use of checks drawn on international banks.”

One possible outcome in the post-December 1st internet gambling industry is overblocking by credit card companies like Visa and MasterCard. The 12-letter term began popping up earlier this year, when legal online lottery purchases in North Dakota and New Hampshire were denied. In essence, credit card companies could disallow any transaction that appears to look remotely like internet gambling in an effort to comply with the 2006 law. Overblocking also led several members of the Kentucky Congressional delegation to petition U.S. Treasury Secretary Timothy Geithner seeking the delay of UIGEA regulation enforcement. The group fears that legal online wagering on horseracing could come to a screeching halt as a result.

The PPA, National Thoroughbred Racing Association, and the American Greyhound Track Operators Association issued a letter to Geithner and Federal Reserve Chairman Ben Bernanke seeking delay of the UIGEA’s regulations. As of the time of writing, the request had not yet been acted on.

Stay tuned for the latest from Capitol Hill right here on Poker News Daily.

UIGEA Hearing Scheduled for December 3rd in Financial Services Committee

In breaking news from the House Financial Services Committee, a hearing to discuss two pieces of legislation related to the Unlawful Internet Gambling Enforcement Act (UIGEA) will be held on Thursday, December 3rd at 10:00am ET.

Interested online poker players can check out the hearing via a webcast found on the official website of the Committee. The hearing, which will be held in Room 2128 of the Rayburn House Office Building, will cover two pieces of legislation introduced by Committee Chairman Barney Frank (D-MA), HR 2266 (Reasonable Prudence in Regulation Act) and HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act. The longtime Massachusetts Congressman introduced the measures on the same day in May.

On December 1st, two days prior to the hearing, the financial services industry in the United States must come into full compliance with the regulations of the UIGEA, which were officially approved as midnight rules by the outgoing Bush administration back in January. Several days ago, Poker Players Alliance (PPA) Executive Director John Pappas told Poker News Daily that he expected a hearing to come soon: “Chairman Frank has told us that he intends to have a hearing and mark up HR 2267 as soon as he’s done with financial regulation reform bills. We think it might be in January, but there’s a good chance we could have a hearing in December. It depends on the Congressional schedule.”

Christmas has come early for the PPA, which has lobbied on several fronts for HR 2266 and HR 2267 to be marked up. It is unclear at the time of writing as to whether any markup will occur, as the proceedings next Thursday appear to be purely informational in nature. HR 2266 delays the regulations of the UIGEA by one year to December 1st, 2010. As it stands now, the industry has merely a week to brace for their effects on payment processors. HR 2266 has 53 co-sponsors on both sides of the aisle, including Steve Cohen (D-TN), Jim McDermott (D-WA), Ron Paul (R-TX), and Robert Wexler (D-FL).

Frank’s other bill, HR 2267, has 63 co-sponsors and creates a full licensing and regulatory framework for internet gambling and online poker outfits to solicit real money customers from the United States. A companion bill introduced by McDermott in May, HR 2268, taxes online gaming operators 2% of deposits. Although several estimates have been made as to how much revenue internet gambling could bring to the United States Government, the most recent study, which came from the Joint Committee on Taxation, pinned the figure at $42 billion over a ten-year period.

Witnesses for the December 3rd hearing and their prepared testimony were not given on the House Financial Services Committee website at the time of writing. Next Thursday will mark the first major movement on the internet gambling front in the Financial Services Committee since September of 2008, when Frank’s HR 6870 was approved by a 30-19 margin. The bill sought to clarify what activities were permissible under the UIGEA. It was not acted on during the 110th Congress and therefore was declared dead entering 2009.

A total of 41 Democrats and 29 Republicans make up the Financial Services Committee. The latter are headed by Spencer Bachus (R-AL), who, along with Senator Jon Kyl (R-AZ) recently authored a letter to U.S. Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke urging that the regulations of the UIGEA be enforced on December 1st as scheduled. Recently, members of the Kentucky House delegation implored Geithner and company to delay UIGEA regulation enforcement due to overblocking by credit card companies, potentially stunting legal online horseracing wagers.

We’ll have more information on the December 3rd hearing as it unfolds right here on Poker News Daily.

Spencer Bachus, Jon Kyl Issue Letter to Timothy Geithner, Ben Bernanke

Recently, two high-powered, longtime opponents of internet gambling issued a letter to Federal Reserve Chairman Ben Bernanke and U.S. Treasury Secretary Timothy Geithner calling for the compliance date of the Unlawful Internet Gambling Enforcement Act (UIGEA) regulations (December 1st) to be enforced.

The date is now 10 days away and approaching rapidly. Last month, the Poker Players Alliance (PPA) teamed up with the National Thoroughbred Racing Association and American Greyhound Track Operators Association to issue a letter to the same two government officials. Following the letter by the PPA was one authored by 19 Congressmen belonging to the House Financial Services Committee, of which Barney Frank (D-MA) is the Chair.

Congressman Spencer Bachus (R-AL) and Senator Jon Kyl (R-AZ) explained in their own letter, “We strongly oppose this request and believe there is no justification for delaying the compliance deadline of the UIGEA regulations.”

The letter, dated earlier this month, outlines the passage of the UIGEA and the approval of its regulations, which went into effect on January 19th as so-called “midnight rules” by the outgoing Bush administration. The Republican duo notes, “If the Final Rule represented an ‘unreasonable burden on regulators and the financial services industry,’ as certain other Members have claimed, then the Treasury Department and the Federal Reserve could have reconsidered the regulations.” The letter adds that the Truth in Lending Act, whose regulations were issued in August, accommodated the UIGEA.

All told, Kyl and Bachus, staunch opponents of internet gambling, give their stance on the letter writing campaign by the PPA and Financial Services Committee members: “This is a blatant attempt to circumvent the democratic process by influencing the Treasury Department and the Federal Reserve to take action that cannot possibly be enacted by Congress.” On Capitol Hill, the United States legislative body is in the midst of a debate about massive health care expansion.

Two bills, both introduced by Frank, have the potential to change the landscape of the internet gambling industry in the United States as December approaches. The first, HR 2267, establishes a full licensing and regulatory framework for the online gaming outfits in the United States. The measure received its 63rd co-sponsor last week after its introduction in May. The second piece of legislation, HR 2266, delays mandatory compliance with UIGEA regulations by one year to December 1st, 2010. HR 2266 is up to 53 co-sponsors on both sides of the aisle. The House Financial Services Committee has scheduled neither HR 2266 nor HR 2267 for markup.

The letter from the two lawmakers concludes, “Simply delaying the compliance date serves no interest except that of the internet gambling enterprises that have long evaded American gambling laws and will continue to do so until effective enforcement is in place.” Kyl is a third term Senator from Arizona and the current Senate Minority Whip. His counterpart in the Western state is also a Republican, former Presidential candidate John McCain. Bachus was elected to the House of Representatives in 1992 and is the Ranking Member of the Financial Services Committee, which includes 30 Republicans and 42 Democrats.

Neither Geithner nor Bernanke has responded to any of the three letters as of the time of writing. John Pappas, Executive Director of the PPA, told Poker News Daily that a January markup of HR 2267 is a possibility, although no timetable has been set in stone. Blocking of legal online gambling transactions led the two horse racing organizations to become involved. Similarly, in North Dakota and New Hampshire, major credit card companies denied legal online lottery purchases due to “overblocking.”

The effect that the December 1st deadline will have on the industry is not yet known. Stay tuned to Poker News Daily for the latest poker legislation headlines.

PPA asks players to Tweet for Poker

The PPA launched "Tweet for Poker" yesterday and online poker supporters can go to the website, sign in and make an appeal for online poker to their Congressional representative in about 30 seconds.

"Poker players are online, they're active, and they're weighing in on the policy battles that impact their right to play," said PPA executive director John Pappas.

"Tweet for Poker is PPA's most instant and dynamic tool for our members to directly contact legislators in a way that engages the public in debate. We're proud of the instant success, and look forward to hearing what our elected officials think of the legislation and this new advocacy program."

The Tweets will support either Sen. Robert Menendez' pro-online poker bill in the Senate or Rep. Barney Frank's poker bill in the House. Users have the option of choosing whether they want Tweets sent to their respective Senator or House Representative.

The Twitter-based campaign is just the latest initiative the PPA has started with the intent of legalizing online poker.

This summer the PPA launched National Poker Week and collected over 375,000 signatures on a petition to President Obama asking for licensing and regulation of online poker.

Visit PokerListings.com

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

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

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

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

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

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

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

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

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

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.

Poker Industry Reacts to Kentucky Internet Gambling Hearing

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

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

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

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

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

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

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

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

Online Poker Industry Nearing December 1st UIGEA Compliance Deadline

On December 1st, the financial services industry in the United States must fall into full compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA). Working to delay the deadline is the Poker Players Alliance (PPA).

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

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

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

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

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

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

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

Bob Barr Comments on the Future of Internet Gambling

The evidence keeps mounting that Capitol Hill is going to address the issue of internet gambling head-on.  Recently, a column from noted libertarian politician Bob Barr suggested that legislation clarifying the legal standing of internet gambling is on the horizon.

On Monday, Barr published the latest installment of “The Barr Code,” his weekly column in the Atlanta Journal-Constitution.  The entry, entitled “Get ready to ante up to Congress,” predicted that Congressman Barney Frank’s (D-MA) Internet Gambling Regulation, Consumer Protection, and Enforcement Act (HR 2267) would be heard in Congress sometime this fall.  Barr pointed out that in addition to Frank’s bill, which seeks to reverse the Unlawful Internet Gambling Enforcement Act (UIGEA) and implement a government-run system to tax and license online gaming venues, there are at least two other pieces of legislation designed to reverse the actions of the UIGEA.  In addition to Frank’s aforementioned bill, Frank also authored the Reasonable Prudence in Regulation Act, (HR 2266) which, if passed, would delay the December compliance date for U.S. financial institutions to meet UIGEA standards by one year.

Barr went on to discuss one of the major causes behind the growing support for regulated online gambling: the economy.  When discussing the possible hearings on the Frank bill, Barr noted, “It is likely that testimony in support of the legislation will be based as much on economics as on the principle that individuals should be able to gamble online if they want to.”  The former Presidential candidate then went on to add what many online gambling supporters have been saying for some time: “The economics of taxing Internet gambling are indeed impressive.”

According to Barr’s calculations, which are based on a PricewaterhouseCoopers study, the U.S. Government stands to gain $51 billion during the first decade online casinos are in operation, a sum that has many in Washington suddenly taking interest in the issue.  Even some of the traditional opponents of online gambling, like brick-and-mortar casinos, are coming onboard.  Barr cited Poker Players Alliance (PPA) Executive Director John Pappas when discussing the growing support from these land-based institutions.  Pappas pointed out that in countries in which online gambling has a less murky legal standing, many players take their gambling interests into nearby casinos as well.

The piece concluded with a reminder that even though there are a growing number of converts to the pro-online gambling movement, those who morally oppose gambling and institutions like the National Football League will continue to fight in opposition.  However, considering the country’s economic situation, Barr warned those who oppose internet gambling that the fight would only be getting tougher in the coming months.

Here is the conclusion of his article: “Moralists and business that see online gambling as competition can be expected to continue to oppose efforts to resuscitate the Internet gambling industry. The poor economy and profligate government spending may have become their most serious adversaries.”

A former Republican, Barr ran for President in 2008 on the Libertarian ticket along with Vice Presidential candidate Wayne Allyn Root.  A former sports handicapper, Root made appearances at last year’s World Series of Poker (WSOP) to promote the ticket’s pro-online gambling stance.

Industry Reacts to Kentucky Supreme Court Taking Internet Gambling Case

On October 22nd, oral arguments will be heard in the Kentucky Supreme Court in Frankfort. Attorneys for the Interactive Media Entertainment and Gaming Association (iMEGA) will argue why Governor Steve Beshear and company did not have jurisdiction to seize 141 internet gambling domain names.

The festivities will kick off at 11:00am local time and 15 minutes are allotted for each side to lobby their points. Despite the case centering on internet gambling, it has attracted a variety of interested parties, including the American Civil Liberties Union (ACLU). The organization’s Bill Sharp told Poker News Daily, “We are pleased that the Kentucky Supreme Court has agreed to hear this case because its implications for free speech on the internet are extremely important, not just in Kentucky, but also globally.” A three-judge Court of Appeals panel ruled in favor of the industry in January. Counsel for the Commonwealth of Kentucky appealed one day later.

Also closely monitoring the developments in the Bluegrass State is the Safe and Secure Internet Gambling Initiative (SSIGI). The Washington, D.C.-based organization has been involved in numerous issues on a national level and its spokesperson, Michael Waxman, told Poker News Daily, “We stand united in opposition to the Governor’s misguided attempt to prohibit internet gambling activity. Prohibition has failed before and is not likely to stop Kentuckians or anyone in the U.S. from continuing to find a way to gamble online. The Kentucky Supreme Court should make the right decision and end the illegal seizure of gambling domain names.”

iMEGA claims that it has received support from a broad coalition that includes the Poker Players Alliance (PPA), ACLU, Center for Democracy and Technology, Electronic Frontier Foundation, Internet Commerce Association, eBay, and Network Solutions. PPA Executive Director John Pappas is looking forward to iMEGA’s arguments in the Kentucky Supreme Court on October 22nd: “I think iMEGA will make strong a case before the court. The PPA has filed amicus already and we hope our reasoned amicus talking about poker as a game of skill will hold weight in the justices’ eyes.”

As it currently stands, iMEGA’s case is the third of three on the docket for October 22nd and the final one to be heard that week. A lawsuit between Auto Owners Insurance Company and Omni Indemnity Company will kick off the proceedings at 9:00am, followed by a hearing about Miranda rights at 10:00am. A total of seven justices appear on the Kentucky Supreme Court, led by Chief Justice John Minton, Jr. The remainder of the panel includes Lisabeth Hughes Abramson, Bill Cunningham, Mary Noble, Wil Schroder, Will Scott, and Daniel Venters.

The Commonwealth seized the 141 internet gambling domain names in question on the grounds that they constituted illegal “gambling devices,” a term that traditionally refers to objects like slot machines and roulette wheels that you’d find in an underground casino. The list of sites at risk includes some of the industry’s giants like PokerStars, Ultimate Bet, and Full Tilt Poker. Judge Thomas Wingate upheld the Commonwealth’s actions in October, prompting iMEGA and company to seek the involvement of the Court of Appeals in Louisville.

The Bluegrass Institute held an emergency summit when the seizure first broke last September. Its Director of Policy and Communications, Jim Waters, told Poker News Daily, “Hopefully, the Supreme Court will protect the freedom we’ve enjoyed on the internet in Kentucky. If nothing else, maybe this action will force the State to clearly share its stance on online gambling.” A recent ruling in the Third Circuit Court of Appeals noted that the legality of internet gambling may ultimately depend on the state a player is located in.

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

MA Attorney General Coakley Rejects Online Poker Ballot Initiative

Last week Massachusetts Attorney General Martha Coakley told members of the Poker Players Alliance (PPA) that she would be rejecting their bid to include an online poker initiative on Massachusetts ballots in 2010. Citing a failure to meet the legal requirements to make it onto the ballot, Coakley’s decision is the latest setback for the PPA and other lobbying groups trying to expand gambling in Massachusetts.

The gambling initiative was not the only question that failed to meet Coakley’s standards. The Associated Press reported that she also rejected two mortgate-related proposals and an initiative to put a percentage of the state budget towards local aid. According to Coakley’s official website the online poker petition was rejected on the grounds that it was not in the proper form. John Pappas of the PPA explained that Coakley objected to the use of the words “license” and “register” to describe a proposed 5% fee on internet gambling. The alternate descriptors left Coakley unable to determine the full ramifications of the initiative, resulting in the petition’s rejection.

The petition, filed on August 5th by Randy Castonguay, sought to clarify internet gambling’s legal standing in the state and proposed regulation and taxation measures as well and is just the latest initiative in the extensive lobbying campaign of the PPA and other pro-gambling groups in the state of Massachusetts. A recent article by the Associated Press reported that lobbying groups have spent over $5 million over the past four years funding their efforts. That money has gone towards a number of different legal initiatives including bringing brick and mortar casinos to the state and regulating online poker.

Coakley is an outspoken opponent of the internet gambling cause and her official website claims any form of online gambling is illegal, despite the fact that Massachusetts is not one of the six states with laws expressly banning the activity. With the recent ruling in the iMEGA case that positioned the legal standing of online poker and other forms of online gambling as something to be determined by individual states, Coakley’s stance has many online poker enthusiasts up in arms.

Of even more concern to the PPA and other lobbying groups is Coakley’s recent announcement that she will be running in the race to fill the late Senator Ted Kennedy’s now-empty Senate seat. So far Coakley and fellow Democrat Rep. Stephen Lynch have announced their candidacy and Lynch’s fellow House members Michael Capuano and Edward Markey are also rumored to be considering campaigns. Joseph Kennedy II, the son of late Senator Robert F. Kennedy, still remains undecided about whether or not he will try and carry on the Kennedy’s political legacy.

In the wake of Coakley’s announcement she will be running in the Senate race, she has been leveled with criticism suggesting the time-consuming campaign will affect her ability to continue on as the state’s Attorney General. In addition to occupying the bulk of her time between now and Election Day, these critics are also concerned that political aspirations will mar her ability to make impartial judicial decisions. Coakley told the Boston Herald she is still fully dedicated to her current position. “I am still AG,” she explained. “They can reach me 24/7. I have been and will remain involved in the major decisions in the office.”

Coakley’s campaign has already hit an early snag as a group of Republicans filed a complaint against her with state Office of Campaign and Political Finance and the Federal Election Commission for improperly allocating funds from her state campaign to pay for polling and other expenses related to her Senate campaign.

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.

Players Alliance backs Colorado appeal

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

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

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

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

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

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

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

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

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

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

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

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

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

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Online Poker Payment Processor Indicted in New York

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

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

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

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

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

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

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

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

Senator Menendez to Introduce Online Poker Legislation on Thursday

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

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

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

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

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

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

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

Poker’s march on Washington works

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Alaska
Don Young (R)

Arizona
Raul Grijalva (D)

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

Colorado
Jared Polis (D)
Ed Perlmutter (D)

Connecticut
Joe Courtney (D)

Florida
Robert Wexler  (D)
Alcee Hastings (D)

Hawaii
Neil Abercrombie (D)

Idaho
Walt Minnick (D)

Illinois
Luis Gutierrez (D)
Bill Foster (D)

Indiana
Andre Carson (D)

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

Michigan
John Conyers (D)

Nevada
Shelley Berkley (D)

New Hampshire
Paul Hodes (D)

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

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

North Carolina
Melvin Watt (D)

Ohio
Steve Driehaus (D)
Tim Ryan (D)

Oregon
Earl Blumenauer (D)

Tennessee
Steve Cohen (D)

Texas
Ron Paul (R)
Ciro Rodriguez (D)

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

Washington
Jim McDermott (D)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Best,

Arthur