Poker News

Poker News in Brief: Dec. 28-Jan. 2, 2010

Essentially it was pretty quiet in the poker world.

Despite the lack of news there were still a few stories that didn’t make the front page and as part of our ongoing Poker News in Brief feature we’ve compiled them below.

This week we’ll take a look at a rising online star, UB.com making a deal with an NHL team, a huge payout on the International Poker Network and more.

UB.net Signs Deal With Calgary Flames

UB.net is getting put on ice.

The company announced this week it has inked a deal with the NHL’s Calgary Flames that will see the UB.net logo displayed on Pengrowth Saddledome’s boards throughout the month of January.

A tilt with the Toronto Maple Leafs on Jan. 2, 2010, will mark the debut of the advertisement for the free poker site.

To celebrate the Calgary collaboration, UB.net is giving away four pairs of tickets to the Flames and Ottawa Senators’ game on March 11.

To qualify players can participate in one of the eight daily UB.net online satellite tournaments with the top 100 players from each qualifier winning a seat into the Sunday main event scheduled for 15:00 ET.

Each main event will award two tickets to the Flames and Senators and $1,000 cash for travel expenses.

The promotion is open to Canadian and U.S. players. Check the UB.com website for more information.

XBLINK Closes In On $1 Million

In the spirit of Isildur1 and Martonas, UB.com has its own run-up story in the form of online player XBLINK.

According to PokerListings’ Online Poker Stars section XBLINK has made $741,864 playing No-Limit Hold’em in the past two months and consistently ranks in the top 10 biggest pots on UB.com.

What’s even more impressive is that TwoPlusTwo forum member 89blist outed himself as the aforementioned XBLINK and said it all started with an $11 tournament for the last of his bankroll.

XBLINK said he won the tournament and then went on the mother of all heaters, complete with some questionable bankroll decisions. He's no Martonas or Isildur1 but poker fans are starting to take notice.

SC Attorney General Appeals Poker Case

South Carolina Attorney General Henry McMaster has launched an appeal against a Judge’s decision to overturn a conviction of five Mount Pleasant poker players.

The incident occurred back in 2006, when the five players were arrested for taking part in a home game.

Circuit Judge R. Markley Dennis threw out the case saying that Hold’em in a private residence does not violate the state’s gambling laws. He went on to say that poker was clearly a skill game.

Now McMaster says that it’s irrelevant whether skill or luck is involved and that it was the legislature’s goal to ban all gaming for any amount of money in designated locations.

No timetable has been set for when the case will be heard.

IPN Awards €507,144 Jackpot

The International Poker Network, which is home to BetClic and PokerHeaven, awarded a €507,144 bad beat jackpot this week.

Online player 72osRocks! Saw his quad kings get cracked by Nogis22’s Royal Flush, which was enough to earn the entire table a huge payday.

72osRocks earned €177,500, Nogis22 picked up €88,750 while the other three players at the table each pocketed €29,583.

Despite the recent payout, the bad beat jackpot on BetClic and IPN is already back up to €146,469 as of mid-week. For more information check the BetClic website.

Visit PokerListings.com

Dusty Schmidt (Leatherass) Plays Online Poker for Charity in Portland

Poker player Dusty “Leatherass” Schmidt, known for his spat against the United States Golf Association (USGA), played 30 hours of online poker in Portland, donating $21,000 to Transition Projects as part of “Playing it Forward.”

According to The Oregonian, the proceeds will fund six months’ worth of rent, basic supplies, and even furniture for three homeless people in the Portland area. He dragged his arsenal of laptops outside in the cold for a portion of his campaign, attracting the attention of passersby and the media alike. Schmidt told Poker News Daily, “The idea was to play for 30 or 40 hours. A lot also depended on how I was doing. I went out there four times and didn't get to play for more than a few hours each day because the batteries on my computers drained. I ended up bringing a few laptops as a result.”

Ground zero for Schmidt was O’Bryant Square at Southwest Washington Street and Park Avenue, where he noted that, due to the cold, his computer batteries did not hold up. On the first day, he was at empty within a few hours. On the second day, Schmidt said he was able to play for five hours. Despite the elements, Schmidt told Poker News Daily that he was happy to give back to the community: “I do quite a bit of philanthropic stuff in Portland. This was the first one where it made sense to draw a little bit of attention to it.”

The Oregonian explained the origins of Schmidt’s Playing it Forward campaign: “The 2000 movie ‘Pay it Forward,’ in which a boy comes up with the idea to do something kind to three people, who each have to pay forward the favor to another three people, had always stuck in his head.” The poker player and golfer told us that he’s received more than 100 e-mails in recent days during the holiday season from people who have paid it forward to others. Schmidt relayed, “I know there could have potentially been thousands of people affected.”

Another inspiration for Playing it Forward was Schmidt’s daughter, Lennon, named after Beatles great John Lennon. Schmidt told Poker News Daily what the correlation was between the rock legend and helping those in need as the calendar year ticks over to 2010: “John Lennon was a lot of the inspiration for me doing this. If John Lennon were a poker player, I could see him doing something like playing in the streets.”

As it stands, Schmidt lost his amateur status after a prop bet involving poker and golf landed him in hot water with the USGA. He’ll be eligible to return in mid-2010 and, in the meantime, has ramped up his poker game. Despite his lofty goals, several comments left on The Oregonian’s website were critical of Schmidt’s efforts. One poster, “cheez_wiz,” noted, “That's nice of him but isn't online poker illegal?” Others critiqued the charity that benefited from Schmidt’s efforts: “Giving money to TPI, Inc. is like throwing it away. Not one homeless person will ever see one penny of that money.”

The $1 million prop bet consisted of 72 holes of golf plus 10 heads-up poker matches. In July, the U.S. District Court in Portland heard his appeal after Schmidt lost his amateur status. No one took Schmidt up on his challenge, but he promptly dropped his lawsuit. According to Schmidt, a judge “equated it to a church excommunicating a member unfairly and there not necessarily being a legal remedy under which a judge can force the church to reinstate that member.”

According to the USGA’s website, actions that would cause amateur golfers to become professionals include “accepting the position of a professional golfer,” receiving services from an agent, entering into a sponsorship agreement, and “agreeing to accept payment or compensation, directly or indirectly, for allowing his name or likeness as a player of golf skill or reputation to be used for any commercial purpose.” USGA rules specifically forbid certain forms of gambling and golfers are advised to consult with the organization for clarification.

Mohsin Charania (chicagocards1) Interview with Poker News Daily

Poker News Daily: How did you get into poker?

Mohsin Charania: I never saw “Rounders.”  I never saw poker on television.  I was a junior in college [at the University of Illinois] and I went over to one of my friend’s places.  He was going to play poker at a home game in a dorm room and I was bored, so went with him.  That is literally what happened.  I met Ravi “govshark2” Raghaven and some other people. I started playing $0.10/$0.25 and $0.25/$0.50 with them once or twice a week.  Then, we started going every day making money and paying rent off these rich kids.

PND: You were paying rent off of a $0.25/$0.50 poker game?

Mohsin Charania: Well, we would play $0.10/$0.25 and buy in for $20 or $25 and there would be eight of us.  There’d be $250 worth of buy-ins on the table and everyone would bust, so there would be $500 on the table.  We’d be five- or six-handed and up it to $0.25/$0.50, then $1/$2, and then at some point, there would be two or three people who cashed out.  Eight people would never cash out.

Then, I started playing $1/$2 with Faraz “The-Toliet” Jaka and Andy “BKiCe” Seth at this thing called The Poker House.  At the time, I thought Jaka was some super-aggressive monkey, but then I figured out he was actually really good at poker.  I don’t know, I just went to the home game and played.

PND: When did you start playing outside of the home games around campus?

Mohsin Charania: I turned 21, went to the casino, made a couple thousand dollars, and felt super excited.  You don’t want to know how I lost $200,000 in my first three months playing poker, do you?

PND: Of course we do.

Mohsin Charania: That was in January of my junior year I think, 2006.  That summer, I had a couple thousand dollar bankroll from the home game, went to the casino, and built it up to $10,000.  I met this Asian kid at the home game who took me to Las Vegas for a week.  I had $10,000, played $2/$5, and grinded it up to $20,000.  Then, I played $5/$10 and grinded it up to $40,000 and then played $10/$20 and got it up to $100,000.  Then, I started playing $25/$50 and $50/$100.

PND: You did all of this in the span of a week?

Mohsin Charania: No, we kept extending our flights because we were making so much money, so it was more like two weeks.  After two weeks, I’d run a couple grand up to $180,000.  Then, I lost two $100,000 pots and that was the first time ever that I was super tilted.  I lost all the rest of the money.  I had to use my mom’s debit card to fly home.  Then, I got a credit card under my name because I was 21, deposited on Bodog, and won the site’s $100,000 Guaranteed.  I got really lucky, I deposited $500, won that tournament, and then got third in it the next week.

PND: So you didn’t start playing online until after that ill-fated Vegas trip?

Mohsin Charania: Yeah.  I was a live pro.  I remember the pots I lost.  I was sitting there with bundles of cash in front of me and I got it all-in with K-Q on an A-J-10 board.  I remember telling the kid I had a straight and I was willing to take the pot right now.  He said, “I’ll gamble with you,” and called with a set of jacks; the board paired on the turn.

PND: Were you playing $50/$100 with people you know?

Mohsin Charania: It was Brad Booth, Kenny Tran, and Mimi Tran.  I want to say Jaka was there also, but I don’t know if he was in the game.  I was crushing the game because I was running so good.  I won a $50,000 pot when I had aces to kings.

PND: Did that trip teach you the importance of bankroll management?

Mohsin Charania: Well, I don’t really play cash games anymore.  I play tournaments now.  Online cash games are too hard.  I used to play a lot of $5/$10 and $10/$20 on PokerStars.  Two summers ago, I made $80,000 playing cash games on PokerStars, but then I started running really bad.  I didn’t have the roll to play $10/$20 and I can’t play $5/$10 disciplined.

PND: Would you say online cash games are the toughest form of poker around right now?

Mohsin Charania: Oh yeah.  They’re unbeatable.  PokerStars $2/$4 - you have to be really good to beat that.

PND: You put off law school at Northwestern University to play full-time.  When do you plan on going back?

Mohsin Charania: If I continue to struggle the way I have the past couple of months, I’ll go back.

PND: Do you like the idea of being a lawyer as much as being a poker player?

Mohsin Charania: Yeah, I hate being a poker player.  Poker playing is very bipolar.  I love it when I’m winning, but it is absolutely the worst feeling in the world when I’m losing.  If you asked me the same question last January or February when I was crushing, I would have told you I was never going back.

South Carolina Attorney General Appeals Poker Skill Game Ruling

The fight for five poker players in South Carolina is far from over. According to the Associated Press, the state’s Attorney General will appeal the October ruling that Texas Hold’em, the world’s premier poker genre, is a skill game.

It’s a familiar debate as the poker industry enters 2010. Is Texas Hold’em a game of skill or is it ultimately determined by chance? South Carolina Attorney General Henry McMaster filed an appeal with the state’s Supreme Court, the Associated Press explained on Thursday: “McMaster's appeal says he doesn't think whether there is skill or just chance involved has anything to do with lawmakers' attempt to ban gambling. The attorney general skipped the Court of Appeals and filed with the state Supreme Court, saying the question deals with the constitution's wording on gambling.”

Five poker players were charged in Mount Pleasant, South Carolina back in 2006. According to the favorable ruling by Judge Markley Dennis in October, the buy-ins for a weekly home game in the South Carolina town varied between $5 and $20. The small blind was $0.25 and the big blind was $0.50, with pots ranging between $5 and $10. Fifty cents was taken from several pots in order to provide food and drink for players, but the “house” did not profit from the game.

The game got ugly on April 12th, 2006, when police officers raided it and began arresting participants on the grounds that they were playing in a “house used as a place of gambling.” The defendants, under the guidance of the Poker Players Alliance (PPA), argued that poker is a game of skill, not chance, and therefore did not constitute illegal gambling. The trial court heard the case in February, which featured World Poker Tour (WPT) host Mike Sexton recap hands played on the roving tournament series to demonstrate poker’s skill component.

Dr. Robert Hannum was also brought in to testify last February. The October ruling explains, “Dr. Hannum also testified that a statistical analysis of professional poker players demonstrated that past performance was a reliable indicator of future success, establishing that the skill of the player was the predominant factor in determining wins and losses.” The lower court ruled that poker was a game of skill. However, because South Carolina’s laws were vague on whether that mattered, the five defendants were found guilty.

An appeal was filed, setting up October’s ruling. Judge Dennis candidly explained, “This Court agrees with Appellants that the South Carolina Supreme Court, if faced with the question, would adopt the dominant factor test for the purpose of defining gambling.” He added, “It should also be noted that the South Carolina Attorney General has consistently applied the dominant factor test when providing opinions about whether certain activities are legal.”

Judge Dennis harped on the overwhelmingly broad nature of South Carolina’s gambling statute, which could be construed to mean that nearly any game played with cards or dice is illegal. Judge Dennis specifically called out Bunco, Go Fish, and Solitaire as possible infractions of state law, saying, “Simply put, [the law], as written, has the potential to make criminals of virtually every man, woman, and child in the state of South Carolina.” Twenty of the original defendants pled guilty to gambling charges, while five fought against the state.

According to the Charleston Post and Courier newspaper, the filing by the Attorney General was 57 pages long and McMaster is a Republican candidate for Governor. The Courier revealed, “No timetable has been set on when the case will be heard, and more rounds of legal filings are expected. The legislature is expected to take up a bill legalizing social card games next year.”

Poker2Nite Welcomes Gavin Smith

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

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

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

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

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

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

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

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

2009 Poker News Story of the Year

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

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

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

Isildur1 Ignites High-Stakes Poker Scene
By Brett Collson

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

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

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

WPT Sold to Party Gaming
By Earl Burton

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

UIGEA Compliance Deadline Delayed
By Dan Cypra

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

Pitbull Poker/Eurolinx/BetOnBet Closures
By Tom Jenkins

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

2009 Online Poker Year in Review

In 2009, the online poker world continued to provide excitement, drama, and controversy for the denizens that participated in the game. 2009 saw a great deal of changes in the number of rooms offered as the competition for customers became fierce. In addition, cash games - a long neglected area of online poker - became the featured event for online poker, outdistancing the industry’s multi-table tournaments.

At the beginning of 2009, online wunderkind Tom “durrrr” Dwan issued the Million Dollar Challenge to the online world. Dwan stated that he would take on anyone in a heads-up battle that would last 50,000 hands. Playing a minimum of four tables at $200/$400 Pot Limit Omaha or No Limit Texas Hold’em, the challenge was for Dwan’s opponent to come out on top after the required number of hands. If Dwan were ahead by $1 or more, his opponent must fork over $500,000. If Dwan's opponent were ahead by $1 or more, “durrrr” would cough up $1.5 million.

While the only player excluded from the Durrrr Challenge was Phil “OMGClayAiken” Galfond, there were plenty of players willing to take on Dwan. Phil Ivey and David Benyamine threw their hats into the ring, but it was another poker superstar, Patrik Antonius, who drew the honor of being the first to step up. Taking place on the virtual tables at Full Tilt Poker, the Durrrr Challenge set off early in 2009.

The play in the online event has been hit-and-miss throughout the calendar year, but each session has been crowded with railbirds watching the battle and online sites like DurrrrChallenge.com have been offering commentary on the proceedings. Due to their hectic live play schedules and the mid-year World Series of Poker (WSOP), there have only been 29,764 hands played between Antonius and Dwan as 2009 comes to a close. After Antonius started out with a lead, Dwan mounted a huge comeback. As the year comes to a close, “durrrr” has been able to amass a nearly $1 million lead over Antonius.

The other online poker headline that has captured the community’s attention is the phenomenon that is “Isildur1.” The Scandinavian came from nowhere to take on the biggest guns in the game at nosebleed stakes on Full Tilt Poker. Demonstrating great skill at the tables, the most confounding thing for online poker aficionados was the identity of the mystery Swede. While there has been conjecture by many, “Isildur1” has been able to keep his identity secret.

At the tables, “Isildur1” has played some of the biggest names in the game. He was able to take a few million dollars out of Dwan’s pockets before running into Antonius at the table. Antonius was able to take back much of what was lost by Dwan and, as the year closed, poker professional Brian Hastings depleted the remainder of “Isildur1’s” bankroll.

The defeat at the hands of Hastings has caused a tidal wave of debate in the online world, however. Hastings admitted to using datamined hands from other players to study “Isildur1’s” tendencies, resulting in a 30-day Red Pro suspension for fellow CardRunners instructor Brian Townsend. “Isildur1” is considering filing a complaint to regain the money lost in the session against Hastings. Even if the complaint is turned down, “Isildur1” has said that he will be back and 2010 should be a very interesting year in high-stakes cash games if he does.

Many may have thought that the enactment of the Unlawful Internet Gaming Enforcement Act (UIGEA), which had been slated to begin in December, would have caused people to leave the game. Online poker, however, refused to fall prey and continued on stronger than ever. With the delay of enforcement of the UIGEA until mid-2010 and the possibility of other legislation that would amend it, online poker continues to draw new blood into its ranks. According to PokerScout.com, the industry is growing at an annual rate of 30%.

Finally, the closure and consolidation of non-U.S. facing online poker rooms was a major story throughout 2009. Sites like Eurolinx and BetOnBet closed under mysterious circumstances that are still being investigated by police and Pitbull Poker closed its doors after an alleged superuser scandal. DoylesRoom, headed by the legendary Doyle Brunson, joined the Cake Poker Network, as did Third Bullet Poker.

This type of consolidation should continue through 2010 as the online poker world streamlines itself to maximize its earnings and create stronger competition against such online behemoths as PokerStars and Full Tilt Poker.

Tony will stake Isildur1 to high stakes games

Tony G wrote his latest blog entry lately and tells about his plans to stake Isildur1 to some high stakes games.

Tony G writes about how he was in contact with Isildur1 by phone and knows who he is. This time he just tells that he was only speculating who Isildur1 is (Viktor Blom) before, but now he has 100% certainty about his identity and he is not going to reveal him. He thinks it’s better that Isildur1 maintains his “mystical” status.

Tony G’s trust to Isildur1’s skilsl is huge and he is planning to stake him in the biggest games:

“I have had a few conversations over the phone with him and I really love the kid.  He is like me 15 years ago. I just wish I had as much talent as he does.  He can play the world’s best on eight tables and he only learned PLO about eight months ago.  Anyway, it is likely I will stake him in some big cash games in the future, this is what I do after all. I like to give people a chance in life to do well.”

Tony G adds that Isildur1 is not sueing Full Tilt Poker:

“I can see how people attacked Full Tilt Poker on 2+2 – calling for lawsuits, etc., but this is not what Isildur1 really wants.  He wants to enjoy his life and move on.  This is what he needs to do.  He is a brilliant player and with a little bit of hard work, he will build back up to a multimillion roll.”

Tony G reveals about his personal deal a bit as well. He is going to make an announcement soon and the deal is ready to be signed. He’s still not saying anything, but you can gather some bits and pieces from his talk that he might sign a deal with PartyPoker. Tony says he’s going to play more WPT tournaments next year and WPT is owned by PartyGaming.

Source: TonyG

You just read Poker News from HighStakesNews.com

Tony will stake Isildur1 to high stakes games

Court vaporises Trekker’s poker lawsuit

A Star Trek fan who brought a court action against auction house Christie’s after he accused them of selling him bogus memorabilia has had his case thrown out. New Jersey’s Ted Moustakis bought several poker related items including a $6,600 poker visor, an $11,000 poker table and a uniform worth $6,000, in a Star Trek The Next Generation auction.

TwoPlusTwo Sues Dutch Boyd

World Series of Poker (WSOP) bracelet winner Russell “Dutch” Boyd may be best known for his career as a professional poker player, but he has also supplemented his income over the years by cyber-speculating, registering a number of poker-related domain names and making money off the traffic that goes to those sites.  Boyd’s side job appears to have gotten him in hot water, as the owners and operators of TwoPlusTwo Publishing have filed a suit over his ownership of the domain name TwoPlusTwoPoker.com.

The Las Vegas Sun broke news of the suit earlier this month.  The Sun story said TwoPlusTwo Publishing accused Boyd of cyber-squatting on the domain and considered it to be an instance of trademark infringement.  Within the article, Boyd commented on the legal action, noting, “It is never fun to be sued, especially by someone you look up to and respect professionally.''  Boyd had choice words for TwoPlusTwo owner Mason Malmouth in particular, whom he accused of bullying.  Boyd was not the only alleged cyber-squatter sued by the publishing company.  A lawsuit was filed against Anthony Scocozza, who purchased a similar domain name at the beginning of the year.  Boyd originally purchased his URL in July of 2004, but has since transferred ownership of the site over to the publishing group.

The article in the Sun proved to just be the beginning of the story though and the drama continued, appropriately enough, on the TwoPlusTwo Poker Forums.  Boyd responded to a thread linked to the article and offered his side of the story, stating that he regretted registering the domain name in the first place, but confirmed that the ownership of the domain name was transferred over to Greenberg Traurig, the law firm representing the interests of TwoPlusTwo.

A week later, Malmouth posted a thorough explanation of why the company filed suit, including scans of two cease and desist letters sent to Boyd by Greenberg Traurig on behalf of the company.  Malmouth also offered an explanation as to why TwoPlusTwo did not drop the suit since they now have control over the domain name in question: “Due to the length of time the registration was owned by Mr. Boyd, and his blatant infringement, we informed Boyd that the expiration of the TwoPlusTwoPoker.com would not resolve the dispute. At the very least, we needed to know exactly how much revenue the domain name and website had generated and how much traffic the site received.”

Malmouth went on to report that their representation repeatedly tried to settle out of court with Boyd, but the two parties were unable to come anywhere close to an agreement.  According to Malmouth, a final e-mail from his attorneys to Boyd letting him know they were left with no choice but to file suit was met with a terse response of “F*** Off.”

Under the Uniform Domain Name Dispute Resolution Policy (UDRP), registrants cannot register any domain names that infringe upon the rights of a third party.   More specifically, the URL cannot be identical or similar to a pre-existing trademark and the registrant cannot use that domain name in bad faith.  Boyd responded in the thread, posting an excerpt of trademark law that suggests because TwoPlusTwo did not meet the notice requirement necessary in order to obtain profits or damages.  Moreover, Boyd asserted that the site earned no more than $200 in profits during the five years it was under his ownership.

This is not the first time Boyd’s purchase of domain names has landed him in the spotlight.  In October of 2008, Boyd went to arbitration with online poker room PokerHost over his use of the website, PokerHost.net.  Boyd registered that URL in 2004 and PokerHost alleged his usage of the site was in violation of UDRP since the company obtained the URL PokerHost.com two years prior.  However, because the online site did not launch its gaming services until after Boyd registered the domain name, the judge arbitrating the case ruled in favor of Boyd, saying the term was a generic domain name at time of registration and not a pre-existing trademark.

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

The Unlawful Internet Gambling Enforcement Act has had the poker world on pins and needles since it was signed on October 13, 2006. The UIGEA was tacked on to the SAFE Port Act at the last minute and the Act was passed at midnight on the day...

2009 Online Poker Industry Trends

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

New Defendants in Kentucky Internet Gambling Case Remain Unknown

Following a chain of e-mails sent last week by attorneys for the Commonwealth of Kentucky, the names of additional defendants in the state’s legal action against the owners of 141 internet gambling domain names remain a mystery.

In October, the Kentucky Supreme Court heard the case, which pits industry organizations like the Interactive Media Entertainment and Gaming Association (iMEGA) and the Interactive Gaming Council (IGC) against the Kentucky Justice and Public Safety Cabinet, led by Secretary J. Michael Brown. Despite a ruling by the state’s highest judicial body potentially being handed down any day now, Kentucky attorneys filed a motion to add parties to its complaint last week. How the latest filing will affect the Kentucky Supreme Court’s decision, if at all, remains unknown. The additional parties in question were U.S. citizens and companies engaged in internet gambling.

When lawyers for iMEGA tried to obtain a list of the additional names, counsel for the Commonwealth turned them down. iMEGA Chairman Joe Brennan told Poker News Daily, “They've basically said that they don't recognize our standing. They're just ignoring what happened in the Court of Appeals, which confirmed our standing.” In a chain of e-mails between opposing attorneys available on iMEGA’s website, William Hurt of Kentucky counsel Hurt, Crosbie, and May states, “I do not believe anyone has standing to file a response or motion to strike.”

Brennan lashed out at the State’s attorneys, who are purportedly working on a contingency basis, as part of a press release sent on Monday: “They were counting on a big payday from our members in the form of settlements to get their own property back, but it doesn’t look like that’s going to happen. Since they don’t get one nickel from the state to pursue this, it’s clear that the drive for big money has taken over and any sense of fair play or due process has gone out the window.”

The 141 internet gambling domain names in question include those belonging to online poker giants like PokerStars and Full Tilt Poker. If the Commonwealth of Kentucky were successful, these domains would be inaccessible not just in the southern state, but also around the world. The domains were seized back in September of 2008 on the grounds that they constituted “gambling devices,” a term that traditionally refers to tangible objects like slot machines and roulette wheels that you’d find in an underground casino.

In January, the Kentucky Court of Appeals ruled by a two-to-one margin that the Commonwealth did not have jurisdiction to act, setting up an appeal by the State to its Supreme Court. iMEGA attorney Jon Fleischaker noted in an e-mail, “The Court of Appeals ruled that we had standing in this case, and by implication, a right to intervene. I believe the Supreme Court is likely to rule the same thing.” Hurt retorted that the State would “object to anything that you file, but will nonetheless continue to send you notice.”

Brennan told Poker News Daily that Circuit Court judge Thomas Wingate did not act on the motion to add names filed by Kentucky’s attorneys last week and the next day that it can be considered is January 21st. The motion calls for a hearing on January 20th in front of Judge Wingate, although its future appears to be in doubt. Judge Wingate upheld the State’s actions as part of an October 2008 decision.

The Kentucky Supreme Court has given no indication as to when it will hand down a ruling. As it currently stands, the Kentucky Supreme Court does not have any oral arguments scheduled on its calendar until January 13th. However, Brennan expected a decision from the Kentucky Supreme Court to be issued in January.

Top Ten Poker Events of the Decade: Part 2

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

5. Taking America’s Game to the World

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

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

4. Poker Faces its Strongest Challenge, the UIGEA

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

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

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

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

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

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

2. World Poker Tour Comes into Existence

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

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

1. The Birth of Online Poker

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

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

Poker Leads Way to PartyGaming Profits

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

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

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

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

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

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

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Poker2Nite Welcomes Poker Hall of Famer Mike Sexton

The UB.net sponsored poker news program “Poker2Nite,” which makes its home on Fox Sports Net, welcomed Mike Sexton this week. The World Poker Tour (WPT) host is also a member of the Poker Hall of Fame after being inducted one month ago.

“Poker2Nite” began with Absolute Poker pro Lacey Jones interviewing players at the WPT Doyle Brunson Five Diamond World Poker Classic in Las Vegas. Among those to appear on-camera was dual World Series of Poker (WSOP) bracelet winner Jeff Madsen, who told Jones, “What it comes down to is the skill level of the players, the structure is good, and the Bellagio atmosphere is good to players in general.” Jones also spoke with Robert Mizrachi and 2009 WSOP November Nine member Kevin Schaffel. The $15,000 buy-in tournament crowns a champion on Saturday.

Next up was UB.net pro Phil Hellmuth presenting Phil’s Best Blow-Ups. There are a multitude of meltdowns to choose from, but Hellmuth recapped his explosion against Cristian Dragomir during the 2008 WSOP Main Event. Dragomir called Hellmuth’s raise pre-flop with 10-4, only to flop top pair. Hellmuth explained, “Of course, this joker gets rewarded for his donkey play and that just did not sit well with me.” His tirade against Dragomir featured lines such as “He’s the worst player in history and they’re cheering” and “To you, it’s poker. To me, this is my life.”

After recapping Sexton’s Poker Hall of Fame induction ceremony, which took place during the dinner break of the 2009 WSOP Main Event, the bracelet winner joined the “Poker2Nite” crew. On being elected to the Poker Hall of Fame, Sexton told “Poker2Nite” hosts Joe Sebok and Scott Huff, “To me, it’s the ultimate career achievement award. To reach this level, it’s a pretty big honor.” Sexton was the only member of the Class of 2009 and, in order to be elected, had to receive 75% of the vote of a panel of media members and current Hall of Famers.

So-called “Sextonisms” have become a staple of modern poker lingo, but the WPT host noted that one of his favorites is, “You can only slide so far on barbed wire.” This author would have preferred “Bingo, bango, bongo,” but laughed nonetheless. Sexton also discussed PokerGives.org, which he founded along with Poker News Daily Guest Columnist Linda Johnson, Jan Fisher, and Lisa Tenner. Sexton commented, “It’ll be a way the poker world can give back to worthwhile charities.”

A new segment called Coin Flipping aired, pitting Sebok and Huff against each other to see what option had a slight mathematical edge. First up was who was the better No Limit Hold’em cash game player, Phil Ivey or Patrik Antonius. Sebok remarked, “I’m going with Phil because he looks scarier.” Also discussed was whether winning the $50,000 HORSE Championship or WSOP Main Event was more prestigious, as was whether Eric “basebaldy” Baldwin or Cornel Andrew Cimpan should be the Player of the Year. On the latter, Sebok gave his two cents: “I don’t think this one is really that close” and chose Baldwin, who effectively has already taken down the CardPlayer Player of the Year title for 2009.

Dana Workman dished out the Bluff Magazine sponsored Weekly Misdeal segment, poking fun at WSOP Main Event runner-up Darvin Moon’s conspiracy theory about ESPN crews sharing information, champion Joe Cada taking to Capitol Hill in support of the Poker Players Alliance (PPA), Montel Williams facing a lawsuit from the International Team Poker League, and Marcel Luske’s new album.

“Poker2Nite” airs on Wednesdays at 11:00pm in each market on Fox Sports Net. However, the show is often pre-empted for local sporting events, so viewers are advised to check their local listings for airtime and channel information.

Full Tilt Poker Bot Lawsuit Focuses on Attorney Background

While several litigations against Full Tilt Poker appear to be resolved or dead in the water, the online poker room is still not in the clear when it comes to a lawsuit accusing the site of unfairly seizing player funds, using bots on the site, and racketeering.

Poker News Daily first reported the story of Lary “pokergirl z” Kennedy in early October.  The gist of her rather complicated case is that Kennedy was accused of using a bot by another player on the site who was also a frequent poster in the TwoPlusTwo poker forum.  As a result of those accusations and Kennedy’s own admittance that she used another player’s account when her own screen name wasn’t eliciting enough action, the site seized the funds in her account, which amounted to just over $80,000.

After a long period of communication with Full Tilt, Kennedy decided that her best course of action was to file suit against not only the company, but also several individuals involved with Full Tilt, including Raymond Bitar, Howard Lederer, Andy Bloch, John Juanda, Chris Ferguson, Perry Friedman, and Patrik Antonius, just to name a few.  While the crux of the complaint centers on Kennedy’s alleged mistreatment by the site, it also levels numerous charges against two companies involved with Full Tilt, Vert Enterprises and Tiltware.  The charges in the suit include fraud, libel, slander, false advertising, and somewhat surprisingly, racketeering.

The invocation of the Racketeer-Influenced Corrupt Organizations (RICO) Act stemmed from what Kennedy and co-plaintiff Greg Omotoy claimed were hundreds of illegal gambling transactions.  While most typically associate the RICO Act with mobsters and gangs, it is actually common when it comes to civil suits, as those affected by RICO are able to receive three times the amount of damages they would otherwise have gotten.

Nonetheless, the accusations, which include claims that Ferguson and Bloch created and implemented bots used on the Full Tilt site, has raised a few eyebrows regarding its legal merit.  Full Tilt, which is notorious for keeping mum in legal situations, spoke out against the suit, calling it “baseless” and “frivolous.”

Kennedy’s official website documenting the case shows no new information as of late and most of the attention following the announcement of the suit has been directed at her counsel, Cyrus Sanai.  The UCLA Law School graduate has been in the news before for another internet-related matter, a case involving California Judge Alex Kosinski.  In mid-2008, Sanai uncovered a number of lewd photographs on the sub-directory of a personal website belonging to Kosinski and filed a disciplinary complaint against the judge, who was in the midst of a high-profile pornography trial.  Some legal blogs like Overlawyered and Patterico have suggested that Sanai has a less-than-stellar reputation in some corners of the California legal community.

When Pokerati posted a story chronicling some of Sanai’s actions over the past couple of years, a commenter purporting to be Sanai posted rebuttals to the criticisms and directed the focus back to the case itself.  The comments stated that he tried repeatedly to resolve the matter with Full Tilt representatives and even sat down for a mediation session that failed to produce any results.  Within the comments, Sanai also expressed interest in learning more about other cases in which the site seized customer funds.

These sentiments are echoed on Kennedy’s personal site as well, which encourages anyone with a similar story to contact Sanai, who would consider taking on new clients on a contingency basis.

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.

Face the Ace: Brian Twitty Wins $40,000

We had a chance to catch last weekend’s installment of the NBC poker franchise “Face the Ace.” In the end, Brian Twitty, a real estate appraiser and band member, walked away with $40,000 after defeating Jennifer Harman.

The first contestant to take to the “Face the Ace” stage was Anathan Thangavel from Beverly Hills, California. The recent law school graduate selected the ace of clubs because he was out at a club partying until 5:00am the night before taping. Out strolled 2008 World Series of Poker (WSOP) Player of the Year Erick Lindgren, who has appeared on “Face the Ace” multiple times. Each player began with 20,000 chips and blinds kicked off at 200/400.

Holding 7-9, Thangavel called pre-flop and Lindgren rapped the table with 7-J. The flop came 2-3-7, giving both players top pair, but Lindgren held a better kicker. The Full Tilt Poker pro led out for 1,000, Thangavel raised to 3,000, and Lindgren shoved for 15,200. Lindgren told the challenger that he could see one of his cards and Thangavel picked the jack. Upon seeing the paint card, he quickly sent top pair into the muck.

In a key moment in the match, Thangavel picked up pocket jacks and called the big blind, while Lindgren raised to 2,000 with A-K of hearts. An all-in and call put Lindgren at risk and the assembled crowd on the “Face the Ace” stage watched the drama unfold. The flop came A-3-A, giving Lindgren trips and leaving the challenger drawing thin. The turn and river came a 10 and three, respectively, and Thangavel was down to just four big blinds.

In the final hand between Lindgren and Thangavel, the latter was all-in with J-3 and Lindgren made the call with 9-10. The flop came 6-9-K, giving Lindgren middle pair, and the turn came a 10 to improve him to two pair. Needing a queen on the river to make a straight, Thangavel watched as a seven hit, sending him home.

The next contestant was Twitty, who hails from Cypress, California. Twitty told “Face the Ace” host Steve Schirripa that he wanted to play against Phil Ivey, but instead found himself up against Jennifer Harman. Twitty was the victim of a bad beat late in his match against Harman after the pro raised to 3,100 with K-J. Twitty moved all-in with A-9 and Harman called with her tournament life on the line. The flop came 8-3-7, keeping Twitty’s ace-high ahead, and a seven on the turn changed nothing. However, Harman spiked a king on the river for a six-outer to double up.

Then, Harman made it 6,000 pre-flop with A-3 and Twitty pushed with A-Q. Harman called to put Twitty at risk, but the flop came queen-high to keep Twitty out in front for good. In the final hand between Harman and Twitty, the Full Tilt Poker pro was all-in with Q-8 of diamonds and Twitty called with K-J. The flop came 10-10-10, keeping Twitty in the lead, and a jack on the turn improved him to a boat. Harman needed the nine of diamonds for a straight flush or a queen for a better full house on the river to win the hand, but watched as an ace hit. Twitty earned $40,000 for defeating his first pro.

When asked if he wanted to take the money and run or play another pro for $200,000, Twitty selected the cash. The episode, which aired on Saturday, marked the second to last for “Face the Ace,” which will air its season finale on January 2nd. “Face the Ace” makes its home on NBC.

CNBC Illegal Gambling Feature to Air on Wednesday

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

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

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

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

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

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

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

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

Bwin Downplays Party Gaming Merger Talks

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

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

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

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

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

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

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

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

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

Andreas Oscarsson Murder May Be the Result of Extortion Attempt

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

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

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

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

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

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

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

Two + Two founder sues “Dutch” Boyd

Mason Malmuth, founder of Two Plus Two Publishing, has sued multiple companies and individuals over alleged trademark infringements. Among the sued individuals is poker pro Russell Aaron “Dutch” Boyd.

Two Plus Two Publishing LLC is  accusing “Dutch” Boyd of cybersquatting, or putting up Web sites intended to divert customers from a trademarked site by using identical or confusingly similar names; trademark infringement, unfair competition, deceptive trade practices and intentional interference with prospective economic advantage.

The lawsuit claims Jacknames.com and Boyd on July 14, 2004, registered a domain name using the phrase “Two Plus Two” and the word “poker;” and who then linked the domain name to a poker strategy and gaming services site.

Russell Aaron “Dutch” Boyd

“The lawsuit he is bringing against me is based on a domain name that he currently owns: `twoplustwopoker.com.’ It is without merit and is designed to encourage me to pay him off or face a substantial legal bill defending myself against it,” Boyd said after he got the lawsuit.

In the end it is up to Las Vegas court to judge if “Dutch” Boyd has broken any laws.

Source: Las Vegas Sun

You just read Poker News from HighStakesNews.com

Two + Two founder sues “Dutch” Boyd

Bodog Founder Calvin Ayre Featured in National Post

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

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

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

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

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

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

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

Read the entire Calvin Ayre interview with the National Post.

WPT Doyle Brunson Five Diamond World Poker Classic Kicks off Monday

The 2009 installment of the World Poker Tour (WPT) Doyle Brunson Five Diamond World Poker Classic will kick off on Monday from the Bellagio in Las Vegas. The tournament’s namesake told UB.com’s “Poker2Nite” that a field of 400 players is expected.

Only one Day 1 in the $15,000 buy-in WPT event will occur, with the six-handed final table taking place on the 19th. In 2008, original World Series of Poker (WSOP) Main Event November Nine member David “Chino” Rheem took down the Doyle Brunson Five Diamond World Poker Classic, besting Justin Young heads-up and earning $1.5 million. Young took $936,000 for his runner-up performance. Others who reached the feature table, which played out on cable station Fox Sports Net, included Evan McNiff (third place for $540,000), Steve Sung (fourth place for $396,000), Amnon Filippi (fifth place for $288,000), and DoylesRoom poker pro Hoyt Corkins (sixth place for $216,000).

The Five Diamond has been a staple of the WPT circuit and served as the series’ very first event back in May of 2002. That year, Full Tilt Poker pro Gus Hansen outlasted John Juanda heads-up in a talented final table that also featured Freddy Deeb, John “World” Hennigan, Chris Bigler, and Scotty Nguyen. A quaint field of 146 players turned out for the inaugural WPT tournament, creating a prize pool of $1.4 million.

In Season II of the WPT, Paul Phillips took down the Five Diamond in Las Vegas, besting Poker Hall of Fame member Dewey Tomko heads-up and banking $1.1 million. Hansen once again made the final table of the tournament and finished third this time around, while Mel Judah took sixth place and earned $101,000. The next season, a battle of PokerStars sponsored pros took place, as Daniel Negreanu trumped Costa Rican sensation Humberto Brenes heads-up in the event’s finale. The number of entrants jumped to 376 from 314.

In Season IV of the WPT, Rehne Pedersen earned over $2 million for his Five Diamond win and beat Patrik Antonius heads-up. Brunson made the final table of the event and finished third, while J.J. Liu took fourth place for $362,000. Also making waves were Darrell “Gigabet” Dicken and Phil “The Unabomber” Laak, who finished in fifth and sixth place, respectively.

In the December Bellagio tournament during Season V, Joe Hachem, winner of the 2005 WSOP Main Event, took down the title and its corresponding $2.2 million grand prize. Hachem and Negreanu made PokerStars proud by reaching the final table and the Aussie’s win solidified his name as one of the tops in the industry. In 2007, Eugene Katchalov banked $2.5 million for his WPT victory, outlasting a colossal field of 626 players. Also reaching the final table were Devilfish Poker namesake David Ulliott and former PokerStars Caribbean Adventure champion Ryan “Daut44” Daut.

After its annual Las Vegas stop, the WPT crew will break for the holidays and resume action in late January for the Southern Poker Championship. December’s Bellagio stop will mark the tournament series’ last trip to Sin City before the annual WPT Championship in April. Here’s a look at the remaining events in Season VIII:

Southern Poker Championship: January 24th to 27th
Beau Rivage (Biloxi, Mississippi)

WPT Celebrity Invitational: February 20th to 21st
Commerce Casino (Commerce, California)

L.A. Poker Classic: February 26th to March 4th
Commerce Casino (Commerce, California)

Bay 101 Shooting Star: March 8th to 12th
Bay 101 (San Jose, California)

Hollywood Poker Open: March 20th to 24th
Hollywood Casino (Lawrenceburg, Indiana)

WPT Championship: April 17th to 24th
Bellagio (Las Vegas, Nevada)

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.

Internet Gambling Expert Reacts to UIGEA Regulations Delay

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

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

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

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

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

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

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

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

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

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

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

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

Party Gaming Expands in Italy, Introduces Online Poker Changes

It was recently announced that Party Gaming had entered into a three-year agreement with Fueps, one of the leading casual games operators in Italy. This agreement stated that Party Gaming would provide the online poker services for the company. The move makes Fueps, via 4A – The Poker Suite, a part of the Party Gaming conglomerate that now contains PartyPoker and INTRALOT. PartyPoker, per Italian gaming laws, provides its popular online poker outlet as well as an online casino service that block those outside of Italy from playing, while allowing those inside the European country to play legally.

With the addition of Fueps to the Party Gaming portfolio, CEO Jim Ryan seemed to be pleased with the recent acquisition: “Fueps is our fifth business-to-business deal this year. It is an excellent addition to our Italian poker network. This agreement is consistent with our aim to establish a strong presence in the Italian poker market and to be well-placed to take advantage of the further deregulation of online gaming that is already planned to take place in Italy over the next few months.”

In addition to welcoming new players from Italy to the Party Gaming fold, last week saw an update to its popular online poker platform. Probably the most thrilling change for PartyPoker players is the introduction of a table stacking console. This new feature, which is currently in Beta testing by players on the site, allows users to navigate through tables that are stacked on top of each other via a special console. PartyPoker will be garnering feedback from players as to whether to make it a permanent part of its software.

Much like the other top networks in the online poker world, PartyPoker has also introduced the synchronized break system. Tournaments will break for five minutes at 55 minutes past every hour. This will help players who play in multiple tournaments simultaneously by providing that valuable break every hour across all tournaments not only on PartyPoker, but also on other online poker networks.

PartyPoker has reworked its player statistics to make them more comprehensive and provide more information across a wider range of games. Statistics will now be offered in all game types, including High-Low variations, and will also be gathered across multiple client sessions. Finally, some tournaments now have a late registration period that can be as deep as six levels and there is a more visible “un-register time.”

PartyPoker has been keeping its product in prime shape since its departure from the American market in 2006. This departure has caused the once dominant fixture in online poker to slide down to fourth place in the industry behind PokerStars, Full Tilt Poker, and the iPoker Network, according to PokerScout.com.