Posts Tagged ‘legal’
Inside Gaming: Bankruptcy for Riviera, May Losses for Las Vegas, and Legal Fireworks for Station Casinos
Linda Johnson Scoops Increased Poker Limits in Florida
Floridians have been eagerly awaiting July 1st, the day the legislature raised the legal buy-in amount from its previous $100 maximum. I decided to head to Ft. Lauderdale to see first-hand what this would mean for poker players.
My first stop was at Isle Casino and Racing at Pampano Park. I was thrilled to learn that the entire building was non-smoking. The poker room is located on the second floor and consists of 38 tables. It is open 18 hours a day Sunday through Thursday and around-the-clock on Friday and Saturday. Players get tracking cards and most games are worth $1 per hour toward food (or 50% of that toward cash). The players said the food, which is served at the table, is very tasty.
I asked Mike Smith, Director of Poker Operations, what the main difference was since the buy-ins were changed. His response: “The players seem to be taking it more seriously. Also, the card room has been completely full.” He told me about the various promotions the card room offers, including $599 royals: “We gave away more than $100,000 in June. Players can win tournament seats, high-hand bonuses, and cash in drawings.”
While I was there, games offered included $1-$2, $2-$5, and $5-$10 No Limit Hold’em; Pot Limit Omaha with a $1-$2 blind; $2-$4 and $4-$8 Limit Hold’em; and $4-$8 Omaha Eight or Better. I sat and played in the $2-$5 game for a while and thought the action was good, with lots of players seeing the flop and lots of all-in bets called. The mega bad-beat jackpot was more than $145,000.
There is a tournament every Tuesday night with a $230 buy-in, 13,000 in starting chips, and 30-minute rounds. On Sunday nights, the buy-in is $70 for the Battle for the Weekly Pass Satellite, which awards packages to the following week’s Monday through Thursday tournaments. The Isle will host the Florida State Poker Championship from August 2nd to 10th, which will feature a $400,000 guarantee for its six events.
June 30th – Daily Deal
Welcome back to the Daily Deal by Poker News Daily. Today, we’ll catch you up on the latest news and notes from the two thousand ten World Series of Poker, take a look at California possibly legalizing internet gambling, and go over brand new promotions from Full Tilt and PartyPoker.
Hello, I’m Sean Gibson and welcome to the Daily Deal by Poker News Daily.
To kick things off, we’ll go back to the Rio in Las Vegas once again to recap the action from the two thousand and ten World Series of Poker. Event number forty five was a fifteen hundred dollar no limit holdem tournament and was won by American Jesse Rockowitz for just over seven hundred and twenty thousand dollars. Event number forty-six was a five thousand dollar Omaha high low tournament which was won by Chris Bell who bested both Dan Shak, who finished second, and David “DevilFish” Ulliott who finished third. For his efforts, Bell rung in three hundred and twenty-seven thousand dollars.
Meanwhile, a non-bracelet event took place amid huge fanfare from the Rio in the WSOP Tournament of Champions. Players in this event had to either previously have won it or be voted in through a fan poll. There were five huge casualties on Day 1 of the event, starting with legend Doyle Brunson. Other players busting include two thousand nine world series of poker champion Joe Cada, Andrew Barton and Dan Harrington. The other casualty turned out to be defending champ and WPT host Mike Sexton, leaving seventeen players remaining. Mike “the mouth” matusow is your chip leader, being followed by Huck Seed, Johnny Chan and Scotty Nguyen.
Today, lawmakers in the California Senate Governmental Organization Committee will debate the merits of legalizing and regulating online poker. Senate Bill 1485, introduced by Inglewood Democrat Rod Wright, could help shrink major budget shortfalls in the west coast state. Among those not in favor of the proposed legislation is the Poker Players Alliance.
The PPA takes issue with the bill granting licenses to only three internet gambling “hubs.” In addition, the one million member strong organization disagrees with the bill’s criminalization of those who play on sites not granted licenses. In a letter sent to Wright in late June, the PPA cautioned,
“The measure as drafted would immediately criminalize online poker play well before any of the hubs are operational. It could easily be a year or more before online players could play legally.”
PPA California State Director Steve Miller is testifying at Tuesday’s hearing. As more develops in California, we’ll be reporting the latest as it breaks.
Starting this week, PartyPoker is bringing back its popular Card Rush Instant Win promotion, only this time, it’s super sized. Card Rush XL offers one-point-eight million prizes up for grabs, including cash, freeroll entries, and special leaderboard points. The promotion, which is sure to cause a massive traffic boost on PartyPoker, ends when every card has been given away or July thirty-first, whichever comes first. To claim a card, all you have to do is rack up fifteen Party Points.
Meanwhile, players in the United States can head to Full Tilt Poker, which is dishing out trips to the upcoming WPT Bellagio Cup in Las Vegas. Three direct qualifiers will be held on Full Tilt Poker, the first of which takes place today at twenty-one hundred Eastern Time. In addition, Step Seven sit and gos, which have a buy-in of twenty-one hundred dollars, will award WPT Bellagio Cup prize packages. The tournament has a $10,000 buy-in and begins on July 11th.
Thanks for joining me on the Daily Deal. Don’t forget to visit PokerNewsDaily.com and be sure to follow us at Twitter.com/PokerNewsDaily for the latest in poker news. This is Sean Gibson, wishing you deep runs in all your tournaments!
Obrestad Hungry for Second WSOP Bracelet
Following her £1 million cash in London however, she has been unable to perform on poker's most celebrated stage, the WSOP in Las Vegas, because she's always been too young - until now.
Having finally breached the legal age requirement of 21, Obrestad is at the biggest show in town and is relishing every moment.
"I've really enjoyed the World Series," said Obrestad. "I've been looking forward to it for a while and have thrown myself fully into it. I've played 14 events which is loads when you think I don't really play the mixed games."
The young Norwegian may regard No-Limit Hold'em as her speciality event, but at the moment it is the $5k Pot-Limit Omaha where Obrestad is performing admirably, amongst the chip leaders with 52 left.
"It's been surprisingly easy today," she told PokerListings. "I have Eric Liu to my left and he is a tough player, but overall I've been getting my chips in ahead.
"Normally I just get it in bad and suck out or bust out, but today I've been getting it in in good spots."
When asked whether this could be the event that sees her collect her second bracelet, Obrestad just laughed.
"Haha, well one thing at a time," she said.
"All I care about right now is cashing. Once I've done that, maybe we can think of other things."
Obrestad is well-placed for a run at the bracelet, but she has several tough competitors to dispose of first, including PokerListings blogger Jason Mercier - who showed his Omaha pedigree at last year's WSOP, winning a bracelet in the $1.5k Omaha tournament.
To read how this exciting tournament is playing out - see the dedicated WSOP 2010 section - with news, blogs and videos from the WSOP.
Visit PokerListings.com
California Online Poker Bill to be Debated Tuesday
On Tuesday, Senate Bill 1485 will be debated in the California Senate Governmental Organization Committee. The measure, introduced by Rod Wright (D-Inglewood), paves the way for legalized and regulated online poker in the west coast state, which has been plagued by budget shortfalls.
The Morongo Band of Mission Indians has come out against SB 1485, with tribe spokesperson Patrick Dorinson telling the Palm Springs Desert Sun newspaper, “We’ve always supported the concept of intrastate poker in California because of consumer protections, revenue to the state, and the fact it would bring the game out of the shadows. But we cannot support the bill in its present form.”
According to a separate article by the Palm Springs news outlet, the measure governing online poker has been granted special consideration despite the legislature’s full plate: “Because more than 20 pending measures are expected to be heard [on June 29th], the online legislation has been given a special order of business status. That guarantees a hearing start time for 3:30pm.” The proceedings will take place in Room 3191 of the State Capitol in Sacramento.
SB 1485 authorizes three “hub operators” to provide legal internet gambling games to California residents for a period of five years. Because of its legalized status, an operator must fork over “at least 20% of its gross revenues” to the state’s newly created Internet Gambling Fund every month. Moreover, California residents who play on unauthorized channels will feel the long arm of the law and every online poker player must be at least 21 years of age.
California regulators will be examining a number of factors to determine whether an outlet is worthy of being one of the three hubs, including “quality, competence, experience, past performance, efficiency, reliability, financial viability, durability, adaptability, timely performance, integrity, security, and the consideration promised to the state.” Hub applicants will undergo an exhausting vetting process.
Text found at the beginning of SB 1485 notes that legal live poker exists en masse in California; however, the state has not yet elected to tackle the internet version of the game: “The state currently maintains and implements substantial regulatory and law enforcement efforts to protect thousands of Californians who play real money poker in licensed California card rooms and tribal government casinos, yet the state provides no licensing requirements, regulatory structure, or law enforcement tools to protect millions of Californians who play the same games daily for money on the internet.”
During the upcoming 2010-2011 season of the World Poker Tour (WPT), the most populated state in the Union will play host to the Legends of Poker at the Bicycle Casino in August. After a six-month hiatus, WPT officials will return to California for the annual Celebrity Invitational and L.A. Poker Classic, both of which are held at the Commerce Casino. Finally, in March 2011, the WPT’s premier bounty event, the Bay 101 Shooting Star, will emanate from San Jose.
The text of SB 1485 claims that the Unlawful Internet Gambling Enforcement Act (UIGEA) authorizes internet gambling “as long as all players and the online wagering activities are located within the state and the games are not played by minors.” The UIGEA was attached to an unrelated port security measure in the final minutes of the 2006 Congressional session. Mandatory compliance with its regulations occurred on June 1st of this year after a four-year delay.
Hollywood Park, the Commerce Casino, Hawaiian Gardens, and The Bike have joined the Morongo Tribe in its opposition to the legislation, according to the Desert Sun. The opposition implored, “We believe what plays in California should stay in California. By licensing foreign operators and Las Vegas gaming interests, this bill allows money to leave the state instead of helping California’s economy.”
Read the text of SB 1485.
Full Tilt Poker Launches WPT Bellagio Cup Qualifiers
Starting on Sunday, June 27th, players on Full Tilt Poker can win their way into the upcoming World Poker Tour (WPT) Bellagio Cup VI. Direct and Step Sit and Go qualifiers will be available on the world’s second largest online poker site until July 4th.
The Bellagio Cup VI kicks off on July 11th from the Bellagio in Las Vegas and crowns a champion five days later. The $10,300 buy-in for this year’s Bellagio Cup has been drastically reduced from last year’s $15,400 price tag. Full Tilt Poker is awarding $12,000 prize packages, which includes the $10,300 Bellagio Cup seat plus $1,700 in spending money to use for travel and lodging. The Bellagio Cup runs concurrently with the end of the 2010 World Series of Poker (WSOP) Main Event, which emanates from the nearby Rio All-Suite Hotel and Casino.
Three direct qualifiers will be held on Full Tilt Poker, the first of which takes place on Tuesday, June 29th at 21:00 ET. The first qualifier comes with a $322 buy-in. The second direct satellite to the WPT Bellagio Cup VI plays out on Thursday, July 1st and features a high-stakes $1,060 buy-in. The final direct qualifier occurs on Independence Day in the United States – July 4th – at 16:30 ET and has a $640 buy-in. Satellites are available for as low as $1 or 50 Full Tilt Points (FTPs). In each direct qualifier, at least one $12,000 WPT prize package is up for grabs.
Step 7 Sit and Gos will also award prize packages to the Bellagio Cup and begin on June 28th. Every Step 7 Sit and Go comes with a $2,100 buy-in, while the first step costs only $3.30. For players who qualify for the Bellagio Cup through Full Tilt Poker, discounted room rates at the hallmark Las Vegas Strip hotel are available. Everyone who qualifies must be at least 21 years of age, which is the legal live gambling age in the United States.
Meanwhile, Full Tilt Poker has awarded 1,257 seats to the 2010 WSOP Main Event, which begins on July 5th with the first of four starting days. Only one day of qualifiers remains for those looking to punch their tickets to poker’s largest tournament. Last Sunday, Full Tilt coughed up 150 Main Event seats as part of a $640 satellite and is awarding a colossal $10 million bonus for qualifiers who go on to win it all.
In 2000, Full Tilt Poker pro Chris Ferguson won the WSOP Main Event for $1.5 million, besting poker veteran T.J. Cloutier heads-up in a final table that also included Hasan Habib, author Jim McManus, 2009 November Niner Jeff Shulman, and Mickey Appleman. 2000 also marked the year that UB.com pro and Poker News Daily Guest Columnist Annie Duke bubbled the Main Event final table, finishing 10th for $52,000.
Full Tilt recently kicked off the second season of its España Poker Series. Casino Castell de Peralada in Gerona hosted the first event in April, which boasted a €1,500 buy-in. Earlier this month, Málaga’s Casino Torrequebrada was the venue for event #2 of the España Poker Series, while Madrid’s Casino Gran will host the third stop in August. The Grand Final will occur at the Gran Casino de Barcelona from December 2nd to 5th.
Full Tilt happily accepts players from the United States. According to PokerScout.com, which keeps tabs on online poker room activity, Full Tilt is the second busiest site worldwide in terms of real money ring game traffic with a seven-day running average of 13,800 players. It weighs in at about half of the cash game traffic of PokerStars, the world’s largest site.
Head to Full Tilt Poker to qualify for the WPT Bellagio Cup VI.
Tags: 2009, 2010, Annie Duke, bellagio, full tilt poker, legal, Online Poker, pokerstars, tournament, vegas, WSOP
Phil Laak’s Poker Endurance Record May Have Been Broken
Slightly over two weeks ago, Phil “The Unabomber” Laak stepped away from the felt at a $10/$20 cash game at the Bellagio after 115 consecutive hours of playing poker, setting a new Guinness World Record. Now, reports are emerging from Europe that a group of players has eclipsed Laak’s record by a substantial margin.
According to the Cake Poker Blog, an Austrian website, and a thread on TwoPlusTwo, a group of players in Kufstein, Austria set out last weekend to break Laak’s record. Using a special setup in a hotel room in Kufstein, the seven players started play “not for money, but for honor,” according to a quote from one of the players on the website. The game was broadcast over the internet with a specially equipped RFID table in play so internet viewers could see the players’ hole cards.
Those involved in the game – called “The Glorious Seven” according to the Cake Poker Blog – included German film director and actor Max Krückl, Julia Doetsch, Erich Grünwald, Thomas Wagermeier, Rudolf Teichmann, Stephan Reischl, Nuran Karasu, and Jens Tölle. Several players dropped out at different points during the action, but Reischl, Karasu, and Tölle continued to play throughout the week. The effort of the three stopped yesterday when they broke the 135-hour mark.
One question remains however: was Laak’s endurance record actually broken? According to its website, Guinness has an extensive procedure to attempt to break any records. A record attempt has to be first cleared by Guinness officials and, after a four to six-week review process, can only proceed if the person(s) attempting the record go through an extensive confirmation process, more than likely including videotape evidence, legal affidavits from witnesses, and other paperwork. After the proper materials have been returned to Guinness, it would take six to eight weeks for the organization to confirm the record.
In the TwoPlusTwo thread, many posters state that the record was not broken because an official from Guinness wasn’t in attendance. According to the Guinness rules, it is not necessary for an attempt at a world record to be viewed by what they call a “Record Adjudicator.” The “Record Adjudicator” is an offer from Guinness to help build publicity for an event and is not necessary for the process of breaking the record.
Other posters commented on the huge difference between what the Austrian team did and what Laak did in his record breaking attempt. When Laak set the world record earlier this month, he was in the middle of one of the busiest poker rooms in Las Vegas at the Bellagio, making his task more difficult by playing in public. He also was playing at a healthy stake ($10/$20 No Limit Hold’em) for many players and was able to make a profit out of his 115 hours of play. Finally, he was limited to five-minute breaks each hour, which Laak banked to use at different times for exercise, showering, and the occasional nap.
The Austrian group seems to have laid out a perfect setup, limiting any interaction with the public. The hotel room was donated (as well as the RFID table) and no other players ever entered the game once the original seven players began. Neither on their website nor in any announcements have the stakes of the game been revealed, leading many to think that it was not a “true” poker game, but just people sitting around with nothing on the line. Finally, the website that broadcast the event had many technical difficulties and was offline during some action, leaving some to wonder what actually happened.
June 23rd – Daily Deal
It’s Wednesday here on the Daily Deal! We have some great stories from the world of poker, including the latest action from the two-thousand ten World Series of Poker. Plus, we’ll check out the latest political efforts from the Poker Players Alliance and tell you how you can win your way to watch the November Nine in sunny Las Vegas for free.
Hello, I’m Sean Gibson and welcome to the Daily Deal by Poker News Daily.
Another bracelet was awarded yesterday, this time in event number thirty eight, the ten thousand dollar pot limit hold’em championship. Hungarian player Valdemar Kwaysser became the second player from his country to win a bracelet this year and took in a prize of just over six hundred and seventeen thousand dollars. Notable finishes in this event include Vitaly Lunkin in twenty third and Mike “The Mouth” Matusow in twenty sixth place. Many have been saying that this year at the WSOP is the year of the Brit or even the year of the European players, but don’t be fooled, when we look at the stats there’s no question about American domination. As you can see Americans have twenty five bracelets, six times more than players from the UK and in terms of money won, have almost five times as much as the nearest nation which is Canada.
Earlier this week, two-thousand four World Series of Poker Main Event champ Greg Raymer authored an e-mail to members of the Poker Players Alliance. Raymer asked players to visit AmericaSpeakingOut.com and support the legalization and regulation of online poker. The Republican-oriented website, according to Raymer’s e-mail, focuses “on how to continue to make this great nation prosper. I believe we shouldn’t pass up this unique opportunity to share our message of personal freedom and liberty with these members of Congress.”
Raymer’s call to action worked, as the issue had received over 700 votes by mid-Tuesday. Poker players will recall that banks and other financial institutions were forced to comply with the regulations of the Unlawful Internet Gambling Enforcement Act, or UIGEA, on June first. A mark-up hearing on legislation favorable to internet gambling is expected next month in the House Financial Services Committee. In the meantime, do your part to help legalize this great game in the United States by visiting ThePPA.org today.
Finally, Poker News Daily wants to send you – YES, YOU – to the final table of the two-thousand ten World Series of Poker Main Event in November. All you have to do is sign up for UB.com through PND between June first and July thirtieth, deposit, and generate one UB Point. When you do, you’ll automatically be entered into a freeroll on August fifteenth on UB.com. The winner will head to Las Vegas in style to watch the Main Event wrap up. The other members of the final table in the August freeroll will earn a spot in the site’s two-hundred thousand dollar Guaranteed, a two hundred fifteen dollar value. So instead of waiting to watch who wins the Main Event on ESPN from your couch, you can watch it live and in person with VIP treatment. There’s an article about the UB.com November Nine promo up on the front page of PND right now. We’ll see you in November!
That does it for today’s episode of the Daily Deal, be sure to come back all day long for the latest in poker news and for exclusive interviews with the biggest names in the industry. This is Sean Gibson, and I’ll see you next time right here on the Daily Deal.
Tags: Canada, european, freeroll, interview, legal, Online Poker, poker player, Poker Players Alliance, usa, vegas, WSOP
PPA Urges Online Poker Regulation on AmericaSpeakingOut.com
On Monday, the Poker Players Alliance (PPA) issued an action alert to its one-million members authored by 2004 World Series of Poker (WSOP) Main Event champ Greg Raymer. The alert calls for support of the PPA’s efforts to legalize and regulate online poker in the United States on AmericaSpeakingOut.com.
The Republican-oriented website, according to Raymer’s e-mail, focuses “on how to continue to make this great nation prosper. I believe we shouldn’t pass up this unique opportunity to share our message of personal freedom and liberty with these members of Congress.” Raymer’s call for support of HR 2267 (Internet Gambling Regulation, Consumer Protection, and Enforcement Act) and S 1597 (Internet Poker and Game of Skill Regulation, Consumer Protection, and Enforcement Act) has received 75 responses and 742 votes at the time of writing.
Raymer’s plea posted on AmericaSpeakingOut.com reads in part, “In your fight to defend liberty, please protect my right to play poker. In 2006, Congress passed an ill-conceived law that seeks to restrict me from playing poker with other adults over the internet. This misguided prohibition has been a total failure and does nothing to provide necessary consumer protections.” The “ill-conceived law” in question is the Unlawful Internet Gambling Enforcement Act (UIGEA), whose compliance deadline came and went on June 1st. Now, banks, credit card companies, and other financial institutions must fall into line with the 2006 measure.
In order to support Raymer’s initiative and push Republican leaders to reconsider their stance on internet poker, players are encouraged to create an account to vote, which requires an e-mail, username, password, postal code, and avatar. Then, they’ll be asked to confirm a registration e-mail sent to their address. Finally, they can visit Raymer’s post on AmericaSpeakingOut.com and vote “Thumbs Up” on the issue.
Among those who have provided comments are PPA Kentucky State Director Rich “TheEngineer” Muny and “keithcolton1946,” who remarked, “The government shouldn’t be able to tell me what recreational activities I can spend my own money on after taking their share of my paycheck. This is ridiculous.” The issue has received a total of 742 votes, the overwhelming majority of which support the idea.
In a hearing last month in the House Ways and Means Committee, Congressman Jim McDermott’s (D-WA) HR 4976, the Internet Gambling Regulation and Tax Enforcement Act, took center stage. Serving as a witness in the hearing was Congressman Barney Frank (D-MA), who revealed that HR 2267 would be marked up in July in the House Financial Services Committee. However, no date has been scheduled.
HR 2267, which establishes a full licensing and regulatory framework for the internet gambling industry in the United States, boasts 69 co-sponsors on both sides of the aisle since its introduction in May 2009. However, only six new lawmakers have signed on in 2010. Moreover, general elections in the United States, during which all members of the House of Representatives must run, will likely take a considerable amount of steam away from the internet gambling issue.
Raymer has been a workhorse for the PPA, appearing at a number of charity poker tournaments and other fundraising events putting his trademark “Fossilman” persona to good use on behalf of the industry. A patent attorney, Raymer defeated recent World Poker Tour Championship winner David Williams in the 2004 Main Event and banked $5 million, double what Chris Moneymaker collected the previous year. Raymer is a sponsored pro of PokerStars, the world’s largest online poker site.
The PPA is based in Washington, D.C. and features former three-term Republican Senator from New York Alfonse D’Amato as its Chairman. Check back with Poker News Daily for the latest poker legislation news.
Tags: 2009, 2010, Barney Frank, charity, charity poker, legal, Online Poker, poker player, Poker Players Alliance, pokerstars, skill, tournament, WSOP
Face the Ace Lawsuit Officially Enters United States District Court in Nevada
The lawsuit over the rights to the short-lived NBC poker franchise “Face the Ace” has officially been entered in the United States District Court in Nevada. The case is numbered 2:10-cv-870 and parties are in the process of being served.
The plaintiff, Las Vegas resident Brandon McSmith, alleges that his concept for the “All Star Poker Challenge” became “Face the Ace,” violating copyright law. In “All Star Poker Challenge,” contestants had to choose among five doors, each masking a poker pro. Matches were worth $2,000, with a seat to the World Series of Poker (WSOP) Main Event on the line. In 2007, McSmith registered the concept of “All Star Poker Challenge” with the Writers Guild of America West.
The lawsuit names Poker PROductions, NBC, and Full Tilt Poker as defendants. The former entity serves as the production company behind such hits as “High Stakes Poker” and “Poker After Dark.” In November 2007, McSmith pitched his poker game show to Poker PROductions’ Mori Eskandani, who bantered back and forth via e-mail. The litigation reads in part, “Defendant [Poker PROductions] rejected All Star indicating that [Poker PROductions] did not invest in shows, only contracts to get them produced. Additionally, [Poker PROductions] indicated there was a major flaw in the show idea due to the contestant’s chances of leaving the show without winnings.”
“Face the Ace” was unveiled in April 2009, two years after McSmith’s conversation with Eskandani. In mid-June, McSmith allegedly informed Eskandani and company that the production company was engaging in copyright infringement and a cease and desist letter was sent. On June 18th, Poker PROductions responded by denying the claims of treading on McSmith’s copyright and an exchange between McSmith, Poker PROductions, and NBC ensued.
According to McSmith’s legal filing, “NBC contended that Face the Ace was owned by Full Tilt and that ‘Face the Ace’ came from a show in 2005 and 2006 called ‘Four Aces’ and was pitched to NBC via production partner [Poker PROductions].” Allegedly because of the involvement of Full Tilt Poker, the world’s second largest online poker site, the FBI has become interested in the case. “Four Aces,” according to McSmith, “was never previously mentioned by Defendants nor was it ever registered with the Writers Guild of America nor copyrighted with the United States Copyright Office.”
McSmith continues to pitch poker-related shows to other production companies and told Poker News Daily that not having his name attached to “Face the Ace” is detrimental, despite the show not faring well. The lawsuit adds, “As a direct and proximate result of the foregoing acts and conduct, Plaintiff has sustained and will continue to sustain substantial, immediate, and irreparable injury for which there is no adequate remedy at law.”
The parties being served have up to 20 days to file a response. McSmith is seeking “damages in amounts to be proven at trial” or $150,000 for each work infringed. Attorney Thomas Michaelides, out of Las Vegas, represents McSmith, who had represented himself when the case was dismissed in the Eighth District Court in Nevada back in March.
Three months ago, McSmith told Poker News Daily why he might have received an unfavorable ruling: “Judge Michelle Leavitt dismissed the case on the basis that I didn’t state a claim. Leavitt has her fair share of appeals that have gone against her.” McSmith has since been in contact with the office of Arlo Devlin-Brown of the U.S. Attorney’s Office for the Southern District of New York.
Stay tuned to Poker News Daily for the latest from the “Face the Ace” lawsuit.
International Federation of Poker Responds to Swiss Game of Luck Ruling
Online poker has been assaulted on several fronts over the past few days. The June 1st institution of the Unlawful Internet Gambling Enforcement Act (UIGEA) had, to this point, yet to be in full effect. Another ruling in Switzerland, issued the day after the UIGEA was enacted, has been decried by poker’s preeminent governing body as a misguided judicial decision.
On June 2nd, the Swiss Supreme Court made the decision that poker was a “game of luck,” which has a significant effect throughout the country. The lower court decision that was overturned ruled that Texas Hold’em was a game of skill and eligible for play anywhere, including private games in hotels, bars, and restaurants. The decision by the Swiss Supreme Court reverses that decision and makes such private games illegal; under the Supreme Court decision, the only place for poker to be played is in a casino.
The International Federation of Poker (IFP), which has made significant inroads into becoming the governing body for the sport of poker, reacted with understandable outrage over the Swiss Supreme Court decision. The president of the IFP, noted poker journalist Anthony Holden, was quoted in a statement on the organization’s website: “This is yet another example of misguided poker thinking by courts and judges who simply do not understand the game – i.e. that poker is a ‘mind-sport’ of strategic skill far more than luck.”
Holden accurately pointed out that the sport of poker has reached beyond the debate of skill versus luck when the International Mind Sports Association (IMSA) recognized it as a “mind sport.” He explained, “In April of this year, poker was accepted as a ‘mind-sport’ by the International Mind Sports Association, an organization recognized by the International Olympic Committee, which puts it on a par with chess and bridge as a game of skill.”
“Poker has also been invited by SportAccord, the general assembly of 150 international sport federations, to take part in next year’s World Mind Games in China,” Holden pointed out in the IFP statement. Poker is also expected to be a competition sport during the IMSA’s next World Mind Sports Games, to be contested during the run of the Summer Olympics in 2012 in London.
Since it was created in April 2008, the IFP has been one of the most active advocates for the sport of poker around the world. After electing Holden as president, the IFP’s primary goal has been to have the sport of poker recognized as a skill – or “mind” – sport instead of its common view as a game of luck. Exactly one year after its founding, the IFP was able to earn the “mind sport” designation from the IMSA and has exhaustively been at the forefront of proving to governmental organizations, through academic research and study, that skill is a much more critical element to poker than luck.
“We at IFP will continue this battle on behalf of the poker community,” Holden emphasized in the IFP statement while appealing to the wider poker community. “I urge you all to rally to our support. Do not allow our skillful ‘mind-sport’ to be hijacked and repressed by ignorant legislators. We must persuade governments and courts throughout the world to separate it off from mere gambling.”
UIGEA Compliance Deadline Set for Tuesday
Barring a last-minute breakthrough by the Poker Players Alliance (PPA), U.S. Treasury, or Federal Reserve, the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) will go into effect on Tuesday, June 1st.
In November, the Treasury and Federal Reserve granted a six-month delay in mandatory industry compliance with the UIGEA’s rules until June 1st. In the interim, it was presumed that the muddled 2006 law, which sailed through the Senate after being attached to an unrelated port security measure, would be clarified. However, with groundbreaking health care reform and a sagging U.S. economy taking center stage, Congress has been concerned with everything but internet poker.
On May 25th, PokerTime officials distributed an e-mail to affiliates that succinctly read, “Due to legislative changes in the USA as of June 1st, 2010, PokerTime will no longer be accepting bets from U.S.-based players. All players’ balances in excess of $20 will be cashed out on the 31st of May 2010. We thank you for your support and patronage and look forward to continued success with you in other marketing territories.”
The UIGEA prohibits deposits from U.S. financial institutions to “unlawful internet gambling” sites. Despite being the U, I, and G in UIGEA, the three-word phrase was never defined by Congress. Instead, the law defers to a web of federal, state, local, and tribal laws to determine what is permitted. All attempts to clarify the UIGEA, including a petition from the PPA to exclude peer-to-peer games, have not yet come to fruition.
On the TwoPlusTwo forums, an 11-page thread that popped up in mid-April and was still going strong mulled what the lay of the land will be in the internet gambling industry come June 1st. One poster gave his two cents on what may occur: “My prediction is that, absent any legislative or legal relief, it will get incrementally more difficult for U.S. players to make deposits and withdrawals over time.” The UIGEA only affects deposits; however, online poker affiliates have noted that wire transfer minimums from major sites have increased in recent months.
In the background of the June 1st deadline is testimony from the recent House Ways and Means Committee hearing on internet gambling. Congressman Bob Goodlatte (R-VA), one of the architects of the UIGEA, admitted that it was up to the 50 individual states to decide whether internet gambling should be permitted. A decision by the Third Circuit Court of Appeals last September declared that the UIGEA, in and of itself, had not made any new activity illegal. Accordingly, states like California have been exploring legalized online poker as a way to curtail major budget shortfalls.
In a video posted on the PPA’s website, Executive Director John Pappas forecasted, “We don’t expect [June 1st] to be a doomsday scenario for online poker. To be clear, it is not going to be unlawful for you, the poker player, to play internet poker… Nothing should stop you from getting money off of an online poker site.”
Stay tuned to Poker News Daily for the latest UIGEA headlines.
Future of PokerStars North American Poker Tour Unclear
In an article that appeared on Friday on Pokerati, it was revealed that the PokerStars North American Poker Tour (NAPT) might be on the outs with the Venetian and other casinos in Nevada. The Venetian hosted the NAPT’s first U.S.-based stop in February.
According to Pokerati, the phenomenal success of the inaugural season of the PokerStars-backed tour may ultimately be its undoing. The Venetian Main Event attracted a starting grid of 872 players and a total prize pool of over $4 million. Tom Marchese, who walked away with the title after defeating Sam Stein heads-up, banked a healthy $827,000. The first three stops of the NAPT – the PokerStars Caribbean Adventure, Venetian, and Mohegan Sun – all received coverage on cable station ESPN.
Pokerati explains that Nevada gaming officials “began receiving both informal and formal requests from specific casino companies, industry representatives, as well as federal and state authorities to reconsider [the Nevada Gaming Control Board’s position on allowing casinos to work with offshore gambling sites] and at a minimum, clarify the state’s stance.” A Board member told Pokerati, “To be clear, we’re talking about poker specifically. That’s what’s being debated. A new policy is developing as we speak.”
According to the NAPT’s website, “tons of PokerStars qualifiers” made their way to Las Vegas to compete in the Venetian event. The stop’s High Roller Bounty Shootout also appeared on ESPN and ended with young Ashton Griffin laying claim to the title and $560,000 in cash. At Mohegan Sun, 716 players turned out to the East Coast casino for its Main Event, where the Year of the Woman rolled on with Vanessa Selbst winning the title. Meanwhile, Jason Mercier took down the High Roller Bounty Shootout.
What appears to be in question is whether we’ll see another NAPT event in Las Vegas. Pokerati forecasted, “PokerStars has not acknowledged that they’ve actually been booted out of Nevada tournament fare by anyone, nor that they were preparing to challenge the World Series head-on in Las Vegas with another NAPT. Venetian poker room management are not commenting on the matter either, other than to say they are looking forward to an exciting summer Deep Stacks.”
Gaming officials did not specify who was knocking on the doors of the Control Board. On the NAPT’s website, a countdown clock to the next NAPT event reads 51 days at the time of writing. However, that figure has moved down – and up – in recent weeks and no press release has been distributed by the world’s largest online poker site detailing its future. Possible destinations for the next NAPT event include Tunica, Atlantic City, and Chicago.
PokerStars already operates a handful of land-based poker series, including the European Poker Tour (EPT), Latin American Poker Tour (LAPT), and Australia New Zealand Poker Tour (ANZPT), successfully navigating various legal arrangements around the world. Appropriately, a poster on the online poker forum TwoPlusTwo pointed out, “If it weren’t just Nevada casinos, but all U.S. casinos that couldn’t be affiliated with a PokerStars sponsored event, would Indian casinos jump at the chance to host an NAPT event?”
Complicating the Board’s decision is the looming compliance deadline with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) on June 1st. Traditionally, sites like PokerStars, Full Tilt, and Absolute Poker have sent players to live events donning patches for dot-net sites, which are billed as educational outlets instead of for-money poker rooms.
Poker News Daily could not reach PokerStars officials for comment.
Tags: absolute poker, ashton griffin, Australia, european, legal, Online Poker, poker player, pokerstars, tournament, vegas, woman
Poker Players Alliance Reacts to Washington State Supreme Court Rally
On Thursday, the Poker Players Alliance (PPA), the industry’s one million member strong lobbying force, staged a rally on the steps of the Washington State Supreme Court. Inside the building, PPA Washington State Director Lee Rousso was suing to declare a law that criminalizes online poker to be unconstitutional.
In comments released shortly after the hearing, PPA Chairman Alfonse D’Amato stated in a press release, “The PPA is pleased that the Washington State Supreme Court agreed to hear this case and today’s arguments have provided the court compelling reasons to reverse this ridiculous law. This law is not about the legislature protecting the state’s citizens, but rather about protecting special interests and tribal casinos from competition.” The state has legal card rooms and casinos.
Rousso is suing on the grounds that the statute, which makes playing online poker a Class C felony, violates the Commerce Clause of the United States Constitution. Scheduled to flank Rousso and D’Amato at the hearing were PPA Executive Director John Pappas and Full Tilt Poker pro Phil Gordon, a former World Poker Tour (WPT) champion and Washington native.
D’Amato was pleased with the number of concerned poker players who turned out to support Rousso during Thursday’s hearing and rally: “I was amazed by the turnout of poker players who joined us this morning on the steps of the Supreme Court. These Washington poker enthusiasts are doctors, lawyers, auto mechanics, and school teachers, not hardened felons. The Poker Players Alliance is grateful that the local poker community is so dedicated and I hope local lawmakers know that these voters care deeply about their freedoms.”
Two days prior to the hearing, the PPA released the results of a poll showing that 79% of 400 randomly selected Washington State voters oppose the law making criminals of online poker players. A total of 54% of respondents, or over half, stated that they strongly disagreed with the statute. Playing online poker, even for pennies, can result in up to five years behind bars and a $10,000 fine. A Class C felony is also given to those who possess child pornography and illegal substances like heroin.
Polled voters didn’t just oppose the status quo in Washington State; they wanted it changed entirely. Poll results revealed, “A majority of voters (54%) believe playing online poker in Washington should be legal if the government would ‘regulate and tax online poker and use what could be millions of new tax dollars to fill holes in the state’s budget.’” The PPA has 20,000 members in Washington State.
According to the Seattle Post-Intelligencer newspaper, the Washington State Supreme Court is likely to take six to nine months to offer up a ruling. Rousso told the media outlet that the case may end up in the U.S. Supreme Court “because he thinks it’s a cutting edge issue across the country.” The law was passed in 2006 prior to the Unlawful Internet Gambling Enforcement Act (UIGEA). Washington State legislators have since explored online gambling options like keno.
On a national level, the PPA and its one million members are anxiously awaiting mandatory industry compliance with the regulations of the UIGEA, set to come on June 1st. No last-minute delay appears to be in order and what the landscape of the internet gambling industry in the United States will be come Tuesday is anyone’s guess. Government offices are closed on Monday due to the Memorial Day holiday.
Check out the highlights of the hearing and rally.
May 21st – Daily Deal
On today’s Daily Deal, the poker community’s leaders react to Wednesday’s online gambling hearing, the WSOP announces new and improved bracelets, Justin “ZeeJustin” Bonomo issues a WSOP prop bet, and another poker TV show may have to fold.
Hello, I’m Sean Gibson and welcome to the Daily Deal by Poker News Daily.
There are mixed opinions regarding yesterday’s hearing by the House Ways and Means Committee. Joe Brennan, Chairman of the Interactive Media Entertainment and Gaming Association (iMEGA) had a bleak outlook: “Nothing happened. It was yet again another opportunity for sides that have already been heard to make a public airing of what their position was and for the IRS to come down and say they can tax and investigate internet gambling.” John Pappas, Executive Director of the Poker Players Alliance, had the opposite impression: “I thought it went fairly well… Aside from Bob Goodlatte, you didn’t see the type of demagoguery that we’ve seen in other committees.”
For the first time ever, the World Series of Poker will be offering personalized bracelets to winners, designed by famed jewelry designer Steve Soffa. Each bracelet is made with solid gold and diamonds. The Main Event bracelet will feature nearly six ounces of gold and five hundred and fifty individual hand-set diamonds weighing nearly four carats in total – about a third more than in previous years in case anyone’s counting.
Prop bets are an inevitable part of the WSOP and poker forums are bubbling with them. A particularly buzz-worthy one has been offered by Justin “ZeeJustin” Bonomo, who is laying down ten to one odds that a resident of Panorama Towers will win a bracelet. “The Panorama Prop Bet” states that at least one person living, renting or even crashing at the Vegas property is bound to make a bracelet this year. If you consider the actual and potential residents include poker powerhouses such as Phil Laak, Barry Greenstein, David Williams, and EPT San Remo winner Liv Boeree, you may think twice about laying that grand against Bonomo. The complete list of Panorama Pros will be published by Bonomo before Midnight on May 28th.
And finally, this past Wednesday night may have marked the final installment of the UB.com sponsored poker news program “Poker2Nite.” Show co-host Scott Huff tweeted the end of the show and his future career plans: “Since @Poker2Nite has not been renewed: Working on a musical number for my Legally Prohibited from Talking Poker on Television tour.” The situation is not as clear-cut, though: when PND made enquiries directly with UB.com, Tokwiro’s COO Paul Leggett told us: “No long-term decision has been made on the fate of ‘Poker2Nite.’ We are taking a break from production over the summer to decide whether we will do a Season 3 in the fall or perhaps another poker television show.” Will you miss this show? Let us know via Twitter!
Thanks for joining me on The Daily Deal. Don’t forget to visit PokerNewsDaily.com and be sure to follow us at Twitter.com/PokerNewsDaily for the latest in poker news. I’m Sean Gibson and have a great poker weekend!
July Markup Planned for Barney Frank Internet Gambling Bill
Although no date has been set, Congressman Barney Frank (D-MA) announced his intentions to mark up HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, as part of a hearing in July. Frank’s revelation came during testimony in the House Ways and Means Committee hearing on internet gambling on Wednesday.
The markup will take place in the House Financial Services Committee, of which Frank is the Chair. Frank’s committee last tackled internet gambling legalization in December. Then, Congressman Spencer Bachus (R-AL), the Ranking Member of the Committee, asked for a follow-up hearing with members of the U.S. Treasury and Federal Reserve. However, no additional hearing has taken place in the House Financial Services Committee.
Frank told House Ways and Means members on Wednesday, “It is true that the House did pass by a large margin [the Unlawful Internet Gambling Enforcement Act]. The Senate fooled us. It acted quickly. Because we had a Republican leader who was intent on running for President, he got that bill added onto a bill in the Senate to which it was unrelated. When that became law, it became law to the consternation of many.” Former Senate Majority Leader Bill Frist (R-TN) was the driving force behind attaching the UIGEA to the SAFE Port Act in 2006.
Fueling the push for the House Financial Services Committee markup hearing is the Poker Players Alliance (PPA), the industry’s main lobbying voice. The organization’s Executive Director, John Pappas, told Poker News Daily that he’s looking forward to July’s event: “We want to see a very successful markup. We want to make this as bipartisan as possible and I think we’re on the right path to do that.”
Previously, the House Financial Services Committee has been bogged down by banking reform, health care, and the worst U.S. economy since the 1920s. The Committee was set to tackle internet gambling in April, but a previously scheduled event in Massachusetts for Frank led to the hearing’s three-month postponement. HR 2267, which establishes a full licensing and regulatory framework for the internet gambling industry in the United States, is up to 69 co-sponsors.
Prior to Wednesday’s hearing, the PPA had been hard at work educating members of Congress on the prospects of legalizing and regulating internet gambling. The result: many members of the Ways and Means Committee pitched questions to two witness panels in a lively 150-minute hearing.
Pappas revealed to Poker News Daily that members of the Ways and Means Committee were open to learning about the issue: “In the couple of weeks leading up to this hearing, when we were meeting with people on both sides of the aisle, they said they’re not going in with any preconceived notions.” Among those who asked questions of the panels were Charles Rangel (D-NY), Lloyd Doggett (D-TX), Devin Nunes (R-CA), and Dean Heller (R-NV).
Congressman Jim McDermott’s (D-WA) HR 4976, the Internet Gambling Regulation and Tax Enforcement Act, was introduced in late March and carries four co-sponsors. No markup occurred during Wednesday’s House Ways and Means Committee hearing and no follow-up hearing has been announced.
On June 1st, the financial services industry in the United States must fall into line with the regulations of the UIGEA. Whether the landscape of the industry will change following the date is anyone’s guess. The PPA was successful in delaying industry compliance with the UIGEA rules from December 1st to June 1st. The organization currently has a petition out to exempt peer-to-peer games from the UIGEA, but it has not yet been acted on.
July represents a particularly dicey time period for Congressional hearings. Members of Congress are in their home districts during the week of July 5th to 9th. In August, lawmakers are also away from Capitol Hill. In addition, due to the upcoming November elections, it’s conceivable that very few officials will be on the Hill during the month.
Congressman Jim McDermott Interview
Congressman Jim McDermott joins us to discuss issues surrounding HR4976, otherwise known as the Internet Gambling Regulation and Tax Enforcement Act. He has been a proponent of legalizing and taxing online gambling and poker and was in attendance at the recent Ways and Means Committee meeting. In this interview exclusive to Poker News Daily, Rep. McDermott discusses why he re-introduced the bill back in March, how passing the bill would raise needed tax revenue and add jobs, as well as his pulse as to where we are in terms of progress of getting this bill passed. He also weighs in on what poker players can do to help their cause getting online poker expressly legalized within the United States.
For more information about Rep. McDermott, who serves the seventh district of the state of Washington which encompasses the greater Seattle area, visit www.house.gov/mcdermott.
Poker2Nite May Not Be Renewed for Season 3
Wednesday night may have marked the final installment of the UB.com sponsored poker news program “Poker2Nite.” UB.com officials declined to renew the show for a third season, according to show co-host Scott Huff.
The Twitterverse was buzzing on Thursday morning just hours after the “Poker2Nite” Season 2 finale aired on Versus. Huff Tweeted during the witching hours, “Cat is out of the bag with @poker2nite. Was fun while it lasted, and whether you loved it or hated it, I’m glad we tried something new.” Eight hours later, Huff clarified his cryptic remarks by commenting, “Since @Poker2Nite has not been renewed: Working on a musical number for my Legally Prohibited from Talking Poker on Television tour.”
Huff told Poker News Daily, “UB.com made the decision not to bring the show back.” Despite Huff’s Twitter comments and statement to Poker News Daily, Tokwiro COO Paul Leggett left the door open for a possible return. Leggett told Poker News Daily, “No long-term decision has been made on the fate of ‘Poker2Nite.’ We are taking a break from production over the summer to decide whether we will do a Season 3 in the fall or perhaps another poker television show.”
Season 2 of the program debuted on Versus on March 3rd with Absolute Poker pro Trishelle Cannatella, the eventual winner of the inaugural “On the Clock” trophy. Cannatella, the former bad girl of “Real World: Las Vegas,” answered eight rapid-fire questions in 60 seconds from “Poker2Nite” hosts Joe Sebok and Huff.
Guests during the second season of “Poker2Nite” included Cannatella, UB.com pro Annie Duke, PokerStars North American Poker Tour (NAPT) hostess Joanna Krupa, Lacey Jones, Prahlad Friedman, UFC’s Bruce Buffer, former “Celebrity Poker Showdown” host Kevin Pollak, actor Samm Levine, Tiltboy Rafe Furst, and Full Tilt’s Mike Matusow. In one of the more memorable moments of Season 2, Matusow threatened to run down the Las Vegas Strip in his birthday suit if three women win bracelets during the 2010 World Series of Poker (WSOP).
Season 1 of “Poker2Nite” aired on Fox Sports Net and debuted on November 18th with ESPN poker announcer Lon McEachern as the featured guest. Hot topics for the kickoff show included Joe Cada’s then-recent win in the 2009 WSOP Main Event and Jeffrey Pollack resigning from his post as WSOP Commissioner. Other Season 1 guests included Poker Players Alliance (PPA) Executive Director John Pappas, 11-time bracelet winner Phil Hellmuth, Poker Hall of Famer Mike Sexton, Gavin Smith, and tournament director Matt Savage.
Each week, Sebok, a UB.com pro, gave viewers the details of the “Poker2Nite” Pro Challenge, which will dish out five WSOP Main Event packages in a tournament to be held on June 6th. The top 200 players in each week’s freeroll moved on to the finale.
At press time, archived episodes of “Poker2Nite” Seasons 1 and 2 still appeared on UB.com’s website. “Poker2Nite” was also featured in the “Promotions” area of UB.com.
Huff and Sebok gained considerable media exposure through PokerRoad, which produces poker podcasts and video features. Other PokerRoad hosts include Jeremiah Smith, Joe Stapleton, Bryan “badbeatninja” Devonshire, World Poker Tour (WPT) tournament reporter B.J. Nemeth, and Barry Greenstein. Stapleton was instrumental in providing media instruction to Cada following his win in last year’s Main Event.
We’ll have additional reaction to you on UB.com not renewing “Poker2Nite” right here on Poker News Daily.
Industry Reacts to Ways and Means Committee Hearing on Internet Gambling
On Wednesday, the House Ways and Means Committee hosted a hearing discussing tax proposals related to internet gambling. Taking center stage was Congressman Jim McDermott’s (D-WA) HR 4976, the Internet Gambling Regulation and Tax Enforcement Act. The measure calls for a 2% federal tax and 6% state tax on internet gambling deposits, which could amount to as much as $72 billion over a 10-year period.
Online poker players and internet gamblers tuned into Wednesday’s proceedings with wide eyes. Curiously, no representatives from the banking or internet gambling industries, the two groups most affected by the Unlawful Internet Gambling Enforcement Act (UIGEA), were present at Wednesday’s hearing as witnesses. Instead, Congressmen Barney Frank (D-MA), Bob Goodlatte (R-VA), and McDermott comprised one panel. Making up a second panel were representatives from the Treasury and Internal Revenue Service (IRS).
Skeptical of the effectiveness of the hearing was Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan, who told Poker News Daily, “Nothing happened. It was yet again another opportunity for sides that have already been heard to make a public airing of what their position was and for the IRS to come down and say they can tax and investigate internet gambling.” No markup occurred and no follow-up meeting of the Ways and Means Committee was scheduled. Moreover, the Ranking Member of the minority was not in attendance.
A portion of the hearing focused on the 32,000 jobs that could be created by legalizing and regulating internet gambling in the United States. Many states have unemployment rates above 10%, leading to Safe and Secure Internet Gambling Initiative (SSIGI) spokesperson Michael Waxman commenting in a press release, “Today’s witnesses clearly articulated why Congress should give fair consideration to regulating online gambling activity as a way to protect Americans, stimulate the economy by creating tens of thousands of new jobs, and profit from the collection of tens of billions of otherwise lost revenue.”
One of the major takeaways this author had of the hearing was that it was largely void of moral arguments for or against internet gambling. Images of kids losing their parents’ houses while gambling online have permeated discussion in the House Financial Services Committee, but largely did not occur yesterday. Goodlatte was one of the only Congressman to trumpet the moral pitfalls of legalizing the industry.
Poker Players Alliance (PPA) Executive Director John Pappas, whose organization has been instrumental in scheduling committee hearings, gave Poker News Daily his take on Wednesday’s events: “I thought it went fairly well. There’s some debate that needs to be had on what the tax structure ought to look like and that’s positive debate. Aside from Goodlatte, you didn’t see the type of demagoguery that we’ve seen in other committees. To his credit, I thought Goodlatte did a good job of defending his position.”
The two-and-a-half hour marathon featured a bevy of members of the Ways and Means Committee weighing in on the bill’s tax framework, IRS burden, and impact on Indian tribes. Pappas told Poker News Daily that he was elated to see a high level of interaction among Ways and Means Committee members: “I was surprised that there was so much back and forth on the members’ panel. There was some legitimate discussion raised there.”
The financial services industry in the United States must fall into full compliance with the regulations of the UIGEA by June 1st. What the landscape of the internet gambling industry will be following that date is anyone’s guess.
If you missed any of Wednesday’s hearing, visit the official website of the PPA, which features video clips of opening statements.
Poker2Nite Season 2 Finale Airs on Versus
The Season 2 finale of the UB.com sponsored poker news show “Poker2Nite” aired on Wednesday. Former “Amazing Race” contestant Maria Ho challenged Absolute Poker pro Trishelle Cannatella for the series’ “On the Clock” trophy.
First up was discussion of the recently completed World Poker Tour (WPT) Grand Prix de Paris, which saw World Series of Poker (WSOP) Europe bracelet winner Theo Jorgensen earn €633,902. However, the final table largely featured unknown players, leading “Poker2Nite” host Joe Sebok to conclude, “I think it’s a bad situation. People tune into televised poker to see the big names.”
Despite Sebok’s criticism, Jorgensen was still elated to win, telling WPT Live Updates Hostess Jacque Williams from Paris, “Right now, I’m drinking champagne faster than anyone here in the room. It just feels fantastic.”
Also taking center stage was Supreme Court Justice nominee Elena Kagan’s love of poker. Her passion for the game has many online poker players expecting legalization of its internet version in the United States, but not everyone is drinking the Kool-Aid. Sebok noted, “It’s certainly great that more people in Washington play poker, but let’s not lie to ourselves and convince ourselves that she’s somehow going to change all of this legislation and make a bunch of decisions because that’s not going to happen.”
Tokwiro COO Paul Leggett then joined “Poker2Nite” to break down the security flaw that was plugged earlier this week on CEREUS Network sites UB.com and Absolute Poker. Leggett told viewers, “Just over a week ago, a security vulnerability was identified that [affected] our client-server communication. We believe it was very unlikely that someone was able to exploit it.”
Leggett added, “We do have additional layers of security that would help us identify if someone was able to exploit something like this.” Sebok referred to “Ultimate Bet” when talking about the vulnerability as opposed to “UB,” the re-branded site that sponsors the show.
Sebok and co-host Scott Huff then reviewed the top non-poker activities in Las Vegas for those players who bust prematurely from events during the upcoming WSOP. Among Sebok’s choices were Rehab at the Hard Rock, boating on Lake Mead, the Pure Nightclub at Caesars Palace, Mystere at Treasure Island, and the Sapphire gentlemen’s club.
“P2N Online,” which features the latest buzz from cyberspace, featured a video posted by Jennifer Harman in which the two-time bracelet winner flaunts her chest in hopes of receiving WSOP Tournament of Champions votes. Also shown were images from Viktor Blom’s home, which featured little-to-no furniture and a color scheme reminiscent of an insane asylum.
Ho then took to the studio to challenge Cannatella’s mark of eight correct answers to rapid-fire questions as part of “On the Clock.” However, she could only muster six. Meanwhile, she discussed her experience on “Amazing Race” alongside fellow WSOP Main Event Last Woman Standing Tiffany Michelle: “The ‘Amazing Race’ was the best experience of my life, but it was definitely the toughest thing I’ve ever had to do. It feels so great to be able to challenge yourself and push yourself to the limits every day.”
On her upcoming WSOP plans, Ho admitted, “I’m probably trying to play 20 tournaments. I get burnt out really easily, so I want to try to have a schedule where I feel like I’m doing as much as I can.” She’ll also take to the felts in more Mixed Games this year. Ho finished 11th in last year’s World Championship of Limit Hold’em for $41,000.
UB.com officials have not released any information about the fate of “Poker2Nite” for Season 3, although Huff Tweeted that the show had not been renewed. The first season of the series aired on Fox Sports Net before being bumped to Versus. Stay tuned to Poker News Daily for the latest.
2010 WSOP Best Bets: Annette Obrestad
Out of five picks, our very own blogger Jason Mercier managed to win his first of what is sure to be many bracelets to come.
However, our other four choices were shut out. This year, after deciding one isn't nearly enough, we have chosen a line-up sure to be bringing home the bling from Las Vegas this summer.
Our first pick was none other than Team PokerStars Pro Daniel Negreanu. Then, after three major runner-up finishes on tour this year and a WPT final table appearance, we went with Sam Stein.
Erica Schoenberg has been working on her game, so we made her our third pick and considering he's made a WPT and two WSOP Circuit final tables over the past 12 months, PokerListings' blogger Matt "Allinat420" Stout made it easy to make him our fourth choice.
Today we reveal our final 2010 WSOP Best Bet, Annette Obrestad, and next week we'll let Negreanu tell you his top five picks to win WSOP gold right before the 2010 World Series of Poker kicks off:
Annette Obrestad has been at the World Series of Poker for the past three years and has yet to win to win a bracelet.
The big difference this year is she'll be legally allowed to play for one.
"I actually don't know what to expect because even though I've been here, I've never played before," said the Norwegian online poker phenom, who famously started her poker bankroll winning an online freeroll at 15 and went on to become the inaugural World Series of Poker Europe main event champ in 2007 at just 18.
"I'm just going in thinking that if I feel like playing, I'm going to play. I'm not going to have set schedule, so if I'm playing badly or I don't feel like playing, I don't have to. We'll see what happens, I'm going to play as many tournaments as possible and hopefully do well in them."
Annette_15, as she's known online, turned 21 this past fall and has had her mind set on success at the 2010 WSOP ever since.
But since the poker world is well aware of her presence these days, she's had to make some adjustments just to keep up.
"My game has changed a lot over the last couple of years," she said. "When I first started playing I could get away with so much because I was a girl and people didn't know me very well. I could three-bet and I could bluff a lot and people would just fold because they didn't know any better.
"Now people have seen me on TV and they know I'm an aggressive player so they call me down a lot. My game has changed a lot and it's not as fun as it used to be, but I can still make money at it."
Making money at this year's WSOP will mean focusing on as many No-Limit Hold'em and Pot-Limit Omaha events as she can get her hands on.
And she will be doing so with a new sponsor's patch on her chest.
"I was with Betfair for three years, but they are not open for the US market, so it was kind of stupid for them to buy me into events in the US market," she said. "I decided to look for a new sponsor and Full Tilt were the most excited about it.
"I usually play on Full Tilt anyway, so I'm super excited to become part of their team."
Proud of the fact she's been a winning player since she started playing poker, Obrestad is just hoping the success she's found everywhere else across the poker spectrum will continue this summer on the game's biggest stage.
"I don't really know how to prepare because I've never been here before," She said. "I'm just going to have to see what happens.
"I can't really say I have too high expectations going in because of tournament variance. There's really not that much control there. You just have to play your best."
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Tags: 2010, Daniel Negreanu, freeroll, legal, no-limit, Online Poker, pokerstars, tournament, vegas, WSOP
House Ways and Means Committee Tackles Internet Gambling
A marathon two-and-a-half hour hearing in the House Ways and Means Committee on Wednesday morning focused on legislation to tax internet gambling. Gracing the floor of the Committee were internet gambling activists Barney Frank (D-MA) and Jim McDermott (D-WA) as well as Unlawful Internet Gambling Enforcement Act (UIGEA) crafter Bob Goodlatte (R-VA).
Ironically, Goodlatte mislabeled the UIGEA the “Uniform Internet Gambling Enforcement Act” on numerous occasions despite sponsoring the controversial bill with multiple carve-outs four years ago. Frank had to depart at 10:00am ET for a markup hearing and gave his testimony first. Frank told the Ways and Means Committee’s assembled membership, “We do know that gambling will go on in America. The question is should we continue to give those who gamble the complete immunity from taxation. We talk about avoiding teacher layoffs and this would be a way to do that.”
The ranking minority membership questioned the importance of discussing internet gambling when the latest jobs report showed nearly a 10% unemployment rate nationwide. McDermott responded, “Regulating internet gambling would create jobs. An April 2010 study found that it would mean 32,000 additional jobs. Regulation and taxation has proven to be a better policy for our country when it comes to alcohol and the same will be true for online gambling.”
Goodlatte, one of the primary architects of the UIGEA, explained that creating a federal regime of regulation and taxation is contrary to his beliefs in states’ rights: “Traditionally, states have had the authority to permit gambling that occurs in their borders. HR 2267 turns states’ rights on their heads. In addition, the revenue estimate by the Joint Committee on Taxation is premised on trumping current state laws.”
Goodlatte noted that professional sports leagues like the NFL and Major League Baseball have sent letters voicing their opposition to HR 2267, a bill that will likely be marked up in the House Financial Services Committee in July. HR 2267 creates a licensing and regulatory framework for the internet gambling industry in the United States. Its tax companion, McDermott’s HR 4976, was the subject of debate on Wednesday.
A flood of questions came in from members of the Ways and Means Committee, including Charles Rangel (D-NY), Dave Reichert (R-WA), and Earl Blumenauer (D-OR), who admitted he may have made a mistake voting for the UIGEA in 2006: “I voted for it the first time, but it’s probably not practical and it’s probably inconsistent.”
Meanwhile, Dean Heller (R-NV) grilled McDermott on HR 4976’s proposed tax on internet gambling deposits, which he claims is unprecedented and not reliant on winnings. McDermott responded with his rationale: “When people put money into an account, they have to put in their credit card number. At that point, we said let’s tax it right there. This is how we chose to do it. The operators operating offshore weren’t opposed to this.”
Also weighing in was Shelley Berkley (D-NV), who once sponsored a bill calling for a large-scale internet gambling study. However, Berkley, whose experience lies with land-based casinos in Nevada, is an opponent of McDermott’s bill. She told the Committee, “The only logical approach is to view this as two separate issues. I applaud my colleague’s search for revenue, but this is not the place to find it or the method to get at it.”
Linda Sanchez (D-CA) focused on the benefits of U.S. oversight of the now-offshore industry: “The only way to get our country back on sound financial footing is by cutting expenses and raising revenue. Today, we’re discussing a possible revenue stream. We can provide better consumer protections by bringing this activity under American supervision while at the same time providing a revenue stream.”
Then, Chris Wagner from the Internal Revenue Service (IRS) and Charles Steele from the Financial Crimes Enforcement Network took to the floor. The former outlined the current tax structure for the gambling industry, while the latter admitted that he had not yet read McDermott’s legislation.
Meanwhile, Devin Nunes (R-CA) took time to call out nonprofit corporations illegally sponsoring political ads in order to make the IRS aware of the infractions. In response, Rangel and other members took offense to Nunes’ unrelated comments.
Berkley shifted the conversation back to internet gambling, asking Wagner if bills like HR 2267 and HR 4976 would increase the burden on the IRS. Wagner responded, “We do know that a lot of the regulating we do today is for legal gambling that takes place anyway, [so] we do not see a significant change.”
While the second panel was present, Heller once again took time to question the logic of a deposit tax. McDermott retorted, “The alternative to a deposit tax would be a gross gambling tax. You can do that in a brick and mortar casino. With the internet, you don’t know where anyone is, so you have to find an alternative to a gross gaming tax. This is the one, when talking to the industry, that’s the best way to do it.” Heller followed up by asking whether McDermott had talked to major brick and mortar casinos, but McDermott skirted the question.
Stay tuned to Poker News Daily for industry reaction to Wednesday’s House Ways and Means Committee hearing on internet gambling.
May 17th – Daily Deal
On today’s Daily Deal, the PPA speaks about the looming implementation of the UIGEA, we find out who won the WPT Grand Prix de Paris, former WPT stockholders go into a new branch of business and new celebrities confirm attendance to the After-school All Stars charity tournament.
Hello, I’m Sean Gibson and welcome to the Daily Deal by Poker News Daily, brought to you by PokerSource.com.
On June 1st, the financial services industry in the USA must fall in line with the regulations of the Unlawful Internet Gambling Enforcement Act – the dreaded UIGEA. John Pappas, the Executive Director of the Poker Players Alliance, reminded the poker community that the PPA was once successful in delaying this implementation, and that even if they fail to stop UIGEA it will not be the end of online poker. In Pappas’s words, “We don’t suspect this to be a doomsday scenario for online poker. To be clear, it is not going to be unlawful for you, the poker player, to play internet poker. Nothing in the UIGEA makes it illegal for individuals to play.”
WSOP bracelet winner Theo Jorgensen came out on top in the World Poker Tour’s Grand Prix de Paris on Saturday, taking home six hundred and thirty three thousand Euros. A total of two hundred and forty-seven players put up ten thousand Euros to play the Grand Prix de Paris, including heavyweights such as November Nine member Antoine Saout and Men “The Master” Nguyen. Jorgensen has more than Tournament wins to his credit: he once defeated Full Tilt Poker pro Gus Hansen in a boxing match.
Coming up, former WPT stockholders get energized, and more celebrities join the After-School All-Stars.
Former World Poker Tour chief executive Steve Lipscomb plans to use the cash from the sale of the popular WPT brand to enter a new type of business. The company, which now goes by the name Ante4 Inc., became an energy corporation in April and has seen its share price more than double in less than a month. On April sixteenth, the former WPT merged with an oil leasing firm in Billings, Montana to form Voyager Oil and Gas. Former professional poker player Lyle Berman, who served as Chairman of the WPT and holds the same position at Voyager, said “We thought if we could find a company with a great business model that needed cash, the stock would trade significantly above $1.40. We have fulfilled that mission.”
Good news for charity: former “Everybody Loves Raymond” star Brad Garrett will join the upcoming charity poker tournament benefiting After-School All-Stars. Other celebrities in attendance will include Ante Up for Africa co-founder Don Cheadle and Absolute Poker pro Trishelle Cannatella. The tournament will be hosted by UB.com pro Annie Duke, and it will play out on May 20th from the Commerce Casino in Los Angeles.
Thanks for joining me on The Daily Deal by Poker News Daily, brought to you by PokerSource.com. Don’t forget to visit PokerNewsDaily.com and be sure to follow us at Twitter.com/PokerNewsDaily for the latest in poker news. I’m Sean Gibson…good luck on the flop!
Poker Players Alliance Comments on UIGEA Compliance Deadline
On June 1st, the financial services industry in the United States must fall into line with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA). What the lay of the land come the first day of June will be is anyone’s guess. In recent days, the Poker Players Alliance (PPA), the industry’s primary grassroots lobbying organization, shared its take on the June 1st compliance deadline.
PPA Executive Director John Pappas appeared on camera from the organization’s headquarters in Washington, DC and stated, “As you know, the Poker Players Alliance was successful in delaying implementation of these final regulations.” Officials from the U.S. Treasury and Federal Reserve granted a six-month delay in compliance to June 1st back in November. In the interim, the regulations of the UIGEA were to have been discussed and clarified. However, only one committee hearing has taken place and no movement has occurred.
Pappas admitted, “Unfortunately, we haven’t had much success legislatively, but the PPA hasn’t stopped. We have filed another petition [that has] the support of 22 members of Congress. We’re working to get broader support. This petition isn’t a delay, per se, but it would exempt poker and other peer-to-peer gaming from the enforcement of the UIGEA.” As of the time of writing, officials from the Treasury and Federal Reserve have not yet responded to the PPA’s petition, which was submitted on May 5th. Its endorsers include Congressmen Steve Cohen (D-TN), Shelley Berkley (D-NV), and Ed Perlmutter (D-CO).
Pappas remained optimistic that even if the UIGEA regulations were to come to fruition on June 1st, the industry would not see the same fallout as what occurred four years ago following the law’s passage: “We don’t suspect this to be a doomsday scenario for online poker. To be clear, it is not going to be unlawful for you, the poker player, to play internet poker. Nothing in the UIGEA makes it illegal for individuals to play.” Following the passage of the UIGEA in 2006, publicly-owned online poker sites like PartyPoker and Pacific Poker vacated the market entirely.
Other players have rushed to withdraw their money for fear that major banks won’t process online poker transactions following June 1st. Pappas contended, “Nothing should stop you from getting money off of an online poker site. In fact, the UIGEA prescribes that it would not affect payouts to players. Deposits [are] the open question and we believe that there will always be a mechanism for players to deposit money through responsible channels online.”
Next Wednesday, May 19th, the House Committee on Ways and Means will hold a hearing to review various tax proposals related to internet gambling. The hearing was originally scheduled to kick off at 10:00am ET, but has since been moved up to 9:30am ET. Witnesses for the hearing will likely be announced on Monday and the proceedings will take place in Room 1100 of the Longworth House Office Building.
Potentially discussed during Wednesday’s hearing will be Congressman Jim McDermott’s (D-WA) HR 4976, the latest incarnation of the Internet Gambling Regulation and Tax Enforcement Act. The bill boasts three co-sponsors and allocates internet gambling revenues to state and tribal authorities as well as the Federal Government. In addition, HR 4976 dictates that a portion of the proceeds raised will benefit those currently or formerly in foster care as well as American heritage programs.
Last week, Account Services chief Douglas Rennick pled guilty in New York to processing $350 million in illegal gambling transactions, according to Forbes and other news outlets. He now faces up to a year behind bars and will learn his fate in a September sentencing hearing. Rennick, a Canadian, has become the latest victim in a string of payment processor crackdowns under the Obama Administration. A grand jury investigation of Full Tilt Poker may also be in the works.
May 13th – Daily Deal
On today’s Daily Deal, Joe Sebok reassures the public about security issues in UB, Faraz Jaka enters ESPN’s “The Nuts,” the next season of the EPT is announced, and the House Ways and Means Committee will hold a hearing about internet gambling.
Hello, I’m Sean Gibson and welcome to the Daily Deal by Poker News Daily, brought to you by PokerSource.com.
Team UB pro Joe Sebok addressed the recent security problems involving the CEREUS Network in his blog on PokerRoad.com. Sebok wrote: “There has not been another incident of cheating that has been found, but rather a scary security hole that was discovered.” He added that the encryption system has been fixed already and encouraged all poker players to test the security and report back to CEREUS.
ESPN.com formed a panel called “The Nuts,” in which prominent members of the poker media – including Poker News Daily’s very own Dan Cypra – choose the hottest poker players each month. For the month of May, Faraz “The-Toilet” Jaka entered the top ten, thanks to his NAPT and WPT finishes, along with WPT runner-up Eric “basebaldy” Baldwin. On the other hand, Daniel Negreanu took quite a tumble for his lackluster performance in live tournaments.
When we return, the seventh season of the PokerStars European Poker Tour is announced, and a House Committee will consider the best way to tax online gaming.
The seventh season of the PokerStars European Poker Tour was announced on Wednesday. The series will kick off August eleventh in Estonia and feature twelve stops. EPT founder and PokerStars sponsored pro John Duthie proudly announced that the series keeps getting bigger: “Season six had a thousand more players than Season five and we expect the numbers to keep on growing. The prize pool last season was well over fifty six million euros, a four million increase on the previous year.”
Next Wednesday, the House Ways and Means Committee will discuss tax proposals related to legalizing and regulating the internet gambling industry. Committee Chairman Sander Levin announced the hearing today, and organizations that wish to present are asked to submit a written statement. The aim of the hearing is to discuss the current tax laws and reporting requirements applicable to wagering in the United States. The Committee will also consider proposals regarding taxing and regulating gaming.
Thanks for joining me on The Daily Deal by Poker News Daily, brought to you by PokerSource.com. Don’t forget to visit PokerNewsDaily.com and be sure to follow us at Twitter.com/PokerNewsDaily for the latest in poker news.
Tags: cheat, Daniel Negreanu, european, legal, legalizing, poker player, pokerstars, tournament, usa
Lawmaker told video poker could net $576M for NC
Tags: legal
Internet Gambling Hearing Scheduled for House Ways and Means Committee
On Wednesday, May 19th at 10:00am ET, the House Ways and Means Committee will hold a hearing to discuss tax proposals related to legalizing and regulating the internet gambling industry in the United States. The proceedings will be held in Room 1100 of the Longworth House Office Building. Check out the details of the Ways and Means Committee hearing.
Committee Chairman Sander Levin (D-MI) announced the hearing today, one week out from its date. No witness list was available at the time of writing, but organizations that wished to present were asked to submit a written statement. Other witnesses were being invited.
Text found on the Ways and Means Committee website explains the scope of the hearing: “The Committee will discuss the current tax laws and reporting requirements applicable to wagering in the United States. The Committee will consider tax and other proposals in the Committee’s jurisdiction related to legislation pending in the Congress to license and regulate internet gambling activities.”
The advisory for the hearing notes that the financial services industry in the United States must fall into full compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) on June 1st, which is just three weeks away. What the lay of the land will be come June 1st for online gamblers remains to be seen.
One of the pieces of legislation that may be discussed in next Wednesday’s hearing is HR 4976, the Internet Gambling Regulation and Tax Enforcement Act. Congressman Jim McDermott (D-WA) brought the bill to life on March 25th and it has since picked up three co-sponsors: Earl Blumenauer (D-OR), Barney Frank (D-MA), and John Larson (D-CT).
Blumenauer and Larson are both members of the Ways and Means Committee. Frank serves as the Chairman of the House Financial Services Committee, which last addressed the internet gambling issue in December. Frank is the author of a measure (HR 2267) to open the internet gambling industry in the United States up to foreign operators and serves as the main champion of the industry on Capitol Hill.
The Ways and Means Committee also includes some of the familiar faces of the pro-internet gambling movement like McDermott and Shelley Berkley (D-NV). Looking forward to the hearing is PPA Kentucky State Director and Board member Rich Muny, who told Poker News Daily, “Judging by the leadership of the Ways and Means Committee, I think we have a good shot. I’m looking forward to a good audience. We’re encouraged every time we have a chance to present our side.”
The PPA was due to distribute a press release around 7:00pm ET on Wednesday night announcing the hearing. Stay tuned to Poker News Daily for the latest from Capitol Hill.
Poker Players Alliance Plans Washington State Supreme Court Rally
On May 27th, the Poker Players Alliance (PPA) will stage a rally outside of the Washington State Supreme Court in Olympia following Lee Rousso’s testimony to the judicial body. Rousso is attempting to overturn a law in the Pacific Northwest state that makes playing online poker a Class C felony.
Rousso is arguing that the Washington law should be struck down because it violates the Commerce Clause of the United States Constitution. Rousso, the PPA’s Washington State Director, told Poker News Daily, “The central argument is that Washington State’s statute that bans internet poker is protectionist in nature. It protects in-state businesses from out of state competition. The Commerce Clause of the U.S. Constitution doesn’t allow that. I think it’s clear that online poker is international commerce, which means that the states can’t regulate it.”
The Washington Court of Appeals agreed with many of Rousso’s points in a decision released in March 2009. However, it disagreed that the law was protectionist in nature. Rousso explained how the Court of Appeals could have missed this key argument: “The Court of Appeals took what I would call the ‘wrong inquiry.’ They asked whether the law treats all internet poker providers the same regardless of whether they are in-state or out of state, but there are no in-state operators. The correct inquiry is whether the law treats all poker providers fairly and the answer is no.” Whether the Washington Supreme Court will agree with Rousso’s logic remains to be seen.
The PPA has submitted an amicus brief in the case and will stage a rally on Thursday, May 27th at 10:00am PT. The Washington Supreme Court is located at 415 12th Avenue Southwest in Olympia and on-hand will be Full Tilt Poker front man Phil Gordon, a Washington native. Playing online poker in Washington is a Class C felony, the equivalent of child pornography and heroin possession. The controversial law was passed in 2006.
Whether the measure is actually enforced in Washington State is up for debate. However, Rousso, a lawyer by trade, revealed that clients have come to him after running into trouble with the law. On why he chose to take to the legal system, Rousso explained, “Even though the law hasn’t been enforced, I believe there are thousands of players who quit playing when it was passed. I also don’t think you can trust the State not to enforce it forever. Somewhere down the road, they might want to make an example out of somebody.”
PPA Chairman Alfonse D’Amato, a former three-term Republican Senator, will travel to Olympia for the rally. Joining him will be PPA Executive Director John Pappas and local members of the organization. The PPA boasts more than one million members overall. The state of Washington has a number of land-based casinos and local card rooms, which Rousso noted were elated when the law criminalizing internet gambling passed four years ago.
The Washington Supreme Court formally accepted Rousso’s case last September. He’ll be representing himself and the PPA will also bring a lawyer to the proceedings. Filing a joint amicus brief were Cheryl Blake, John Blake, Rob Esene, and Jim Gauley, who are described as “poker players who want to compete in poker games on the internet using gaming sites like PokerStars.”
One week prior to the rally in Washington State, the PPA will sponsor Annie Duke Celebrity Poker Night on May 20th at the Commerce Casino in Los Angeles. The $250 buy-in tournament with $100 rebuys benefits After-School All-Stars. Stay tuned to Poker News Daily for the latest on Rousso’s case.
Poker Case May Reach Pennsylvania Supreme Court
In recent days, an appeal was filed in the case involving Diane Alice Dent and Walter Leroy Watkins in Pennsylvania that may see the litigation move to the Pennsylvania Supreme Court. In March, the Pennsylvania Superior Court overturned a ruling that found poker to be predominantly a game of skill and therefore not illegal gambling under state law.
According to the filing, in July and August of 2008, an undercover police officer played in Watkins’ and Dent’s home game, which was housed in their one-car garage in Bloomsburg. Dent served as the dealer of the Texas Hold’em game, while Watkins played alongside his guests. No rake was taken. Instead, “this was a recreational game at which the players were playing for money.”
The Poker Players Alliance (PPA) has been intricately involved in the case. Its Executive Director, John Pappas, told Poker News Daily why the Superior Court may have ruled that poker is not a game of skill: “The judges did not look at what was presented before them, but rather looked at other court cases in other states that said poker is a game of chance. They didn’t take into account any of the most recent academic studies and legal victories.” The PPA boasts 54,000 members in Pennsylvania.
The appeal cites testimony from the trial court that covered the edge players could have by knowing hand strengths, identifying opportunities to bluff, mastering odds, and deciphering live tells. Even an attorney for the prosecution admitted during testimony, “[a] superior player playing [poker] at the same group of time with players less experienced than he should do better.” In March, however, the Superior Court ruled by a 2:1 margin that chance instead predominates over skill in Texas Hold’em. Judge Robert Freedberg wrote the majority opinion, while Kate Ford Elliott also agreed.
In the Superior Court ruling, the majority opinion read in part, “The states are divided as to whether Texas Hold’em is gambling,” alluding to court cases in other states, as Pappas noted. The appeal cites the now-famous study conducted by Cigital and PokerStars, which revealed that three-quarters of Texas Hold’em cash game hands are settled before showdown, meaning that the process of betting and bluffing predominantly determines the outcome.
The appeal cites cases in North Carolina and South Carolina. Pappas relayed his frustration with the Superior Court’s ruling: “There was no evidence presented at all that demonstrated that poker was a game of chance except for a trooper’s testimony, which is by no means an expert witness. Beyond that, there was so much evidence that demonstrated the opposite.” Watkins and Dent are card-carrying members of the PPA, which has established a Litigation Network to match poker players with pre-qualified local counsel.
In January, Pennsylvania Governor Ed Rendell signed a major gambling expansion bill into law. The measure paved the way for the introduction of table games like poker, blackjack, and roulette, purportedly pumping a quarter of a billion dollars into the economy according to the Philadelphia Inquirer newspaper. The bill aids racetracks, which can add 250 gaming tables, and casino resorts. Whether political pressure from the gambling movement affected the judicial process for Watkins and Dent remains to be seen.
The Northeastern United States has become a hotbed of casino competition. The area has seen Pennsylvania and Delaware seek to expand their gambling footprints, while a move to bring legalized sports betting to New Jersey has also taken flight. Massive casinos like Foxwoods and Mohegan Sun dominate the landscape, while revenues in Atlantic City have consistently declined year over year given the alternatives. Recently, New Hampshire Governor said he’d consider legalizing internet gambling.
Stay tuned to Poker News Daily for the latest from Pennsylvania.
Party Gaming Revenue Up 27% in Q1 2010
Last week brought word that the internet gambling giant Party Gaming had seen its Q1 revenues grow 27% year-over-year to $127.1 million. However, average daily revenue slid 2% from the previous quarter due to strong casino performance in Q4 2009 and foreign exchange setbacks.
Party Gaming’s online poker room, PartyPoker, took a tumble. Revenues of $47.8 million in the first quarter of 2010 were 11% lower than the $53.6 million recorded in Q1 2009. The statement to investors added, “Average daily poker revenue [was] in line with the previous quarter on the back of higher player numbers offset by adverse FX movements.” Even with the lower revenue figures, PartyPoker reported that its Italian market share had passed 3%.
Despite not accepting players from the United States, PartyPoker still competes against sites like Full Tilt Poker and PokerStars throughout Europe. Full Tilt boasts a land-based Spanish poker series, while PokerStars European Poker Tour (EPT) events roam the continent. PartyPoker officials explained the impact its competition had on the company’s first quarter bottom line: “Player yields in poker declined year-over-year due to increased competition, particularly from U.S. sites, prompting an increase in bonus rates that returned to 25% of gross revenue.”
Party Gaming’s casino revenue ballooned 25% in the first quarter of 2010 year-over-year to $51.2 million, although average daily revenue was down 9% versus the previous quarter. During Q1 2009, Party Gaming’s Bingo revenues were a lowly $1.0 million. One year later, that number jumped to $17.7 million. In the second half of 2009, Party Gaming acquired Cashcade, bolstering its Bingo presence. Finally, in the world of sports betting, revenues shot up 58% to $7.1 million. Average daily revenue from sports betting climbed 55% to $78,400.
In its revenue release, Party Gaming officials also revealed that the Aviation Club de France would be brought onboard the company’s French poker network: ”In a separate announcement made today, we are delighted to announce details of a further B2B deal in France with the addition of Aviation Club de France that will join our French poker network, which we plan to launch as soon as the new regulations allow.” The storied Aviation Club, which sits on the Champs-Elysées in Paris, is in the midst of hosting Day 1 of the World Poker Tour’s (WPT) Grand Prix de Paris.
Last November, stockholders of Party Gaming approved a $12.3 million purchase of the WPT, shunning a last-minute $36.5 million offer by Mandalay Media. Coupled with the inking of a non-prosecution agreement with the U.S. Department of Justice, Party Gaming appears poised to re-enter the U.S. market in strong fashion should internet gambling be legalized. In the meantime, the industry is bracing for the June 1st financial services industry compliance deadline with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA).
Party Gaming is traded on the London Stock Exchange under the symbol “PRTY.” It closed Friday’s trading at 258.00 pence, down 16.00 pence on the day, or nearly 6%. On March 12th, the company’s stock had climbed as high as 334.5 pence before undergoing a severe correction along with the rest of the market. Worldwide stock exchanges were hit hard last week after concerns about Greece’s debt mounted. On Thursday, the Dow Jones Industrial Average, which is housed in New York City, fell over 1,000 points at one point, or nearly 10%, before rebounding.
Party Gaming plans to stop accepting casino and Bingo action from France, which accounted for $3.1 million of its Q1 2010 revenue. The company has cash on hand of $228.3 million and is due $24.0 million from payment processors.
PartyPoker’s team of sponsored pros includes Poker Hall of Fame member Mike Sexton, “High Stakes Poker” hostess Kara Scott, and self-proclaimed bad boy Tony G.
Tags: 2009, 2010, european, full tilt poker, high stakes, kara scott, legal, Online Poker, pokerstars
