Poker News

PPA: Christmas Miracle Needed for Harry Reid Online Poker Bill

On Friday, Poker Players Alliance (PPA) Executive Director John Pappas appeared on Bloomberg Television to discuss the bill legalizing and regulating online poker introduced by U.S. Senate Majority Leader Harry Reid (D-NV). On the likelihood of a bill passing before the current Congressional session expires, Pappas candidly told Bloomberg viewers, “It would really have to take a Christmas miracle at this point.” Watch now.

The four-minute segment, dubbed “The High Stakes of Internet Poker,” hit television airwaves at 11:45am ET on Friday. Pappas admitted that the window for legalized internet poker was quickly closing: “Unfortunately, I think Congress is missing an opportunity to get this done and get it done sooner than later. I think next year is really our next best venue. The vehicles this year just didn’t add up to get a bill done and there was really no way to get the bill as a standalone measure any time in the last week or so. I just don’t think there’s any way it’s going to happen now.”

Reid may have been close to adding the online poker language to the tax relief act, which was signed into law by U.S. President Barack Obama yesterday. Despite an early report from The Hill claiming that the “lame duck” Congressional session would expire on Friday, Congress was still going strong at the time of writing tackling the topic of gays in the military.

In 2011, the House of Representatives will switch to Republican control, causing pro-internet gambling members of Congress like Barney Frank (D-MA) to lose their positions of power. Frank is the Chairman of the Financial Services Committee, but Pappas expressed optimism that online poker won’t be lost in the fray: “I don’t know how any member of Congress – Republican or Democrat – can be happy with the status quo. They passed a bill in 2006 that tried to prohibit internet gambling, but it’s grown. Millions of Americans continue to play online poker and they’re doing it without any of the protections the Federal Government could provide.”

On Friday, an article by the Associated Press revealed that unemployment rates in 21 states rose month-over-month, the largest number in four months. Accordingly, Pappas told Bloomberg viewers that legalizing online poker isn’t just about generating revenue for the Federal and State Governments, it’s also about creating jobs: “The bills that have been introduced would mandate that these companies establish a presence here in the U.S. These are high-tech, high-paying jobs that internet gaming companies generate. It’s not cocktail waitresses at a casino. These are really high-tech jobs, from software security to software development as well as customer service.”

Any bill not acted upon by the end of the Congressional session is deemed dead. Besides Reid’s bill, Frank’s HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, will also fall by the wayside when the new Congress is seated in January. HR 2267 would have created a licensing and regulatory framework for the internet gambling industry sans sports betting. The Financial Services Committee approved the measure by a 2:1 margin in July, but it has not been discussed since.

On Thursday, Pappas told Poker News Daily that Reid’s bill was effectively dead. Stay tuned to PND for the latest legislative headlines.

December 17th – Weekly News Update

Welcome back to another edition of our Weekly News Update. I’m your host, Sean Gibson, and we’ll be talking about the biggest headlines for the week. Let’s get to the news!

On Thursday morning, Poker Players Alliance Executive Director John Pappas told Poker News Daily that the bill introduced by U.S. Senate Majority Leader Harry Reid legalizing and regulating online poker is dead. A move to add the bill’s language to the tax relief act debated in Congress this week failed to come to fruition.

Pappas told Poker News Daily that a highly charged debate over the tax bill was largely to blame:

“When the tax package fell through and things became much more political for it – not related to our bill – it became clear that another controversial addition to the tax bill could sink it.”

Reid’s bill would have opened the online poker market in the United States to current operators like Caesars Entertainment, which owns the rights to the annual World Series of Poker. Pappas added that hope is not lost:

“The online poker bill that was floating around needs some improvement, so the PPA wants to go back to Senator Reid [in 2011] and talk about how we can improve on his current draft. There’s going to be a renewed focus in the Senate and we’ll be taking some of the legislation in a different direction so that’s it not focused on the Financial Services Committee, where we have a known opponent.”

Party Gaming co-founder Anurag Dikshit, who admitted to violating the Wire Act of Nineteen Sixty-One two years ago, was sentenced to one year of probation by a New York court on Thursday, according to Forbes. He has also coughed up three hundred million dollars and agreed to cooperate in an ongoing Federal investigation.

U.S. District Court Judge Jed Rakoff determined Dikshit’s fate on Thursday and the possibility of two years behind bars hung in the balance. In the end, Rakoff told the court, “I am persuaded that no jail time is appropriate here.”

Dikshit’s admission marked one of the first times that online poker has ever been associated with the Wire Act, which has traditionally applied to sports betting. In October Two Thousand Nine, Dikshit sold his remaining shares in Party Gaming for around two hundred million British Pounds, which amounted to a twenty eight percent stake.

Party Gaming vacated the U.S. market in 2006 after the passage of the Unlawful Internet Gambling Enforcement Act. The publicly traded company has since inked a non-prosecution agreement with the United States Government and forked over a one hundred five million dollar fine.

Last week, PokerStars announced that the mysterious high-stakes phenom Isildur1 had signed on to become the latest member of Team PokerStars Pro. At the same time, a new promotion, the SuperStar Showdown, was launched, allowing all comers to take on Isildur1 in a nosebleed stakes heads-up match. On Tuesday, Isildur1?s first opponent was revealed.
This Sunday at Six PM Eastern Time, Isaac Haxton will put one hundred fifty thousand dollars on the line as he takes on Isildur1 at four tables of Fifty / One Hundred No Limit Hold’em. Haxton is well known throughout the poker community and, in addition to his cash game success, has put together an impressive record on the live tournament circuit.

The matches will last either twenty five hundred hands or until one of the players goes bust, whichever happens first, and the winner is the player who ends up with the most money. Anyone who is willing to pony up fifteen hundred big blinds can issue a challenge to Isildur1 by e-mailing PokerStars.

Full Tilt Poker pro Jonathan “xMONSTERxDONGx” Karamalikis bested a field of two hundred eighty nine players to win the Asia Pacific Poker Tour Grand Final in Sydney, Australia last weekend. The twenty two year old online superstar from Adelaide earned four hundred fifty nine thousand Australian Dollars, his biggest score ever.

The star-studded final table included Team PokerStars Pro member Daniel Negreanu, live poker Triple Crown winner Roland de Wolfe, and former APPT champion Eddy Sabat. Negreanu, who took a short stack to the final table, was the first to exit after running top pair into de Wolfe’s set of threes. His ninth place finish earned him thirty-six thousand Australian Dollars. By the way, De Wolfe finished in eighth place.

Staying with the live tournament circuit, PokerStars announced details on Thursday for Season Four of the Latin American Poker Tour. The fourth LAPT season will begin in February and has five events on the schedule so far, including stops in Brazil, Peru, Argentina, Chile, and Colombia.

The new LAPT Player of the Year awards will recognize excellent performances throughout the season. The awards, much like the PokerStars European Poker Tour awards, will be handed out at the end of the season based on results in not only Main Events, but also most of the side events. The EPT gives trophies yearly to the top overall player as well as the top Omaha player, Mixed Games player, heads-up player, and qualifier. There is also an award given to the country that performs the best during the season.

The first stop of Season Four will be in Sao Paulo. Here’s a look at the schedule so far:

February 16-20: Sao Paulo, Brazil (R$5,000 buy-in)
March 17-20: Vina Del Mar, Chile ($1,100 buy-in)
April 12-17: Lima, Peru ($2,500 buy-in)
June 1-5: Rosario, Argentina ($2,500 buy-in)
August 3-7: Bogota, Colombia ($1,100 buy-in)

Thanks for tuning in to the Poker News Daily Weekly Update and be sure to check back with us every day for the latest in poker news.

Poker Players Alliance: Harry Reid Bill Dead

On Thursday morning, Poker Players Alliance (PPA) Executive Director John Pappas told Poker News Daily that the bill introduced by U.S. Senate Majority Leader Harry Reid (D-NV) legalizing and regulating online poker is all but dead. A move to add the bill’s language to the tax relief act currently being debated in Congress failed to come to fruition.

Pappas told Poker News Daily that a highly charged debate over the tax measure was largely to blame: “When the tax package fell through and things became much more political for it – not related to our bill – it became clear that another controversial addition to the tax bill could sink it.” Reid’s bill would have opened the online poker market in the United States to current operators like Caesars Entertainment, which owns the rights to the annual World Series of Poker.

U.S. President Barack Obama struck a deal with Republicans on the contents of the tax relief act, which perhaps closed the door to other bills being added.

Now what? With the Republican Party taking control of the House of Representatives in 2011, pro-internet gambling allies like Congressman Barney Frank (D-MA) may take a back seat. Frank, whose HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, garnered 70 co-sponsors and sailed through the House Financial Services Committee in July, will likely lose his post as Chairman. In his stead could be staunch internet gambling opponent Spencer Bachus (R-AL), whom the PPA graded an “F” in its Congressional Ratings Guide.

Looking ahead to 2011, Pappas told Poker News Daily, “The online poker bill that was floating around needs some improvement, so the PPA wants to go back to Senator Reid and talk about how we can improve on his current draft. There’s going to be a renewed focus in the Senate and we’ll be taking some of the legislation in a different direction so that’s it not focused on the Financial Services Committee, where we have a known opponent.”

Two years ago, Bachus, the current Ranking Member of the committee, erroneously quoted a study from McGill University linking internet gambling to suicide. The Alabama lawmaker asserted in a June 2008 hearing, “McGill University found that one-third – one-third – of college students who gambled on the internet ultimately attempted suicide. That is why the rate of suicide on our college campuses has doubled in the last ten years.” In fact, no such study had ever taken place.

On Wednesday night, ESPN.com published an article declaring Reid’s bill dead. Pappas told the Connecticut-based news outlet, “Sadly, some politicians remain with their heads firmly in the sand. The leadership of the Poker Players Alliance got the debate this far and we are determined to see this through.” The Hill reported that the ongoing lame duck session on Capitol Hill is scheduled to end on Friday, although reports during the week have surfaced that lawmakers may remain in Washington, DC until close to Christmas.

Last weekend, adding language legalizing and regulating online poker to a must-pass omnibus spending bill appeared to be a possibility according to Bloomberg, but Pappas explained that adding another earmark would “make things more complicated.” The Senate approved the tax relief bill on Wednesday, with the House potentially set to follow suit this afternoon.

Pappas was scheduled to tape a segment about the online poker bill with Bloomberg that will air on Friday at 11:45am ET. Pappas will speak on behalf of the 1.2 million member strong lobbying group that has become the main voice for poker players in the United States. Four years ago, the PPA stood at just 50,000 members.

Reid’s bill won’t officially be dead until the clock strikes Midnight on the 111th Congress. Pappas concluded with a silver lining: “We always knew we had a chance to pass legislation during the lame duck session, but it fell short. But, I think there’s significant momentum going forward. We’ve done a good job of convincing lawmakers that the status quo isn’t acceptable.”

Keep it tuned to Poker News Daily for the latest developments from Capitol Hill.

Harry Reid Online Poker Legislation May Be Added to Spending Package

According to an article published by Bloomberg sourcing the Washington Post newspaper, U.S. Senate Majority Leader Harry Reid (D-NV) may add a measure legalizing online poker to “a spending package or other must-pass legislation before Congress adjourns for the year.” Online poker was not part of a draft of the tax relief bill released last week.

Also last week, Reid released a statement that read in part, “Experienced regulators already trusted by millions of Americans will maintain oversight and reputable operators with proven track records will provide a secure gaming environment for Americans.” However, critics of the bill have called Reid out for placating to two of his largest campaign contributors, Caesars Entertainment (formerly Harrah’s Entertainment) and MGM Resorts International. The former owns the rights to the annual World Series of Poker held at the Rio.

According to the Associated Press, the American Gaming Association came out in support of Reid’s efforts on Friday. American Gaming Association head Frank Fahrenkopf asserted, “Current online gambling laws do not provide these safeguards, leaving players and the system open to fraud, cheating and other illegal acts.” The ongoing lame duck session in Congress will likely come to an end next Friday, which means that Reid’s window to turn online poker legalization into a reality is quickly closing.

On why Reid has been focusing on online poker as opposed to other forms of gambling, the Associated Press quoted the Senate Majority Leader as saying, “I still have serious concerns about legalizing the broad range of casino-type gambling through the internet. The bill I am working on would make other types of internet gambling clearly illegal, while increasing penalties and strengthening the ability of law enforcement to shut down illegal sites.” It remains unclear whether other games would be legalized in the future.

On Thursday, the Poker Players Alliance (PPA), the main lobbying group for poker players in the United States, sent an e-mail blast to its members updating the developments on Capitol Hill. The PPA explained, “While many have speculated that the ‘Tax Bill’ would be a likely vehicle for iPoker legislation, because of recent political developments with respect to the tax bill, it has become complicated to predict whether that bill is a viable path.”

Stay tuned to Poker News Daily for the latest developments.

December 19th – Weekly Update

Welcome back to the Poker News Daily Weekly update where we highlight the biggest stories in the world of poker. I’m your host, Sean Gibson, and let’s get to the news.

Well, It’s shaping up to be an interesting last few days of the current Congressional session for members of the online poker community. On Tuesday, Politico published an article revealing that U.S. Senate Majority Leader Harry Reid was attempting to add a bill legalizing online poker to the measure extending tax cuts.

Politico confirmed Reid’s desires with Senator Orrin Hatch. Senator Jon Kyl, one of the masterminds of the original UIGEA, would not allow the plan to come to fruition. Kyl told Politico,

“[There is] zero chance – no chance whatsoever that would be part of the tax deal. I don’t think it would be the right thing to do.”

We’ll keep you posted on this constantly changing story.

Nearly leading the tournament wire-to-wire, Antonio Esfandiari took down the Five Diamond World Poker Classic, a stop on the World Poker Tour. Esfandiari, a Victory Poker pro, banked eight hundred seventy thousand dollars for his efforts. The tournament can be seen as part of Season Nine of the WPT on Fox Sports Net next year.

Esfandiari edged out fellow Victory Poker pro Andrew Robl heads-up when “The Magician’s” King Jack held against Robl’s Queen Ten on the final hand. Here’s how the final group of six cashed out in the ten thousand dollar buy-in tournament:

1. Antonio Esfandiari – $870,124
2. Andrew “good2cu” Robl – $549,003
3. Vanessa Rousso – $358,964
4. John Racener – $232,271
5. Kirk Morrison – $168,924
6. Ted Lawson – $126,693

Earlier this week, PokerStars took the unexpected step of signing Isildur1. The Swede gained fame by multi-tabling against the world’s best players including Phil Ivey, Patrik Antonius, and Tom Dwan. The signing is atypical for PokerStars, which usually aims to ink established pros who have had a ton of television face time. This time around, they’ve gone with a player without an identity who has yet to play on TV.

As part of his sponsorship deal, Isildur1 will be taking part in high-stakes heads-up SuperStar Showdown matches exclusively played at PokerStars. These matches are feature a format of twenty five hundred hands at stakes no lower than fifty, one hundred. The official word from PokerStars is that these SuperStar Showdown matches will be played either as No Limit Hold’em or Pot Limit Omaha.

Poker News Daily polled the online poker industry to see what reaction several pros had to Isildur1’s signing. CardRunners founder Taylor Caby had this to say:

“I’m definitely excited to see Isildur1 back in the spotlight. As a poker fan, I’ve enjoyed watching him play and I’ll be on the rail when he starts playing again.”

Jay Rosenkrantz, founder of DeucesCracked said:

“Seems like a good move for PokerStars, creating a bit of a distraction too amidst all these legislative happenings. Watching Isildur1 play nosebleeds was better entertainment than anything on television and if they can create that kind of spectacle again, I’m sure it will be a good thing for their business and for poker.”

Unleashed Poker is handing out presents to all of its players this holiday season. Players on the site will have the opportunity to earn numerous prizes as part of Unleashed Poker’s Christmas Giveaways. From now until December Twenty-First, players can pick up exclusive Unleashed Poker swag along with high-end electronics. For those partial to Apple products, iPod Shuffles, iPod Touches, and iPads will be given away.

Players on the virtual felts at Unleashed Poker will earn Frequent Player Points, which can be used for the Christmas Giveaway prizes. Unleashed Poker will give out one FPP for each dollar raked at the tables and every prize has an associated FPP level. Unleashed Poker makes its home on the USA-friendly Cake Poker Network.

Actress Cheryl Hines of “Curb Your Enthusiasm” and former World Series of Poker Main Event champ Joe Cada will host the third annual All In For Cerebral Palsy celebrity charity poker tournament at the Venetian’s poker room on Saturday. Proceeds from the event will benefit the One Step Closer Foundation, a non-profit organization whose main goal is to ease the lives of those who suffer from cerebral palsy through financial freedom and social acceptance.

The No Limit Hold’em charity tournament will have a five hundred forty dollar buy-in with unlimited two hundred dollar rebuys for ninety minutes. Half of the prize pool will go for the tournament’s payouts, with the other half going to the foundation. There will also be sports and Hollywood memorabilia available through auctions and an after-party with free drinks courtesy of the One Step Closer Foundation. Players can register at the Venetian Poker Room cage until the end of the rebuy period.

Finally, Full Tilt Poker released a software update on Monday that addressed many of its customers’ requests. Among the new features to the software were an “Auto Add-On” button for rebuys and a “Quick Fold to Any Bet” option for Rush Poker players.

The “Auto Add-On” button was probably the most asked-for feature that Full Tilt’s software was missing up until this latest upgrade. After PokerStars inserted a clickable “Auto Add-On” box for its rebuy tournaments in June of last year, Full Tilt players requested the same. It took well over a year, but the site came through for its multi-tablers who were frustrated about forgetting to add on after the rebuy hour. Full Tilt happily accepts players from the United States.

Well, that does it for a very busy and exciting week in the world of poker. Be sure to stay tuned in to Poker News Daily for the absolute latest in poker news and be sure to follow us at twitter dot com slash poker news daily. I’m Sean Gibson, thanking you for watching and wishing you a sick run this weekend at the tables!

Online Poker May Not Be Included in Tax Relief Bill

According to a Politico article released on Thursday, U.S. Senate Majority Leader Harry Reid (D-NV) still plans to pursue legislation legalizing and regulating online poker, but likely won’t do so as part of the tax relief bill.

The Politico piece noted that language legalizing online poker was absent from a version of the tax bill released on Thursday. The news outlet explained, “Reid could still insert the poker legalization into the tax cut bill if additional modifications are made before a final vote is cast sometime next week. Or he could slip the plan into a mammoth $1 trillion omnibus spending bill that has yet to be unveiled, but is necessary to keep the government funded through September. Any option is certain to generate backlash from the GOP.”

The Las Vegas Sun reported earlier this week that Reid’s online poker bill was all but dead, but quickly retracted the story after the Senate Majority Leader’s comments were taken out of context. However, it appears that the legislation is still alive, at least until next week’s scheduled end to the lame duck session. Reid issued a press statement on Thursday that read in part, “The legislation I am working on would get our collective heads out of the sand and create a strict regulatory environment to protect U.S. consumers, prevent underage gambling, and respect the decisions of states that don’t allow gambling.”

Also commenting on the bill on Thursday was the Poker Players Alliance (PPA), which addressed the 15-month blackout period in an e-mail sent to members: “Frankly, the proposed blackout period is absurd and the PPA opposes it. And we have fought – and continue to fight – tooth and nail against it. But it is a reality. There will likely be a blackout period of some length included in any legislation that is passed.” During the period, no online poker sites would be able to service the U.S. market legally.

The PPA reminded readers that a period of 15 months without legalized online poker may be more beneficial than continued industry decline: “We believe that the trade off for getting regulated, permanent U.S. online poker market is worth a temporary blackout of some sort. It’s not what we want, either, and it’s not what we pushed for in Congress, and we don’t even like it. But when viewing this from the perspective of maintaining a sustainable internet poker market, the 15-month period is short-term pain for a long-term gain.”

After the 15-month blackout period, existing casino companies in the United States would be able to procure licenses. Then, after two more years, other companies would be able to service the market. Posters on PocketFives.com, however, questioned what the lay of the land will be during the 15-month period: “There would just be too much money to be made serving the U.S. market if the likes of PokerStars and Full Tilt pull out for 15 months. Some of these current second and third tier sites could make a vast fortune in 15 months.”

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

Vote on New Jersey Internet Gambling Bill Coming Next Week

The internet gambling industry will start next week off on the right foot if all goes as planned. On Thursday, the New Jersey Assembly Regulatory Oversight and Gaming Committee sent a bill legalizing internet versions of brick-and-mortar games to the full Assembly. On Monday, the legislative body will likely vote on the measure, which is sponsored by State Senator Raymond Lesniak.

Hard at work in the East Coast state pushing Lesniak’s legislation along is the Interactive Media Entertainment and Gaming Association (iMEGA), whose Chairman, Joe Brennan, told Poker News Daily just moments after the committee vote that other states could potentially follow New Jersey’s lead. “That’s been our intention from the beginning,” Brennan revealed. “We focused on New Jersey because of the interest of the legislature. We did not cold call New Jersey, either; we were invited to work with them on this.”

As to whether the expansion of internet gambling in New Jersey could violate Federal law in any way, an article that appeared on NorthJersey.com quoted Lesniak as saying that “by allowing online gaming only for New Jersey residents within New Jersey state lines, the state would not run afoul of federal restrictions on such gambling. He also said that an economic analysis showed that internet gambling would produce $210 million to $250 million in annual gross revenues.”

Lesniak’s bill would create the first intrastate internet gambling model in the United States, which could then be mirrored around the North American country. With legislation on a Federal level introduced by Barney Frank (D-MA) and Harry Reid (D-NV) still in limbo and the movement potentially stunted in 2011 with a Republican-controlled House of Representatives, state-by-state legalization of internet gambling may be in the cards.

Brennan told PocketFives.com that he expects Lesniak’s internet gambling measure to pass with flying colors next week: “We expect it to pass. We expect it to have pretty strong support, if not overwhelming support.” The NorthJersey.com article added that up to $30 million in annual tax revenue could be generated by legalizing web versions of land-based games. These funds would be used in part to fuel horse racing purses in the northern part of the state.

It was not clear whether debate on Lesniak’s bill would take place on Monday prior to a vote. If approved, according to Brennan, the legislation could also serve as a way to grow the technological sector of New Jersey’s economy: “This is a good way to segue into the investments that South Jersey needs to make to enjoy some of the high-tech industries that the rest of the state is home to.”

New Jersey features horse racing tracks spread across the northern part of the state and Atlantic City casinos entrenched in the south. Expansion of gambling in Pennsylvania, Delaware, and other neighboring states has been slowly eating into revenues, leading to Lesniak’s bill.

Stay tuned to Poker News Daily for the latest developments from the Garden State.

Harry Reid Drops Push for Online Poker Legislation

In breaking news from Washington, DC, Senate Majority Leader Harry Reid (D-NV) has dropped his push for legislation to legalize and regulate online poker in the United States, according to the Las Vegas Sun newspaper.

The Sun explained in an article published just before 5:00pm ET on Wednesday, “Senate Majority Leader Harry Reid told the Las Vegas Sun after a press conference this afternoon that despite a flurry of last-minute lobbying, he would not be adding legalization of online poker to his list of objectives during the lame duck. ‘We’re still working on that, we’re not able to,’ Reid said.” The lame duck session is likely to end next Friday, according to The Hill.

The Sun continued by explaining that the road to legalizing and regulating online poker was a long one in the first place: “Lobbyists for the industry speculated that lawmakers might include the legalization as part of the tax extensions package being batted between Senate Democrats, Republicans, and the White House, and is expected to come up on the Senate floor sometime later this week.”

The Poker Players Alliance (PPA) commented, “No bill is dead until Congress adjourns” in the organization’s Twitter feed, in response to several reporters’ questions.

With U.S. President Barack Obama forging an agreement on the tax relief bill with Republicans this week, the likelihood of Reid being able to squeeze online poker legislation onto the measure appeared to be thin. Meanwhile, the U.S. Senate was forging a debate on the controversial “Don’t ask, don’t tell” policy today, with the window of time until the lame duck session ends quickly vanishing.

The status quo in the industry appears to be intact for the foreseeable future. However, according to a press release distributed by the Poker Players Alliance (PPA) on Monday, “The status quo is not tenable and legislation is needed to clarify and correct current laws and provide a regulated U.S. marketplace for players. Failing a Federal legislative solution, the future of internet poker remains unpredictable. However, a regulated market that offers competition, consumer protections, and clarity will undoubtedly provide the greatest benefit for the players and long-term stability to the internet poker experience.”

The online poker and internet gambling industries in the United States will now await a possible vote by the New Jersey Assembly next week on State Senator Raymond Lesniak’s measure to create the first intrastate internet gambling framework. The bill, which allows online poker and web-based versions of other brick-and-mortar casino games, may be the blueprint that other jurisdictions interested in legalizing internet gambling will follow.

Read the entire Las Vegas Sun article. The lame duck session is likely to end next Friday, so we’ll learn the ultimate fate of Reid’s bill shortly. Keep it tuned to Poker News Daily for the latest developments from Capitol Hill, New Jersey, and beyond.

Harry Reid Online Poker Legislation May Be Added to Tax Relief Bill

It’s shaping up to be an interesting last 10 days of the current Congressional session for members of the online poker community. On Tuesday, Politico published an article revealing that U.S. Senate Majority Leader Harry Reid (D-NV) was attempting to add a bill legalizing online poker to the measure extending tax cuts. Read the article.

Politico confirmed Reid’s desires with Senator Orrin Hatch (R-UT). Hatch told the political news outlet, “They’re trying. Sen. Reid would like to do that.” Despite Hatch’s confirmation that Reid was attempting to add an online poker rider to the tax bill, Senator Jon Kyl (R-AZ), one of the masterminds of the original Unlawful Internet Gambling Enforcement Act (UIGEA), would not allow the plan to come to fruition. Kyl told Politico, “[There is] zero chance – no chance whatsoever that would be part of the tax deal. I don’t think it would be the right thing to do.”

Further complicating the matter is an agreement reached between U.S. President Barack Obama and Congressional Republicans. Whether Reid will be able to inject a measure that many consider to be a favor for Caesars Entertainment (formerly Harrah’s Entertainment) and MGM Resorts International, two of his biggest financial supporters, remains to be seen. One Congressional staff member told Politico, “You could call him ‘Harrah Reid’ at this point.”

Also coming out against Reid’s online poker legislation is the National Indian Gaming Association, which told Politico on Tuesday, “[The bill] is drafted to create an initial regulatory monopoly for Nevada and New Jersey for the first several years, which gives Las Vegas operators time to capture the market.” Several draft versions of the bill show that the U.S. market would only be open to existing land-based casino companies for the first two years. Then, other gambling outfits could join the fray and offer online poker.

Not optimistic about the chances of Reid’s legislation passing was Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan, who told Poker News Daily on Wednesday, “Based on reports, it seems highly unlikely given the tax deal cut by President Obama that Senator Reid will have the leverage necessary to include this bill as part of the tax relief package.”

The Politico article was referenced in a barrage of stories on Wednesday, including one that appeared in the Huffington Post. Meanwhile, Capitol Weekly sourced a draft of the bill as saying, “The provisions of this title shall supersede any provisions of the law of any state or tribe relating to internet gambling facilities, including internet poker facilities.” In essence, according to Capitol Weekly, “Reid’s bill would throw a monkey wrench into an effort by the Morongo Band of Mission Indians to push forward a tribe-run internet poker franchise in California.”

Language in Reid’s bill, a draft of which appeared on Politico’s website and clocked in at 157 pages, read in part, “A new market should be limited, at least initially, to service providers that have an established track record of complying with a strict regulatory environment, have an established track record of providing fair games to consumers, and have significant goodwill and assets at stake, in addition to their internet poker assets, to ensure they would comply strictly with the new regulatory regime.”

The text also mandates, “No qualified body may issue a license under this title before the date that is 15 months after the date of the enactment of this Act.” What would happen to the online poker industry in the United States during so-called the 15-month “blackout period” is not clear. Posters on forums like TwoPlusTwo and PocketFives.com, however, have been up in arms over the 15-month restriction.

According to The Hill, the “lame duck” Congressional session will wrap up next Friday.

Harry Reid Online Poker Bill Receives Mainstream Media Attention

This week, word circulated around the Web that Senate Majority Leader Harry Reid (D-NV) was set to introduce a bill legalizing and regulating online poker in the United States. From the Associated Press to the Wall Street Journal, the Internet Poker Act of 2010 gained a considerable amount of mainstream media attention. Read more.

Among those media outlets to take a jab at Reid was the Huffington Post. An article posted on Friday read in part, “So many priorities, and so little seriousness. And now you find out that during this very tiny window to act, Senate Majority Leader Harry Reid has asked his staff to work on a bill that would legalize online poker. What the what, now?” The Huffington Post pointed out that only licensed brick-and-mortar gaming establishments would be able to provide internet poker for the first two years under Reid’s measure.

Even a blog on the website of Time Magazine tackled the online poker story. The Time Magazine entry pointed out how the Unlawful Internet Gambling Enforcement Act (UIGEA) was passed during the final moments of the 2006 Congressional session. It added, “It would be interesting to see whether the measure would resonate with the GOP’s libertarian wing – which should ideologically support a measure that gives citizens the freedom to gamble online – or others open to the idea of using additional sin taxes to help close yawning state and federal budget gaps.”

Appearing on the front page of Yahoo late Friday night was an Associated Press piece that pointed out several of Reid’s major campaign contributors: “MGM Resorts International, through its employees and political action committee, donated $192,000 to his campaign, the most of any single company, according to the Center for Responsive Politics. Meanwhile, employees and the PAC at Harrah’s Entertainment chipped in an additional $83,100. Harrah’s recently changed its name to Caesars Entertainment Corp.”

The cavalcade of articles included a Bloomberg piece affectionately entitled “Senate Accused of Secret Plan to Legalize U.S. Online Gambling.” The article appeared on Thursday following the release of a letter submitted by three Republican lawmakers: Spencer Bachus (R-AL), Dave Camp (R-MI), and Lamar Smith (R-TX). The letter, which was targeted at the pending Web poker legislation, read in part, “Creating a federal right to gamble that has never existed in our country’s history and imposing an unprecedented new tax regime on such activity require careful deliberation, not backroom deals.”

Poker News Daily received a copy of the 57-page bill, which states that existing online poker sites cannot sell their “assets” to a licensed outfit. In essence, it appears that sites servicing the market like PokerStars and Full Tilt Poker could essentially be shut out for two years. Then, the bill explains, “After two years from the date of first license… the Secretary may issue regulations expanding the range of licensees beyond those listed… if the Secretary makes a determination.”

We’ll keep you posted right here on Poker News Daily. In the meantime, check out a draft of Reid’s Internet Poker Act of 2010.

Internet Gambling’s Deficit Reduction Benefits Emphasized

On Monday, the “lame duck” session of Congress kicked off in Washington, DC. The period may mark one last hoorah for the internet gambling industry in the United States, which will see a Republican-led House of Representatives convene in January. Also this week, the Safe and Secure Internet Gambling Initiative has been touting the budgetary effects of legalizing and regulating our industry.

Information distributed by the Initiative on Tuesday explained, “A bi-partisan commission created by President Obama is currently working on a plan to help balance our nation’s budget – projected at $1.42 trillion for fiscal year 2009.  Their recommendations, due to be released by December 1st, 2010, are being crafted in part based on testimony provided by various experts and interest groups.” Licensed internet gambling, according to projections, could bring over $40 billion in much-needed tax revenue over a ten-year period.

The Initiative is asking concerned online poker players and internet gamblers alike to send an e-mail to the National Commission on Fiscal Responsibility and Reform at commission@fc.eop.gov. The bipartisan commission is tasked with creating ways to address the budget deficit, and internet gambling may be part of the solution.

Former Wyoming Senator Alan Simpson and President Bill Clinton’s Chief of Staff Erskine Bowles serve as the Co-Chairmen of the Commission, whose roster also includes six Democratic lawmakers and six Republican lawmakers. Honeywell International CEO David Cote, former Young and Rubicam Brands CEO Ann Fudge, Service Employees International Union President Andrew Stern, and former Office of Management and Budget Director Alice Rivlin also comprise the eclectic group.

Safe and Secure Internet Gambling Initiative spokesperson Michael Waxman told Poker News Daily on Wednesday, “While the Deficit Commission has many difficult decisions to make, putting to use the revenue generated through online gambling regulation should be a no-brainer.”

The Initiative has crafted a sample e-mail that can be accessed from its website that reads in part, “Given our nation’s economic challenges, it is time to replace a failed attempt at prohibition with a regulated environment that allows online gambling activity, protects consumers, and uses the much-needed new revenue generated to pay off our nation’s debt.” The letter trumpets legislation put forth by Congressmen Barney Frank (D-MA) and Jim McDermott (D-WA). Both will return to the next Congress in the New Year.

Frank’s legislation, HR 2267, has picked up 70 co-sponsors on both sides of the aisle and was rubber-stamped out of the House Financial Services Committee in July. Now, it awaits its time on the House floor. The Poker Players Alliance (PPA), Safe and Secure Internet Gambling Initiative, and other organizations have been pushing for the bill to be acted on during the “lame duck” session. The measure creates a full licensing and regulatory framework for internet gambling companies to solicit U.S. customers.

McDermott introduced HR 4976, the second incarnation of a tax companion bill to HR 2267, in April. The Washington lawmaker’s legislation allocates funds derived from licensed internet gambling to state governments as well as the Federal Government. It has not yet been passed out of the House Ways and Means Committee.

The Initiative’s sample e-mail notes that Americans continue to wager “$100 billion annually online in an underground marketplace” despite laws like the Unlawful Internet Gambling Enforcement Act (UIGEA), which was attached to an unrelated port security bill and passed in 2006. HR 2267 and its tax companion may ultimately be pushed through the current Congress in a similar manner and attached as “pay-for” bills to must-pass legislation.

The Initiative’s endorsers include the UC Group, Baker Tilly, eCOGRA, Secure Trading, the Remote Gambling Association, GamCare, and the European Gaming and Betting Association.

Full Tilt Beta Testing Rush Poker Mobile

According to an e-mail sent to Black Card members, Full Tilt Poker is searching for Beta testers for Rush Poker Mobile. The application, which is available for Android-powered phones, features both real money and play money Rush Poker tables. Supported phones include the Acer Liquid Stream S110, HTC Desire, HTC Droid Incredible, HTC Evo 4G, HTC Google Nexus One, HTC Desire HD, Motorola Droid 2, Motorola Droid Pro / Droid 2 World Edition, Motorola Droid X, and the T-Mobile G2.

On TwoPlusTwo, posters were buzzing about the prospects of playing real money online poker on their cell phones. One player with a background in the mobile phone industry cautioned that signal strength would play a large part in the success or failure of Rush Poker Mobile: “I think going to Rush first is a ballsy move – methinks you’ll need a strong signal to make this work. Even if it sucks in the short-term, bandwidth will improve and phones will improve to the point where mobile will not perform differently from the PC-based Full Tilt Poker.”

Among those test-driving Rush Poker Mobile was Leggo Poker instructor Brian “bw07507″ Wilber, who used his HTC Incredible running Droid 2.2 software to play. Wilber was asked to visit a web page to log in; then, the Rush Poker Mobile application launched. No app was stored on his phone and he was only able to open one Rush Poker table at a time.

Despite the limitations, a wealth of high-stakes Rush Poker options were available in the mobile platform and Wilber told Poker News Daily, “Sometimes you have to click the buttons a couple of times to get them to work, but I assume that is just the lag. The ‘Fold’ and ‘Call’ buttons do what they say and the ‘Raise’ to button brings up another prompt with a slider and ‘+’ and ‘-’ buttons where you can adjust the bet size and then click ‘Bet.’”

On the program’s performance, Wilber critiqued, “It seemed a little clumsy and often I couldn’t figure out what the bet size was because of the lag. However, it is easy to see everything you would want to know like players’ names, stack sizes, your cards, and the community cards.” Posters on TwoPlusTwo echoed Wilber’s overall enthusiasm for mobile gaming, with “KingKongGrinder” remarking, “Just played this morning on my Droid 2. I love it! FTP always comes out with something to keep me playing there.”

Absent from the testing process was Rush Poker Mobile for the iPhone. With Apple overseeing its App Store closely, the company may not allow real money poker games in the United States until legislation legalizing and regulating the industry is approved. A source close to Full Tilt Poker told Poker News Daily on Tuesday, “I don’t think we’ll see it available for the iPhone any time soon, certainly not this year.” Rush Poker Mobile is written in Flash, which Apple’s iPhone does not support.

Full Tilt plans to make Rush Poker Mobile available to anyone with a compatible phone, including residents of the United States. However, the same Full Tilt Poker source noted that users in France might not be able to take advantage of the site’s latest innovation.

Rush Poker rolled out in January on Full Tilt, the world’s second largest online poker site. Once a player’s action in a Rush Poker hand ends, they are whisked away to a new table with a new set of opponents where a new hand starts. Rush Poker allows for upwards of 300 hands per hour and assures minimum downtime at the tables.

Beta testing for Rush Poker Mobile is only open to Black Card members right now. Depending upon how many Black Card members test-drive it and their overall feedback, Full Tilt may open it up to other players. Our source at Full Tilt revealed, “If all goes well, we might be in open Beta within a month or so.”

PND Weekly News Update

Welcome to the Poker News Daily Weekly Update. I’m your host, Sean Gibson and you might notice that I’m wearing some CardRunners gear here. Well, this is me fulfilling my end of the bargain for my prop bet match against Cardrunners pro Taylor Caby. If you haven’t watched the match, check it out in our videos section!

Our lead story this week comes from PokerStars, who dealt its fifty billionth hand with a user by the name of “tbvle” able to parlay pocket queens into a massive payday. It was most assuredly his lucky day, as he played at a table with nickel big blinds and got a payout of fifty-six thousand dollars and a WCOOP Main Event seat. In total, the single hand awarded over seventy thousand dollars to six players plus thirty-one thousand dollars’ worth of WCOOP tickets. Not too shabby.

PokerStars pros like Jason Mercier, Lex Vehduis, and Ville Wahlbeck descended on the table to extend their heartfelt congratulations to the players involved. By the way, the WCOOP Main Event comes your way this Sunday on PokerStars. Don’t miss out!

Congressman Barney Frank was quoted in the Washington D.C. news outlet The Hill as saying that he’s not optimistic about legislation legalizing and regulating online poker passing before the November elections. Frank told The Hill that he “doesn’t have a commitment from House leadership officials that they would move the bill before the lame duck session.”

Therefore, HR 2267 may ultimately be attached to a piece of must-pass legislation in the lame duck session following elections. Safe and Secure Internet Gambling Initiative spokesperson Michael Waxman told The Hill, “The greatest odds for online gambling regulation legislation to be approved this year are for it to get done as part of a larger legislative package, primarily because of the opportunity to dedicate the considerable new revenue generated as an offset for another program or need…This is one of the few issues where broad support can be found on both sides of the aisle.”

Turning to live tournament news, Phil Laak, Jeffrey Lisandro, and Scott Shelley all took down bracelets in World Series of Poker Europe events in recent days. Shelly won a one thousand Pound No Limit Hold’em event and collected over one hundred thirty thousand Pounds. He bested a field of over five hundred players and outlasted J.P. Kelly heads-up. Kelly won the same tournament last year and fell oh-so-short in his title defense this time around. Kelly, who is twenty-four years old, was also gunning to become the youngest player to win three bracelets. The current record-holder in that department is Phil Ivey, who was twenty-six when he won his third gold bracelet.

California State Senator Rod Wright has been indicted on eight counts, including “false declaration of candidacy, voter fraud, and perjury beginning in two thousand seven, when he changed his voter registration to run for the legislature,” according to the Los Angeles Times. Officials allege that Wright did not live in the district he represented.

What’s the significance of Wright’s indictment for poker players? He has been one of the driving forces behind bringing intrastate online poker to California, which would be the first state to do so. California is facing a sizable budget deficit, leading to a search for new revenue. Wright introduced Senate Bill One-Four-Eight-Five to bring online poker to life and, as recently as September Third, the Poker Voters of America released amendments to further the bill’s chances of becoming law. Whether Wright will have to give up his California State Senate seat remains to be seen.

On Sunday, the PokerStars Million Dollar Challenge will continue its Season Two run. The first challenger of the new season was Jessica Cupini, a single mom attending West Virginia University who is an aspiring law school student. Cupini’s first round celebrity challenger was “Dancing with the Stars” host Brooke Burke. She easily dispatched of Burke before facing off against reigning WPT Championship winner David Williams.
Cupini ultimately defeated Williams and went on to face Daniel Negreanu heads-up for one hundred thousand dollars. However, she errantly bluffed all-in with Ace-Four on a board of Jack-Ten-Nine-Eight. Negreanu insta-called with Queen-Six for a straight and that was all she wrote for the show’s first challenger last weekend. You can catch the PokerStars Million Dollar Challenge before or after NFL football on Fox.

In an exclusive interview with Poker News Daily, Commerce Casino CEO HaigPapaian gave his take on Barney Frank’s HR 2267. Papaian clarified his casino’s position on the bill, telling us,

“We’re going to do everything we can to ensure it doesn’t become law. We’re not against online poker; we only want legalized online poker. We also have an issue with offshore companies coming in and taking over the industry. As President of the Commerce, I am part of a group of card clubs and tribes that are for poker-only bills in the state of California. For the [Poker Players Alliance] to say that we’re against online poker – that’s ridiculous.”

On Tuesday on ESPN, Phil “OMGClayAiken” Galfond took his seat at the feature table for Day Five of the World Series of Poker Main Event. At the start of the two one-hour episodes, five-hundred seventy-four players remained, including two former champs, Scotty Nguyen and Johnny Chan. The bust outs were fast and furious and included Jason Mercier, Adam Schoenfeld, Donny Mizrachi, and Steve Sanders.

Nguyen was crippled after running two pair into James Carroll’s boat. Then, the Poker Hall of Fame nominee committed the rest of his chips pre-flop with Ace-Jack of spades, but ran into pocket kings to bust in two hundred ninth. New episodes of the WSOP on ESPN air every Tuesday at Nine P-M Eastern Time.

Last, but certainly not least, the record books were re-written last weekend, as one thousand forty-two players turned out for the World Poker Tour’s Borgata Poker Open in Atlantic City. The four-figure attendance marked the largest WPT field ever assembled. Last year, the tournament, which sports a thirty-five hundred dollar buy-in, drew one thousand eighteen players, meaning that attendance this year was up two percent.

WPT commentator Mike Sexton made a deep run in the Borgata Poker Open, finishing twentieth for fifteen thousand dollars. Also making waves was John D’Agostino, who took fourteenth place for his first WPT in the money finish in three years. Welcome back, John!

Well that does it for this week’s top headlines here at Poker News Daily. Be sure to visit us every day for the latest poker news, interviews and features. Also be sure to add us to your twitter feed at twitter dot com slash poker news daily. I’m Sean Gibson, hoping one of our readers takes down that WCOOP Main Event! I’ll see you next time.

Poker Voters of America Weighs in on California Intrastate Online Poker

One of the organizations at the forefront of the movement to bring legalized intrastate online poker to states like California is the Poker Voters of America, or PVA. Recently, Poker News Daily caught up with PVA Executive Director Melanie Brenner to assess the odds of regulated gaming coming to the massive West Coast state.

Poker News Daily: Thanks for joining us. Tell us where we stand with regards to bringing intrastate online poker or internet gambling to California. We understand that State Senator Rod Wright had introduced SB 1485, but the bill stalled on its way to becoming law earlier this year.

Melanie Brenner: The California legislature’s session has ended, but we don’t have a budget yet, so they will be coming back to deal with those issues. When Senator Rod Wright had his hearing, it became clear that there wasn’t the broad support in California that we hoped there would be, so the PVA got actively involved in meeting with major stakeholders, listening to their concerns, and getting feedback.

The initial legislation from the year before, the Morongo bill, called for a single hub they were going to run. We met with them and said that there’s no way that California or any state would legislate to give a contract to one provider. It’s also not good for the game.

Based on meetings with the Morongo tribe, Southern California card rooms, and smaller Indian tribes, we came up with proposed amendments to Wright’s bill in the hopes that we can all get together in a meeting and see if we can come to an agreement.

PND: What were some of the proposed amendments to Wright’s bill? We understand that organizations like the Poker Players Alliance (PPA) took issue with the bill only calling for three internet gambling hubs.

Melanie Brenner: One of the very big issues for the tribes was the scope of the games. What they don’t want to see is this passed and then it becomes full online casino gaming. The amendment calls for non-banked games, which was language they were comfortable with.

One of the other amendments was about the number of hubs. It was initially at three hubs and we expanded it to five with 20-year contracts and reassessment after five years. The biggest addition was a mitigation fund. There’s a chance for everyone in California to make something. Part of the money the state collects is set aside and all tribes get a little piece of that.

PND: The Bicycle Casino, Hawaiian Gardens, Hollywood Park, and Commerce Casino have come out against HR 2267, Congressman Barney Frank’s bill legalizing and regulating online gambling in the United States on a Federal level. Give us your take on what the Southern California casinos are looking for.

Melanie Brenner: They are looking at how they play in this new arena. The reality that they are not going to own this has become very clear. It’s not good for the system and one of the things I cautioned them is that they’re trying to create a system that will fail. When we’re looking to pass this in other states, the last thing we need is a system that doesn’t work as a model. We’d oppose any legislation that provided a sole source contract.

PND: Talk about the importance of providing player protections online and how those differ from what’s found in brick-and-mortar casinos.

Melanie Brenner: A regulated system is going to give you better player protections than what we have now online and better than what you’d find in a land-based casino. If someone in a land-based casino tells a manger they got ripped off, what’s the method for following up? Online, the data is all there. You can go back, reevaluate, and see if there’s a problem. That’s a big selling point for us when we’re explaining this to people.

PND: What will be the first state in the Union to offer intrastate online poker?

Melanie Brenner: I’m still betting on California. I’m saying that because we have a budget deficit, the legislature has to come up with some revenue, and we’re one of the few sources out there. We’ve made big steps over the last six to eight weeks meting with big stakeholders in California to get them involved.

PND: Describe the tribal influence in the decision-making process in California.

Melanie Brenner: California has 91 card rooms and over 100 Indian tribes. We know we couldn’t pass this legislation without tribal support. If you look back to the Morongo tribe’s initial legislation, I was so excited that I was going to send them a case of champagne. The tribes were actually standing up and saying that they wanted this.

We are showing them a great way to increase revenues without a big capital outlay. In all of my presentations, I say that if you are a business today without an online component in your business plan, I strongly suggest you work on your exit strategy.

PND: News hit the industry this week that the Atlantis Internet Group is teaming with Indian tribes to bring a limited form of interstate online poker to life. Even though it’s on a very small scale, it has to be a monumental development.

Melanie Brenner: I love seeing things like that because it shows me that the mindset is moving to where people are figuring out how to incorporate the internet. However, the whole idea of playing online is that you’re playing at home. Why would I want to get dressed and go to a casino to play online? It’s good from a policy standpoint, but is it something that’s going to change the business? No.

Barney Frank Talks Online Poker on The Tonight Show

On Tuesday, Congressman Barney Frank (D-MA) appeared on “The Tonight Show with Jay Leno.” Seated onstage alongside reality television icon Kim Kardashian, Frank discussed, among other topics, the recent success of HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, in Committee. A lively debate with Leno ensued. Watch here.

The portion of Frank and Leno’s debate focusing on online poker and internet gambling spanned about four minutes. Frank opened the conversation by asserting, “If you have some guy who wants to play poker on the internet, we say it’s illegal… We could make billions of dollars a year by making it legal and taxing it.” The Federal Government could stand to rake in up to $42 billion over a 10-year period by legalizing and regulating the internet gambling industry in the United States.

Not everyone was onboard with Frank’s plan, including Leno, who argued, “Vegas works because you have to go to the desert to get there. You lose your money and you come home. You can’t go to the desert again until you get more money. If you’re sitting at home and you’re up late at night and you’ve got your little credit card, next thing you know, it’s like a mini bar.”

Leno began making a potato chip comparison, but Frank cut him off by noting that there are casinos everywhere in the country, not just Las Vegas. No desert surrounds Tunica or Atlantic City, for example. In addition, HR 2267 only allows for debit card and prepaid card payments as part of a Manager’s Amendment.

Leno then reminded Frank that residents of many states were sold the lottery because all of the money that would go toward schools. Now, educational institutions across the country are struggling despite the influx of cash. Frank explained, “The problems that teachers and others face in schools can’t always be solved by money… The fact that someone oversells an idea doesn’t make it a bad idea, it makes them a bad salesman.”

Frank continued by arguing, “If you want to hit somebody or you want to burn somebody’s house or steal somebody’s car, then I want to stop you because you’re doing it to somebody else. If you want to be foolish with your own money, if you want to gamble, if you want to drink, if you want to smoke, I will tell you it’s a bad idea, but I think it’s a mistake for the government to try to stop you.” Frank has routinely argued that adults should be able to do what they want within the privacy of their own home.

The conversation then quickly digressed from internet gambling, with Leno explaining that smoking marijuana is essentially legal because everyone does it. If you’re caught, it’s only a small slap on the wrist. Frank responded, “I don’t want to say to the cops, ‘We say it’s illegal, but wink at it and go after this one.’ There’s also an element of racial discrimination in the way it’s enforced.”

One amendment to HR 2267 outlawed advertising internet gambling sites to children. The topic of kids not being exposed to internet gambling came up on “The Tonight Show,” with Frank claiming, “I do agree you can limit this to kids and in fact we’ve done that. Joe Camel has disappeared. As a general rule, the government shouldn’t be trying to live people’s lives for them. You protect people from other people hurting them.”

Congress is currently on recess until September 13th. Its target adjournment is October 8th in advance of the general elections in the United States, meaning that the legislative body will have just 20 days to tackle the internet gambling issue. In all likelihood, a “Lame Duck” session will occur as well, giving HR 2267 one last chance. Stay tuned to Poker News Daily for the latest headlines from Capitol Hill.

August 30th – Daily Deal

Happy Monday to everyone! On today’s Daily Deal, the Commerce Casino receives support from several of its competitors, Daniel Negreanu fires insults at Annie Duke, and an important figure in the Senate comes out in favor of online poker legislation. It’s all ahead… right now!

Hello, I’m Sean Gibson and welcome to the Daily Deal by Poker News Daily.

Let the battle lines be drawn. Several days after the Poker Players Alliance issued a petition to reverse the Commerce Casino’s stance against pro-internet gambling legislation in the United States, more casinos have come onboard to strike down the bill. In a letter issued to the press late Friday night from Commerce Casino Board members, it was revealed that the Bicycle Casino, Hawaiian Gardens, and Hollywood Park casinos also oppose Congressman Barney Frank’s HR 2267.

The press release claimed, “Californians wager an estimated thirteen point four billion dollars annually. That makes California the largest internet gaming market in the world, and without state legislation to protect it, critically-needed billions will be captured by offshore and out-of-state operators never to return.”

Why the Commerce Casino, Bike, or any other California casino wouldn’t just apply for a license under HR Two-Two-Six-Seven remains to be seen. PPA Executive Director John Pappas speculated in an exclusive interview with Poker News Daily, “They don’t want to compete with existing online operators or Harrah’s or Wynn or Google or anyone else who may get involved in internet gambling. They prefer to have their own fiefdom in California… A lot of lawmakers went out of their way to address their concerns via amendments, yet they still continue to oppose the bill.”

Moving over to another bitter dispute, in an interview with PokerPlayer, PokerStars pro Daniel Negreanu fired off what many have deemed inappropriate comments against Annie Duke. In an article entitled “The Evolution of Daniel Negreanu,” he was asked about the two-thousand ten World Series of Poker Ladies Event in which more than a dozen men played.

Negreanu voiced his disgust at the whole situation and then went on a tirade about Duke, who has never been an advocate of the tournament:

“What irked me is that this woman has the audacity on her website to call herself ‘the best female poker player in the world.’ So I’m like ‘how offensive are you, you f***ing c***? You want to say you’re speaking for women, yet you claim superiority over all of them.’”

Wow. Well … after afterwards Duke issued an open letter to PokerStars about the use of the c-word and the site ultimately responded, “PokerStars does not support the use of derogatory or hurtful language directed at any other player. While this was a personal matter between two players, we wish that better judgment had been used in the choice of words.”

Duke’s brother Howard Lederer and Tony G have been among those pros weighing in on the spat.

Finally, according to the Reno Gazette-Journal newspaper, U.S. Senate Majority Leader Harry Reid claimed he would support the legalization of online poker in the United States. Reid also stated he would not support any other form of online gaming, including sports betting.

Reid also won’t support anything that hurts Nevada jobs, but the Senate Majority Leader will play a huge role in whether online poker is legalized. No progress has been made on legalizing internet gambling or online poker in the Senate, so having Reid as an ally could go a long way.

That does it for today’s Daily Deal, be sure to check back every weekday for a new episode of this show. Also be sure to check back with Poker News Daily throughout your day to find out the latest in poker news. I’m Sean Gibson hoping you have an amazing week at the tables!

Poker Players Alliance Comments on Commerce Casino HR 2267 Stance

Recently, the Poker Players Alliance (PPA), the main lobbying force for the poker industry, launched a petition at PlayersBeforeProfits.com to reverse the Commerce Casino’s stance on critical internet gambling legislation. HR 2267, dubbed the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, was successfully marked up in the House Financial Services Committee last month and now waits for its time to be debated in Congress.

Nearly 7,000 players had signed the online petition at the time of writing and the PPA was shooting for 10,000. The push came as a result of an action alert sent by the PPA to its members and followed testimony in the House Financial Services Committee from the Commerce Casino’s Tom Malkasian. His testimony claimed in part that HR 2267 is “based on false revenue assumptions that would require removal of the right of any state or tribe to opt out of the bill in order to achieve the advertised tax revenue of $42 billion over ten years.”

Malkasian also highlighted that allowing illegal operators to receive licenses under HR 2267 equates to “locking in unprecedented market advantages that can undermine and destabilize the land-based casino gaming industry.” He also voiced concerns over HR 2267 conflicting with tribal compacts and allowing internet gambling sites to be located outside of the United States. The latter three concerns were each addressed during markup as part of a dozen amendments tacked onto the bill.

PPA Executive Director John Pappas told Poker News Daily, “They don’t want to compete with existing online operators or Harrah’s or Wynn or Google or anyone else who may get involved in internet gambling. They prefer to have their own fiefdom in California… A lot of lawmakers went out of their way to address their concerns via amendments, yet they still continue to oppose the bill.”

The PPA’s action alert merely called for players to contact the Commerce and express their disappointment with the casino’s stance towards the sweeping internet gambling legislation. Players took it upon themselves to suggest a boycott, which the PPA did not initially ask for. Pappas explained, “We felt that poker players can make those types of decisions on their own. We want to reserve a boycott and I don’t think it’s something we intended to call for. Should the Commerce continue to be obstinate, then we might revise our stance there.”

Pappas questioned why the Commerce wouldn’t be content to apply for a license under HR 2267 if the bill were to become law. The PPA’s main face speculated, “For a long time, they dominated the poker scene in California and they feel entitled to California’s online poker players’ money. Maybe they don’t feel that they’re as strong and won’t be able to compete.” On Friday night, Commerce Casino officials distributed a press release claiming support from the Bicycle Casino, Hawaiian Gardens Casino, and Hollywood Park Casino in opposition to Congressman Barney Frank’s bill.

As part of his House Financial Services Committee testimony, Malkasian likened legalizing internet gambling to legalizing marijuana, a comparison Pappas did not look kindly upon: “In essence, they’re calling the pro players endorsing sites drug dealers. That would offend me, especially when it comes from our purported friends. It wouldn’t have been shocking if it were from Focus on the Family or Congressman Bob Goodlatte, but when it’s coming from a supposed friend of poker because it doesn’t fit their business model, of course we’ll voice our concern.”

After an internal debate on the proper course of action, the PPA launched PlayersBeforeProfits.com. “We came to a decision after hearing from so many of our members,” Pappas told Poker News Daily. “We felt obligated to inform our members about it. Our goal is to get 10,000 signatures. We’ll go back to the Commerce and see if they’ve revaluated their position after we do.”

Stay tuned to Poker News Daily for the latest legislative developments.

August 25th – Daily Deal

Today’s Daily Deal comes form The Bicycle Casino, the home of the World Poker Tour‘s Legends of Poker event where the final table is being taped today. Our topics today include the PokerStars Big Game television show, Holland (otherwise known as The Netherlands) potentially legalizing online poker and Jungleman12 being the next participant in the DurrrrChallenge.

PokerStars Big Game has some amazing things going on this week. New cast this week and some big pots between Phil Hellmuth and Prahlad Friedman and between Eugene Katchalov and Dani Stern. There’s a huge pot between Hellmuth and Stern where Stern held pocket Kings and Hellmuth had pocket Queens. Fireworks during that hand to say the least. The PokerStars Big Game airs nightly on Fox and is PokerStars’ answer to GSN’s “High Stakes Poker”.

Holland Online Poker Legalization might be right around the corner. The story from Gaming Intelligence says the country’s Ministry of Justice created a special group called the Online Gaming Advisory Committee to look into the potential for expanding their current online gaming laws to include poker. The nation currently operates a state-run monopoly on online gaming, offering only sports betting and a national lottery through state-authorized sites. The findings from the Online Gaming Advisory Committee could affect the laws as they are currently written and enforced in the country.

Out last bit of news has to do with the Durrrr Challenge and the next competitor in Jungleman12. JungleMan12 says he shipped $500,000 to Phil Ivey for escrow, which is the amount of money he has to put up for the challenge in order to participate. Unlike the ongoing challenge between Patrik Antonius and Tom Dwan which has stretched for nearly two years, this challenge might just take a couple of weeks. There hasn’t been any action at the tables yet but we are expecting this new leg of the Durrrr Challenge to pick up potentially next week.

North Carolina Governor Debates Legalizing Video Poker

US One Step Closer to Legalizing Internet Gambling

Alfonse D’Amato Speaks Out On Regulating Online Poker

With the regulation of online poker a hot topic on Capitol Hill this week, Poker Players Alliance (PPA) chairman Alfonse D’Amato was eager to voice his opinion in support of poker players in the United States. In his piece titled, On poker, are politicians listening? on politico.com, D’Amato spoke out on subjects such as the taxation of online poker, the government acting on behalf of U.S. banks, and the intentions of our Founding Fathers.

D’Amato opened his editorial by mentioning the popularity of poker and the amount of support it has received following the implementation of the Unlawful Internet Gambling Enforcement Act (UIGEA). Said D’Amato, “Under the liberty and freedom section of the new GOP website America Speaking Out, more Americans voted to legalize Internet poker than weighed in on any other issue. That should come as no surprise. When President-elect Barack Obama solicited ideas on his new website, www.change.gov, legalizing Internet poker was one of the two top issues.”

Poker players around the country have rallied behind the PPA by calling, writing and e-mailing their State Representatives in order to have their rights protected. The PPA has even set up a pre-written letter to send to a person’s corresponding Congressman. In just a few minutes time a letter can be sent and your voice can be heard.

“It takes real passion to get people to take valuable time out of their day to log onto these websites, give up a portion of their privacy and cast their vote for an issue,” stressed D’Amato. “So it is extraordinary that making Internet poker legal consistently ranks as a top issue for the American people.”

A major problem that poker players have faced for the past couple years has been depositing and withdrawing their own money from online poker sites. Though D’Amato and fellow PPA chairman John Pappas have referred to the execution of the UIGEA as a “bump in the road,” players have seen their checks bounce and deposits have become nearly impossible to complete as online poker sites have tried desperately to weave around the forceful hand of the U.S. government.

“The fact that America has not already regulated Internet poker but has actually tried to prohibit it by deputizing U.S. banks to play the morality police is bizarre,” said D’Amato. “Proponents of the law say that it helps deter kids from playing poker in their bedrooms. But there is little evidence to suggest that this law has deterred kids from playing poker.

“In fact, playing Internet poker is still easy to do for just about everybody. Instead of playing in a more regulated industry, the law has created an environment where there is no federal oversight — because there are no U.S. companies to regulate.”

D’Amato, Pappas, and Rep. Barney Frank (House Financial Services Committee chairman) have also emphasized the tax benefits the country will receive from the regulation of online poker. With the country in turmoil over its trillion-dollar budget deficit, regulating and taxing online poker could provide some relief over the years.

Said D’Amato, “By refusing to regulate this industry, the federal government has also decided to refuse to tax it. That means that billions of dollars in potential tax revenue go uncollected. This is just about the only industry I know of that has basically begged to be taxed — only to be ignored by politicians who refuse to listen to the desires of the American people.”

Finally, D’Amato talked about where it all started in this country: liberty and freedom. D’Amato referenced the Founding Fathers in the conclusion of his article, saying, “The freedom to play poker is not one of the rights enumerated in the Bill of Rights. But when the Founding Fathers conceived of a new nation, they never dreamed that someday Congress would dream up a law to ban that particular freedom — especially when such a ban was so clearly against the wishes of the American people.”

The House Financial Services Committee hearing on the markup of HR 2267, a bill to provide for the licensing of Internet gambling activities by the Secretary of the Treasury, was originally scheduled for Tuesday but was postponed until Wednesday. It’s not too late to voice your opinion! Visit www.standupforpoker.com/ to send a letter to your State Representative.

Spencer Bachus Out as Ranking Member of Financial Services Committee?

According to an article that appeared in the Capitol Hill publication Politico on Wednesday, Congressman Spencer Bachus’ (R-AL) designation as the Ranking Member on the House Financial Services Committee may be in jeopardy. One Republican lawmaker told Politico, “Spencer is aware that he’s not in a strong position because he’s not a strong leader.”

Bachus has been a staunch opponent of internet gambling, at one point citing a non-existent study crafted by McGill University linking internet gambling to suicide. In a 2008 House Financial Services Committee hearing, Bachus told the assembled crowd, “Most significantly, [internet gambling] causes suicide. McGill University found that one-third – one-third – of college students who gambled on the internet ultimately attempted suicide. That is why the rate of suicide on our college campuses has doubled in the last ten years. Study after study has found that the most significant driver of that is addiction. The fastest-growing addiction is internet gambling.”

McGill Professor Jeffrey Derevensky, who was also on the Board of Governors of Youth Gambling International, told Poker News Daily at the time that no such study had ever taken place at the Canadian institution: “I am confident the Congressman doesn’t read research – he could not misinterpret this.” Bachus’ primary argument against legalizing and regulating internet gambling in the United States through bills like Frank’s HR 2267 has been that a 24-hour casino would become available in every home.

Possible replacements for Bachus, according to Politico, are Ed Royce (R-CA), Jeb Hensarling (R-TX), and Scott Garrett (R-NJ). As to why Bachus, who has been in Congress since 1993, would be a target of his own party, Politico speculates, “Many Republicans fear that Bachus lacks the chops to provide strong leadership on tough issues, and more activist Republicans most likely would push vigorous oversight of major financial legislation passed by the Democratic Congress — including the financial reform bill that President Barack Obama signed Wednesday.”

In Wednesday’s hearing on HR 2267, Bachus submitted an MSNBC story published in 2008 about “crimes” at Ultimate Bet. Bachus asked witness Annie Duke, who spoke on behalf of the Poker Players Alliance (PPA) if she was affiliated with the site. Duke responded that she was affiliated with UltimateBet.net and pointed out that the online poker room refunded millions of dollars to members who were affected by the Russ Hamilton-led cheating scandal.

Leadership changes in the House Financial Services Committee and elsewhere would be determined following November’s general elections in the United States. Bachus called out the Safe and Secure Internet Gambling Initiative (SSIGI) on multiple occasions on Wednesday, pointing out that the organization’s headquarters is a UPS drop box in Washington, DC. Bachus called the group a “large corporate interest protecting the bottom line at the expense of disruption of our youth and communities.” The SSIGI’s website lists its address as 1718 M Street NW, which, according to UPS’ site, is indeed one of its retail outlets.

Hensarling and Garrett both told Politico that they expected Bachus to resume his role as Ranking Member on the House Financial Services Committee in the next Congress. Bachus has not had a Democratic challenger to his Congressional seat since 1998, when the Alabama lawmaker bested Donna Smalley by a 72% to 28% margin. Bachus comes to Washington representing Alabama’s Sixth Congressional District, which includes many of the areas around Birmingham.

Next Tuesday, July 27th, the House Financial Services Committee will mark up Frank’s HR 2267. The bill is one of six to be marked up, although the order in which the measures will be addressed, according to a Financial Services Committee staff member, is up to Frank.

Read the entire Politico article.

Financial Services Committee Hearing Features Annie Duke

Wednesday’s hearing on internet gambling in the House Financial Services Committee has been pushed back one hour to 2:00pm ET. Also announced on Tuesday were the five witnesses that will present testimony in front of the Barney Frank-led group.

Included in the panel is Poker News Daily Guest Columnist, UB.com sponsored pro, and reigning National Heads-Up Poker Championship winner Annie Duke. The “Celebrity Apprentice” runner-up’s testimony was published on the House Financial Services Committee’s website earlier today and reads in part, “At its most basic level, the issue before this committee is personal freedom – the right of individual Americans to do what they want in the privacy of their homes without the intrusion of the government.”

Duke will speak on behalf of the Poker Players Alliance (PPA), the 1.2 million member strong lobbying group for the industry. After providing several personal freedom arguments, Duke will share a new vantage point on HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act: “To be clear, HR 2267 is not a bill that expands internet gambling in America. It simply provides the appropriate government safeguards to an industry that currently exists and continues to grow.”

Ranking Member Spencer Bachus and others have voiced the concern that legalizing internet gambling in the United States essentially equates to placing a 24-hour casino in every person’s bedroom. In response, Duke will argue in her testimony on Wednesday, “Under a U.S.-regulated system, an authorized licensee would be required to have technologies in place to prevent minors from playing.”

Joining Duke to speak in front of the 71-member Committee is Ed Williams, President and Chief Executive Officer of the Discovery Federal Credit Union on behalf of the Credit Union National Association. Representing the Commerce Casino, which is entrenched in a battle of its own over legalized intrastate online poker in California, will be Tom Malkasian, its Vice Chairman and Director of Strategic Planning.

Rounding out the five-witness panel are the Mohegan Tribe’s Lynn Malerba and Law Enforcement and Anti-Terrorism Consultant Michael Fagan. Once again, no representatives from the United States Treasury or Federal Reserve will be present. The two government agencies were responsible for delaying mandatory compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) for six months in late November. In a December House Financial Services Committee hearing, Bachus called for Treasury and Federal Reserve officials to be present at a follow-up hearing.

No markup of HR 2267 is scheduled for tomorrow. Poker fans can catch the proceedings via a webcast on the official website of the House Financial Services Committee and the event in Room 2128 of the Rayburn House Office Building will likely run one to two hours.

Internet gambling is the only topic on the docket for the Committee on Wednesday. As a follow-up, monetary policy and the state of the economy will take center stage on Thursday. Congress was out from July 5th to 9th for the Fourth of July and is scheduled to recess once again from August 9th to September 10th. Its target adjournment date is October 8th, one month ahead of November’s general elections in the United States.

If HR 2267 is not acted upon by the end of the year, it will be deemed “dead” and must be reintroduced in the new Congress, which will convene in January. The measure was introduced in May 2009 and has attracted 69 co-sponsors, both Democrats and Republicans. Its tax companion bill, Jim McDermott’s HR 4976, was discussed in the House Ways and Means Committee two months ago, but was not acted upon.

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!

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.

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.

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.

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 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.