Poker News

PartyGaming Co-Founder Anurag Dikshit Severs Ties With Stock Sale

Ending a relationship that dates back to the beginning of the online poker industry, Party Gaming co-founder Anurag Dikshit has divested himself of any ownership in the company with the sale of his remaining stock on Tuesday.

According to the London Stock Exchange and the British newspaper The Telegraph, Dikshit owned slightly more than 38.8 million shares of Party Gaming PLC, which is traded in London under the symbol PRTY. Because of his ownership of the stock, Dikshit held voting rights that would have continued to hold a significant influence on the company’s track. With the sale, however, Dikshit has fully divested himself of any connection with the company he helped start back in the late 1990s.

The 38.8 million shares of Party Gaming stock held by Dikshit amount to £114 million and helped to drive the price of Party Gaming PLC up during trading on Tuesday and Wednesday. Opening at 277.10p at the start of trading Wednesday, Party Gaming PLC trended up 14.2p over the course of the day, finishing at 292p.

It is estimated that Dikshit has cashed out stock in the company that eclipses £700m in value. Through his involvement with Party Gaming, Dikshit has also become one of India’s wealthiest citizens. With the sale of his remaining ownership in the company complete, Dikshit is expected to return to the many philanthropic trusts that he oversees, including those that fund medical and educational interests in India.

Since the creation of Party Gaming in the late 1990s, Dikshit had been a formative figure in the company. Along with husband and wife Russ DeLeon and Ruth Parasol as well as Vikrant Bhargava, Dikshit – who was the creator of the Party Gaming software that the company uses – drove the company to reach the pinnacle of the online poker industry with PartyPoker. By 2005, when the foursome took Party Gaming public on the London Stock Exchange, PartyPoker had even become a force in the live poker world with a sponsorship deal at the World Series of Poker (WSOP).

2006 proved to be a pivotal point for the company, however. With the passage of the Unlawful Internet Gambling Enforcement Act (UIGEA) by the American government, Party Gaming was forced to prohibit American players from participating on PartyPoker (as a publicly traded entity, it could not violate the laws of another country and remain on the LSE). Since that time, Party Gaming has been passed in the online poker industry by two rooms that still accept American players, PokerStars and Full Tilt Poker, and battles for the third spot consistently with another non-U.S. facing entity, the iPoker Network.

Dikshit has been the only founder of Party Gaming to ever face American authorities as far as their gaming actions are concerned. After the passage of the UIGEA, The Telegraph reports that Dikshit was “increasingly worried about the ramifications of the company’s operations being declared illegal in America” and stepped down as the director of Party Gaming. This led to his admission of guilt in December 2008 in a U. S. court to violating laws regarding online gaming. Still facing the possibility of two years in jail for his guilty plea, Dikshit has paid $300 million in fines and, according to Justice Department officials, has been assisting them in their ongoing investigations. Whether Dikshit will face any jail time when the case is reviewed in December 2010 is still unknown.

The sale of Dikshit’s remaining stake in PartyGaming comes at a time when the company is looking at several merger options, according to The Telegraph. The outlet states that PartyGaming is “continuing to hold discussions with a number of companies in the gaming sector regarding potential consolidation opportunities” and speculates that industry competitor bwin is a possible merger partner.

Calvin Ayre Aims to Raise $1 Million for Haiti

Over the past week, a number of poker pros and rooms have reached out to the victims of the devastating earthquake in Haiti.  Poker rooms like PokerStars and Full Tilt Poker promised to match donations from patrons, pros pledged a percentage of their winnings to the cause, and there was an outpouring of generosity and concern towards the millions affected by the natural disaster.

Bodog founder Calvin Ayre is upping the stakes when it comes to raising money for those in Haiti by promising to match the earnings of the online gaming industry up to $1 million and donate it to the charitable group Oxfam International, a collection of 14 service and charitable organizations dedicated to fighting poverty and injustice around the world.

Ayre originally made the pledge to match donations on his personal website shortly after the quake hit.  He made an initial donation of £10,000 to the U.K. branch of Oxfam, but also encouraged others in the gaming community to reach out and help.  He offered to match any Oxfam donations by online gaming groups and later agreed to open up his charitable efforts to other organizations.  He explained why he wanted to center his efforts on Oxfam in the comments section of his blog post: “We would consider matching confirmed funds to qualified organizations other than Oxfam. We chose Oxfam because it is a well known reputable organization and I like focusing as much money as I can through one organization as this maximizes impact on the ground.”

Ayre is making the contribution via the foundation bearing his name.  The charitable organization has previously undertaken projects like giving underprivileged teens opportunities to attend college in Canada and the Philippines. The publication iGaming Business is helping to spread the word about Ayre’s pledge.  Bodog Poker pros Evelyn Ng and David Williams also got the word out via their respective Twitter accounts.  There is a special page on Oxfam’s website set up to track donations that will be matched by Ayre.  Interested parties can also make donations in person at the upcoming London Affiliate Conference (LAC), which is sponsored by iGaming Review.

The total amount of money donated to Oxfam on behalf of the online gaming industry will be announced at the LAC awards dinner in London on January 28th.  Over 500 members of the online gaming community are expected to be in attendance.  In addition to announcing the total amount of money raised for Oxfam, the dinner will also serve as a chance to honor the winners in categories like Best Affiliate, Best iGaming Software, and Best Affiliate Manager.  The dinner will take place at The Grange St Paul’s Hotel.

The people at Oxfam have been most impressed with Ayre’s generosity and the outpouring from the gaming community in the wake of the disaster.  “We are truly impressed by the iGaming communities’ effort and drive for the survivors of the Haiti earthquake,” said Chris Ashworth, Oxfam’s Corporate Partnership Manager.  “Access to safe water is one of the most immediate problems to resolve now and with this phenomenal support, we will be able to save lives immediately, by providing clean water and sanitation, as well as shelter for the people who have lost their homes and family…We cannot thank the gaming community enough for this act of generosity at a time of such enormous need.”

Those interested in making a donation to Oxfam that will be matched by Ayre’s foundation can do so by visiting the following web page: https://www.oxfam.org.uk/donate/haiti-earthquake/calvin-ayre.

Calvin Ayre Aims to Raise $1 Million for Haiti

Over the past week, a number of poker pros and rooms have reached out to the victims of the devastating earthquake in Haiti.  Poker rooms like PokerStars and Full Tilt Poker promised to match donations from patrons, pros pledged a percentage of their winnings to the cause, and there was an outpouring of generosity and concern towards the millions affected by the natural disaster.

Bodog founder Calvin Ayre is upping the stakes when it comes to raising money for those in Haiti by promising to match the earnings of the online gaming industry up to $1 million and donate it to the charitable group Oxfam International, a collection of 14 service and charitable organizations dedicated to fighting poverty and injustice around the world.

Ayre originally made the pledge to match donations on his personal website shortly after the quake hit.  He made an initial donation of £10,000 to the U.K. branch of Oxfam, but also encouraged others in the gaming community to reach out and help.  He offered to match any Oxfam donations by online gaming groups and later agreed to open up his charitable efforts to other organizations.  He explained why he wanted to center his efforts on Oxfam in the comments section of his blog post: “We would consider matching confirmed funds to qualified organizations other than Oxfam. We chose Oxfam because it is a well known reputable organization and I like focusing as much money as I can through one organization as this maximizes impact on the ground.”

Ayre is making the contribution via the foundation bearing his name.  The charitable organization has previously undertaken projects like giving underprivileged teens opportunities to attend college in Canada and the Philippines. The publication iGaming Business is helping to spread the word about Ayre’s pledge.  Bodog Poker pros Evelyn Ng and David Williams also got the word out via their respective Twitter accounts.  There is a special page on Oxfam’s website set up to track donations that will be matched by Ayre.  Interested parties can also make donations in person at the upcoming London Affiliate Conference (LAC), which is sponsored by iGaming Review.

The total amount of money donated to Oxfam on behalf of the online gaming industry will be announced at the LAC awards dinner in London on January 28th.  Over 500 members of the online gaming community are expected to be in attendance.  In addition to announcing the total amount of money raised for Oxfam, the dinner will also serve as a chance to honor the winners in categories like Best Affiliate, Best iGaming Software, and Best Affiliate Manager.  The dinner will take place at The Grange St Paul’s Hotel.

The people at Oxfam have been most impressed with Ayre’s generosity and the outpouring from the gaming community in the wake of the disaster.  “We are truly impressed by the iGaming communities’ effort and drive for the survivors of the Haiti earthquake,” said Chris Ashworth, Oxfam’s Corporate Partnership Manager.  “Access to safe water is one of the most immediate problems to resolve now and with this phenomenal support, we will be able to save lives immediately, by providing clean water and sanitation, as well as shelter for the people who have lost their homes and family…We cannot thank the gaming community enough for this act of generosity at a time of such enormous need.”

Those interested in making a donation to Oxfam that will be matched by Ayre’s foundation can do so by visiting the following web page: https://www.oxfam.org.uk/donate/haiti-earthquake/calvin-ayre.

2010 WSOP Rules Permit Twittering at the Table

The official rules for the 2010 World Series of Poker (WSOP) were handed down this week, with tournament organizers adopting a cell phone rule that permits text messaging and Twittering at the table.

All cell phones must be turned off during play. However, as the WSOP regulations note, “Players not involved in a hand (cards in muck) shall be permitted to text/email at the table, but shall not be permitted to text/email any other player at the table.” Twittering of chip counts and memorable hands were staples of the 2009 WSOP, when the social media outlet exploded in popularity. Even poker legends like 10-time bracelet winner Doyle Brunson have become engulfed in Twitter, with “Texas Dolly” now able to spit out additional blonde jokes while seated at the table of any 2010 WSOP event.

Any players who wish to talk on their cell phones must be at least one table length away from their seats while gabbing. Meanwhile, the WSOP logo policy in 2010 will remain the same as it was in 2009. No logo will be permitted that promotes drugs, handguns, lotteries, obscene material, pornography, libel, or “advertises any online gaming site that conducts business with U.S. residents.” Nearly every logo shown on ESPN television cameras in 2009 featured the dot-net version of the site’s URL. Meanwhile, Everest Poker, which had sponsored pro Antoine Saout at the final table of the 2009 Main Event, served as the on-felt sponsor of the tournament series. Everest Poker does not accept players from the United States.

Posters on TwoPlusTwo were quick to critique the 2010 WSOP rules, which incorporated revisions made by the Tournament Directors Association. One point of contention concerned late registration. The rule reads, “Any player registering for an event after all initial tables allocated for that tournament have been filled will begin play at the start of the subsequent level.” In the WSOP Main Event, for example, that could mean a player sitting out as long as two hours, the length of one blind level.

Fans of UB.com poker bad boy Phil Hellmuth may see the 11-time bracelet winner show up on time in 2010 thanks to a rule that governs “no shows,” players who fail to show up by the start of the third level of play. The rule mandates, “These players will have their chips removed from play and will not be eligible to participate in that event. The buy-ins for ‘no shows’ will be removed from the prize pool and placed on safekeeping in that player’s name at the main WSOP registration cage after the second level of play.”

Some posters on TwoPlusTwo questioned whether the “no show” clause meant that if a player saw they had a tough table draw, they could simply un-register by not showing up. Member “pineapple888” explained the dilemma: “It seems like you can register, wander by your table an hour into the event, and if there are too many pros/tough players for your liking, or there aren't enough chips on the table, or whatever (no hot chicks at the table or railbirding), just wander away and claim your refund later without penalty.”

The action gets underway in the 2010 WSOP with the annual $500 buy-in Casino Employees No Limit Hold’em event on May 28th. Also to be held on that date is the brand new $50,000 buy-in Player’s Championship, an Eight-Game mix of Limit Hold'em, Omaha High-Low Split Eight or Better, Seven Card Razz, Seven Card Stud, Seven Card Stud High-Low Split Eight or Better, No Limit Hold'em, Pot Limit Omaha, and 2-7 Triple Draw Lowball. It takes the place of the $50,000 HORSE Championship, which drew a meager 95 players in 2009 after having 148 in 2008.

Also new on the docket in 2010 is a $25,000 buy-in No Limit Hold’em Six-Handed event that starts on June 30th. Many in the industry have questioned WSOP officials introducing a richer No Limit Hold’em tournament than the Main Event, whose buy-in is only $10,000. Nevertheless, the $25,000 Six-Handed contest is sure to attract some of the top names in the worlds of live and online poker.

Check out the official 2010 WSOP rules.

Internet Gambling Bill Introduced in New Jersey

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

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

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

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

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

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

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

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

United Kingdom Poker Tax Laws Changing

Online gaming operators such as Ladbrokes and William Hill fled to Gibraltar last year in order to escape U.K. government gambling taxes and become more competitive with overseas operators. Now, it appears the relocation could be all for naught.

The U.K. government’s Department of Culture, Media, and Sport this week announced proposed reforms to the regulatory gambling structure that will likely force offshore operators currently licensed outside of the U.K. to apply for a license from the U.K. Gambling Commission if they want to provide services or advertise in the U.K. Until now, operators located in “white listed” offshore tax havens such as Gibraltar, the Isle of Man, and Malta were allowed to advertise in the U.K. while avoiding levies, but this situation will most definitely change with the enforcement of licenses from the Commission.

Other modifications include the enforcement of new regulations that would demand that all offshore operators have active systems through their applications that would share information about suspicious betting patterns with governing authorities in the U.K.

"Online gambling has changed significantly in recent years with many European countries taking new approaches to regulation," said Gerry Sutcliffe, U.K. Sports Minister. "It would be wrong of us to stand still where many things are changing around us – especially where the protection of British consumers is at stake."

Last year, Italy introduced gambling licenses for all online poker and bookmaking sites, setting business tax ranging from 2% to 5%. The Italian government has subsequently seen tax revenues rise across the industry.

Right2bet, a European consumer-led campaign behind the idea that it is a citizen’s right to choose, stated that it hopes the U.K. does not follow suit by blocking operators from the market or burden consumers with extra charges passed on from the high tax regime.

PokerStars Team Pro and The Guardian newspaper columnist Vicky Coren has also recently voiced her opposition to changing tax laws in U.K. card rooms, particularly the Victoria Casino in London. Coren hypothesized that the regular games at the casino will die due to “a stupid, greedy, ill-thought-out change to the tax rules.” The 2009 budget introduced a tax on poker games on top of the conventional hourly fee despite the fact that customers play against each other and not the house.

"This is the same government that wanted super-casinos and unlimited fruit-machine jackpots. So they want to encourage dangerous, mindless gambling but punish a game of skill? It's idiotic," Coren wrote. "All poker-lovers should resolve, next year, to write to their MPs and the chancellor about this punishing tax. It must be removed, for the survival of big casino poker rooms and the future of the live game in this country."

PartyGaming signs with Danske Spil to provide online gaming in Denmark

More positive news for online poker in Europe: Denmark's state-operated Danske Spil has signed a five-year agreement with PartyGaming, which will use its expertise and know-how to offer online gaming to the Danish market.

Denmark's relationship with gaming, particularly online gaming, has been patchy through the years. While live poker tournaments were considered perfectly legal, online poker was frowned upon by the Danish Supreme Court until very recently. The Danish gaming system, Danske Spil, enjoyed a lengthy virtual monopoly while all foreign gaming companies were forbidden to enter the Danish market for most of this decade, which sparked a number of disagreements with the European Commission regarding free trade agreements within the European Union.

In 2009, Denmark finally relented and put forth a draft legislation to partially open the Danish poker and casino market, which is expected to pass as law in 2011. Denmark further showed its commitment by allowing Danish people access to Hollywood Poker's online gaming facilities. Now in early 2010, the state's former monopoly, Danske Spil, is partnering with one of the world's largest online gaming providers to prepare for the upcoming competition.

The partnership between Danske Spil and PartyGaming has everything needed to make it successful: while the Danske Spil group is one of the largest in Europe, with over 500,000 registered customers and a reported turnover of €1.47 billion (about $2.13 billion) in 2008, PartyGaming bills itself as " the world’s leading listed online gaming company" thanks to its very successful brands that include PartyPoker, PartyCasino, and PartyBets.

Jim Ryan, Chief Executive Officer of PartyGaming, was understandably glad to announce this new partnership:

This is a landmark B2B deal for PartyGaming and validates our strategy to become a leading provider of B2B services to both corporates and governments around the world.  Danske Spil is widely recognised as one of Europe’s leading gambling businesses, one that is pre-eminent in the Danish market.  We are delighted that Danske Spil has recognised our expertise and high standards of business practice and we look forward to building a significant and profitable enterprise as soon as the newly regulated Danish online gaming market opens.

Ryan has every right to be delighted. Danske Spil researched the market for seven months to find a partner that met its exacting standards for security, ethics, and, of course, quality. Their choice of PartyGaming is an endorsement of the highest possible level of the company's expertise and capability.

H.C. Madsen, CEO of Danske Spil, said of this new partnership:

With some of the world’s leading products in online poker and casino as well as a large international customer base, PartyGaming is definitely a strong business partner for Danske Spil. Combining this with Danske Spil’s unique and strong position in the Danish market with more than 500,000 Danish online customers will guarantee that together we will deliver a highly attractive customer experience to players in Denmark.

One issue that remains to be clarified is how the notoriously strict Danish taxation system will treat new gaming providers as they enter the market. Taxes on poker winnings are remarkably high on Denmark. For example, 2008 World Series of Poker (WSOP) Main Event champion Peter Eastgate could only spend $2.5 million out of the $9.1 million he won with his bracelet, the rest going to the government's arks. Companies willing to offer online poker will have to jump through hoops to be on the government's exclusive no-tax list, meaning that players will not be taxed over their winnings on those sites. Hollywood Poker currently enjoys no-tax status and it is to be expected that Danske Spil's upcoming online poker venture will enjoy it too.

PartyGaming's shares (LSE: PRTY) last traded at 279.3 pence per share in London today.

Estonia Legalizes Online Gaming

Estonia, a small European country bordering with Russia, has recently legalized online gaming as a way to increase its tax income. The decision seems to have been aided by the success of the Baltic Poker Festival hosted by PokerStars.

For now, Estonian citizens will only be allowed to play on Estonian-based platforms such as Playtech's collaboration with the Olympic Casino Group, before opening up to international operators in 2011. This leaves the Playtech group in a very favorable position at the moment as the main provider of legal online gaming in the land. Playtech's Executive Manager, Mor Weizer, commented on this development: "We are truly glad of this opportunity to start our partnership with Olympic as the leading casino entertainment provider in Central and Eastern Europe."

Estonia is one of the smallest European Union (E.U.) countries, with only 1.33 million citizens. It borders north and west with the Gulf of Finland and Baltic Sea, respectively, as well as Latvia on the south and the Russian Federation on the east. Because of its bridging position between Europe and Russia, Estonia was invaded by the Soviet Union and Germany before regaining independence in 1991. At this point, Estonia started an aggressive and effective reform and growth program, which saw it become one of world's fastest-growing economies for several years. It joined the EU in May 2004 and was hoping to adopt the Euro as its currency by 2013. This is where online gambling comes in.

Estonia seemed a shoo-in for the Euro currency until the 2008-2009 economic crisis, which left it with the second most damaged economy of the EU, down by about 36%. A country must meet strict criteria to join the Eurozone and Estonia is taking pains to bounce back from the depression in time to join. The Estonian government hopes that taxing gaming operators will help revive its economy with the added income and influx of new jobs.

According to the Estonian Free Press, large international online gaming operators are currently showering Estonia with attention in the form of large advertising campaigns about upcoming services and there are rumors about millionaire investments planned for the country, which is seen as a gateway to the whole Baltic region's market.

Although online gambling remains a sore topic in the European Commission, where nations such as Germany and France block all online gaming in order to favor their state monopoly operators, more and more countries are opening up to its legalization and taxation. Estonia joins the likes of Belgium, Italy, the Netherlands, Poland and Sweden in creating legislation that allows online gambling, ensures it is taxed appropriately, and ensures its citizens are safeguarded against negative side effects like fraud, money laundering and underage gambling.

PCA Payouts Flattened

When Canadian Poorya Nazari beat a field of 1,347 to take first at the 2009 PCA, he walked away $3 million. This year, the player who manages to best a field of 1,529 will take just $2.2 million.

The difference is that while 199 made the money in 2009, a total of 224 will this year.

And while the first payout level was just $2,500 above the $10,000 buy-in last year, it is $5k above it now.

“More players are getting paid and the players are getting paid better,” said PokerStars live poker specialist, player liaison and event host Neil Johnson. “It’s a much more significant return on your investment and it’s better for the poker economy as a whole. We get more players paid better.”

According to Johnson, the $3 million Nazari is credited with winning can be a bit misleading.

Last year PokerStars guaranteed the $3 million first-place prize and had to adjust the rest of the prize pool to compensate.

That meant a $1.9 million gap between first and third place money and inevitably, a chop was agreed upon when play went three-handed.

“I don’t care how much money you have, you are not flipping for that,” Johnson said. “We all know they are going to chop it at the top anyway, so all of PokerStars payouts are a little flatter at the top now.”

The bottom line is that 15% of the field is now getting paid rather than the one-time standard of 10%.

And while those at the bottom of the payout structure will do better than they have in the past, the money is coming straight from the top.

A fact not all the players are happy about.

“It’s terrible, I hate it,” said Team PokerStars Pro Daniel Negreanu. “We all are going to work harder and outlast more players and get less money. It’s a terrible idea.”

WPT title holder and recent PokerStars Sunday Million winner Mark Newhouse thought he would be playing paying for a much bigger first-place prize when he flew over the Bahamas this year.

Like Negreanu, he’s disappointed.

“I think it’s stupid. We were all expecting almost $4 million and they come out with this,” he said. “It’s a bad idea. You would think that they would want it to get bigger not smaller. It’s better for poker for first prize to get bigger.”

However, Team PokerStars Pro Barry Greenstein said while the payout structure may hurt the eventual winner, it’s better for the field as a whole.

“I think the flatter payouts are a better thing,” he said. “The winner, sure he’s going to want more money, but if you think about it, what’s better for PokerStars? They’re an online gaming site and they would benefit more from putting the money back into the community.

“Also, in a tournament like this where there are so many online qualifiers for which a minimum cash would be a big deal; it’s a good thing. It creates better stories and it’s different here than say at Bellagio where everyone puts up their own $10k. In that instance steeper payouts might make more sense, but for this tournament, I think they did the right thing.”

In the end, the final four players will all make over $1 million and Johnson said he’s heard more positive opinions from the players than negative.

As a result, he believes even the players who run really deep in the event will walk away happy.

“The final two tables are all making six figures,” he said. “I can’t imagine anybody being unhappy with that.”

To find out who will get a piece of the $14,831,300 prize pool and follow all the 2010 PCA action, tune in to PokerListings’ Live Updates.

- With Files From Ed Sevillano

Belgium to Enact Laws Nationalizing Online Poker

Defying an order from the European Union (EU), Belgium has enacted laws that could have it become the next nation to nationalize online poker operations. It follows a similar stance towards online poker in Italy.

A recent article in De Standaard, one of Belgium’s newspapers, stated that the coming year would bring laws regarding the country’s stance towards online poker. The new regulations would purportedly nationalize the operations of online poker rooms by preventing outside companies, such as PartyPoker, PokerStars, and Full Tilt Poker, from being able to court Belgians. Online poker rooms would have to set up a separate operation that would be licensed by the Belgian government and located inside of the country, much like what Italy has done with its online poker operations.

This defies an order from the EU that was issued in June 2009. After receiving details on Belgium’s plans for online poker regulation from its government in March of last year, the EU decided that the plan violated several areas of the free trade treaty that all 27 member nations had signed. Some of the violations included requiring the operators of online gaming and poker sites to be based in Belgium, limitation of available licenses, criminal prosecution of customers who play on non-sanctioned sites, and restriction of services from outside nations. At the time, Belgium was also looking to use ISP blocking software to prohibit its citizens from playing on other licensed EU sites.

The EU has shown an inconsistency when it comes to nationalization plans. It allowed Italy to nationalize its online gaming operations, presumably for taxation and gaming regulatory purposes, but has disallowed other countries like Belgium and France. It also has been unable to come to an accord on the online gaming question among its own Member Nations, leading many countries to attempt to nationalize online poker for tax revenues in lean fiscal times. The government of Belgium also states that many of the online poker sites in existence have “ties to organized crime” and, as such, the need for the nationalization is necessary.

The online community is responding to this issue in many of the popular online forums. On TwoPlusTwo, a ten-page thread has developed with players are debating the issue. Part of the reason for its popularity is that one of the top online players in the game today, “Chiren80,” hails from Belgium and the proposed legislation would, in effect, remove him from international action with the threat of possible arrest.

Some of the discussion on TwoPlusTwo inaccurately says that the nationalized sites would still be part of the global network, much like different skins of poker rooms operate. This is not true; the nationalization of sites requires the online poker room to dedicate servers and operations to that nation alone, as PokerStars has done with its PokerStars.it site. With that operation, only Italians can play on the site and there are stringent rules that govern play.

The nationalization trend is, in some players’ minds, becoming a worrisome trend. “Nationalization of gambling environments and…the separation of player pools are real dangers for professional poker players in small European countries,” comments “Droschopf.” Another poster, “Sjors,” states, “I'm fine with regulating but don't cut off the world. Playing against people on the other side of the globe and having traffic around the clock is what makes online poker great.”

With the Belgian laws signed into effect, there is a great deal of pressure on the EU to formalize an agreement on online gaming and poker for the continent. Stay tuned to Poker News Daily for the latest.

GigaMedia Announces Quarterly Reports, Details on Everest Poker Sale

Fresh off the announcement of its partial sale of Everest Poker earlier this month, GigaMedia announced its second and third quarter 2009 financial results. In addition, the company provided insight into the sale.

During a recent investors’ conference call, many of the major players in GigaMedia were present to offer information on the company's second and third quarter financial results. Most of the thoughts of those gathered were focused on the sale of 60% of Everest Poker, the popular online poker room that is currently the on-felt sponsor of the World Series of Poker (WSOP). Arthur Wang, Chief Executive Officer of GigaMedia, stated he was there to present the overview of “where the company is and where it is going,” but first stepped up to offer reasons for the sale of Everest Poker.

“About one year ago, we began a strategic review of this business unit, an evaluation of where the market was moving and where we were positioned in relation to such movements,” Wang stated. “We determined that, despite our rapid growth and position as the fourth largest poker site in the world, a strategic move was necessary.”

Wang then ticked off a list of reasons for the divesture of a majority ownership of Everest Poker to Mangas Gaming. He cited current trends in the regulation of online gaming in Europe, where individual nations are setting up their own regulatory rules, which Wang stated is “limiting player pools to single country players and requiring heavy in-country investments in infrastructure and personnel.” This type of regulation, Wang noted, challenges the ability of a company such as GigaMedia to run an operation that encompasses the entirety of Europe.

Wang next said that the necessity to have an all-purpose operation - to not just offer online poker, but also the full range of products such as a casino, sports book, and other gaming outlets - was another reason behind the sale. Mangas Gaming, through its majority ownership, will be able to provide those operations. Finally, Wang stated that the continued presence of “poker competitors operating illegally in the United States” and the hundreds of millions they earn continued to hamper those companies that operate exclusively in Europe.

With the discussion of the partial sale of Everest Poker to Mangas Gaming complete, the presentation of the second and third quarter 2009 fiscal reports was made. Quincy Tang, Chief Financial Officer of GigaMedia Limited, presented a report that showed a drop in performance over the second and third quarters of 2009.

The consolidated results of both quarters was “worse than expected,” according to Tang. “Second and third quarter revenues were $37.7 million and $37.2 million, respectively; second quarter net income of $128 thousand and third quarter net loss of $2.4 million,” he said. Some of the reasons for the decline were attributed to the continued global economic downturn and its effects on player spending and the competitive nature of the industry, including the challenges faced from those companies that accept American action.

The partial sale of Everest Poker to Mangas Gaming will give GigaMedia an influx of $100 million early in 2010. After the deal was announced, GigaMedia stock rose to $4.24 on the NASDAQ exchange, where it can be found under the acronym “GIGM.” At the close of business for the Christmas holiday, GigaMediastock was trading at just $3.18, near the bottom of its 52-week range.

Party Gaming 2009 Revenue in Line with Management Expectations

In a trading update released to the London Stock Exchange on Friday, Party Gaming, the parent company of PartyPoker, announced that its revenue was in line with Board expectations, while Clean EBITDA would likely surpass estimates.

Party Gaming is now anxiously awaiting legislative developments in three key markets: France, Italy, and the United States. On the latter country, which has been effectively shut off for the publicly traded company since 2006, the statement released by Party Gaming concludes, “Combining the strength of the PartyPoker brand with the trade and assets of the World Poker Tour that we acquired in November 2009, we believe we are well-positioned should the U.S. government elect to regulate online poker.”

As it stands now in the United States, the primary hope for legalization and regulation of the game is Congressman Barney Frank’s (D-MA) Internet Gambling Regulation, Consumer Protection, and Enforcement Act, HR 2267. The measure outlines a framework whereby licensed online gaming companies can solicit real money action from U.S. customers. A companion bill introduced by Congressman Jim McDermott (D-WA), HR 2268, taxes companies 2% of deposits and could raise as much as $40 billion in revenue over a ten-year period. HR 2267 boasts 63 co-sponsors, while HR 2268 has four.

Party Gaming’s attention seems to be focused squarely on poker given its recent acquisition of the World Poker Tour (WPT), a longtime industry staple. Party Gaming CEO Jim Ryan commented, "Returning poker to growth has been a key focus for us. We are pleased to see that the initiatives introduced throughout the year are now feeding through into both operational and financial performance with increased player numbers and average net daily revenues versus the previous quarter, despite continued competition from illegal U.S.-facing sites and the difficult macroeconomic climate.”

PartyPoker introduced its Monthly Million poker tournament earlier this year, a $640 buy-in event held on the first Sunday of every month. In December, PartyPoker member “ireadursoul” took down the Monthly Million to the tune of $200,000.

Also announced in Friday’s trading update was that Party Gaming had taken out a £35 million three-year loan to be applied towards mergers and acquisitions. Discussion of a possible merger between Party Gaming and bwin has dominated poker news headlines this week, although the company has not confirmed that any deal is imminent. bwin is also a publicly traded company and can be found on the Vienna Stock Exchange.

Shares of Party Gaming closed the week trading at 254 pence in London, down 4.6 pence on the day, or 1.8%. In the beginning of November, shares of Party Gaming’s stock (PRTY) had sunk as low as 214 pence before rebounding. In January, amid the worldwide economic doom and gloom, Party Gaming was fetching a lowly 157 pence a share.

Also helping to keep revenues afloat in recent months has been Party Gaming’s Bingo and Casino arms. PartyBingo’s business was boosted by the acquisition of Cashcade back in July, while a $5 million jackpot payout in the casino earlier this month drew a considerable amount of attention.

Ryan remained optimistic that a strong 2010 would be in store for the company’s investors: "Despite the challenges presented by the prevailing macroeconomic environment, we have not been distracted from the execution of our strategic plan. With the prospect of a number of new and large regulated markets in front of us, an expanding portfolio of B2B customers, and a return to growth in our core business, we remain confident about the Group's prospects."

Read the entire Party Gaming Trading Statement to the London Stock Exchange.

Everest Poker Acquired by Mangas Gaming

While rumors are flying left and right about potential buyouts and mergers in the European online gaming market, news broke that Everest Poker and Mangas Gaming will join forces.  Mangas plans to buy out Everest in early 2010 as part of a deal worth in excess of $100 million.

The deal will be finalized in the first quarter of 2010.  Mangas Gaming will pay $100 million to Everest’s parent company, GigaMedia, in exchange for 60% of the shares of the company.  A Dow Jones article also stated that the final portion of the deal would be paid out after the company’s fair market value is reassessed in 2012.  There is also an option that allows GigaMedia to buy back Everest Gaming in 2013 should it see fit to do so.  GigaMedia is a publicly traded company on NASDAQ Stock Exchange, where it can be found under the symbol “GIGM.”

While the name Mangas may not sound familiar, the sites it owns and operates are well-known within the online gaming market: BetClic, Expekt Poker, and Bet-At-Home.  The French-based company appears to be taking more interest in poker as of late.  In addition to brokering the Everest deal, the company also signed World Series of Poker (WSOP) bracelet winner Scotty Nguyen as an Expekt spokesman earlier this year and debuted former Team PokerStars Pro Isabelle Mercier as a BetClic spokeswoman at the Doyle Brunson Five Diamond World Poker Classic at the Bellagio.

The increased efforts of Everest Poker to heighten its profile in the French marketplace make even more sense in light of this deal.  The company, which is the official on-felt sponsor of the WSOP, signed a deal with November Nine member Antoine Saout after he made the Main Event final table and added Fabrice Soulier to its roster of pros last month.

Mangas Gamings Chief Executive Officer Isabelle Parize commented on the deal in an official press release announcing the acquisition: “We are very proud that Everest is joining our group.  It is a great company; it is a brand with an outstanding awareness in the world of poker, well-known for its know-how, its platform reliability, and its strict policies. Mangas Gaming is reinforcing its position as a major European player in both the online poker and sports betting markets.”

GigaMedia’s CEO, Arthur Wang, expressed similar sentiments in his statement.  “We were looking for a reference partner with complementary activities to ours,” Wang explained.  “Our strategy is to participate in the growth of this innovative and dynamic industry in Europe. We are glad to do it alongside the French leading sports betting and online gaming group.”

Poker News Daily has learned that once the deal is complete, players on Mangas’ other online poker rooms will be shifted towards Everest.  Expekt is expected to disappear entirely before the end of 2010 and all of the company’s customers will be shifted over to Everest.

Since the announcement of the deal, shares of GigaMedia saw a spike in trading value.  After trading as low as $3.53 on December 11th, stock prices shot up as high as $4.24, an increase of 20%.

Mangas Gaming Acquires Everest Poker

Mangas Gaming, which also owns BetClic, Expekt and Bet-at-Home, will hold 60% of Everest Gaming stock with the remaining 40% held by current shareholder GigaMedia.

 “We are very proud that Everest is joining our group,” said Isabelle Parize, CEO of Mangas Gaming.

“It is a great company; it is a brand with an outstanding awareness in the world of poker, well known for its know how, its platform reliability and its strict policies. Mangas Gaming is reinforcing its position as a major European player in both online poker and sports betting.”

Established over 10 years ago, Everest Poker has a strong presence in Europe and Asia and is consistently one of the biggest online poker rooms in the world.

Everest Poker is also one of the few rooms that runs its own proprietary poker software and is the exclusive poker table sponsor for the World Series of Poker in Las Vegas.

“We were looking for a reference partner with complementary activities to ours,” said Arthur Wang, CEO of GigaMedia. “Our strategy is to participate in the growth of this innovative and dynamic industry in Europe. We are glad to do it alongside the French leading sports betting and online gaming group.”

Mangas Gaming has a presence in more than 25 countries and over four million customers. Earlier this year the Mangas-owned BetClic announced it had signed famous poker pro Isabelle Mercier as a consultant and sponsored player.

Top Ten Poker Events of the Decade: Part 1

As 2009 prepares to fade into the pages of history, it will also close the doors on a decade that has been like no other for the sport of poker.

When the Third Millennium began a short ten years ago, poker could arguably be said to be on life support. A poker room in a casino was hard to find, there was only one prominent tournament schedule on the poker professional’s calendar, and the game had no place in the media. Poker was reviled as a pursuit of degenerate gamblers; those considered to be the best at the game had very little attention paid to them.

A decade later, the situation has completely reversed itself. Even the smallest casino, wherever it may be in the world, has a poker room. Bookstores have dedicated sections to house their wares of poker books and poker programming airs daily on television. Instead of just one tournament schedule, there are several offerings that require players to choose which one to participate in. Finally, poker pros are respected as adventuresome mavericks whose abilities, education, and intelligence are critical to their success.

With this in mind, Poker News Daily decided to look back at the last decade in an attempt to figure out what were the catalysts for such a return to prominence and what nearly derailed it.

10. Poker Rooms Make a Comeback

At the start of the 21st century, casinos across the United States didn’t consider poker to be a moneymaker for their operations. With that in mind, poker rooms were closed and slot machines began to invade their territory.

By the end of the decade, poker rooms, which had been near extinction only ten years earlier, obtained a greater prominence than they ever had in a casino. The live poker room should continue to be a staple of the casino world in the future.

9. Ultimate Bet and Absolute Poker Superuser Scandals

The ugly head of corruption and scandal arose when two of the most popular online poker rooms in the industry, Ultimate Bet and Absolute Poker, succumbed to “superuser” cheating rings. These cheating scandals allowed players to see their opponents’ hole cards, making it impossible to lose a hand. These rings - the Ultimate Bet group, which was allegedly led by former World Champion Russ Hamilton, and the Absolute Poker team allegedly led by former employees Scott Tom and A. J. Green - took millions of dollars off of unsuspecting players and gave ammunition to anti-poker zealots in the war against the game.

After outrage from the online poker community, both organizations made financial amends to those affected, but didn’t prosecute anyone for the operation of either scam. Today, the two sites are part of the same network and have seemingly recovered some of their former respect (including the recent certification from eCOGRA, the online gaming watchdog). Still, the scandal could have had a devastating effect on the online game and it has cast doubt as to the legitimacy of online poker, much like the Mississippi riverboat games of centuries ago almost stopped poker from becoming what it is today.

8. Amateurs Dominate WSOP Main Event

Throughout its early history, poker, and in particular the World Series of Poker (WSOP), it was the bastion of professional rounders willing to live life on the edge, to take thousands of dollars out of their own pockets and risk that they were the greatest poker player in the world. With the advent of satellites and online poker, where a player could get into a tournament for a significantly smaller fee, amateur poker players began to take a shot at the upper echelons of the game.

Since 2002, an amateur or previously unknown player has won the $10,000 Main Event at the WSOP and been crowned World Champion. Some, such as Jerry Yang and Jamie Gold, have stayed on the peripheral of the poker world and have arguably not done much since their victories. Others, such as Greg Raymer, Joe Hachem, and Chris Moneymaker, have continued to be at the forefront of the game, advocating in political circles for the regulation of online poker as respected professionals in their own right. Whether they have experience or not, amateurs have become a part of the WSOP.

7. New Blood Infuses the Game

All forms of business need an infusion of new customers to continue to drive their endeavors. Poker is no different. For some time, older players, mostly men, populated the game and the required influx of “new blood” was seemingly missing. Through the development of online poker, new players, both male and female, have made their marks.

In what was perhaps the most stunning tournament win of the decade, Annette “Annette_15” Obrestad’s victory at the inaugural WSOP Europe Main Event made her the youngest player to win a major championship and demonstrated that the youth movement in poker had arrived. In the last two WSOP Main Events, Phil Hellmuth’s longstanding record as the youngest ever champion has been eclipsed twice. As we look at the next decade, young players will continue to make their names in an arena that previously had been dominated by the “Old Guard” of the game.

6. Twice is Nice – Dan Harrington, Mike Matusow, and Jeff Shulman

With the growth of the WSOP Main Event, the odds of a player repeating as champion, as Johnny Chan did in 1987 and 1988, are nearly infinitesimal. The feat of making two final tables is nearly as difficult, but three men - Dan Harrington, Mike Matusow, and Jeff Shulman - managed to pull off the feat. While none won the tournament, the ability to make two final tables during the decade, against such sizeable fields, is definitely a significant achievement.

Harrington’s feat is arguably the best of the three players. Battling through, at the time, the two largest WSOP Main Event fields ever, the 1995 champion nearly captured his second title in consecutive years (2003 and 2004). Matusow announced his presence on the game with his first final table in 2001 and marked his resurrection as a poker player by returning in 2005. Shulman finished seventh in 2000 and came back in 2009 with a fifth place finish.

2009 World Poker Tour Year in Review

For the World Poker Tour (WPT), 2009 was a year of incredible highs, but the organization was also faced with issues away from the felt that had to be overcome for the company to remain viable in other arenas.

Without a doubt, the biggest news of 2009 for the WPT was the sale of the popular poker tour. In what turned out to be a frenetic bidding war, WPTE, the tour’s parent company, received an offer in August from Gamynia Limited for around $9 million. Officials from the WPT’s parent company accepted the offer from Gamynia, but the battle was just beginning. A second offer from Party Gaming, which upped the ante to $12.3 million, eclipsed Gamynia and made it appear that the former online gaming giant would be the one to take over ownership of the WPT. As a part of this deal, there a $1 million cash advance would allow WPT to opt out of its deal with Gamynia.

As the deal with Party Gaming was moving towards completion, a third bid for the WPT came to light. As stockholders prepared to approve the agreed upon sale to Party Gaming in October, Mandalay Entertainment (not a part of the Mandalay Bay hotel ownership) stunned the poker world by issuing a bid for the WPT to the tune of $36.5 million. After reviewing the respective bids, the stockholders bypassed the Mandalay Entertainment offer and approved the sale of the WPT to Party Gaming. As of the end of 2009, it isn’t known how Party Gaming will utilize its ownership of the WPT.

In news away from the felt, the WPT was looking for an outlet to continue to air its popular tournament schedule. The one-year deal with Fox Sports Net was renegotiated in February and ensured that the WPT would continue to be on television for Season 8. In addition to the deal with Fox Sports Net, the WPT was also able to bring on Full Tilt Poker as a major sponsor of its broadcasts, marking the first time that the tour had aligned itself directly with an online poker room. Previously, sites had been sponsors of individual stops on the WPT, but never the entirety of the tour itself.

At the start of 2009, WPTE was facing a de-listing from the NASDAQ Stock Exchange in New York because its shares were not trading above the required $1 level. WPTE was given an extension due to the travails of the financial world in late 2008 and, by the middle of 2009, it had returned its stock to the required levels to maintain the seat on the NASDAQ. It was officially removed upon the sale to Party Gaming.

On the tables, the WPT continued to provide quality events, albeit with a drop in actual tournament attendance. Numbers for WPT events were down as much as 25%, but this was attributed to the global economic recession for the most part. The smaller numbers ensured that there were quality fields that took part in each stop of the WPT through the end of Season 7 and the beginning of Season 8.

Veterans of the poker world such as Freddy Deeb (WPT Invitational), Steve Brecher (Bay 101 Shooting Star), and Vadim Trincher (Foxwoods Poker Classic), all earned championships as Season 7 began to wind down. In April, the WPT Championship crowned up and coming poker superstar Yevgeniy “Jovial Gent” Timoshenko as its latest winner and also bestowed the title of WPT Player of the Year to Bertrand “ElkY” Grospellier.

After taking its traditional summer break, the WPT came back for Season Eight, with players such as Alexandre Gomes (Bellagio Cup) and Prahlad Friedman (Legends of Poker) taking down titles. After a stirring run at the 2009 World Series of Poker (WSOP) Main Event, Tommy Vedes demonstrated why he is considered to be one of the most underrated players in the game when he captured the title at the Festa al Lago in October. In perhaps the best calendar year run on the WPT, Cornel Andrew Cimpan claimed two WPT titles, the L.A. Poker Classic during Season 7 in February and the Foxwoods World Poker Finals during Season 8 in November.

Finally, the WPT put the “World” back into its moniker by hosting several tournaments in Europe. WPT Europe crossed the continent, ranging from such traditional gaming areas as Barcelona and Venice to exotic locales like Cyprus and Marrakech. These tournaments were warmly received, with strong European contingents filling out the fields alongside many of the best in poker from the United States.

With the new ownership of Party Gaming in its pocket, the future for the WPT is definitely bright.

Bodog Founder Calvin Ayre Featured in National Post

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

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

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

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

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

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

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

Read the entire Calvin Ayre interview with the National Post.

ECOGRA Certifies CEREUS Poker Network

The CEREUS Network has taken another step towards regaining the trust of its customer base.  The independent certification group eCommerce and Online Gaming Regulation and Assurance (eCOGRA) recently announced that CEREUS met all of the qualifications for the organization’s seal of approval.

According to an announcement on eCOGRA’s site, CEREUS passed the certification process with “flying colors.”  The eCOGRA staff traveled to CEREUS headquarters to review the software and the company that produced it.  The lengthy review process analyzed the company’s random number generator and its management team.  eCOGRA used its Total Gaming Transaction Review system to assess CEREUS’ gaming transactions in terms of fairness and efficiency.

When all was said and done, eCOGRA was more than impressed with CEREUS’ operation.  Sean Roberts, Compliance Manager for eCOGRA, commented on the group’s findings in its official statement: “The active measures taken, in light of events that impacted players, coupled with an impressive range of additional mitigating controls that have since been implemented, have contributed to the CEREUS online poker network’s software reaching the standards we require for software accreditation.”

The London-based eCOGRA has long been considered to be one of the more prestigious and reputable online gaming certification groups out there.  Sites are certified by the Board of Directors, which consists of Executive Director Andrew Beveridge and Independent Directors Bill Henbrey, Michael Hirst, Bill Galston, and Frank Catania.  The board also includes three non-executive directors.  The four executive directors include an accountant, a former board member of Ladbrokes PLC, a retired inspector from the British Gaming Board, and a founder and president of a consulting group.

Beveridge also serves as the CEO of eCOGRA and has been at his post since 2003.  He possesses more than a decade of knowledge and experience in the world of online business and gaming.  A former executive at International Gaming Networks, Beveridge expressed confidence that CEREUS would uphold the standards expected of sites with eCOGRA certification: “CEREUS management’s complete cooperation and commitment to an in-depth inspection and monitoring process involving the network’s transaction records and its software has been remarkable.  Going forward, we are confident that the network’s adherence to our standards and best business practice requirements will prevent any reoccurrence of the unfortunate incidents of the past.”

Obviously excited to hear the good news, Paul Leggett, CEO of CEREUS’ parent company Tokwiro Enterprises, conveyed his feelings about the certification in the official eCOGRA press release: “Doing everything possible to reassure the poker community that our operation and software are completely safe and secure is a priority for us. This is why we decided to work with eCOGRA and apply for the Certified Software accreditation seal,” Leggett explained.  “Their inspection team was extraordinarily thorough, looking at a wide range of elements in our software. We are proud that our product passed the tough requirements to achieve this important accreditation. We have learned a great deal from eCOGRA and we respect and support their ongoing efforts to make the online poker industry more accountable.”

This announcement is not the first time that an outside organization has commended the company for its efforts to improve the safety and fairness of its online poker rooms following the Absolute Poker and Ultimate Bet cheating scandals.  Earlier this year, the Kahnawake Gaming Commission (KGC) issued its findings on the scandal and stated that no one at Tokwiro was aware of the impropriety or was involved in the cheating.  Despite not finding Tokwiro liable for any of the theft, the KGC instituted a list of requirements for UB to retain its CEREUS-issued license, including KGC testing, independent testing, internal audits, and KGC approval on new employee hiring.

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

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

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

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

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

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

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

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

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

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

Sportingbet PLC Reports Strong Third Quarter 2009 Revenues

While many companies around the world continue to dig themselves out of the yearlong recession that has affected global business, some online gaming companies seem to be doing quite well for themselves. In announcing its third quarter numbers for 2009, Sportingbet PLC joins a small list of gaming companies that have been able to turn a profit.

During the announcement last week of the company’s third quarter 2009 earnings, Sportingbet PLC, which owns the popular online poker room Paradise Poker, reported an increase in revenues versus the same time period last year. Sportingbet PLC was able to show a net profit of £48.6 million for the third quarter 2009, up 26% against the £38.6 million that the company pulled in during the third quarter of 2008.

European betting on Sportingbet’s online sports book seems to be the driving factor for its third quarter success. Amounts wagered on sports betting in Europe grew by 38.2% during the third quarter 2009 to £263.8 million versus 2008’s £190.9 million. “I am pleased to report a solid performance,” stated Andrew McIver, the Group Chief Executive for Sportingbet PLC. “Group performance continues to be driven by the European sports betting business, which has seen strong growth in all its key metrics including amounts wagered and active customer numbers.”

Sportingbet PLC, which is publicly traded on the London Stock Exchange under the symbol “SBT,” admitted to cutting some costs during the third quarter, however. In July, Sportingbet divested itself of ownership in Italian operations, Sportingbet Italia S.p.A., which had been a drain on profits. In addition to this cut, Sportingbet stated that its overall profits could have been better, but continued loss of American revenue and the competition with other online poker rooms that accept U.S. play cut into the bottom line.

McIver continues to be optimistic about the future of the company: “Trading (in Sportingbet PLC stock) since the start of the second quarter has remained robust… The Group performance to date gives the Board confidence with regard to the remainder of the financial year.”

The third quarter report comes on the heels of Sportingbet’s announcement of its fiscal year 2009 numbers, which reflected growth in bookmaking operations and a continued drop in players at Paradise Poker.

In October, Party Gaming announced the results of the third quarter and showed a drop of about 4% of revenues. Party Gaming officials attributed the drop to “higher player numbers offset by lower yields,” meaning they weren’t pulling in as much money even though they had more players. Much like Sportingbet PLC, Party Gaming does not accept any American action. Recently, Party Gaming completed the purchase of assets of the World Poker Tour (WPT), trumping a bid submitted by a subsidiary of the iPoker Network.

Party Gaming Expands in Italy, Introduces Online Poker Changes

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

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

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

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

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

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

Poker Industry Reacts to House Financial Services Committee Hearing

On Thursday, the House Financial Services Committee, Chaired by Congressman Barney Frank (D-MA), hosted a hearing on two internet gambling bills. Twenty-four hours later, the online poker industry has had a chance to respond.

In one portion of Thursday’s hearing, Congressman Spencer Bachus (R-AL) referenced a letter he received from the FBI noting that the integrity of online poker games could be compromised. On the letter sent by Shawn Henry, the Poker Players Alliance (PPA) retorted, “The PPA takes issue with certain representations made by Mr. Henry, but believes that the larger point is the more important one: Mr. Henry’s letter makes a compelling case for licensing and regulation of internet poker as proposed in HR 2267.” Bachus is the Ranking Member of the House Financial Services Committee and a staunch opponent of internet gambling interests.

Safe and Secure Internet Gambling Initiative (SSIGI) spokesperson Michael Waxman gave Poker News Daily his two cents on the 90-minute long hearing that took place on Thursday morning in one of Congress’ most powerful committees: “The hearing and witness testimony clearly portrayed why Congress should scrap an unrealistic attempt to ban internet gambling and regulate the burgeoning underground marketplace since it is the only effective way to protect consumers.” Witnesses covered the gamut, ranging from the banking industry to problem gambling interests.

Early on in the proceedings, Bachus questioned Frank as to why no representatives from the U.S. Treasury or Federal Reserve were present at the hearing. Frank responded that he had not received any such request. However, the Committee’s Chairman later recanted his statement after producing an e-mail dated 40 hours before the hearing began from Bachus’ staff calling for the Treasury or Fed to be present. The awkward exchange ultimately led to agreement that an additional hearing should take place featuring members of the two government organizations, setting up more debate on the internet gambling issue in 2010. The Treasury and Fed granted a six-month delay in compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA).

On the proceedings, Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan told Poker News Daily, “It’s good to see that the ball is rolling again. The trick is going to be if things are sustained beyond the hearing. The industry has this pace of getting a public hearing every six months, but there seems to be little follow-up. Seeing that the minority wanted to hear from the Treasury and Fed, it may be the opposition who keeps the ball rolling.” No hearing has been scheduled, although PPA Executive Director John Pappas expected swift movement to mark up HR 2267.

Bachus’ generalizations about millions of young Americans becoming addicted to online gaming if legalization were to occur rubbed many in the industry the wrong way. On some of the claims made by the high-ranking Alabama Congressman, PocketFives.com poster “RI Tony” commented, “This Bachus guy is a classic example of why I hate politicians. There would be no way to change this guy’s mind. He’s simple minded and arrogant, thinking he can legislate morality. Oh yeah, and like I’m going to play poker on my Blackberry as I’m driving or waiting in line at the supermarket as he suggested people would. Idiot.” Online sites like Cake Poker already offer a mobile client.

Bachus asserted, “If Congress repeals the law, online casinos will proliferate. In the next five years, I feel that if [we] are successful in creating a federal right to gamble on the internet, we will create a generation of millions of Americans who from their youth will be addicted to internet gambling and, therefore, life-long problem gamblers.” Frank labeled Bachus’ comments “hyperbole” and “based on no factual basis whatsoever.”

In June of 2008 during a separate committee hearing, Bachus relayed a study from McGill University claiming that one-third of college students who gambled on the internet attempted suicide. In fact, no such study had ever taken place. A representative for the university quipped, “I am confident the Congressman doesn’t read research – he could not misinterpret this.”

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

UIGEA Hearing Held

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

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

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

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

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

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

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

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

BetClic Signs Isabelle Mercier

Mercier will act as a consultant for the site, which is a part of the Mangas Gaming group, and will be involved with developing a strategy for BetClic Poker.

“I am delighted to be working with BetClic and the Mangas group,” Mercier said.

“I am super impressed by the energy and ambition of this young company which is really going places. As with poker I’ve always made decisions based on both analysis and instinct, and this project has a great feel to it. I know it will be really exciting.”

Mercier brings years of experience from the poker industry, where she originally started as a poker room manager at the Aviation Club de France.

She was also a successful player and her big break came in 2004 when she won the WPT Ladies Night Out II event. Since then she has won over $1 million on the tournament circuit including a final table in the 2006 WSOP where she finished fifth for $175,404.

 “We are proud to welcome Isabelle to our team as an ambassador and advisor,” said BetClic managing director Nicolas Béraud. “She will give us new vision and excitement in this fast growing sector.”

Although Mercier will be a consultant for the company she will also continue to play poker, joining the rest of the sporting ambassadors at BetClic including footballers Marcel Desailly, Deco, Arrigo Sacchi, Mateusz Borek and Stefan Effenberg.

BetClic was created in 2005 and has grown from a start-up to a major player in the online gaming world. The company operates across 15 countries with over 1.5 million customers.

Although the site is known primarily for sports betting it has started to push its poker offering. BetClic also recently acquired Bet-At-Home and Expekt, both of which offer online poker rooms.

Mercier was rumored to have joined BetClic back in September, but she denied the claims at the time.

CEREUS Receives eCOGRA Certification

The e-Commerce Online Gaming Regulation and Assurance (eCOGRA) organization announced that CEREUS passed the requirements for its Certified Software accreditation seal.

Absolute Poker and UB Poker were both mired in cheating scandals that came to light in 2007 and 2008 and initially cost players millions of dollars. The money was eventually returned to the players after a series of investigations.

 “Doing everything possible to reassure the poker community that our operation and software are completely safe and secure is a priority for us,” said Tokwiro CEO Paul Legget. “This is why we decided to work with eCOGRA and apply for the Certified Software accreditation seal.”

eCOGRA was established as a non-profit organization by Microgaming and 888.com and has since become one of the most respected regulatory bodies in the online gaming world, reviewing over 150 sites including industry leaders like PartyPoker and bwin.

According to eCOGRA representatives, the CEREUS Poker Network was very open in the rigorous inspection process.

“CEREUS management’s complete cooperation and commitment to an in-depth inspection and monitoring process involving the network’s transaction records and its software has been remarkable,” said eCOGRA chief executive Andrew Beveridge.

“Going forward, we are confident that the network’s adherence to our standards and best business practice requirements will prevent any reoccurrence of the unfortunate incidents of the past.”

The on-site review encompassed every aspect of CEREUS software development activities was conducted earlier this year by professional eCOGRA auditing and technical staff.

PartyPoker wins the Poker Operator of the Year title

PartyGaming’s flagship PartyPoker has won the Poker Operator of the Year title at the EGR Awards.

EGR comments thefollowing about PartyPoker: “The group’s poker platform proved resilient in 2009 in the face of the marketing onslaught and reach of US sites taking full advantage of their bigger liquidities and managed to maintain its position as the biggest non-US stand alone poker site in online gaming.”

PartyPoker managed to stand well within the company of the bigger sites like Full Tilt Poker and PokerStars, and is still the biggest independent non-US site.

While getting the first prize, PartyGaming poker director Moshe Davidovich said: “we work very hard to try and stay ahead of the game, and it’s great to be noticed for that.”

Source: EGR Magazine

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PartyPoker wins the Poker Operator of the Year title

National Council on Problem Gambling Head Discusses Internet Research

Given that compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) has been delayed six months to June 1st, 2010, research on the effects of online gaming may now take center stage as lawmakers craft sensible legislation. At the helm of the National Council on Problem Gambling is Keith Whyte, who sat down with Poker News Daily to discuss the internet side of problem gambling research.

In June, Congressmen Jim Moran (D-VA), Lee Terry (R-NE), and Frank Wolf (R-VA) introduced HR 2906, the Comprehensive Problem Gambling Act. The bill boasts 26 co-sponsors on both sides of the aisle and allocates $71 million over five years for problem gambling awareness, research, and treatment. Its language was incorporated into Senator Robert Menendez’s (D-NJ) S 1597, the Internet Poker and Game of Skill Regulation, Consumer Protection, and Enforcement Act.

Poker News Daily: Thank you for joining us. Talk a little bit about the differences between live and online problem gambling research.

Whyte: A lot of the research we have is not online and there may be some significant differences between online and live players. When we think about online players, one of the ways I try to break it down is to look at the risk factors for gambling problems: high speed of play, social isolation, use of credit cards, higher limits, and easy access. Those can all be found in the online arena. All of the studies have found that internet gambling users tend to be younger and male. Also cited is that online gamblers are not necessarily losing a lot of money; they are just on there 14 hours a day to the detriment of their work and family life. Problem gambling is not just about the money.

PND: Online gamblers have access to a wide variety of options like poker, blackjack, sports, and casino carnival games. Does that increase, decrease, or not affect the propensity for problem gambling to occur?

Whyte: It’s a pretty robust finding that the more types of things you gamble on, the more likely you are to have a gambling problem. The fact that online gamblers tend to play more types of games means that they are more likely to develop a gambling problem.

PND: Is an online problem gambling study in the works?

Whyte: As we work on Capitol Hill, there are a lot of people asking questions about the online environment. One of the reasons we haven’t done the research is funding and resources. As an advocacy organization for programs that assist problem gamblers, a lot of our focus is on prevention and treatment. For example, we’re still trying to build a safety net for problem gamblers at the state level. We are keen on trying to understand this better and I’d like to see the National Council in a position to support that research.

PND: Have any online poker or internet gambling sites come to you looking for research or offering assistance?

Whyte: bwin has collaborated with Harvard University. Other examples have included the involvement of eCOGRA, but it’s nothing that we’ve done directly.

PND: Will regulation of the industry through a bill like Congressman Barney Frank’s (D-MA) HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, deter problem gambling?

Whyte: That’s one of the concerns we have at the state level right now. We have no confirmation that regulated gambling is more responsible; it’s how that regulation is done. We’ve had problems with state governments not collecting and releasing information, which makes it much more difficult for us to act.

UIGEA Regulations Officially Delayed Six Months

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

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

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

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

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

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

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

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

UIGEA Hearing Scheduled for December 3rd in Financial Services Committee

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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