Poker News

Poker Players Alliance Releases 2010 Congressional Ratings Guide

The Poker Players Alliance (PPA), the leading poker grassroots advocacy group with more than one million members nationwide, released its 2010 Congressional Ratings Guide this week. The guide provides ratings for every member of the U.S. House of Representatives and Senate on their stances on poker issues.

According to PPA Chairman and former Senator Alfonse D’Amato, the ratings guide is based on (1) co-sponsorship of pro-poker legislation, (2) votes for or against pro-poker legislation in the House Financial Services Committee and in the full House, (3) letters sent on behalf of or against poker players’ rights, and (4) public statements, constituent letters, or actions for or against poker players’ rights. Each member of Congress is graded based on the sum of their actions in each category.

As an indication of the effectiveness of the education and advocacy efforts of the PPA and its members, only 194 members of Congress scored a “D” or an “F” – failing in their support of poker – as opposed to almost half of members, 258, who received a “D” or “F” in 2008. This year, 91 members of Congress were rated an “A” for their strong support for poker freedom.

“The poker community has made tremendous progress over the past two years in educating members of Congress on the benefits of regulating online poker. The grades in our 2010 Congressional Ratings Guide indicate that progress, but also underscore that more needs to be done,” said D’Amato. “As we approach the mid-term elections, this guide is a valuable resource for PPA members – and all poker players in the country – as they choose to support candidates who support their right and freedom to play poker.”

Unlike past years, the PPA was able to rely more on voting records as a basis for the ratings. The lawmaking activity on poker legislation in the House of Representatives has increased rapidly over the past two years, generating more interest from the legislative body.

The ratings were released at a crucial time for online poker in the United States. Legislation that would regulate and legalize online poker in the United States (H.R. 2267) is awaiting further action and a possible vote in the House and Senate. Meanwhile, the entire House of Representatives is up for re-election in November and 37 of the 100 Senate seats will also be free for the taking. The ratings guide gives poker players a chance to see how their state representative stands on the issue of online poker before voting in November.

The PPA Congressional Rating Guide will be updated periodically and is searchable by state and by zip code. You can help the PPA rate members of Congress by contacting your elected officials directly and asking them where they stand.

Poker Voters of America Weighs in on California Intrastate Online Poker

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Internet Gambling Payment Processor Daniel Tzvetkoff Released on Bail

In breaking news from New York, Intabill head Daniel Tzvetkoff has been released on bail, according to the Courier-Mail newspaper in Australia. In April, he was arrested in Las Vegas on charges money laundering, gambling conspiracy, and bank fraud as part of his role with the internet gaming payment processor.

According to the Aussie news outlet, “The young Gold Coast entrepreneur was set free after a closed hearing before a federal magistrate.” He filed a plea in the case in late August in the legal action brought on by the U.S. Attorney’s Office. The news broke on the same day in which former Full Tilt Poker employee Jason “JDN” Newitt allegedly was subpoenaed to appear the Southern District of New York. The nature of his subpoena is not known, but may be related to his lawsuit against his former employer.

Much of the Southern District’s energy in the internet gambling industry has been focused on payment processors, who provide the financial link between online poker players and online poker sites. Tzvetkoff was originally denied bail in New York, according to the Courier-Mail, because a U.S. judge “feared he had hidden money to finance an escape from the U.S. once free.” The newspaper added that a trial is set for June 2011.

Last year, word broke that Kolyma Corporation AVV had filed a $52 million lawsuit against Intabill. The total purportedly consisted of $25 million owed to Full Tilt and PokerStars and $30 million owed to the CEREUS Network sites UB.com and Absolute Poker. The lawsuit was filed in Australia and, at one point, it was reported that Intabill took in as much as $1 million per day.

According to a Dow Jones Newswire report in April, rather than report what his financial transactions were for, Tzvetkoff told the bank they represented “repayments of short-term loans, transfer of funds to prepaid debit cards, and e-commerce purchases.” He was rumored to have owned a house in Sin City and was merely visiting. However, the trip and his past transgressions may cost him up to 75 years behind bars. The 27 year-old filed for bankruptcy in January following credit card charge back issues and the deteriorating global economy.

In another development on the legal front, the Courier-Mail notes that Douglas Rennick, a Canadian who ran into legal trouble for his role with the payment processor Account Services, will be sentenced this month. Account Services was linked to both Full Tilt Poker and PokerStars. The U.S. Government seized Account Services’ funds last year and, in July 2009, the company filed a motion for return of property. The Poker Players Alliance filed an amicus brief in the case, but Rennick was promptly indicted in August of last year.

On Newitt’s rumored appearance in the Southern District of New York on Tuesday, posters on TwoPlusTwo were up in arms as to what the development could mean for the industry. According to TwoPlusTwo poster “Kevmath” and This Week in Poker, Newitt’s presence was due to “miscoded transactions taking place right after the UIGEA.”

Poker Players Alliance New Hampshire State Director Patrick “Skallagrim” Fleming opined on TwoPlusTwo, “This could just be an action against a processor and FTP may not be the target at all. Or they could be trying to tie FTP into some processor’s alleged violations by any number of possible theories of accomplice or conspiracy. Or all my guesses may be wrong.”

There was no mention of a trip to the Southern District on Newitt’s Twitter feed. Tuesday saw him take his car over 5,000 miles on the way home from Chipotle and trade away Arian Foster in fantasy football. Stay tuned to Poker News Daily for the latest legislative and legal headlines.

Former Full Tilt Poker Employee Jason Newitt Subpoenaed by Feds

According to Wicked Chops Poker, former Full Tilt Poker employee Jason “JDN” Newitt has been subpoenaed by the U.S. Attorney’s Office for the Southern District of New York and is scheduled to appear today. The reason for his subpoena was not disclosed. Read the article here.

In September 2009, word came to pass that Newitt was filing suit against Full Tilt Poker, Pocket Kings, and Tiltware alleging that “he was unfairly fired and that his distribution payments were unfairly ceased. Defendants then took control of his ownership.” He parted ways with Full Tilt Poker following a well-publicized e-mail leak involving Full Tilt front man Howard Lederer and Newitt discussing Jimmy “gobboboy” Fricke, who finished second in the 2007 Aussie Millions Main Event.

Whether Newitt’s rumored appearance at the Southern District of New York involves his Full Tilt Poker lawsuit or the online poker room in any way remains to be seen. The involvement of the Southern District with the internet gambling industry has primarily been on the payment processing front. In April, Intrabill head Daniel Tzvetkoff was arrested and charged with money laundering, gambling conspiracy, and bank fraud in Las Vegas. A Dow Jones Newswire report indicated that the Southern District brought on the arrest of the Aussie and was focusing on “hundreds of millions of dollars in transactions with U.S. gamblers between February 2008 and March 2009.”

Last September, word broke that government officials had seized six bank accounts in Maryland related to the internet gambling payment processor Forshay Enterprises. The legal action followed similar seizures of funds belonging to Electracash and HMD, two other intermediaries.

Perhaps the most famous case involving the Southern District involves its investigation of Account Services, which was linked to providing payment processing for Full Tilt and PokerStars, the two largest online poker sites in the industry. Account Services front man Douglas Rennick, a Canadian, was hit with a potpourri of charges including bank fraud, money laundering, and illegal gambling.

The Account Services sting was part of a larger assault on the internet gambling industry by the Southern District in which $30 million was seized. The money in question was destined for over 20,000 online poker players and, as a result of the disruption, sites like PokerStars gave cash bonuses to players who were affected when their checks bounced. The Poker Players Alliance, one of the main lobbying voices of the poker industry, filed an amicus brief on behalf of Account Services.

Wicked Chops’ namesake Steve “Chops” Preiss told Poker News Daily on Tuesday, “In general, subpoenas are not overly specific in nature. It’s no secret the DoJ has been investigating the online poker industry, and when J.D. Newitt sued Full Tilt Poker, he certainly opened himself up for some follow-up from the government. We simply won’t know if the subpoena is specifically targeting Full Tilt Poker or part of a larger and broader investigation of online poker until after the fact.” Newitt’s appearance could also be wholly unrelated to the industry.

Preiss speculated as to what the subpoena could mean for the online poker community: “This certainly isn’t ‘good for poker.’ But it might not necessarily be bad either. The DoJ has been consistent in their efforts in going after payment processors instead of site operators, and this is potentially just an exploratory measure on their part.”

A rumored grand jury investigation of Full Tilt Poker may be in the works as well. The Financial Times reported the investigation in April, although no further action has occurred.

Other recent lawsuits involving Full Tilt Poker include Brandon McSmith suing for the rights to the poker television series “Face the Ace” and Clonie Gowen suing for her own monetary distributions. The latter suit was dismissed in February, while McSmith’s legal squabble is ongoing. McSmith told Poker News Daily that officials from the FBI have contacted him.

Players Before Profits Petition Nears 10,000 Signatures

In late August, the Poker Players Alliance (PPA), the main lobbying voice for poker players in the United States, struck back at the Commerce Casino and other gambling establishments in California by launching PlayersBeforeProfits.com. The online petition was designed to encourage support of HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act. Now, the vehicle is nearing 10,000 signatures.

At the time of writing, the petition at PlayersBeforeProfits.com has garnered 9,018 signatures, having passed 9,000 during the day on Friday. In addition to a wealth of “Average Joes” signing it, a plethora of pros have joined in the fray. Players like Patrik Antonius, Doyle Brunson, Tom Dwan, Barry Greenstein, John Juanda, Huck Seed, and Erik Seidel have all lent their name to the PPA’s cause.

Tom Malkasian, who introduced himself in a July House Financial Services Committee hearing as an “owner, board member, and the Director of Strategic Planning for the Commerce Casino,” came out in strong opposition to HR 2267. Malkasian called the bill, introduced by Congressman Barney Frank (D-MA) “fundamentally flawed and unsound.”

Malkasian added that HR 2267 and its revenue counterpart, HR 4976, are “based on false revenue assumptions that would require the removal of the right of any state or tribe to opt out of the bill in order to achieve the advertised tax revenues of $42 billion over 10 years.” HR 4976, introduced by Congressman Jim McDermott (D-WA), has yet to be marked up in the House Ways and Means Committee. Contrastingly, the House Financial Services Committee approved HR 2267 six weeks ago and the bill boasts 70 co-sponsors.

PPA Executive Director John Pappas told the PocketFives.com Podcast this week that the California casinos are merely seeking a monopoly by opposing HR 2267: “When you peel back the onion, you realize that they’re not opposed to internet gaming; they just want a monopoly on it. From a consumer perspective, we all know that monopolies don’t work and they don’t provide the best player experience. What Commerce is looking for is a poker-only bill that will only serve the California marketplace.”

PlayersBeforeProfits.com also provides avenues for concerned Americans to Tweet, call, and e-mail the Commerce with one click. Its petition reminds casino officials, “It is important to note that with the rise of online poker, many individuals hone their skills online before they enter establishments such as the Commerce Casino – increasing traffic to poker rooms nationwide.” The Commerce has gone so far as to invite poker home games to play within its walls.

The Bicycle Casino, Hawaiian Gardens, and Hollywood Park have all come out in support of the Commerce Casino’s position. The coalition’s Waltona Manion told Poker News Daily in an interview on September 1st that, among other aspects of the bill, the group believes that the opt-out provision will not hold water if faced with a World Trade Organization challenge. In addition, Manion claimed that HR 2267 and HR 4976 would impose lower taxes on offshore internet casinos compared to what land-based casinos pay.

Congress has a target adjournment of October 8th, one month ahead of general elections in the United States. Then, following elections, a so-called “lame duck” session will likely occur. With the nation’s highest legislative body needing to pass critical appropriations bills, the possibility exists that HR 2267 could be attached to an unrelated piece of legislation, as was the case with the Unlawful Internet Gambling Enforcement Act four years ago.

Although members of the poker community have called for a formal boycott of the Commerce Casino and its partners, the PPA has not yet taken that route. The Commerce Casino bills itself as the “largest card casino on Earth” with nearly 250 tables. Across town at the Bicycle Casino, Andrew Frankenberger was crowned the champion of the recently completed World Poker Tour Legends of Poker, whose lowered $5,000 buy-in resulted in a field of 462 players.

September 2nd – Daily Deal

On today’s Daily Deal, the coalition of California casinos clarifies its stance on internet gambling legislation, 888 reports its financial results for the first half of two-thousand ten, the World Series of Poker Main Event continues airing on ESPN and we find out who the final nominees are for this year’s Hall of Fame. It’s all ahead… faster than you can say, “I can dodge bullets, baby.”

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

Recently, the Commerce Casino, Bicycle Casino, Hawaiian Gardens, Hollywood Park, and the California Gaming Association joined in opposition Congressman Barney Frank’s HR 2267, which would create a full licensing and regulatory framework for the internet gambling industry in the United States.

The four casinos have found themselves in a war of words against the Poker Players Alliance, which has launched an online petition at PlayersBeforeProfits.com to reverse their stance against the groundbreaking legislation. Poker News Daily sat down with card room coalition spokesperson Waltona Manion to explore the coalition’s resistance.

Manion argued,

“We’re looking for Federal enforcement of the same strict licensing and regulation for online poker as U.S. land-based casinos abide by. This means that they have to license all of their employees and the physical operations should be in the U.S. In addition, the hardware and software should be tested and certified.”

She added, “Frank’s bill provides fewer industry regulations and player protections. It imposes lower taxes for foreign online companies than what U.S. casinos pay. It would enable illegal offshore companies to export significant money from our economy.”

We’ll keep you posted as this story develops.

888 Holdings, the gaming operator that owns 888 Poker, announced Tuesday that it will be cutting costs in order to address a loss in profits for the first half of 2010. The company has also decided to scrap its dividend in order to pay for acquisitions after the weak economy and World Cup caused a decline in poker revenue.

888’s first half financial results showed revenues were up 10.5% to one-hundred thirty million dollars, but pre-tax profit dropped by 56% to four point three million dollars. Poker revenue dropped 25% to nineteen point six million.

The WSOP Main Event continued airing on ESPN on Tuesday night with Day Two-B. Two one-hour episodes were devoted to the second Day Two and the feature table included Dan Harrington and Jeff Shulman, who were seated next to each other. Prahlad Friedman and Allied Network Solutions CEO Ted Bort tangled in a hand in which Bort called the clock after pushing all in. Friedman waited until the count reached one and quietly said, “I call,” but floor officials ruled that the clock had expired. Bort turned over top two pair and Friedman mucked.

A maelstrom of yelling ensued. ESPN aired a replay clearly showing that Friedman had called at the one-second mark and the dealer promptly said, “He called.” Nevertheless, another floor supervisor was summoned who also said the hand was dead. Don’t forget that Friedman was also involved in “Ante-gate” with Jeffrey Lisandro.

Finally, the nominees as voted by the fans are in for the Poker Hall of Fame. This year’s class is a who’s who of the poker world, all of whom have distinguished careers warranting their nominations. This year’s class of nominees, who will be voted on by the 16 living Hall of Fame members and a 17-person media panel. Only these 33 individuals cast votes for induction. The nominees are:

1. CHRIS FERGUSON
2. BARRY GREENSTEIN
3. JENNIFER HARMAN-TRANIELLO
4. DAN HARRINGTON
5. PHIL IVEY
6. LINDA JOHNSON
7. TOM McEVOY
8. DANIEL NEGREANU
9. SCOTTY NGUYEN
10. ERIK SEIDEL

Well, that does it for today’s edition of The Daily Deal, and we’ll be back with you on Tuesday of next week. Be sure to visit Poker News Daily every day for the latest poker headlines, and be sure to check us out at twitter dot com slash poker news daily. I’m Sean Gibson, thanks for tuning in, and we’ll see you next time. Now go crush those fish at the tables!

Commerce Casino Clarifies Stance on Online Poker Legislation

Recently, the Commerce Casino, Bicycle Casino, Hawaiian Gardens, and Hollywood Park joined in opposition Congressman Barney Frank’s (D-MA) HR 2267, which would create a full licensing and regulatory framework for the internet gambling industry in the United States. The four casinos have found themselves in a war of words of sorts against the Poker Players Alliance (PPA), which has launched an online petition at PlayersBeforeProfits.com to reverse their stance against the groundbreaking legislation. Poker News Daily sat down with card room coalition spokesperson Waltona Manion to explore the coalition’s resistance.

Many in the industry have asked what brand of internet gambling legislation the Commerce Casino and its allies in California would support, if any. Federal licensing? State licensing? Poker only? Manion explained that the coalition is not against internet gambling: “We’re looking for Federal enforcement of the same strict licensing and regulation for online poker as U.S. land-based casinos abide by. This means that they have to license all of their employees and the physical operations should be in the U.S. In addition, the hardware and software should be tested and certified.” The California Gaming Association also opposes HR 2267.

The coalition also supports not granting Federal licenses to any entity that has violated U.S. law. Manion added, “Another criteria would be poker only. The Frank bill as it’s currently written authorizes all types of gaming. That violates Federal law and breaks agreements of states and tribal nations. It would violate the Indian Gaming Regulatory Act.” One amendment to Frank’s HR 2267 prohibited online wagering on sports, leading to the NFL dropping its opposition to the bill. Manion also stated that states should have the right to continue to regulate gaming in their own jurisdiction.

Manion also expressed concern over the level of protections included in Frank’s measure: “Frank’s bill provides fewer industry regulations and player protections. It imposes lower taxes for foreign online companies than what U.S. casinos pay. It would enable illegal offshore companies to export significant money from our economy.” The tax companion bill to HR 2267 is Congressman Jim McDermott’s (D-WA) HR 4976, which has not yet been marked up in the House Ways and Means Committee.

Despite the spat playing out in the public arena, Manion told PND that the poker lobbying organization and the California casinos have not yet sat down and discussed their differences on HR 2267: “The PPA’s leadership were present during the Financial Services Committee hearing and said nothing to us. They did not contact anyone from the Commerce Casino or any of the card rooms. Had the PPA contacted the Commerce or the major card rooms in California and said they had major concerns or if they had read the testimony more closely, they would agree that most of what we’re talking about is valid.”

According to a 2009 survey by Fairbank, Maslin, Maullin, and Associates, 55% to 57% of Californians support the state collecting revenues from online poker. Among the most important factors to respondents were ensuring that minors don’t play, full transparency, independent audits, and cracking down on unauthorized sites. The West Coast state could be among the first to green light intrastate internet gambling given a sizable budget shortfall. California State Senator Rod Wright had introduced SB 1485 this year, but the bill ultimately stalled on its way to becoming law in July.

HR 2267 offers an opt-out provision for states and tribes that don’t want to take part in a Federal internet gambling scheme. However, Manion believes that the provision won’t stand up if reviewed by the World Trade Organization (WTO): “We don’t believe that the opt-out provision as currently written will hold up to WTO scrutiny. If they were to challenge HR 2267, that’d be the component that would be challenged. We should preempt that now so we don’t get a challenge from the WTO. It would leave state-regulated gaming vulnerable.”

Nevertheless, if HR 2267 were to become law before the end of the current legislative session, California could opt out of the legislation and go it alone in the online poker world. However, its lack of liquidity compared to the Federal model could result in its demise. Manion remarked, “Our immediate focus is amending the Federal legislation and also working with the state legislature on legislation they believe would ensure that California revenues stay in California. If the Frank bill passed, the opt-out provision would be in play and California could opt out. The California state legislature could also act in advance of Frank’s bill becoming law.”

HR 2267 was marked up and passed out of the Financial Services Committee on July 28th. Congress is currently in recess.

The PPA’s petition has lapped 7,200 players and talk of a boycott of the Commerce has arisen among poker pros. UB.com pro Annie Duke, for example, commented via Twitter, “I and some other pros are boycotting them as well. I will give my business to a place that supports the players.” What the next chapter will be in this ongoing saga is anyone’s guess.

Poker Players Alliance Responds to Commerce Casino’s Opposition on Online Gambling Legislation

Barney Frank Out as Financial Services Committee Chair in 2011?

In November, voters in the United States will head to the polls for general elections. On Capitol Hill, the entire House of Representatives and one-third of the Senate will be determined. If Republicans were to gain control of the House, then Congressman Barney Frank’s (D-MA) tenure as Financial Services Committee Chairman may come to an end.

A recent Financial Times article discussed the future of the lower Congressional body: “Polls show control of the House of Representatives is too close to call while the Democrats are expected to retain control of the Senate, albeit with a reduced majority.” Frank has been in the House since 1980 and served as the Financial Services Committee Chairman since 2007. Democrats currently control nearly 60% of the seats in the House and Senate.

Congressman Spencer Bachus (R-AL) serves as the Ranking Member of the House Financial Services Committee, although he apparently seems far from a lock to take over the Chair should the opportunity arise. However, the Financial Times revealed, “Mr. Bachus said, ‘I will be the chairman if we’re in the majority.’ [Congressman Jeb Hensarling (R-TX)] said, ‘My expectation is that Spencer Bachus will be the next Chairman of the House Financial Services Committee and I support him.’”

What’s the significance of this story for online poker players, you ask? Frank is internet gambling’s number one supporter on Capitol Hill, having offered up a handful of bills to legalize the industry in the United States. His latest effort, HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, was marked up in the Financial Services Committee in late July and has received the support of 70 co-sponsors.

HR 2267 received about a dozen amendments during mark-up, ranging from ensuring that online sports betting would not be legalized to prohibiting existing sites that serve the U.S. market “illegally” from applying for a license. Now, the measure awaits its time on the House floor, although HR 2267 being attached to a must-pass bill later this year is a possibility. Ironically, the Unlawful Internet Gambling Enforcement Act (UIGEA) was attached to an unrelated port security measure to become law in 2006.

Bachus remains one of the strongest opponents of legalized internet gambling. During HR 2267’s markup hearing on July 28th, Bachus opened the proceedings by arguing, “After all of the talk of the past year of shutting the casinos down on Wall Street, why would we take steps today to open casinos in every bedroom and every dorm room on iPods, Blackberrys, iPhones, and computers?”

In the meantime, HR 2267 has caused a rift of sorts in the poker community. The Commerce Casino’s Tom Malkasian was among those witnesses who spoke against the bill in a July 21st House Financial Services Committee hearing. In response, the Poker Players Alliance (PPA), the industry’s main lobbying voice, issued an online petition to force the Commerce to change its position. The petition, found at PlayersBeforeProfits.com, has received over 7,000 signatures.

The Commerce Casino then fired back, arguing in a press release distributed in Friday, “Nevada casinos, offshore companies, and Washington insiders don’t want California to benefit from its own market. Our economic future is not their concern. We support free enterprise, fair competition, and the principle that what plays in California, stays in California.” The Los Angeles casino also claimed support from the Bicycle Casino, Hawaiian Gardens Casino, and Hollywood Park Casino.

Several poker pros have suggested a boycott of the Commerce Casino, although one has not yet occurred. The Bicycle Casino is fresh off hosting the World Poker Tour’s Legends of Poker, which saw Andy Frankenberger walk away with the title and $750,000 top prize.

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

August 30th – Daily Deal

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

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

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

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

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

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

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

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

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

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

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

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

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

Poker Players Alliance Comments on Commerce Casino HR 2267 Stance

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

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

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

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

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

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

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

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

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

Bicycle Casino, Hawaiian Gardens, Hollywood Park Side with Commerce

Let the battle lines be drawn. Several days after the Poker Players Alliance (PPA) issued a petition to reverse the Commerce Casino’s stance against pro-internet gambling legislation in the United States, more casinos have come onboard to strike down the bill.

In a letter issued to the press late Friday night from Commerce Casino Board members Tom Malkasian and Haig Papaian, it was revealed that the Bicycle Casino, Hawaiian Gardens, and Hollywood Park also oppose Congressman Barney Frank’s (D-MA) HR 2267. None of the three additional casinos was quoted in any way.

Calling industry lobbying groups like the PPA “special interest groups receiving funds from illegal offshore gaming operators,” Malkasian and Papaian assert, “Poker players deserve to know the real facts so let us be clear: We support online poker and we are working hard to make sure it will benefit all Americans. America’s poker community should be united in opposing the Frank legislation that would ship jobs, revenue, and taxes beyond our communities. We need to work together to keep American dollars at home.”

The authors of the letter claim to employ more than 20,000 workers in California, a state that has been hit with a massive budget shortfall. It also cites a 2008 study from the California Public Policy institute saying that 70% of California residents use the internet and “according to another study in 2009, Californians wager an estimated $13.4 billion annually. That makes California the largest internet gaming market in the world, and without state legislation to protect it, critically-needed billions will be captured by offshore and out-of-state operators never to return.”

On Friday, PPA Executive Director John Pappas told Poker News Daily that 6,000 players had signed an online petition found at PlayersBeforeProfits.com to reverse the Commerce Casino’s stance. The organization was gunning for 10,000 names in total.

In response to the press release from the Commerce Casino Board members, UB.com pro Annie Duke chided via Twitter, “Your press release might be more credible if you got the bill number correct. It’s HR 2267.” The press release cites the Commerce Casino’s opposition to HR 4976, the tax companion bill to HR 2267 proposed by Congressman Jim McDermott (D-WA). However, Malkasian’s testimony in front of the House Financial Services Committee last month was wholeheartedly against Frank’s HR 2267.

In reaction to the harsh opposition set forth by the Commerce Casino, Pappas commented, “There are requirements in HR 2267 that companies set up at least 50% of their operations in the United States. On their concern of illegal operators, anyone who has been operating illegally won’t be able to get a license. It’s pretty clear their only concern is that they don’t want to compete.” A dozen amendments were added to HR 2267 in a markup hearing held one month ago to the day addressing many of the Commerce Casino’s concerns.

The Commerce Casino’s statements wraps up by saying, “We strongly support poker-only legislation. California lawmakers should be the first to bring an illegal enterprise under legal supervision, provide needed consumer protections, and capture revenue that can benefit our state first.” An e-mail address of supportonlinepoker@commercecasino.net is given for players looking for additional information.

Among the 6,000 poker players that have signed the PPA’s online petition are Patrik Antonius, Tom Dwan, Phil Ivey, John Juanda, Erick Lindgren, Joe Sebok, and new PokerStars pro David Williams. All that’s required to sign is your name, city, and state. The PPA has even gone so far as to provide an avenue for players to Tweet the Commerce Casino automatically. Alternately, you can leave your telephone number and the PPA will personally patch you through to the Commerce Casino.

The addition of the Bike, Hawaiian Gardens, and Hollywood Park may open the rift even further between online poker players seeking legislation and the brick-and-mortar casinos they placate. Calls for a boycott of the Commerce have surfaced and many of the aforementioned “illegal offshore gaming operators” sponsor pros like Ivey, Duke, and Sebok through their dot-net counterparts. The Bike and Commerce both hold World Poker Tour events, with the former fresh off crowning a champion in the Legends of Poker.

Stay tuned to Poker News Daily on Sunday for an exclusive response from Pappas.

Commerce Casino Board Member Responds To Players’ Outrage Over Position

Amid the furor of poker players regarding his testimony in front of a Congressional committee, Commerce Casino board member Tom Malkasian responded late yesterday to Poker News Daily about the brewing controversy.

In the statement, Malkasian defended the position he made during testimony by saying, “The Poker Players Alliance is ignoring the grave threat that the federal and state legislation poses to everyday poker players. America’s poker industry should be united in opposing the Frank and McDermott legislation and keeping American dollars at home.”

Malkasian, who testified in front of the House Financial Services Committee in July during hearings for HR 2267 (the Internet Gambling Regulation, Consumer Protection, and Enforcement Act), continued to defend his stance by saying in the statement, “Federal and state regulation of online poker is coming and we can either fight to ensure that poker players’ interests are protected or allow illegal foreign operators, who are siphoning millions of American dollars out of this country, to dominate the U.S. market. We support the passage of federal and state legislation that will provide California poker players with a safe, secure, and well-regulated online playing environment.”

Malkasian said in closing. “If domestic card casinos do not defend themselves from offshore interests, we stand to lose not only revenue but also the loss of jobs. We are against the Frank and McDermott bills. (The) Poker Players Alliance should be against this, too.”

In his testimony in July, Malkasian said the position of the Commerce Casino was against the introduced legislation for several reasons. The proposed revenues of the new law, which have been quoted as high as $42 billion over a ten year period, are based on “false assumptions and conflicting representations,” according to Malkasian’s testimony in Congress. There are also questions over the regulatory nature of the bill as well as the opt in/out language that would set what states would be a part of the law if passed.

Poker players, backed by the Poker Players Alliance and several top pros, acted quickly to counteract Malkasian’s stance – and, by extension, the Commerce Casino’s position. A website called Players Before Profits sprung up offering an open letter to the Commerce Casino that decries their stance against the legislation. This letter has been endorsed by over 5,000 people, including several top poker professionals and hundreds of recreational players.

Twitter has also been an active battleground in the discussion, with many issuing Tweets spawned by the Players Before Profits site. As reported yesterday here on Poker News Daily, some players have even talked about the potential for a boycott of the games at one of California’s most popular (and largest) card room. Although he has signed the open letter to the Commerce Casino regarding its position, poker professional Barry Greenstein has used Twitter to clearly explain both sides of the issue.

Over the span of several Tweets, Greenstein discusses the issue fairly: “Commerce Casino management feels they are being unfairly singled out as the bad guys. Many CA casinos are against online (gambling). They seemed ok (with the proposed regulatory laws) if regulators will be as strict with shareholders of online casinos as with them.”

Greenstein also notes the positives of online play by Tweeting, “We can’t accurately measure the effect online poker has on the land based casinos, but I think it has been positive.” He finishes his Tweet series by saying, “Especially if we keep the trend of online qualifying for live tournaments. Online (poker) produces new players.”

The eventual outcome of the current rift between players and the Commerce Casino is, as of yet, unknown. Poker News Daily will continue to monitor the situation and provide updates as news comes available.

Will HR 2267 Be Beneficial for Washington State Players?

HR 2267, Congressman Barney Frank’s (D-MA) Internet Gambling Regulation, Consumer Protection, and Enforcement Act, made it out of the House Financial Services Committee in late July. Across the United States, online poker players have been wading through the bill’s language and dozen-plus amendments to comprehend what the lay of the land will be should it become law.

In Washington State, playing online poker is a Class C felony. HR 2267, contrastingly, creates a Federally approved licensing and regulatory regime and would give each state one full legislative session to opt out. Accordingly, if Washington State elected not to opt out of the bill, online poker players could be returning to the felts in droves.

Poker Players Alliance (PPA) Washington State Director Lee Rousso told PocketFives.com in a post last week, “Washington could opt out of HR 2267. It is a flaw in the bill that the opt-out can be communicated by the governor. It would have been a better bill if legislative action were required to opt-out. It is not even clear that a legislative act could force the governor to opt-in.” Therefore, opting out of HR 2267 appears to be a simple task. However, whether government officials in Washington State would do so remains to be seen.

Rousso, who has been fighting a legal battle to overturn the statute that makes playing online poker a felony, added, “In spite of these concerns, I think it is more likely that Washington would not opt-out. Although Governor Gregoire claims to be opposed to gambling, it is also true that she has never met a tax that she did not like. Once internet poker has the Federal seal of approval, it is far more likely that Washington would tax it rather than ban it.”

HR 2267’s tax companion bill, Congressman Jim McDermott’s (D-WA) HR 4976, prescribes that states and tribal governments can extract 6% of deposits made onto licensed internet gambling sites. McDermott, whose home state imposes the harshest penalty in the country for playing internet poker, also proposed a 2% Federal tax in his bill. Both revenue measures would help to eradicate massive budget shortfalls that have plagued states and the U.S. Government.

During the July 28th markup hearing of HR 2267, Congressman Joe Baca (D-CA) proposed an amendment that would have required states and tribes to opt into the internet gambling scheme rather than opt out. Supporting the amendment was Ranking Member Spencer Bachus (R-AL), who told his fellow lawmakers, “An opt-in is stronger than an opt-out. If we’re going to legalize gambling on every iPod in America… it sweeps away all state laws.”

Frank responded by asserting, “You’re setting a dangerous precedent that your use of the internet is subject to state law.” Frank added that he believed Baca supported gambling, but wanted to protect those who engage in it in California from competition. Congressman Dan Maffei (D-NY) supported the idea that Baca’s amendment was simply a way to kill the bill: “You would have just a crazy quilt system if you had states decide whether to opt in or out. If we were to approve [Baca’s amendment], it would be a stealth way of gutting the bill.”

In May, the PPA staged a rally on the steps of the Washington State Supreme Court in Olympia following Rousso’s testimony there. Rousso primarily argued that the bill making online poker a Class C felony violates the Commerce Clause of the United States Constitution because it protects in-state interests from out-of-state competition. Rousso told Poker News Daily that month, “The Commerce Clause of the U.S. Constitution doesn’t allow that. I think it’s clear that online poker is international commerce, which means the states can’t regulate it.”

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

Dennis Phillips, David Baker Join ESPN Inside Deal

On this week’s edition of the ESPN.com poker news program “Inside Deal,” 2008 World Series of Poker (WSOP) Main Event November Niner Dennis Phillips sat in throughout the duration of the episode. Phillips was the second guest to visit “Inside Deal” when it debuted last year.

The hot topic of the week was the passage of HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, by the House Financial Services Committee. Poker Players Alliance (PPA) Executive Director John Pappas joined the show via phone and commented on the 14 amendments added to the bill: “There were a lot of strong consumer protection amendments added to the bill. Many believe that much of it could be handled by the regulators, but I think it gave lawmakers a little more comfort supporting the legislation.”

One amendment, introduced by Congressman Brad Sherman (D-CA), outlaws those sites still operating illegally in the United States from obtaining a license if HR 2267 were to become law. Pappas shared the mentality of outfits like PokerStars and Full Tilt, which seem to be the target of this inclusion: “They aren’t operating illegally. Therefore, they would still be allowed to apply for a license. Nothing in the law is going to guarantee anyone a license, but we need to have a fair and open system that allows anybody to apply for a license and then let the regulators decide.”

While progress has been made towards legalized internet gambling in the House, no movement has taken place in the Senate. There, a rumored bill introduced by Senate Majority Leader Harry Reid (D-NV) may take shape. Pappas gave “Inside Deal” viewers the lay of the land: “Senator Reid and other members of the Senate are probably looking at this more narrowly than Frank’s legislation. All of the feedback we’ve gotten from the Senate is that if this is something that’s going to get done, it’s going to be a poker-only approach, not broad poker and casino gaming over the internet.”

Following the lengthy discussion of HR 2267, the crew debated whether the final table of the Player’s Championship should have been only No Limit Hold’em. “Inside Deal” co-host Bernard Lee opined, “This year, the decision was better than it has been in the past. Previously, when it was a $50,000 HORSE tournament, HORSE is a Limit game. To switch it to No Limit [at the final table] was ridiculous. In this Eight Game Championship, one of those eight games was No Limit.”

The industry is in the midst of the 100-day break leading up to the resumption of the WSOP Main Event in November. Lee, who took 410th in the feature tournament for $31,000, recalled this year’s scramble for site sponsorships: “They signed players from Day 6 and the rest of the tournament. Last year, they patched players on a daily basis. Because you’re patching these players for the rest of the tournament, you have to have some pretty deep pockets. Therefore, only a few of the sites were able to do it.”

The 2010 WSOP November Nine consists of seven Full Tilt players. However, Harrah’s has mandated that each room can only patch three players at the final table. Consequently, Full Tilt finds itself in a bit of a quandary. “If you’re Full Tilt, you can’t give up ‘The Grinder,’” Lee remarked. “He is the star. John Dolan is second in chips and then you have an issue. That leaves four of these guys basically patchless.”

While Phillips shared his insight throughout the show, David Baker joined the program via phone to discuss why he held out on an endorsement deal while driving to a 17th place finish: “I just knew that most of the money was deep in the tournament itself plus the endorsements. You had a lot more leverage later on. Obviously, poker is very volatile, so they don’t want to pay for too much early, but if they know you’re going to get a lot of camera time, they’re willing to pay a little bit more.”

“Inside Deal” is released every Tuesday on ESPN.com.

August 4th – Daily Deal

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

In breaking news from Cake Poker, the site will release an update to the new client in the near future to fix a potentially hazardous security issue. According to Cake Poker Card Room Manager Lee Jones, the fix implements OpenSSL into all client-server communication. On Tuesday night, the old Cake Poker client received the update correcting the security flaw.
PokerTableRatings.com, which first reported the security vulnerability on July 26th, has promised to take the new version’s updated Beta client for a test drive. The Cake Poker Network used an XOR-based encryption similar to the security issue experienced on the CEREUS Network back in May. PokerTableRatings.com noted that Cake Poker Network skins like DoylesRoom and Bruce Poker have not yet received an update.

On Tuesday night, the 2010 World Series of Poker Tournament of Champions aired on ESPN. This week marked the last preliminary tournament leading up to the Main Event, which will begin next Tuesday at eight P-M Eastern Time. Huck Seed defeated Full Tilt Poker’s Howard Lederer in the finale of the Tournament of Champions and banked five-hundred thousand dollars. The tournament appeared on the WSOP slate for the first time since 2006, when Mike Sexton beat Daniel Negreanu for the title.

Finally, online poker players have been celebrating the passage of H-R two-two-six-seven by the House Financial Services Committee last week. However, now that the House is out of session for its summer recess, what will the future of the bill be?

PND asked Poker Players Alliance Executive Director John Pappas what we can expect. He responded,

“What Barney Frank indicated in the committee hearing last week was that his intent was to move HR two-two-six-seven simultaneously with the revenue bill in the Ways and Means Committee. In September, we hope to have the Ways and Means Committee mark up their bill and bring both bills to the floor.”

Less optimistic was Interactive Media Entertainment and Gaming Association Chairman Joe Brennan, who told PND, “Frank’s bill has no companion bill in the Senate. All of these amendments were thrown in and it’s a bill that doesn’t have a chance of passing before the end of this Congress.”

Congress returns to Capitol Hill on September tenth.

That does it for this express edition of The Daily Deal, and as always be sure to check back with us all day long for the latest in poker news. This is Sean Gibson reporting for Poker News Daily dot com.

Future of Barney Frank Online Poker Bill Unclear

Last week, online poker players across the United States watched as HR 2267 passed out of the House Financial Services Committee by a 2:1 margin, 41-22. The winds of change are clearly in the air, but how long will the internet poker world wait until regulation finally comes to fruition?

Among those ardently working on Capitol Hill is Poker Players Alliance (PPA) Executive Director John Pappas, who told Poker News Daily on Tuesday that he was elated to see the somewhat bipartisan support for HR 2267: “I was really pleased with the overwhelming majority and the bipartisan support for the legislation. If you look back just four short years ago, the House passed an Unlawful Internet Gambling Enforcement Act (UIGEA)-like prohibition by a wide margin. Just two years ago, we had a bill defeated on a 32-32 stalemate. Now, we have a pro-internet poker bill that passed by a 2:1 margin.”

Time is quickly running out on the 2010 legislative session, with less than a month remaining for Congress to act. The lawmaking body is on summer recess until September 10th and has a target adjournment of October 8th for general elections. Pappas shared the PPA’s timeline for action: “What Barney Frank (D-MA) indicated in the committee hearing last week was that his intent was to move HR 2267 simultaneously with the revenue bill in the Ways and Means Committee. In September, we hope to have the Ways and Means Committee mark up their bill and bring both bills to the floor.”

The revenue companion bill to Frank’s HR 2267 is HR 4976, introduced by Congressman Jim McDermott (D-WA). It was discussed in the House Ways and Means Committee in May and boasts four co-sponsors. Meanwhile, HR 2267 lacks a supported counterpart in the Senate, where Senator Robert Menendez’s (D-NJ) S 1597 has not been discussed in any committee and offers no co-sponsors.

Among the various amendments added to HR 2267 last week included one by Congressman Brad Sherman (D-CA) forbidding those internet gambling sites operating illegally in the United States now from receiving licenses. The inclusion has raised the question as to whether rooms like PokerStars and Full Tilt will exist in a regulated regime. Pappas speculated, “Most of the online poker sites have well-reasoned legal opinions that say they’re not operating in violation of any Federal law. It’s hard to prove that someone is operating illegally if you haven’t convicted or indicted anyone. How can they be considered illegal if they continue to operate without any legal repercussions?”

Not optimistic about HR 2267’s chances of becoming law before the end of the legislative session was Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan, who told Poker News Daily, “Frank’s bill has no companion bill in the Senate. All of these amendments were thrown in and it’s a bill that doesn’t have a chance of passing before the end of this Congress.”

Brennan also questioned whether the 14 amendments added to HR 2267 increased its chances of approval in the House: “On the face of it, it was a difficult bill made even more difficult by all of those amendments. The post-markup bill is something that anyone who is in the industry now should be concerned about. It’s so nakedly tilted away from current operators to establish a standard for individuals and companies as far as licensure.”

An amendment proposed by Ranking Member Spencer Bachus (R-AL) and Michele Bachmann (R-MN) prohibits anyone who has “knowingly participated in, or should have known they were participating in, any illegal internet gambling activity” on or since the passage of the UIGEA in 2006 from receiving a license. Consequently, how the clause is enacted will play a major role in determining who is able to serve the U.S. market. Companies like Party Gaming, for example, have signed non-prosecution agreements with the U.S. Department of Justice.

Pappas added that the PPA has seen a spike in donations since the markup hearing. Read our complete recap of the HR 2267 markup.

Slow-Rolling is Massively -EV by Lee Jones

Poker News Daily published an article arguing that slow-rolling could be considered simply another legitimate weapon for a poker player to use against his opponents.

At the risk of misstating the author’s point, the crux of the argument is, “It’s within the rules and it tilts my opponents (which is +EV for me). So I do it.”

Here’s the executive summary of my response to those who consider slow-rolling just a +EV tactical play: “Are you out of your minds?”

I don’t know – perhaps you have your two 36” monitors so filled with table windows that you haven’t been following the reports from the Poker Players Alliance (PPA). Or your TV is always tuned to “High Stakes Poker,” so you never watch CNN.

But check it out: since October of 2006, the online poker industry has been in a pitched battle for its very existence. Politician after district attorney after “protector of the family” has climbed up on his high horse and demanded that the cancer of online gambling be shut down.

And one of the deep social reasons for all this trouble: poker is viewed as an uncivilized pastime, pursued by uncivilized people. The game got its American start on riverboats and in the Old West; cheating and shady characters were part and parcel of its milieu.

But recently, with the advent of TV and internet poker itself, the American people have started to give poker a second look. And (praise your preferred deity, if you have one) budget shortfalls all over have politicians thinking that maybe they could use the tax revenue they’d derive from online poker. Even the American Gaming Association (AGA) – the largest gaming lobby organization – has decided to back online poker (which is a new twist).

But thanks to the “old” perception of poker, and the perception of some politicians who think they can leverage that, we have potential enforcement of the Unlawful Internet Gambling Enforcement Act (UIGEA) and rumors of even scarier legal activity in the Southern District of New York.

The entire world of poker is teetering on a knife edge. On one side, we’re cast back into the darkness. Online poker stays in its gray legal zone and the games continue to shrink because it’s harder to get money on and off of poker sites. The games are going to get tougher and tougher. Poker rooms in Las Vegas continue to close and poker TV shows go off the air.

But on the other side of that knife edge is legalization. It is an explosion of growth that will – wait for this – dwarf the Big Bang of 2003. You hear people say that the big online sites would love to maintain the status quo in online poker; they’re making plenty of money. Those people are dead wrong; the potential growth is beyond anybody’s wildest dreams.

And right now, every move we make, every time a Senator walks by the TV in his den and sees his teenage son watching the WSOP or WPT, he’s going to add to his opinion of poker – one way or the other.

If that Senator sees ladies and gentlemen playing a fascinating game and treating others with respect, then perhaps he’ll think this is something he can support (or at least quietly ignore as it slips by on some budget bill). If it looks like a golf match or even an NFL game (where you can maim the quarterback, but you can’t stand and gloat over the fact that you did it), maybe we’ll gain a supporter.

If, however, he sees trash talking and berating of opponents, if he sees the typical Hellmuthian tantrums and Tony G insults, he may start to suspect that the Focus on Family view of poker is the accurate one. Slow-rolling is just another form of standing over the quarterback you just sacked and gloating about it.

Let me put it in chilling terms: the guy you are slow-rolling in your $2-$5 game at the Venetian may be a golf buddy with a U.S. Senator.

Now do the EV calculation of your slow-roll and get back to me.

Postscript: Even if it weren’t crystal clear to me that being a gentleman is ultimately good for poker everywhere, I still wouldn’t slow-roll people. My karma and good energy are too important to me. But that’s just me.

Lee Jones is the Card Room Manager of Cake Poker. He has worked in the poker industry for over six years, and been associated with professional poker for almost 20 years. He is the author of “Winning Low Limit Hold’em,” which has been in print for over 15 years.

Slow-Rolling is Massively -EV by Lee Jones

Poker News Daily published an article arguing that slow-rolling could be considered simply another legitimate weapon for a poker player to use against his opponents.

At the risk of misstating the author’s point, the crux of the argument is, “It’s within the rules and it tilts my opponents (which is +EV for me). So I do it.”

Here’s the executive summary of my response to those who consider slow-rolling just a +EV tactical play: “Are you out of your minds?”

I don’t know – perhaps you have your two 36” monitors so filled with table windows that you haven’t been following the reports from the Poker Players Alliance (PPA). Or your TV is always tuned to “High Stakes Poker,” so you never watch CNN.

But check it out: since October of 2006, the online poker industry has been in a pitched battle for its very existence. Politician after district attorney after “protector of the family” has climbed up on his high horse and demanded that the cancer of online gambling be shut down.

And one of the deep social reasons for all this trouble: poker is viewed as an uncivilized pastime, pursued by uncivilized people. The game got its American start on riverboats and in the Old West; cheating and shady characters were part and parcel of its milieu.

But recently, with the advent of TV and internet poker itself, the American people have started to give poker a second look. And (praise your preferred deity, if you have one) budget shortfalls all over have politicians thinking that maybe they could use the tax revenue they’d derive from online poker. Even the American Gaming Association (AGA) – the largest gaming lobby organization – has decided to back online poker (which is a new twist).

But thanks to the “old” perception of poker, and the perception of some politicians who think they can leverage that, we have potential enforcement of the Unlawful Internet Gambling Enforcement Act (UIGEA) and rumors of even scarier legal activity in the Southern District of New York.

The entire world of poker is teetering on a knife edge. On one side, we’re cast back into the darkness. Online poker stays in its gray legal zone and the games continue to shrink because it’s harder to get money on and off of poker sites. The games are going to get tougher and tougher. Poker rooms in Las Vegas continue to close and poker TV shows go off the air.

But on the other side of that knife edge is legalization. It is an explosion of growth that will – wait for this – dwarf the Big Bang of 2003. You hear people say that the big online sites would love to maintain the status quo in online poker; they’re making plenty of money. Those people are dead wrong; the potential growth is beyond anybody’s wildest dreams.

And right now, every move we make, every time a Senator walks by the TV in his den and sees his teenage son watching the WSOP or WPT, he’s going to add to his opinion of poker – one way or the other.

If that Senator sees ladies and gentlemen playing a fascinating game and treating others with respect, then perhaps he’ll think this is something he can support (or at least quietly ignore as it slips by on some budget bill). If it looks like a golf match or even an NFL game (where you can maim the quarterback, but you can’t stand and gloat over the fact that you did it), maybe we’ll gain a supporter.

If, however, he sees trash talking and berating of opponents, if he sees the typical Hellmuthian tantrums and Tony G insults, he may start to suspect that the Focus on Family view of poker is the accurate one. Slow-rolling is just another form of standing over the quarterback you just sacked and gloating about it.

Let me put it in chilling terms: the guy you are slow-rolling in your $2-$5 game at the Venetian may be a golf buddy with a U.S. Senator.

Now do the EV calculation of your slow-roll and get back to me.

Postscript: Even if it weren’t crystal clear to me that being a gentleman is ultimately good for poker everywhere, I still wouldn’t slow-roll people. My karma and good energy are too important to me. But that’s just me.

Lee Jones is the Card Room Manager of Cake Poker. He has worked in the poker industry for over six years, and been associated with professional poker for almost 20 years. He is the author of “Winning Low Limit Hold’em,” which has been in print for over 15 years.

July 30th – Daily Deal

Topics: HR 2267, statement from Alfonse D’Amato, bwin/PartyGaming merger and Vegas Casinos headed to the auction block.

Coming up on the Daily Deal, we’ll continue the discussion about the house committee passing HR 2267, get a statement from the PPA’s Alfonse D’Amato, find out which two poker superpowers are merging, and find out which vegas casinos are headed for the auction block.

Hello, I’m Sean Gibson and welcome to the Daily Deal by Poker News Daily. We start once again with news out of Washington, as the victory celebration continues for poker. Thanks to the work of Barney Frank and the Poker Players Alliance, progress was made with the committee passing of HR 2267. It might just be a first step in a long journey to get online poker legalized in the United States, but at this point many are very encouraged with the progress. The bill is now heading to the House of Representatives for a majority vote. Alfonse D’Amato, chairman of the PPA said,

“Congress has a choice — it can license and regulate it to provide government oversight and consumer protections, or our lawmakers can stick their heads in the sand, ignore it, and leave consumers to play on non-U.S. regulated websites in all 50 states. I’m glad the Financial Services Committee today overwhelmingly chose to act and protect Americans as well as preserve the fundamental freedoms of adults and the Internet.”

Big news out of Europe as a long rumored merger in the online gaming industry was revealed when Austrian based BWIN and Gibraltar based PartyGaming announced their merger. The pact is expected to be completed by the first quarter of two thousand eleven and will create the largest publically traded online gaming conglomerate in the industry. According to Gaming Intelligence, the two companies combined to earn six hundred and eight two million euros in 2009. The merger does have some roadblocks left to clear, one of which is approval of seventy five percent of each company’s stock holders. Stock prices of both companies saw sharp increases in value once the announcement was made.

News out of Vegas tells us after months of legal troubles, Station Casinos filed papers indicating that it has reached a settlement with a group to keep the company afloat and out of bankruptcy. Some of the properties include the Red Rock Resort and Boulder and Palace Station. Another eleven of Station’s properties are going to go up for auction next week.

Well that does it for today’s edition of The Daily deal and we thank you for tuning in. Be sure to follow us at twitter dot come slash poker news daily and come back to our site for the latest poker news and interviews. I’m sean Gibson wishing you a fantastic poker weekend!

July 29th – Daily Deal

Special Edition recap of H.R. 2267 passing in committee hearing.

On today’s edition of The Daily Deal, we have a special edition for you today. We’ll recap yesterday’s huge victory for poker in the United States, find out what amendments were added and find out what’s next for the bill.

Hello, I’m Sean Gibson and welcome to The Daily Deal, brought to you by Poker News Daily. There is big news out of Washington as the house financial services committee met on Wednesday to discuss HR 2267. The bill, introduced by Barney Frank, calls for internet gambling regulation, consumer protection and enforcement. Many representatives were on hand to file amendments and make their voices heard. After several hours of debate, the bill was passed by a vote of forty-one to twenty-two. This marks the first of what will be many steps to be taken in order to regulate and fully legalize online poker in the United States.

The committee began discussion on provisions of the bill in the markup phase, which is where a congressional committee makes changes to a bill before it is voted on. Now that it has passed that step, it will go to the House of Representatives for another vote. Should it receive a majority vote there, it would then be passed along to the Senate for another majority vote, before being signed into law by the President.

Several amendments were made to HR 2267 on Wednesday, with each being handled invidiually and voted on by the representatives in attendance. Thirteen amendments passed, with the first being that sites that have intentionally broken internet gaming laws will be forbidden to get licenses in the United States. Other amendments include many that protect minors from being solicited via email or advertisements while others force all facilities of licensees that operate do so completely within the borders of the United States.

This marks a huge victory for the poker industry and those that want to enjoy the freedom of playing legally in the United States. Although it is just the first of many steps, the overwhelming margin of victory for the bill is a good indicator of its potential in congress.

The Poker players alliance, led by executive director John Pappas said,

“We commend the lawmakers who helped make H.R. 2267 stronger through a variety of consumer protection mandates … we thank Representatives John Campbell, Mary Jo Kilroy, and Melissa Bean for their thoughtful additions to the bill and their interest in preserving the rights of adult poker players in their districts.”

PokerStars has come out in support of HR 2267, despite the first amendment to the bill which might prevent them from doing business. It is pokerstars’s stance that they have been operating legally, and therefore, not affected by that first amendment. Whether that is true or not, and whether the bill is passed or not, remains to be seen.

Thanks for joining us for this special edition of the daily deal and as always you can follow us at twitter or bookmark our site for our daily updates. I’m sean gibson wishing you deep runs in all your tournaments!

Poker Players Alliance Reacts to Passage of HR 2267

The tireless work of Rep. Barney Frank and the Poker Players Alliance finally made some progress Wednesday as HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, passed the House Financial Services Committee by a vote of 41-22. The result can be viewed as a small but important victory for the poker community, on a battle that has been fought over and over again on Capitol Hill over the past few years.

The bill, which could ultimately lead to the legality and regulation of online poker in the States, will now be sent to the House of Representatives for more amendments and a majority vote.  Should the bill get the majority vote from the House of Representatives, it would then be passed along to the Senate for another majority vote, before being signed into law by the President.

Wednesday’s win was just the first of many in order to regulate online poker in the United States, but the PPA was very encouraged by the result.

“The fact is, online poker is not going away,” said Alfonse D’Amato, chairman of the PPA. “Congress has a choice — it can license and regulate it to provide government oversight and consumer protections, or our lawmakers can stick their heads in the sand, ignore it, and leave consumers to play on non-U.S. regulated websites in all 50 states. I’m glad the Financial Services Committee today overwhelmingly chose to act and protect Americans as well as preserve the fundamental freedoms of adults and the Internet.”

The committee spent hours Wednesday amending HR 2267 and several modifications were made to the bill. They include mandatory implementation of technologies to protect against underage gambling; high standards to prevent fraud, abuse and cheating, to ensure fair games for customers; requirements for operators to set daily, weekly or monthly limits on deposits and losses to monitor and detect individuals with excessive gaming habits; and requirements to ensure that bettors are restricted from using credit cards to gamble on the Internet.

“We commend the lawmakers who helped make H.R. 2267 stronger through a variety of consumer protection mandates,” said John Pappas, PPA executive director. “In particular, we thank Representatives John Campbell, Mary Jo Kilroy, and Melissa Bean for their thoughtful additions to the bill and their interest in preserving the rights of adult poker players in their districts.”

One area of concern lies within the first amendment discussed on Wednesday, which restricts sites that have intentionally broken Internet gaming laws from getting a license to conduct business in the United States. This will likely affect larger online poker sites such as PokerStars, Full Tilt Poker and the old Ultimate Bet, all of which allowed players from the U.S. to play on their site following the passage of the UIGEA. The amendment, which was introduced by Congressman Brad Sherman, passed by a voice vote.

In a press release following the hearing, the PPA made the following statement regarding the amendment: “There is still much work to be done and areas of policy in this bill that must still be addressed. To be clear, despite the concerns of some of our members, nothing in the Committee-passed legislation precludes lawful Internet poker-only operators whom U.S. players know and trust today from the opportunity to operate under a regulated system. The PPA will work with House and Senate lawmakers to ensure that the final legislation produces the best regulated online gaming environment for the consumer.”

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

July 28th – Daily Deal

Topics: Nov 9 Odds, Commerce’s $1M Tournament, PPA Statement and 2 New French Licenses.

Straight ahead on the Daily Deal, we’ll talk about who the odds makers think of the November Nine, recap the Commerce Casino Million Dollar Tournament, discuss the Poker Players Alliance and the latest from Capitol Hill, and finally find out which two sites just gained French licenses.

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

We’ll start off today by looking at who the odds makers are picking to win it all in November at the World Series of Poker Main Event. Online betting sites such as BetFair and BetUs have released their odds for each of the November Nine. Jonathan Duhamel opened up as a two to one favorite but now is at 3.7 to 1, with John Dolan not too far behind Duhamel in the odds. Short stack Soi Nguyen is sitting at eighteen point five to 1 and the shortest stack, Jason Senti, has odds set at twenty-five to 1. You can decide who you think is the odds on favorite yourself, as coverage of the WSOP starts on ESPN tonight.

The Commerce Casino Million Dollar Guarantee Championship was played out in Los Angeles over the weekend with a special buy-in of just $335. The Matt Savage creation featured five opening days and allowed players that busted from earlier days to enter back on a successive day. Three thousand three hundred players ended up entering and made for the biggest tournament field in the history of Los Angeles poker, but still fell short of the guarantee by sixty thousand dollars. A six way split of the top prize money was agreed in the wee hours of Monday, with Richard Bakovic winning the title of champion and taking home one hundred and seventy three thousand dollars.

With the regulation of online poker a hot topic on Capitol Hill this week, Poker Players Alliance chairman Alfonse D’Amato was eager to voice his opinion in support of poker players in the United States. D’Amato spoke out on subjects such as the taxation of online poker, the government acting on behalf of U.S. banks, and the intentions of our Founding Fathers. He opened his editorial by mentioning the popularity of poker and the amount of support it has received following the implementation of the Unlawful Internet Gambling Enforcement Act. Regulation of internet poker in the United States has come up in HR 2267 which is currently making its rounds in Washington.

Finally, news from France as ARJEL, issued licenses to Full Tilt Poker and PKR, who are both allowed to get back into the French market. The Full Tilt entity that was actually issued the license is cleverly named Rekop, and French customers can visit FullTiltPoker.fr to download the software. PKR France SAS was issued PKR’s license and, predictably, players can visit PKR.fr for that poker room’s offering.

That does it for today’s daily deal and as always be sure to follow us at twitter dot com slash poker news daily and also book mark our site. I’m Sean Gibson thanking you for watching and wishing you good luck at the tables.

Alfonse D’Amato Speaks Out On Regulating Online Poker

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

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

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

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

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

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

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

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

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

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

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

Andy Bloch, Poker Players Alliance Join Netroots Nation 2010 Conference

Poker and politics have been strange bedfellows during the middle of 2010. Earlier this week, Annie Duke stepped in front of a Congressional committee to testify about the benefits of regulation and licensing of the online gaming industry. Now, Full Tilt Poker’s Andy Bloch has joined forces with the Poker Players Alliance (PPA) at an important conference regarding internet freedom.

Late last week, Bloch was a featured panelist during the Netroots Nation 2010 Conference, which is currently being held in Las Vegas. The conference is a chance for people to gather and discuss current internet freedom issues that face the country. Bloch said in his opening statement, “Basically, if it is illegal to do in the real world, it should be illegal to do online. Unfortunately, that’s not always the case when it comes to gambling.” He then went on to point out the problems with the current state of the online gaming and the approach by the Federal Government.

“Gambling is legal, in some form or another, in 48 of the 50 states,” Bloch stated. “I’m a professional poker player and poker is legal in approximately 40 of the 50 states.” He then continued to point out how both the Federal and state governments – and their approach to the online gaming conundrum – are incorrect, saying, “Unfortunately, the Federal Government and some state governments have singled out gambling, and online gambling, for attack.”

Because the conference is focused on individual liberties, Bloch asked the question, “If you’re not a poker player, or an online poker player, why should you care about the issue?” His presentation was based on three basic issues: “First, it is an issue of basic freedom. If online poker is illegal while other forms of gambling are legal, why can’t the government decide what else shouldn’t be made illegal online? Second, the attempts by the government to block online gambling have implications and side effects on the internet as a whole. Third, if you are interested in internet freedom, you can learn a lot from poker’s abilities to organize and defend their basic rights.”

Bloch’s testimony on the panel included a story regarding playing an inexpensive online sit and go with a player who told him about how he could not travel because of a sight disability, but still wanted to partake in poker. They discussed another player they both knew, who was deaf, and how good it was to have something like online gaming to bring them together. As he concluded the story, Bloch made his most poignant statement: “Interactions like these are why protecting internet freedom is important, even when it is a freedom you might not take advantage of yourself or even understand.”

After the symposium concluded, Bloch issued a press release through the PPA where he reiterated many of the thoughts he spoke about during the seminar. “Americans enjoy the game of poker no matter their political stripes and can watch games on countless television channels,” Bloch said. “We need to make sure that both politicians and activists are aware of the ridiculous attempts to prohibit online poker. They are forgoing billions in tax revenue when our budgets are most in need, rejecting the opportunity to properly regulate online poker and ignoring their responsibility to protect children and other vulnerable members of our society.”

The PPA is a premier sponsor of Netroots Nation 2010 and has been advocating for the rights of poker players since prior to the passage of the Unlawful Internet Gambling Enforcement Act (UIGEA) in 2006. Numbering over one million members, the PPA and its leadership – Chairman Alfonse D’Amato, Executive Director John Pappas, and its State Directors – have been influential in lobbying Congress and stepping in to protect the rights of individual players who play poker.

Annie Duke Comments on House Financial Services Committee Hearing

On Wednesday, the House Financial Services Committee held a hearing on the merits of HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act. UB.com pro Annie Duke was one of five witnesses to appear in front of the assembled Committee and, afterwards, shared her thoughts on the event with Poker News Daily.

As a sponsored pro of UB, Duke has seen the power of mining online poker data in the site’s and the community’s investigations of the Russ Hamilton-led cheating scandal. Whereas casinos rely on more subjective estimates of whether a person is intoxicated, underage, or a problem gambler, online poker rooms can take a long, hard look at the data. Duke explained, “I have never in 15 years in a casino seen someone removed for being too drunk. Casinos have cocktail waitress walking around with trays of alcohol 24/7. It’s much easier to identify the patterns of a problem gambler by looking at data rather than looking someone in the eye.”

Ranking Member Spencer Bachus (R-AL) asked Duke if she was a sponsored pro of Ultimate Bet, which he noted had a multi-million dollar cheating scandal erupt on its felts. Duke corrected the Congressman, saying that she was affiliated with UltimateBet.net: “I would have liked to emphasize more that [the scandal] happened because of a lack of regulation and a lack of licensing. I would have liked to have said more of that. I would like to see consumers have recourse against an individual who did wrong against them.”

Duke’s theme throughout her testimony and responses to member questions was that the Unlawful Internet Gambling Enforcement Act (UIGEA) was merely a “banking law.” Consequently, it fails to protect consumers that still engage in the industry: “The UIGEA is not about consumer protection. It’s a banking law. I hit that point so many times. There’s no protection for consumers.”

Also debated at length during Wednesday’s two-and-a-half hour marathon session was whether sites that continue to operate in the United States should be eligible to receive licenses if and when internet gambling is legalized and regulated. Duke gave her insight into the question: “If a site is licensed by a reputable licensing body in a country we are friends with, are you really going to say that you can’t license them here? Besides, companies don’t get licensed, individuals do. You can’t ban an asset. You have to look at the individuals getting licensed.”

Duke spoke on behalf of the Poker Players Alliance (PPA), the 1.2 member strong lobbying organization for the live and online poker industries. The PPA has been instrumental in setting up this week’s hearing on HR 2267 and next week’s markup of the bill.

Although Duke had to hightail it to the airport following Tuesday’s appearance, she told Poker News Daily via phone, “The PPA got very positive responses. I’m not there representing myself. My interest comes from being a good representative for poker.” Duke found out last Friday that she was set to appear in the Financial Services Committee and Tweeted on Tuesday, “Heading to DC tomorrow. Testifying Wednesday at 2pm in front of Chairman Frank’s Committee on his new legislation to regulate online gaming.”

Duke has been busy responding to her followers on Twitter, chirping to Pokerati on Wednesday after the hearing, “Regulation and licensing would have allowed prosecution of Russ Hamilton. I wish we had that now. Make him pay.” She added, “Thx everyone for all the kind words. Proud to have represented the poker community on The Hill today. Thanks @PPAPoker for the opportunity.”

A markup hearing of HR 2267 is scheduled for Tuesday, July 27th at 10:00am ET in the House Financial Services Committee. The bill is one of six that will be addressed.

Spencer Bachus Out as Ranking Member of Financial Services Committee?

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

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

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

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

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

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

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

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

Read the entire Politico article.

US House Financial Services ponder poker

Markup Hearing of Internet Gambling Bill Scheduled for July 27th

Next Tuesday, July 27th, the House Financial Services Committee will mark up HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act. The announcement of the hearing comes just one day following debate of the bill in the Committee led by Congressman Barney Frank (D-MA).

The Safe and Secure Internet Gambling Initiative (SSIGI) broke the news shortly after dinnertime on Thursday. Organization spokesperson Michael Waxman told Poker News Daily that he was pleased to see such quick movement through the powerful House Financial Services Committee: “Chairman Frank is clearly moving to get his bill advanced before Congress leaves town for their summer recess. Most importantly, the markup shows a commitment by Chairman Frank to move forward and his colleagues to address this issue.”

Tuesday’s hearing is on the docket for 10:00am ET and features the markup of six bills including HR 2267. The other five pieces of legislation to be discussed include HR 5814 (Public Housing Reinvestment and Tenant Protection Act), HR 4868 (Housing Preservation and Tenant Protection Act), HR 3421 (Medical Debt Relief Act), HR 4790 (Shareholder Protection Act), and HR 5823 (United States Covered Bond Act). This is the first set of markups to be placed on the Committee’s agenda since May.

Congressman John Campbell (R-CA) announced during yesterday’s House Financial Services Committee hearing that he would propose an amendment to HR 2267 that would introduce technologies to curb illicit use of internet gambling sites. In addition, Campbell also planned to introduce a loss limit, although the size and scope of either add-on is not yet known.

Campbell closed Wednesday’s proceedings by asserting, “Alcohol is sold online today widely and there are technologies out there that keep minors from buying that alcohol online.” Campbell is not one of the 69 co-sponsors of HR 2267, which Frank brought to life in May 2009. The group of supporters includes both Democratic and Republican lawmakers.

Cautiously optimistic about a markup being put on the schedule was Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan, who told Poker News Daily prior to Thursday’s announcement, “The Poker Players Alliance (PPA) and other groups I’m sure are not going to be satisfied until a markup happens. Otherwise, it’s just a quarterly public hearing. I’m hopeful that the markup will happen, but we’ll just have to wait and see.”

In a press release distributed on Thursday, Waxman reminded media and lawmakers alike what’s at stake if HR 2267 were to be passed into law: “The passage of this legislation would be a win-win, as it will protect consumers, create an estimated 32,000 new jobs over five years, and provide federal and state governments with as much as $72 billion in new revenues over ten years.” The revenue and job numbers were questioned during Wednesday’s hearing, which featured testimony from UB.com’s Annie Duke, who spoke on behalf of the PPA.

A webcast of Tuesday’s hearing will be available on the official website of the House Financial Services Committee starting at 10:00am ET. Stay tuned to Poker News Daily for the latest from Capitol Hill and beyond.

Internet Gambling Industry Evaluates Financial Services Committee Hearing

On Wednesday, the merits of HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, were debated in the House Financial Services Committee. Now that the banter has ceased, several industry organizations have had a chance to weigh in, including the Poker Players Alliance (PPA) and Interactive Media Entertainment and Gaming Association (iMEGA).

UB.com pro Annie Duke represented the PPA as a witness at the hearing. Her testimony focused on increasing attendance numbers at the World Series of Poker manifesting the continued growth of online poker and the importance of preserving personal freedoms. PPA Executive Director John Pappas commented in a press release on Wednesday, “Our opponents can’t offer a consistent argument on this issue. Former U.S. Attorney Michael Fagan wants to go as far as banning internet gambling outright and Tom Malkasian of the Commerce Casino supports licensing and regulation – just not a competitive marketplace. It seems that our opponents don’t even agree with each other here.”

About halfway through the hearing, Frank observed, “The opposition to this bill consists of people who think [internet gambling] is terrible and people who think it’s so wonderful that they don’t want anyone to compete with them in it.” Pappas concluded his comments on Wednesday’s Financial Services Committee hearing by noting, “The PPA is ready and eager to work with policymakers to continue moving this legislation through the process.”

Commending Duke’s appearance at the hearing was iMEGA Chairman Joe Brennan, who told Poker News Daily on Thursday morning, “I’m glad to see that Annie Duke spoke up on behalf of the PPA, but the hearing ended with no real commitment to go forward. At this point, as hard as the PPA has worked, they deserve more than just a hearing every three or four months. They deserve a committee vote. Now that financial reform has passed, we’ll see if Barney Frank (D-MA) can get a vote on his own bill.”

Frank, who chairs the Financial Services Committee, may have a new Ranking Member in the next Congress, as a Politico article on Thursday outlined a possible Republican challenge to Spencer Bachus (R-AL). Frank introduced HR 2267 in May 2009 and the measure has picked up 69 co-sponsors on both sides of the aisle. Among its most vocal proponents on Wednesday was John Campbell (R-CA), who expressed a desire to add an amendment to HR 2267 containing an increased use of technology and a loss limit. What the latter’s impact would be on high-stakes cash games and tournaments remains to be seen.

The Safe and Secure Internet Gambling Initiative (SSIGI), which was called out by Bachus on Wednesday as “corporate interests protecting the bottom line,” also weighed in on the hearing. SSIGI spokesperson Michael Waxman commented in a press release, “Lawmakers who have not yet taken a position on this issue should realize that their constituents are likely among the millions of Americans who wager online despite attempts to prohibit the activity. Members would best serve their constituents by accurately representing their interests and supporting Chairman Frank’s bill.”

The SSIGI release reminded lawmakers that a licensed internet gambling industry stands to pump as much as $42 billion in revenue into the U.S. economy over 10 years. In addition, up to 32,000 jobs could be created in the first five years according to an analysis by H2 Gambling Capital. The tax companion bill to HR 2267 is HR 4976, introduced by Jim McDermott (D-WA) and discussed in May in the House Ways and Means Committee. In addition to raising funds for states and tribes, HR 4976 institutes a 2% tax on deposits.

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