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Democratic Turmoil and What it Means for Poker

Lask week's surprise victory by Republican Scott Brown over the Obama-backed state Atty. Gen. Martha Coakley in a special election to fill the deceased Ted Kennedy's U.S. Senate seat shows why it's looking less and less likely that poker...

Poker in Twitter: Biloxi, Aussie Millions and the MA Senate Race

Now that the poker community has returned from the Bahamas and are no longer racking up expensive roaming charges on their cell phones, they have been posting on the social networking website Twitter with a newfound dedication.  In the past couple of days, players have been dropping Tweets about the Massachusetts Senate race, Biloxi and Australia prelims, their latest big scores and, of course, current events ranging from politics to television.  With so many Tweets and so little time, we know you might be feeling a little twitterpated, so Poker News Daily has taken the time to cull the best Tweets from the past few days for your reading pleasure:

The PokerStars Caribbean Adventure (PCA) may be over and done with, but the poker community never rests.  Players have already arrived at both the Beau Rivage in Biloxi, Mississippi and the Crown Casino in Melbourne Australia for the Southern Poker Championship and Aussie Millions, respectively.  Some of the players who headed South for the winter and some action at the tables are Team PokerStars Pro Jason Mercier, Brent “Astrolux85” Roberts, Full Tilt’s Gavin Smith and Allen “The Chainsaw” Kessler.

According to Mercier’s Twitter feed (@JasonMercier), his hot streak has continued into 2010, as he already made not one, but two final tables so far in Biloxi.  Mercier filled in his followers on his progress on the 19th, writing, “Beau Rivage event 24 final table 5th place finish.” He followed up his impressive showing in the $500 Pot Limit Omaha with rebuys event with another final table run in the $1,000 No Limit Hold’em event.  When Mercier last posted late Wednesday afternoon, he was poised to book his first win of 2010: “Goin to heads up. I have 1.3 vs guys 900k 68k for first!!!”

Another player who notched their first victory of the year is Annette “Annette_15” Obrestad. The Norwegian online poker sensation headed down under following the PCA and was rewarded with a win in the Aussie Millions Pot Limit Omaha event.  Obrestad posted her tournament progress throughout the event on her Twitter feed (@Annette_15) and let everyone know the event was over with a simple, “yayyyyy i won!!!!” Jon "pokertrip" Friedberg had an idea about one way Obrestad could spend her tournament winnings: “are u playing in the 100k...assuming they r running if this yr? Glgl.” Friedberg is referring to the High Rollers event at the Aussie Millions, which boasts an entry fee of AUD $100,000.

While many players had poker on the brain, a number of pros had their attention fixed on the Massachusetts Senate race.  The election determined which Senator would fill the seat previously occupied by the late Ted Kennedy and many poker players expressed frustration and disappointment over the contest’s results.  The always outspoken Alex Outhred (@alexpokerguy) was quick to post his thoughts on Republican Senator Scott Brown’s victory: “Congrats to Dems for putting in a complete scrub. Well done. Idiots. Congrats to Repub's for beating a complete scrub. Well done. Idiots.”

Annie Duke (@RealAnnieDuke), on the other hand, took the win with a grain of salt and could not resist injecting some humor into her Twitter post reacting to the news: “Upon learning that Mass elected a republican senator I glanced out my window and saw 4 scary looking characters riding in on 4 horses.”

A number of members of the poker community seemed more concerned with another battle taking place, namely for control of “The Tonight Show.” Poker Twitterers seem to be loyal members of Team Conan and several of them have Tweeted about how much they enjoy the redheaded funnyman’s treatment of what is a very awkward, uncomfortable and sensitive situation.  World Poker Tour’s (WPT) Live Updates Hostess Amanda Leatherman made it very clear whose side she is on in a post on her @mandaLeatherman Twitter account Wednesday evening: “Conan is f***king amazing. #teamconan.”

Finally, we will leave you on a positive note with a Tweet that just might be the most random thing we’ve seen the past few days.  Online poker player Shannon Shorr previously tweeted that he was skipping out on the PCA in order to support his alma mater, the University of Alabama, and its football team.  Shorr was one of the thousands of people in attendance at the BCS National Championship game at the Rose Bowl during which the Alabama Crimson Tide bested the University of Texas Longhorns to win the title.  While that may give you some inkling as to how loyal a fan Shorr may be, his most recent Tweet on his @shannonshorr feed revealed his dedication as a fan is on a whole different level: “Impulse bought an Alabama Snuggie from CVS Pharmacy.”

If you are as addicted to Twitter as we are, be sure to follow us @PokerNewsDaily so you can stay up to date on all the breaking news in the poker world and be a part of some PND Twitter exclusives in the coming weeks.

Poker Players Alliance Pushing for February Markup of HR 2267

The Poker Players Alliance (PPA), the industry’s one-million member strong lobbying organization, is ramping up for what could be a monumental 2010 legislative year. At stake is the future of online poker in the United States.

As the industry treks into the new decade, Congressman Barney Frank’s (D-MA) HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, is up to 65 co-sponsors. In the first two weeks of January, the measure saw two new lawmakers lend their names in support, Congressmen Eliot Engel (D-NY) and Charlie Melancon (D-LA). HR 2267 was introduced in May and, in the beginning of December, was discussed in the House Financial Services Committee.

No markup of HR 2267 occurred during the December 3rd hearing, which took place one week following officials from the U.S. Treasury and Federal Reserve delaying mandatory compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) by six months to June 1st, 2010. However, according to PPA Executive Director John Pappas, a markup may be in the offing: “The big next step for us is the markup. We’ve built out who our targets are for that committee and are pursuing them. We think it might happen in February, but there are no guarantees.”

According to Pappas, Frank expressed his desire to hold a markup hearing next month, which could lead to discussion of HR 2267 on the floor of the House of Representatives later this year. From there, Frank and the PPA could elect to attach the measure to another piece of legislation, similar to how the UIGEA became a part of an unrelated port security bill in 2006. Pappas noted, “One of our biggest challenges will be to make the vote in the committee bipartisan. That’s going to be our challenge and I think we can do it. Winning big in the Financial Services Committee will help us advance the bill in any other capacity.”

In the next month, the PPA also expects information to be released concerning the amount of money that could be raised should Senator Robert Menendez’s (D-NJ) S 1597 be approved. The bill, dubbed the Internet Poker and Game of Skill Regulation, Consumer Protection, and Enforcement Act, regulates online skill games. S 1597 was introduced in August, but has yet to garner any co-sponsors.

On the difficult road that lies ahead in the U.S. Senate, Pappas commented, “The Senate has been a tougher ground for us to plow so far, so we’re trying to do what we can there. It’s not because the topic isn’t of interest or important, but rather because they operate differently. The House operates quickly, whereas the Senate is more deliberate.”

The UIGEA was not discussed in the Senate four years ago; instead, it was approved by unanimous consent. Then, the PPA was in its infancy, boasting around 50,000 members during the 2006 World Series of Poker (WSOP). Now, it has grown into the seven-figures and seen players like UB.com pro Annie Duke and 2004 WSOP Main Event winner Greg Raymer champion its cause. In 2010, the PPA expects to work with a variety of organizations in the industry for membership drives, following the blueprint of its recent promotion with Card Player Cruises that awarded one player a trip for two to the Caribbean.

Finally, Pappas gave his take on the proposed intrastate internet gambling bill introduced in New Jersey by State Senator Raymond Lesniak. On the model for other states to follow to legalize online wagering, Pappas told Poker News Daily, “For poker players in New Jersey, it presents an interesting opportunity to play on a licensed site. The issue is what sites they’ll be able to play on. Will it be on the brands they know? Having Atlantic City casinos undertake building their own software and player bases will take quite a long time.” According to PokerScout.com, PokerStars, the largest online poker site in the industry, boasts a seven-day running average of 33,200 real money ring game players.

Stay tuned for the latest news from the PPA right here on Poker News Daily.

Poker Expansion Realized in Pennsylvania

A flood of table games will soon be headed to casinos in Pennsylvania after the state’s House and Senate approved measures allowing their introduction into 14 casinos. Currently, only slot machines are allowed.

According to the Associated Press, the Pennsylvania House voted by a margin of 103 to 89 to approve the introduction of table games. Only 12 Republicans voted for the measure, while just 10 Democrats voiced their opposition to it in a vote split largely along party lines. In the Senate, a total of 28 “yays” and 22 “nays” were recorded in a similar margin of victory. Now, games like poker, blackjack, craps, baccarat, and roulette will be rolled out throughout the state.

In response to the passage, the Mason-Dixon Resort and Casino declared that it would apply for a license to open a property near the historic town of Gettysburg, the site of the infamous Civil War battle. Pennsylvania Governor Ed Rendell would have been forced into a quandary if the bill hadn’t passed, as Reuters reported that the state would have had to lay off nearly 1,000 of its staff due to a lack of revenue. Under the measure, funds will be pouring in from casinos, which will be allowed up to 250 table games, while resorts will be permitted to have up to 50. Licenses would run $16.5 million and $7.5 million, respectively. Table games are taxed at a rate of 16% for the first two years and 14% thereafter.

Pennsylvania gambling establishments will compete head-to-head with casinos in Atlantic City, which, like the rest of the world, have seen revenues fall since the latter part of 2008 due to a global recession. The World Series of Poker (WSOP) Circuit stops twice annually in Atlantic City. During the 2009-2010 schedule, Circuit staff popped into Harrah’s Atlantic City from December 4th to 20th. Between March 3rd and 20th, the epicenter of the Circuit universe will be Caesars Atlantic City; both are Harrah’s-owned properties.

The World Poker Tour (WPT) journeyed to the Borgata in Atlantic City in September. The buy-in for the feature tournament of the Borgata Poker Open was slashed to $3,500 due to the rough macroeconomic environment and, as a result, a mob of 1,018 players turned out. In the end, Olivier Busquet banked $925,000 for the win, defeating Jeremy Brown heads-up. The Borgata stop was the only visit to New Jersey for the WPT during its eighth season, which will air on Fox Sports Net.

The Associated Press noted that the introduction of table games may take six months to come to fruition. According to the news outlet, the opposition to the expansion of gambling was quite fierce: “Critics called the expansion of the 5-year-old slots gambling law fatally flawed and said that bolstered ethics rules for casino and Gaming Control Board employees were insufficient. They also said the bill should not have earmarked funding for certain pet projects.”

Democratic State Representative Dante Santoni told Reuters, "This is a common sense, bipartisan piece of legislation that makes our gaming facilities more competitive, improves the public's confidence in gaming, raises money we desperately need in these tough financial times, and - most importantly -helps put thousands of people to work in a brand new industry." Over 12 million people call Pennsylvania home as the eighth largest state in the Union.

As expected, Pennsylvania poker players were ecstatic to hear that table games would soon be coming to their fair state. On PocketFives.com, Ambler native “krispykreme” explained that he was looking forward to a shorter drive to gamble: “Finally. I was just talking to someone at work about this. Now, we are all going to go broke every day since it will only be like 20 minutes to the casinos, instead of 2 hours to AC.”

KYW News Radio in Philadelphia reported that under the new law, casinos will be able to extend credit to their players. The media outlet revealed the Governor’s mindset to the entire issue, which was drummed up arguments from both pro and anti-gambling residents: “The reality, says Rendell, is that if not having casinos in Pennsylvania would keep state residents away from gambling, he wouldn’t have pursued legalized gaming in the first place.”

Celebrity Apprentice 3 Cast List Released, No Poker Players

Former Illinois Governor Rod Blagojevich headlines an ensemble “Celebrity Apprentice” cast. The 14 names announced by NBC on Monday do not include any poker players, as first reported by Poker News Daily in October.

Three months ago, the cast was spotted filming the show’s opening credits in the Meat Packing District of New York City. Embattled politician Blagojevich is perhaps the most controversial name on the list. NBC officials tried to land the former Governor for its Costa Rica-based “I’m a Celebrity, Get Me Out of Here,” which aired in June, but legal woes kept him from competing. Instead, Blagojevich’s wife, Patti, appeared on the show. Blagojevich landed in hot water after allegedly trying to sell the Senate seat previously occupied by President Barack Obama.

Also on the new cast is comedian Carol Leifer, who will try to follow in the shoes of “Celebrity Apprentice” Season 2 winner Joan Rivers. The latter defeated UB.com poker pro Annie Duke in the finals last year. Leifer told the Associated Press, "I'm certainly not a household name. I'm not surprised that Joan Rivers won (last season), because, as a standup comic, you're a one-man band — it makes you very prepared for stressful situations to be able to react to a lot of pressure. Humor is a weapon anywhere and everywhere!" Leifer is 20 years younger than Rivers, but her television writing resume includes hits like “Seinfeld,” “The Larry Sanders Show,” and “Saturday Night Live.”

Poison hasn’t released an album since 2007, but that hasn’t stopped Bret Michaels from becoming a household name. The band’s lead singer will appear on the upcoming season of “Celebrity Apprentice” and currently can be found on the VH1 reality series “Rock of Love.” Joining him on the all-male team dubbed “Rocksolid” is Bill Goldberg, former World Heavyweight Champion of WWE and WCW. The former NFL player was last seen in a WWE ring six years ago during WrestleMania XX, when he squared off against Brock Lesnar. Goldberg told the Associated Press that he plans to keep his fiery edge in the boardroom with show host and real estate mogul Donald Trump: "I know I'm going to explode during this show at some point and say things I probably don't mean."

Another embattled celebrity to join the cast of the NBC reality show’s third cycle is Darryl Strawberry. The former New York Met, who dealt with child support non-payments, prostitution, probation violations, and drug use following his baseball career, is now 47 and will look to right the ship on “Celebrity Apprentice.” Competing opposite Strawberry will be “America’s Got Talent” judge Sharon Osbourne, whose fellow judge on the show, Piers Morgan, won the original installment of “Celebrity Apprentice” in 2008.

Last time out, Rivers defeated Duke amid a tidal wave of name-calling, including numerous references to Hitler. Rivers’ onslaught included such memorable lines as, “You’re a poker player. A poker player! That’s beyond white trash. Poker players are trash,” and, “You have a Nazi and a follower. I don’t work with scum.” Duke then fired back, telling “Celebrity Apprentice” cameras, “Joan is completely full of shit in everything she does. There’s a reason she got fired by the TV Guide Channel: She’s a bitch.”

For the most part, the poker world rallied behind one of their own and Duke raised a colossal $731,000 for Refugees International. However, Rivers, who was playing for God’s Love We Deliver, took down the title of “Celebrity Apprentice” and earned $526,000 for charity. Others who appeared on the show’s second installment with Rivers and Duke included Heisman Trophy winner Herschel Walker, country music star Clint Black, reality star Khloe Kardashian, and comedian Tom Green.

Here’s the complete cast list for the third season of “Celebrity Apprentice:”

Rocksolid: Rod Blagojevich, Darryl Strawberry. Curtis Stone, Sinbad, Bret Michaels, Bill Goldberg, Michael Johnson

Tenacity: Sharon Osbourne, Cyndi Lauper, Summer Sanders, Holly Robinson Peete, Maria Kanellis, Carol Leifer, Selita Ebanks

The new season of “Celebrity Apprentice” kicks off on March 14th on NBC.

Bodog Founder Calvin Ayre Featured in National Post

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

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

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

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

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

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

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

Read the entire Calvin Ayre interview with the National Post.

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

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

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

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

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

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

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

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

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

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

Inside the Treasury and Federal Reserve UIGEA Regulations Delay

Last week, the U.S. Treasury and Federal Reserve announced that mandatory compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) had been delayed until June 1st, 2010. Let’s take a look at the agencies’ reasoning.

The seven-page document issued by the Treasury and Federal Reserve on Wednesday begins with an overview of the UIGEA and states that the two government agencies consulted with the U.S. Department of Justice prior to delaying the compliance date. The final regulations of the UIGEA were published on January 19th as so-called “midnight rules” by the outgoing Bush administration. One day later, sitting President Barack Obama assumed office.

The document gives a brief timeline of events since then, noting that on September 18th, the Poker Players Alliance (PPA), National Thoroughbred Racing Association, and American Greyhound Track Owners Association submitted a joint letter calling for compliance with the UIGEA regulations to be delayed by one year to December 1st, 2010. The two agencies explained, “Petitioners assert that many small regulated entities do not have the resources necessary to develop and implement appropriate policies and procedures by the December 1, 2009 compliance date and cite the possibility of confusion regarding the term unlawful internet gambling.” The latter three-word phrase was not defined in the UIGEA, which instead deferred to a muddled slate of state, federal, and tribal laws.

In October and November, members of Congress led by Barney Frank (D-MA) also asked for a delay, as did several organizations, including the American Bankers Association, Wells Fargo, the Credit Union National Association, and the National Association of Federal Credit Unions. On November 9th, other lawmakers including Senate Majority Leader Harry Reid (D-NV), whose home state serves as the epicenter for brick-and-mortar gambling in the United States, authored a letter purportedly expressing “an intent to consider legislation that would allow problematic aspects of the Act to be addressed.”

Meanwhile, Senator Jon Kyl (R-AZ) and Congressman Spencer Bachus (R-AL) weighed in, calling the reasons for a delay “speculative” in a November 3rd plea to the Treasury and Federal Reserve. Many of the groups clamoring for an extension feared overblocking, which could result in the denial of legal online wagering. In New Hampshire and North Dakota, credit card companies like Visa and MasterCard disallowed online lottery transactions, which received a carve out from the UIGEA. In Kentucky, horse racing outfits feared that internet bets on the sport would come to a screeching halt. Several weeks ago, Churchill Downs Incorporated purchased YouBet, further complicating the matter.

In the end, the two government entities asserted, “Neither petitioners nor commenters supporting the petition have provided the Agencies with sufficient data or documentation to justify a twelve-month extension of the compliance date. The Agencies believe that a six-month extension is sufficient for regulated entities to address issues related to the definition of unlawful internet gambling.” The agencies added that documentation provided by merchants to banks and other financial institutions should be sufficient to comply with the UIGEA.

The Treasury and Federal Reserve ultimately settled on using the Administrative Procedure Act to serve the delay on the grounds that the existing UIGEA rules are “impracticable, unnecessary, or contrary to the public interest.” Other pieces of law addressed were Executive Order 12866, the Regulatory Flexibility Act, and the Unfunded Mandates Reform Act. The document added, “The Agencies also believe that regulated entities need to be informed as soon as possible of the extension and its length in order to plan and adjust their implementation process accordingly.”

On Thursday, the House Financial Services Committee will discuss HR 2266 and HR 2267. No markup will occur during the informational hearing, which will be held in Room 2128 of the Rayburn House Office Building at 10:00am ET. HR 2267 establishes a comprehensive framework for regulating the internet gambling industry in the United States and, if passed, may mark the beginning of explicitly legal online poker in the North American country.

Washington State Online Poker Opponent Considering Keno Expansion

The state of Washington has a long and complicated history with gambling and a new piece of legislation proposing expanded Keno games is just the latest chapter.  A recent bill is proposing around-the-clock Keno games starting every four minutes as a possible solution to the state’s projected budget shortfall of more than $2.5 billion.

The game of Keno is already legal in the state, but it currently only runs once daily and the prize pools range from $1 to $100,000.  The new proposal suggests expanding the current Keno system, making tickets readily available for purchase and displaying video screens in restaurants and bars.

The Seattle Times recently reported that none other than Margarita Prentice, the state’s Senate Ways and Means Chair, is contemplating sponsoring the Keno bill.  Some may remember Prentice as the woman who spearheaded the 2006 law banning online poker in the state.  The law was successfully passed and made gambling online a Class C felony, on par with animal cruelty and possession of child pornography.  The ban was an amendment of the state’s 1973 Gambling Act.

A blog by Caleb Hannan on the Seattle Weekly’s website suggested that Prentice pushed through the online poker law in order to protect the interests of Washington State Indian reservations.  These tribal groups also contributed heavily to Prentice’s campaign, leading local media like the Weekly to question the motives behind her actions.

Prentice commented to the Seattle Times about the new Keno bill, suggesting it differs from online poker, slot machines, and video poker, all forms of gambling she has previously fought against.  She claimed that the four-minute intervals between games offered people a chance to “cool their heels” and not let the game get out of control.

What seems to be swaying the politicians of Washington more than the nature of the game itself is the potential revenue it brings to the cash-strapped state.  The Keno initiative could bring in as much as $30 million in revenue annually, an amount that is getting the attention of numerous Washington officials, including Governor Chris Gregoire.  The Times published an article on Friday that said that Gregoire was “seriously considering” the legislation, according to legislative director Marty Brown.

The state legislature is set to meet in January to discuss its budget crisis and they will consider the keno proposal, other cost cutting measures, and potential tax hikes.  This is not the first time the state has considered a gambling initiative to add to revenue.  In 2004, it put a ballot initiative pushing for slot machines in bars in restaurants to a vote and it was defeated by a 60% to 40% margin.  The Governor’s office claims this new Keno proposal differs from the failed initiative in that it is not expanding gambling in the state, but rather building on the existing Keno system.

There has been no action on the Keno legislation just yet, but the reports from Seattle indicate that it will merit serious consideration as the state budget woes continue into 2010.  The current budget is set to cover the state’s needs through 2011.

Report: UIGEA Regulations Postponed Six Months

The regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) have been delayed six months from December 1st, according to Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan.

Neither U.S. Treasury Secretary Timothy Geithner nor Federal Reserve Chairman Ben Bernanke had made any official comment regarding a six-month delay at press time. The two government officials received petitions to stay the UIGEA’s regulations by one year in letters filed by the Poker Players Alliance (PPA), National Thoroughbred Racing Association, the American Greyhound Track Operators Association, and members of Kentucky’s Congressional delegation. Congressman Spencer Bachus (R-AL) and Senator Jon Kyl (R-AZ) asked the two officials to uphold the original December 1st industry compliance deadline in a dissenting opinion.

The news comes one week ahead of a hearing in the House Financial Services Committee regarding two internet gambling bills introduced by Congressman Barney Frank (D-MA) in May that would alter the landscape of the industry in the United States. The first, HR 2266, would have postponed the regulations of the UIGEA by one year to December 1st, 2010. Its viability given today’s news of a likely six-month postponement is up in the air. The measure had attracted 53 co-sponsors on both sides of the aisle.

HR 2267, claiming 63 co-sponsors, creates a full licensing and regulatory framework for the internet gambling industry in the United States. It marks Frank’s latest attempt to undo the UIGEA, which was passed in 2006 after being attached to an unrelated port security measure at the prompting of then-Senate Majority Leader Bill Frist (R-TN). In the Senate, the SAFE Port Act was passed by unanimous consent.

On the hearing next week, which will be held at 10:00am ET in Room 2128 of the Rayburn House Office Building on Thursday, Safe and Secure Internet Gambling Initiative spokesperson Michael Waxman told Poker News Daily, “Chairman Frank is clearly indicating his commitment to switch the government’s position on Internet gambling, replacing attempts to prohibit the activity with a regulatory framework where consumers are protected. Chairman Frank’s commitment is further reinforced by scheduling this hearing and taking up this issue on the heals of the push for financial industry reform, which has been the committee’s exclusive focus the last six months.”

The six-month window will take the internet gambling industry to June 1st, right before election season in the United States in 2010. While issues like health care and a sagging economy have taken center stage since late 2008, internet gambling may finally see its day in the sun. Brennan explained his thoughts on the breaking news: “It’s encouraging that you’ve had this stay on the compliance, but it’s unfortunate that it took this long. We should all hope that in the next six months, a bill that already has 63 co-sponsors can be heard.”

To be clear, no official comment from the Treasury or Federal Reserve was available at the time of writing. With December 1st occurring next Tuesday, a stay likely had to be granted today or Monday, November 30th given the Thanksgiving holiday in the United States. Word breaking on Black Friday was also a possibility.

Stay tuned to Poker News Daily for the latest on this developing story.

Poland Limits Gambling, Poker to Brick and Mortar Casinos

Poland’s Senate approved a measure limiting gambling to casinos, stunting access to poker and other games outside of a structured establishment. The bill cleared the Senate by a 48 to 3 margin, with 30 lawmakers not voting.

The Krakow Post noted that the new crackdown on gambling outside of licensed casinos may also spell trouble for internet gambling and online poker: “The legislation also affects Internet gambling, which will no longer be allowed under Polish law. However, the enforcement of this aspect of the bill will inevitably prove much more difficult than even the removal of thousands of slot machines.” Around 50,000 slot machines, which can be found in places like bars and restaurants around the country, will be removed as a result of the new law.

Polish President Lech Kaczynski must still apply his John Hancock to the piece of legislation in order for it to become official. The Post quoted Poland’s Prime Minister as saying that he expects Kaczynski to sign by the end of the month. In addition to ridding the European country of 50,000 slot machines and potentially slowing the growth of internet gambling, the bill passed by Polish lawmakers also sets a legal gambling age of 18.

The Agence France Presse, or AFP news service, shed some light into this month’s vote: “The decision by parliament comes nearly a month and a half after [Prime Minister] Tusk was forced to sack several key ministers and political allies over allegations of influence peddling within his cabinet regarding the gambling legislation.” World Bulletin explained what a portion of the funds raised will be used for: “Tusk has said the restrictions will prevent young people from becoming addicted to gambling. The government will funnel tax revenues raised under the bill into foundations promoting physical education and culture.”

No general election is scheduled in Poland until 2011 and the scandal in question involved casino owners. The new bill also increases the tax rate on casinos, helping raise additional money for Poland’s government. On the TwoPlusTwo forums, a translated article that originally appeared on Bankier.pl revealed that the tax rate on tournament poker would also increase as part of the new measure, although this component was not reported by the AFP or World Bulletin. TwoPlusTwo poster “novahunterpa” commented, “Looks like every country is either trying to ban online poker and gambling or restrict it to state monopolies.”

One month ago, Poland saw the invasion of the PokerStars-sponsored European Poker Tour (EPT), which made its annual stop in Warsaw. The 25,000 PLN buy-in event was held at the Casinos Poland Hyatt Regency and French businessman Christophe Benzimra emerged victorious from the 203 player field. The online poker site claimed that EPT Warsaw was one of the largest poker tournaments ever held in Poland. No indication has been given as to whether the new law will affect the EPT’s Season 7 Warsaw stop.

Among those keeping a watchful eye on the situation in the European country was Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan, who told Poker News Daily, “The genie is out of the bottle when it comes to online gambling. Whether it’s restricting it for consumer protection or guaranteeing the franchise for Poland’s brick and mortar casinos, the fact is that the Polish people have already voted with their feet, their wallets, and their computers by seeking out online gambling. Poland is going to have a hard time putting the genie back in the bottle, as would any country.”

Notable poker personalities hailing from Poland include Poker Hall of Fame member Henry Orenstein, a WSOP bracelet winner who also invented the hole card camera. Orenstein was born in Hrubieszów and currently lives in the United States. Michael Gracz was born in Warsaw and, like Orenstein, now calls the USA home.

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

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

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

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

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

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

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

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

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

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

PPA asks players to Tweet for Poker

The PPA launched "Tweet for Poker" yesterday and online poker supporters can go to the website, sign in and make an appeal for online poker to their Congressional representative in about 30 seconds.

"Poker players are online, they're active, and they're weighing in on the policy battles that impact their right to play," said PPA executive director John Pappas.

"Tweet for Poker is PPA's most instant and dynamic tool for our members to directly contact legislators in a way that engages the public in debate. We're proud of the instant success, and look forward to hearing what our elected officials think of the legislation and this new advocacy program."

The Tweets will support either Sen. Robert Menendez' pro-online poker bill in the Senate or Rep. Barney Frank's poker bill in the House. Users have the option of choosing whether they want Tweets sent to their respective Senator or House Representative.

The Twitter-based campaign is just the latest initiative the PPA has started with the intent of legalizing online poker.

This summer the PPA launched National Poker Week and collected over 375,000 signatures on a petition to President Obama asking for licensing and regulation of online poker.

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CNBC Closing Bell Tackles Internet Gambling

The Global Gaming Expo is currently unfolding from Las Vegas and, as part of its coverage of the event, CNBC’s “Closing Bell” aired a four-minute segment entitled, “Odds Favor Online Gambling?”

Two industry experts joined CNBC “Closing Bell” host Melissa Francis on Thursday, Andrew Parmentire of Height Analytics and David Katz, an Oppenheimer gaming analyst. The former began the discussion, which did not take in a debate form, but rather featured both parties agreeing that legalized internet gambling in the United States is inevitable. Parmentire explained, “Barney Frank has put a bill out there and the stars are lining up in a lot of ways. Harrah’s has shown that they have an online strategy, Congress and states are in desperate need for money, and $50 billion can offset a lot of social programs that Democrats are pushing these days.” The proposed health care initiative, for example, could come with a price tag approaching $1 trillion.

Katz told CNBC viewers, “Gambling in the U.S. has become a far more acceptable consumer product than it was five or ten years ago. That said, we really are much more focused on the publicly traded companies and that would be the brick-and-mortars like Harrah’s as well as the game providers and the technology companies that support those industries.” Katz added that Harrah’s has become a major proponent of licensing online gaming. The Las Vegas-based private company recently launched Harrah’s Interactive Entertainment (HIE), based on Montreal, to oversee its online brand, with former Party Gaming CEO Mitch Garber as its lead figure.

Harrah’s inked an agreement with 888, the parent company of Pacific Poker, to fill its online gaming needs. 888 is a publicly traded company in London, where it can be found under the same three-number acronym. Katz explained that with casinos slowly reaching their limits in the live space, the switch to the Web is inevitable: “If you go to the Bellagio, they have a couple of hundred seats to sit in, so there’s a physical constraint. If you look at the number of states out there that are considering legalizing gaming, they’re going down every year. There’s a finite opportunity for the brick-and-mortar guys to expand in the United States and at some point, they have to start thinking globally.”

The CNBC spot occurred about two weeks prior to December 1st, the date by which the financial services industry in the United States must fall into line with the Unlawful Internet Gambling Enforcement Act (UIGEA). The Poker Players Alliance (PPA), the industry’s main lobbying voice, issued a letter to Federal Reserve Chairman Ben Bernanke and U.S. Treasury Secretary Timothy Geithner to postpone the date by one year while effective legislation can be crafted. However, the two government officials have not yet responded.

The UIGEA was passed during the waning moments of the 2006 Congressional session at the direction of former Senate Majority Leader Bill Frist (D-TN). It was approved by a 3:1 margin in the House of Representatives and by unanimous consent in the Senate after being attached to the SAFE Port Act. The Third Circuit Court of Appeals recently ruled that the UIGEA did not in and of itself make any sort of internet gambling activity illegal. Instead, the legality of an online activity depends on a player’s jurisdiction. Parmentire candidly explained, “There is a lot of anger as to how this happened in 2006.” The PPA has expanded its membership from 50,000 in 2006 to over 1.2 million today.

Concurrently with the Global Gaming Expo, 2009 World Series of Poker (WSOP) Main Event champion Joe Cada, who represents the online poker room PokerStars, has spread goodwill by appearing on mainstream outlets like the “Late Show with David Letterman,” ESPN’s “SportsCenter,” and USA Today. Cada, an online poker pro, became the youngest winner of the $10,000 buy-in tournament ever at age 21, breaking Peter Eastgate’s record of 22 years-old set in 2008.

Celebrity Apprentice 3 Cast May Not Feature Poker Players

In 2010, the third installment of the NBC reality franchise “Celebrity Apprentice” will hit television airwaves. The show, which featured comedian Joan Rivers best poker pro Annie Duke in the finale last time out, will likely not include a poker player this time around.

Ever since Duke finished as the runner-up to Rivers in May, the poker community has been abuzz that one of its own may appear in the third edition of the popular series. However, according to Huliq.com and the New York Post, the ensemble cast, which will likely once again pit men against women, does not appear to include a poker player. No official cast list has been released by NBC. The show is hosted by real estate mogul Donald Trump and raises money for charity.

Last season, Duke played for Refugees International, an organization that she worked closely with as part of her own charity, Ante Up for Africa. In the process, the poker community was instrumental in raising $730,000 for the charity. Poker players who made cameos throughout the season included Ultimate Bet front man Phil Hellmuth, Andy Bloch, Howard Lederer, 2009 Poker Hall of Fame nominee Erik Seidel, and Perry Friedman.

Embattled politician Rod Blagojevich headlines the “Celebrity Apprentice” cast in Season 3. His wife, Patty Blagojevich, appeared on NBC’s “I’m a Celebrity, Get Me Out of Here” when Rod was unable to attend due to ongoing legal action. Blagojevich is the former Governor of Illinois and was impeached in January for, among other misgivings, allegedly trying to sell the Senate seat vacated by current U.S. President Barack Obama.

Joining Blagojevich on the men’s team will be another controversial celebrity, former baseball great Darryl Strawberry, a member of the New York Mets, Los Angeles Dodgers, San Francisco Giants, and New York Yankees. Strawberry exited the league in 1999 and was the National League Rookie of the Year 16 years earlier. Chef Curtis Stone will join the “Celebrity Apprentice” cast, as will popular comedian Sinbad, whose credits include “A Different World” and “The Sinbad Show.” He has also appeared in movies such as “First Kid” and “Jingle All the Way.”

Former professional wrestler Bill Goldberg, who stormed onto World Championship Wrestling (WCW) scene with an undefeated streak in the late 1990s, will be a part of the new “Celebrity Apprentice” cast. Rounding out the men’s team is “Rock of Love” star Bret Michaels, who is also known for his work with the band Poison.

The women’s team features “America’s Got Talent” judge Sharon Osborne, whose fellow judge on the show, Piers Morgan, was the winner of Season 1 of “Celebrity Apprentice.” “Girls Just Want to Have Fun” and “Time After Time” signer Cyndi Lauper will join the squad. Olympic gold medalist Summer Sanders, who took down hardware in swimming in 1992, will also make her way to New York City to film “Celebrity Apprentice.” There, actress Holly Robinson Peete, wife of former NFL great Rodney Peete, will join her.

World Wrestling Entertainment’s (WWE) Maria Kanellis will also be a part of “Celebrity Apprentice,” as will comedian Carol Leifer, who has written scripts for hits like “Seinfeld” and “The Larry Sanders Show.” Finally, Selita Ebanks, a model, will round out the new cast.

The names of more cast members may be released, but for the meantime, it appears that the poker community will not be a part of the upcoming season of “Celebrity Apprentice.” Over on CBS, Tiffany Michelle and Maria Ho, the last women standing in the 2008 and 2007 World Series of Poker (WSOP) Main Events, respectively, are competing as part of the Emmy Award winning reality series “Amazing Race.” The show airs at 8:00pm ET on Sundays and viewers will see the poker playing duo race around Dubai, United Arab Emirates on this week’s edition.

The Post reported that the “Celebrity Apprentice” cast was seen recording the opening credits in the Meatpacking District of New York City and that the show would begin airing in March.

Anurag Dikshit Sells Remaining Stake in Party Gaming

According to an article that appeared in eGamingReview (EGR) on Tuesday and filings to the London Stock Exchange, Party Gaming Co-Founder Anurag Dikshit will sell his 28% share in the company for at least ?188 million.

It’s a curious twist on a story that began developing last December, when Dikshit appeared in the Southern District Court in New York. The Party Gaming personality pled guilty to violating the Wire Act of 1961 and agreed to fork over $300 million to the U.S. Government. He also faces up to two years behind bars, with sentencing scheduled for 2010. Dikshit’s spokesperson, Shimon Cohen, told EGR, “Anurag has paid the $300 million fine that he was asked to pay by the U.S. authorities and has decided it is time to move away from the company.” The Wire Act has traditionally applied to online wagering on sports, not online poker. Read the entire EGR Anurag Dikshit article.

Dikshit was originally rumored to be selling two-thirds of his 28% stake in Party Gaming; however, EGR later reported that the entirety of his shares would be unloaded. PartyPoker, the online poker arm of Party Gaming, withdrew from the U.S. market in 2006 shortly after the passing of the Unlawful Internet Gambling Enforcement Act (UIGEA), which was attached to the SAFE Port Act in the waning moments of that year’s Congressional session at the urging of then-Senate Majority Leader Bill Frist (R-TN). The regulations of the UIGEA were approved as midnight rules by the outgoing Bush Administration and will be fully enforced on December 1st.

In a filing to the London Stock Exchange on Tuesday, where Party Gaming is traded under the symbol “PRTY,” Anurag Dikshit, under the names BT Nominees Limited and Crystal Ventures Limited, is listed as selling 75 million shares of PRTY, or two-thirds of his original total. The filing explains, “Crystal Ventures Limited is wholly owned by BT Nominees Limited who hold shares in PartyGaming Plc under a declaration of trust in favor of Mr Dikshit.” Dikshit owned 113 million shares prior to the sale posted on Tuesday in London and retained nearly 39 million “indirect voting rights.” The sale of the remaining interest has not yet been posted.

At the close of trading on Tuesday in London, shares of PRTY were fetching 240.10p and EGR noted that Dikshit expects to pull in at least ?188 million as a result of the transaction; the sum will be donated to charity. On Monday, PRTY was trading at 284p before Dikshit’s sale, which promptly sunk the share price by 15%. All told, Dikshit’s agreement with the U.S. Government last December ballooned the firm’s stock, which sat at below 140p before quickly climbing above 200p. Exactly one year ago, shares of PRTY were valued at 123p.

Ruth Parasol and Russ DeLeon, who founded Party Gaming along with Dikshit, were not expected to follow suit, according to EGR. In the meantime, PartyPoker officials have heralded the election of its ambassador, World Poker Tour (WPT) Host Mike Sexton, to the Poker Hall of Fame. Sexton is the lone representative of the Class of 2009 and will be officially inducted in ceremonies taking place on November 7th during the World Series of Poker (WSOP) Main Event final table. Sexton is a WSOP bracelet holder and re-signed with PartyPoker in April.

In August, Party Gaming acquired the WPT for $12.3 million, outbidding a subsidiary of Playtech, which owns and operates the massive iPoker Network. Four months earlier, the company entered into a Non-Prosecution Agreement with the U.S. Attorney’s Office for the Southern District of New York, agreeing to pay the Federal Government $105 million. In the process, Party Gaming admitted that it solicited U.S. customers prior to the UIGEA’s passage and agreed not to do so in the future until the industry is licensed and regulated.

Federal Officials Seize Additional Internet Gambling Funds

Recent seizures of internet gambling funds related to the payment processor Account Services do not appear to be the end of the U.S. Government’s war against the industry. This week, it was revealed that funds in six more accounts had been seized.

The six accounts, according to the Baltimore City Paper, are held by Wachovia and appear under the name Forshay Enterprises. In July and August, other funds were seized in branches of Interstate Net Bank, Bank of America, and First Premier Bank belonging to Electracash and HMD. Regina Mignogna, a Maryland State Trooper, signed the warrant affidavits for the HMD accounts, which were obtained by Poker News Daily. Each of the warrant applications was ordered seized “until further order of this court or until January 20, 2010, whichever is earlier.” The documents were filed in the U.S. District Court in Baltimore.

Richard Gunn, an Anne Arundel County Police Detective, signed the warrant applications for the Wachovia accounts, which were numbered 2000042478410, 2000042478070, 2000042478452, 2000042478300, 2000042089414, and 2000042089427. The City Paper linked Forshay Enterprises to TransactSvc.com. Meanwhile, Electracash was tied to Edward Courdy, who many might remember as one of the defendants in Maryland’s Bodog case in 2008. That news broke last July, when $24 million was seized from the popular online poker site. Funds were taken from four publicly traded U.S. banks, including Wachovia, Bank of America, SunTrust, and Regions.

Account Services, which processed payments for PokerStars and Full Tilt Poker in 2008 and 2009, filed a motion in July for return of property, namely $14 million seized by the U.S. Government. The money was held in Union Bank and Wells Fargo branches in California. In retaliation, the Government indicted Account Services’ Douglas Rennick, a Canadian, on charges of bank fraud, money laundering, and illegal gambling. He faces up to 55 years behind bars and $1.75 million in fines for his actions. As of the time of writing, he has not settled with U.S. authorities.

In August, Judge Jeffrey Miller denied Account Services’ motion for return of property, instead electing to wait for the criminal case against Rennick to pan out. The seizure was part of a larger effort by the Southern District of New York in June during which over $30 million was frozen. The funds in question were allegedly destined for more than 24,000 online poker players and not connected to online wagering on sports. Bodog operates a full online sports book, an option that does not exist on PokerStars or Full Tilt. The Poker Players Alliance (PPA) filed an amicus brief on behalf of Account Services, a decision the organization stuck by despite Rennick’s criminal indictment.

Many in the online poker community assumed that the election of U.S. President Barack Obama, a poker player, would ease the attack on the industry. However, the opposite has been true so far, with federal agencies going on the offensive. For example, FBI Special Agent Dana Conte swore to the affidavits relating to Account Services.

In the closing months of the Bush Administration’s stay in Washington, D.C., the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) were ushered into effect as “midnight rules.” Former Senate Majority Leader Bill Frist (R-TN) was instrumental in attaching the UIGEA to an unrelated port security measure in 2006. The SAFE Port Act passed through the House with ease and was approved in the Senate by unanimous consent. Speaking out during the debate in the House was Congresswoman Shelley Berkley (D-NV), who questioned why internet gambling appeared in the bill.

As a result of the June seizure, which coincided with the running of the annual World Series of Poker (WSOP) in Las Vegas, paper checks and e-checks temporarily bounced, leading to reimbursements and cash bonuses from some of the world’s largest online poker sites. What effect the latest round of seizures will have on the industry is anyone’s guess.

Senator Wyden Withdraws Proposal to Use Internet Gambling to Fund Health Care

The debate on Capitol Hill rages on over health care reform, which, according to Senator Orrin Hatch (R-UT), will likely come with a nearly $1 trillion price tag. Senator Ron Wyden (D-OR) proposed using internet gambling revenue to defray some of the cost, but withdrew his amendment this week.

In a column that appeared in the Deseret News, Hatch noted, “At a time when we have trillion-dollar-plus deficits and an unemployment rate reaching double digits, [this health care reform] is a colossal mistake I cannot support.” With the massive cost turning many off, Wyden suggested using tax revenue from Congressman Barney Frank’s (D-MA) Internet Gambling Regulation, Consumer Protection, and Enforcement Act (HR 2267). The bill establishes a full licensing and regulatory framework for the internet gambling industry in the United States.

Michael Waxman, spokesperson for the Safe and Secure Internet Gambling Initiative, commented in a press release shortly after the amendment was introduced, “We applaud Senator Wyden’s proposal to collect and put to good use tens of billions in internet gambling revenue that would otherwise be lost in the underground marketplace. The Senate Finance Committee should approve this resolution, finally putting to an end a failed prohibition on Internet gambling that leaves Americans unprotected and unlicensed offshore operators as the only beneficiary in a thriving marketplace.”

HR 2267 was introduced in May and has attracted 58 cosponsors, the newest of which are William Lacy Clay (D-MO), Christopher Murphy (D-CT), and Adam Schiff (D-CA). Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan told Poker News Daily, “There are not many places you can go to find ‘free money’ right now. Internet gambling is one of them. You’re not going to have many industries wanting to be taxed.” Also in Congress is HR 2268, the Internet Gambling Regulation and Tax Enforcement Act. The measure, introduced by Congressman Jim McDermott (D-WA), assesses a tax of 2% of deposits on licensed internet gambling outfits in the United States. HR 2268 was introduced on the same day as HR 2267 and has attracted four cosponsors.

A recent study by PricewaterhouseCoopers indicated that over $60 billion could be generated from taxing the internet gambling industry over a 10 year period. However, that figure includes legalized online wagering on sports. On Wednesday, “The Hill” published an article noting that Wyden had withdrawn his proposed amendment. The Senator’s Communications Director told the publication, “The last thing Senator Wyden wants to do is make it more difficult to expand subsidies for working families by introducing a new contentious issue to the debate. So when he offers the amendment, he will do it with other funding mechanisms.”

Wyden’s attempt to demonstrate tangible uses for internet gambling revenue comes on the heels of McDermott’s introduction of HR 6501 in July of 2008. McDermott’s bill, dubbed the Investing in Our Human Resources Act, provided up to $40 billion in assistance for those currently or formerly in foster care and those in declining job markets. HR 6501 was not acted on during the 110th Congress. McDermott’s proposal was not well-received, as Congresswoman Shelley Berkley (D-NV) labeled it “a classic case of putting the cart before the horse.” Former Congressman Jon Porter (R-NV) piled on, saying that HR 6501 marked “a frivolous attack on the gaming community to pay for services that local governments, states, and the federal government should already be providing.”

Last month, Senator Robert Menendez (D-NJ) introduced S 1597, the Internet Poker and Games of Skill Regulation, Consumer Protection, and Enforcement Act. The bill, as its name implies, focuses on licensing games such as poker, bridge, chess, mahjong, and backgammon “in which success is predominantly determined by the skill of the players.” Menendez’s measure has not attracted any cosponsors.

Congress is targeting October 30th as its adjournment date for the 2009 calendar year.

Online gambling to fund US health care reform?

Wyden introduced an amendment to the U.S. Senate Finance Committee Saturday that would see the government use online gambling revenues to help offset the costs of health care reform.

Specifically, the senator recommended implementation of the currently pending Internet Regulation, Consumer Protection and Enforcement Act, a bill that would officially legalize online poker and support regulation in the industry, to offset the costs of health care reforms contained in the also-pending Healthy Future Act of 2009.

A PricewaterhouseCoopers analysis has shown that collecting taxes on regulated online gambling would allow the U.S. to capture up to over $62.7 billion over the next decade.

As the Senate Finance Committee considers the proposal, the Safe and Secure Internet Gambling Initiative (SSIGI) has been vocal in its support of Wyden's effort.

"We applaud Senator Wyden's proposal to collect and put to good use tens of billions in Internet gambling revenue that would otherwise be lost in the underground marketplace," said SSIGI spokesperson Michael Waxman.

"The Senate Finance Committee should approve the resolution, finally putting to an end a failed prohibition on Internet gambling that leaves Americans unprotected and unlicensed offshore operators as the only beneficiary in a thriving marketplace."

Rep. Barney Frank introduced the bill to tax and regulate online gambling in May this year. The bill would establish a framework to permit licensed gambling operators to accept wagers from individuals in the U.S.

The legislation includes a number of consumer protections including safeguards against compulsive and underage gambling, money laundering, fraud and identity theft.

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National Council on Problem Gambling Holds HR 2906 Press Conference

Last Thursday, the National Council on Problem Gambling held a press conference in the Canon House Office Building to debrief media and Congressional staffers on HR 2906, the Comprehensive Problem Gambling Act.

Congressmen Jim Moran (D-VA), Lee Terry (R-NE), and Frank Wolf (R-VA) introduced the bill back in June. Since then, a dozen cosponsors have signed on, including Congressman Barney Frank (D-MA), who is pushing bills to delay the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) by one year to December 1st, 2010 (HR 2266) and to establish a comprehensive licensing and regulatory framework for internet gambling in the United States (HR 2267).

Congressmen Moran and Wolf turned out for the press conference and issued opening remarks. Also in attendance was Congressman Patrick Kennedy (D-RI). A total of 25 interested parties were present, including members of the media and staffers from offices around Capitol Hill. National Council on Problem Gambling Executive Director Keith Whyte told Poker News Daily, “It was bigger than we thought. It seems that there is a heightened level of interest in problem gambling and gambling in general. Part of it is people thinking about Frank’s internet gambling bills. We want to talk about the hope and help around this problem rather than just about the negatives. Hopefully, that’s a message that Congress will hear a lot more.”

Whyte spoke during Thursday’s proceedings, as did Tim Christensen, President of the Association of Problem Gambling Service Administrators, and Chuck Maurer, President-Elect of the National Council on Problem Gambling. Two problem gamblers also took to the podium. In the wake of the successful turnout, National Council on Problem Gambling officials are seeking a Senate sponsor of HR 2906. Whyte explained, “We may be within a couple of weeks of taking it on in the Senate. It’s been referred to the Energy and Commerce Committee, which is currently working on health care reform. Everything else is competing for scarce time. The more cosponsors we get, the more likely we’ll be able to get committee time.”

Two films were shown last week following the one-hour long affair. “Shake ‘M Up Break ‘M” told the story of gambling addiction through song, while “Game Over” served as a promotional vehicle for the Washington State Problem Gambling Helpline. HR 2906 allocates up to $14.2 million per year for problem gambling public awareness, research, and treatment for the fiscal years 2010 to 2014. Its language was used in Senator Robert Menendez’s S 1597, the Internet Poker and Games of Skill Regulation, Consumer Protection, and Enforcement Act.

HR 2906 notes that over six million adults in the United States met the criteria for problem gambling last year. The estimated “social cost” from legal proceedings and financial distress as a result of problem gambling was $6.7 billion in 2008, and “there are no agencies or individuals in the Federal Government with a formal responsibility for problem gambling.” The organization characterizes problem gambling as a health disorder.

Several individuals, including Joseph Dunne and Robert Custer, founded the National Council on Problem Gambling 37 years ago. According to its website, the Council seeks “to increase public awareness of pathological gambling, ensure the widespread availability of treatment for problem gamblers and their families, and to encourage research and programs for prevention and education.” Each March, the organization hosts the National Problem Gambling Awareness Week and, in 2009, utilized social media outlets like Facebook and YouTube for the first time in order to disseminate its message.

Read the text of HR 2906 on the Library of Congress website for more information.

Legal Online Poker’s Biggest Obstacle: Nanny Democrats

One might think that when Republicans suffered much-deserved humiliation in the last general election, the notorious Unlawful Internet Gambling Enforcement Act (UIEGA) would soon be history.  Remember, it was back in 2006 that Senate Republican leadership effectively guillotined the “Moneymaker Effect.”  Whatever one’s views are on other worldly issues, the popular perception within the poker community was that Democratic political gains would be very good for players.

With Democrats now in complete control of all branches of the Federal Government, we can no longer limit our anger and disappointment to those musty old Republicans.  Indeed, trampling on the rights of poker players now appears to cut across party lines.  While Senator Jon Kyl (R-AZ), Representative Bob Goodlatte (R-VA), and Representative Frank Wolfe (R-VA) continue to merit our universal contempt, the sad fact is that the “out-of-touch brigade” now has plenty of company on the other side of the partisan aisle.

Consider the positions of many powerful Democrats.  The fact is that many national Democratic leaders happen to be women from western states.  Virtually all of these influential Democratic women are opposed to overturning the UIEGA.  In other words, these proud liberals march lock and step with the most repulsive elements of the religious right.  These same Democratic women champion countless progressive causes and wouldn’t agree with the likes of Kyl, Goodlatte, or Wolfe on anything except, peculiarly enough, smothering the freedoms of millions of American citizens who want to play online poker.  These Democrats are just as bad as the Republicans.

For your displeasure, here’s a list of the guilty:

Representative Nancy Pelosi (D-CA) – The Speaker of the House has repeatedly stated that she is dead-set against any expansion of gambling.  She remains stubbornly opposed to legalizing poker on the internet because a family member reportedly once had a gambling problem.  Pelosi may be the worst House Speaker in my lifetime (note that this opinion comes from an avowed political liberal), but her powerful influence on introducing bills and the legislative process unquestionably remains the biggest obstacle to overturning the UIEGA.

Senator Diane Feinstein (D-CA) – The senior U.S. Senator from California recently demonstrated her appalling confusion on the issue of internet gambling.  Consider her response to a constituent in a published letter.  She wrote, “Internet gambling has become too easily accessible to minors, subject to fraud and criminal misuse, and too easily used as a tool to evade State gambling laws.” Aren’t these the very reasons we desperately need legalization, licensing, and regulation of online gambling?

Senator Barbara Boxer (D-CA) – It’s unclear precisely why Senator Boxer remains strictly opposed to online poker.  Unlike her contemporaries Pelosi and Feinstein, Boxer has not widely expressed her views on the subject other than making her opposition known.  However, California’s junior Senator has backed major initiatives on behalf of tribal resorts.  Perhaps tribal opposition to legalized online poker (the Pachanga Tribe, for example) has influenced her position.

Representative Maxine Waters (D-CA) – Oddly enough, Representative Waters represents a Congressional district in Los Angeles that has reaped enormous financial rewards for various municipal projects directly from casino tax revenues.  Hollywood Park is located within her district.  Waters’ opposition to online poker and internet gambling appears to be based on her view that gambling activities disproportionally harm poor people.  That said, to date there has been no word from Waters’ office as to when she plans to start fighting to dismantle the California State Lottery.

Governor Christine Gregoire (D-WA) – This politician is guilty of supporting and ultimately signing into law the most draconian sanctions against poker in more than a century.  It’s eerily reminiscent of what many Southern states did in the 1830s when gamblers were rounded up and hanged publicly.  Gregoire made Washington the first state in the nation to make gambling on the internet a Class C felony (contrary to the opinion of many courts, poker is considered gambling in Washington state).  A poker player living in Seattle or Tacoma is risking far more than a few dollars when he or she plays online.  Thanks to the Governor, the poker playing vermin could very well receive the same punishment doled out to child molesters and drunk drivers.

For far too long, groups like the Poker Players Alliance (PPA) believe they can win the political debate with simple logic.  Sure, our argument is better than their argument and most rational people would agree after listing to a five-minute exchange, but this isn’t a high school debate class.  It’s a political street fight versus powerful forces camped out on both the right and the left.  Until the PPA rolls up its sleeves and dives into the trenches with an all-out media bombardment aimed directly at the oblivious mainstream voter, nothing is going to change.  Sure, we might sway a few Ivy League professors and political columnists from time to time.  A few poker players might get five minutes of airtime on MSNBC or FOX.  That’s all good, but online poker is not going to be legalized and regulated in the United States until some significant changes in strategy take place.

The first rule of politics is that “right” and “wrong” have little to do with any issue of significance.  The debate you see on C-SPAN is pretty much scripted and irrelevant.  No Congressman or Senator is swayed one way or the other on any legislation without either coercion or compromise.

Indeed, Washington is nothing more than a gigantic power plant fueled by the only lubricant of any real action – money.  Lots of money.  Whatever your political views may be, I strongly advise against poker players donating money to national party organizations.  If you support a political candidate, donate to the person directly and not to the Democratic National Committee or to the Republican National Committee.  If you make a donation to either of these organizations, there’s a good chance some of your money is going to be funneled into the re-election campaigns of Kyl and Pelosi.  Just say no.

MA Attorney General Coakley Rejects Online Poker Ballot Initiative

Last week Massachusetts Attorney General Martha Coakley told members of the Poker Players Alliance (PPA) that she would be rejecting their bid to include an online poker initiative on Massachusetts ballots in 2010. Citing a failure to meet the legal requirements to make it onto the ballot, Coakley’s decision is the latest setback for the PPA and other lobbying groups trying to expand gambling in Massachusetts.

The gambling initiative was not the only question that failed to meet Coakley’s standards. The Associated Press reported that she also rejected two mortgate-related proposals and an initiative to put a percentage of the state budget towards local aid. According to Coakley’s official website the online poker petition was rejected on the grounds that it was not in the proper form. John Pappas of the PPA explained that Coakley objected to the use of the words “license” and “register” to describe a proposed 5% fee on internet gambling. The alternate descriptors left Coakley unable to determine the full ramifications of the initiative, resulting in the petition’s rejection.

The petition, filed on August 5th by Randy Castonguay, sought to clarify internet gambling’s legal standing in the state and proposed regulation and taxation measures as well and is just the latest initiative in the extensive lobbying campaign of the PPA and other pro-gambling groups in the state of Massachusetts. A recent article by the Associated Press reported that lobbying groups have spent over $5 million over the past four years funding their efforts. That money has gone towards a number of different legal initiatives including bringing brick and mortar casinos to the state and regulating online poker.

Coakley is an outspoken opponent of the internet gambling cause and her official website claims any form of online gambling is illegal, despite the fact that Massachusetts is not one of the six states with laws expressly banning the activity. With the recent ruling in the iMEGA case that positioned the legal standing of online poker and other forms of online gambling as something to be determined by individual states, Coakley’s stance has many online poker enthusiasts up in arms.

Of even more concern to the PPA and other lobbying groups is Coakley’s recent announcement that she will be running in the race to fill the late Senator Ted Kennedy’s now-empty Senate seat. So far Coakley and fellow Democrat Rep. Stephen Lynch have announced their candidacy and Lynch’s fellow House members Michael Capuano and Edward Markey are also rumored to be considering campaigns. Joseph Kennedy II, the son of late Senator Robert F. Kennedy, still remains undecided about whether or not he will try and carry on the Kennedy’s political legacy.

In the wake of Coakley’s announcement she will be running in the Senate race, she has been leveled with criticism suggesting the time-consuming campaign will affect her ability to continue on as the state’s Attorney General. In addition to occupying the bulk of her time between now and Election Day, these critics are also concerned that political aspirations will mar her ability to make impartial judicial decisions. Coakley told the Boston Herald she is still fully dedicated to her current position. “I am still AG,” she explained. “They can reach me 24/7. I have been and will remain involved in the major decisions in the office.”

Coakley’s campaign has already hit an early snag as a group of Republicans filed a complaint against her with state Office of Campaign and Political Finance and the Federal Election Commission for improperly allocating funds from her state campaign to pay for polling and other expenses related to her Senate campaign.

National Council on Problem Gambling Comments on Menendez Bill

Earlier this month, Senator Robert Menendez (D-NJ) introduced S 1597, the Internet Poker and Games of Skill Regulation, Consumer Protection, and Enforcement Act. The bill includes provisions to address problem gambling.

Menendez’s measure calls for the licensing and regulation of internet games of skill like online poker in an effort that is narrower than Congressman Barney Frank’s (D-MA) HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act. At the end of Menendez’s legislation, $14.2 million per year over a five-year period is prescribed for problem gambling awareness, treatment, and research. National Council on Problem Gambling Executive Director Keith Whyte told Poker News Daily, “We think, overall, it’s responsible that if you’re going to have a bill that expands gambling, you put in money to address gambling problems.”

The text in Menendez’s bill comes from HR 2906, the Comprehensive Problem Gambling Act of 2009. The measure was introduced by a bipartisan contingent of Congressmen Jim Moran (D-VA), Lee Terry (R-NE), and Frank Wolf (R-VA) in mid-June amid support from the Council. Whyte explained, “We’re pleased that there’s a responsibility to mitigate problem gambling and we’re glad it’s the language from HR 2906. However, this would still only be the first ever federal funding for prevention and treatment programs. There is a lot more language in our House bill than what Menendez added. It’s not the entire bill.”

The Poker Players Alliance (PPA), the 1.2 million member strong lobbying group, was one of the driving forces behind the introduction of S 1597, which debuted shortly after the conclusion of National Poker Week. PPA Chairman and former three-term Senator from New York Alfonse D’Amato called Menendez’s bill “another powerful step towards protecting internet freedom, protecting consumers, and protecting online poker.” S. 1597 allocates $200,000 per year for awareness, $4 million per year for research, and $10 million per year for treatment.

Whyte revealed that the National Council on Problem Gambling plans to introduce a companion bill to HR 2906 in the Senate. In the meantime, Congress is currently on recess until after Labor Day in the United States. He noted, “We met with Menendez’s staff and asked him to introduce a companion bill to HR 2096 in the Senate. We did not specifically request that our language be included in his bill, but this is a good step.” The National Council on Problem Gambling does not support Menendez’s bill, however, because it calls for an expansion of gaming.

Much to the delight of online poker players, Menendez’s bill specifically identifies the game as a legal activity. It defines “internet skill games” to mean “an internet-based game in which success is predominantly determined by the skill of the players, including poker, chess, bridge, mahjong, and backgammon.” Frank’s HR 2267 boasts 54 co-sponsors after being introduced in early May along with HR 2266, which calls for the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) to be delayed by one year. As it currently stands, the financial services industry must come into full compliance with the 2006 law by December 1st. HR 2906 has attracted 10 co-sponsors, including Frank and Congresswoman Shelley Berkley (D-NV).

The National Council on Problem Gambling is based in Washington, DC. Text on the organization’s website reveals that it was founded on two mantras, “that the organization would be the advocate for problem gamblers and their families and that it would take no position for or against legalized gambling.” Its annual Awareness Week occurred from March 1st to 7th this year and included the organization reaching out to problem gamblers through popular social mediums like YouTube.

Stay tuned to Poker News Daily for the latest on Menendez’s bill to regulate online poker in the United States.

California Intrastate Online Poker Update

Recently in California, the Morongo Band of Mission Indians presented a bill calling for the legalization of online poker in the state, according to the Capitol Weekly news publication. Poker News Daily sat down with Poker Voters of America (PVA) Executive Director Melanie Brenner to get the organization’s reaction.

Capitol Weekly explained the Indian tribe’s proposal, which could mark the first step towards intrastate online poker. The draft bill would “create a centralized, online poker website they would offer to online customers within California’s borders. The consortium would have an exclusive right to offer online poker, but all California Indian tribes and card clubs would be eligible to be members.” California finds itself stuck in an ongoing budget crisis, adding momentum to the Morongo proposal for increased revenues.

In response to the submission, State Senator Darrell Steinberg claimed that the bill should not be discussed in the waning days of the 2009 Congressional session. Now, the PVA has embarked on a mission to formulate a ballpark revenue figure that the State of California would realize should it choose to allow online poker. The news outlet quoted a study done of over 800 voters in August that showed that 61% of voters opposed legalizing online poker in California. This amid brick-and-mortar card rooms sprinkled throughout the state, including the Bicycle Casino and Commerce Casino in Southern California. The former is fresh off hosting the World Poker Tour’s (WPT) Legends of Poker.

Brenner, who is also spearheading an effort to legalize and regulate the game in Florida and elsewhere throughout the United States, explained her position.

Poker News Daily: We’ve seen headlines like “Online poker suffers setback in California” in response to State Senator Steinberg’s remarks. Can you give us your reaction?

Brenner: This has been one of the best things that has happened to the PVA in the last couple of weeks. I want to open a bottle of champagne. What I think you’re seeing is a part of the political process. There are so many different parts to the process. One of the biggest challenges in California has been the opposition of the tribes not wanting online poker. One of the tribes now wants to run an online poker site. That’s a huge breakthrough.

PND: Have you been in discussion with the Morongo Tribe and others in California?

Brenner: Our plan was to have educational outreach to the tribe. When the Morongo Tribe announced this, we knew that the tribes had been starting to understand what we were saying. However, they jumped the gun a bit and hadn’t worked out all of the details.

PND: What was the feedback you received from lawmakers in Sacramento?

Brenner: The feedback was that there are way too many blanks to put this through. They have a three-week session that started last week. The Senate President said that they have too much on their plates and there isn’t enough here for them to tackle it now.

PND: What financial figures did the Morongo Tribe intend to use?

Brenner: They are using numbers from the Commerce Casino earlier in the year. We are familiar with the study and saw it, but aren’t quite comfortable with the credibility of the numbers.

PND: Will we see legalized intrastate online poker in California in 2009?

Brenner: From a political insider’s perspective, you can never say never. These are crazy times, but it’s very doubtful.

PND: Give us an update on your Florida endeavors.

Brenner: Things are going well, but nothing is happening right now. We’re on track and our timeline is to introduce legislation during the 2010 session.

ESPN Inside Deal Welcomes Dennis Phillips

This week’s edition of the ESPN poker show “Inside Deal,” which airs on ESPN.com, featured 2008 World Series of Poker (WSOP) November Nine member Dennis Phillips and a revealing phone conversation with WSOP Commissioner Jeffrey Pollack.

The show opened in its usual witty style, with “Inside Deal” Host Laura Lane trying to find Phillips to commence taping. ESPN employees and co-host Bernard Lee were all dressed like the former truck salesman, donning red St. Louis Cardinals hats and white collared shirts complete with logos. “Inside Deal,” which is sponsored by PokerStars.net, began its 40 minute show by discussing new legislation introduced by Senator Robert Menendez (D-NJ) to regulate online games of skill like poker in the United States. Poker News Daily was sourced on the story, with Lee commenting, “This is a revised bill that Senator Menendez introduced in 2008. The previous bill focused on just skill games. This specifically focuses on online poker.” The bill is numbered S 1597.

Discussion on “Inside Deal” then turned to the recent sale of the World Poker Tour (WPT) to Gamynia Limited. Lee gave his take on what the sale of the hallmark tournament series means for players: “For the Tour, time will tell. For the 2009-2010 season, there won’t be too many changes.” Lee then noted that legalized and regulated online poker in the United States would mean a dramatic increase in qualifiers for WPT events. “Inside Deal” broke down the results of its sponsor’s weekly online poker major, the Sunday Million, and discussed the death of PokerListings founder Andreas Oscarsson.

Pollack called in for “Inside Deal’s” first telephone interview. He gave a preview of the 2009 WSOP Europe festivities, which kick off on September 19th from London. Pollack explained a potential solution for the sellout of Day 1D of the 2009 WSOP, which left more than 500 players shut out of the game’s most prestigious tournament: “We’re going to continue to have pre-registration open months in advance. I think we’re going to allow players to select their start date for the Main Event until a certain point. After that, we’re going to select their start date so the days are properly balanced.” Among those left out in the cold on Day 1D were Durrrr Challenge participant Patrik Antonius, Poker Hall of Fame member T.J. Cloutier, and five-time WSOP bracelet winner Ted Forrest.

Phillips joined the show to talk about his interactions with members of the 2009 WSOP November Nine and his experience at National Poker Week in Washington, DC. On the latter effort, which was organized by the Poker Players Alliance (PPA), Phillips recalled, “I honestly believe there will be a compromise between the two [internet gambling bills in the House and Senate]. They will come together with something. My hope is that in the next 12 to 18 months, this farce of a law they have will be amended.”

Phillips divulged the secrets to his deep runs in the 2008 and 2009 Main Events, where he finished 3rd and 45th, respectively, and relived throwing out the first pitch at a Cardinals baseball game. On November Nine member and CardPlayer Editor Jeff Shulman, who has threatened to throw out the bracelet should he win the Main Event, Phillips commented, “Even if he felt it, to come out and publicly state it is horrible. It’s repulsive to me that he’d consider throwing it away.”

ESPN Poker Editor Andrew Feldman then joined the “Inside Deal” set in Bristol, Connecticut to review Sexy Poker for the Nintendo Wii, which resembles a game of strip poker. Discussion of the game was a segue for forecasting technological breakthroughs in the game, with Lee suggesting that tournament officials mic up every player at a final table and use interactive cameras to divulge tells. Feldman also discussed World Team Poker, whose first match-up pits Phil Hellmuth’s Team USA against Men “The Master” Nguyen’s Team Vietnam. Phillips recalled Danes rooting for Peter Eastgate and Russians cheering for Ivan Demidov during the 2008 WSOP Main Event final table as examples of how team poker may have a bright future.

An unaired exit interview with Dan Harrington following his elimination from the WSOP Champions Invitational aired and Lee broke down Eastgate’s one-outer against Scott Montgomery during last year’s Main Event finale. New episodes of “Inside Deal” are released every Tuesday on ESPN.com.

Senator Menendez Introduces Bill to Regulate Online Poker

Senator Robert Menendez (D-NJ) introduced a bill in the Senate on Thursday that seeks to regulate and tax online poker in the United States. The bill would garner both federal and local revenue, while instituting consumer protection safeguards and age verification procedures to ensure that citizens under the age

The Nightly Turbo: Poker Legislation Introduced to Senate, Jeff Madsen Rapping, and More

Welcome to The Nightly Turbo. The day's top poker news stories all in one place, saving you not only time, but money since you won't be timing out with aces while wildly googling.

Menendez launches new poker bill

The Internet Skill Games Regulation Bill (S8309) is the brainchild of New Jersey Senator Robert Menendez and the major difference between it and similar bills is that only addresses online poker and other games of skill.

According to a release from the Dow Jones Newswires, the bill would establish a regulatory framework allowing online poker companies to register in the U.S.

It would also put in place consumer protections, including age-verification procedures and blocks for  States where online poker is not yet legal.

Of interest to players is a proposed 10% tax on all deposits, representing one of the first times an actual number has been given in regards to taxes the U.S. government might be interested in charging should online poker be regulated.

The bill is expected to receive support from various financial institutions across the U.S., which were charged with the task of rejecting individual bank transactions based on the vague Unlawful Internet Gambling Enforcement Act (UIGEA) passed in 2006.

House Representative Barney Frank's Internet Gambling Regulation, Consumer Protection and Enforcement Act (HR 2267) is scheduled to go to a hearing in September and could potentially gain even more support if Menendez' bill is well received.

No debate or votes on the bill will occur until after the Senate's August recess.

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Senator Menendez to Introduce Online Poker Legislation on Thursday

In breaking news from Capitol Hill, Senator Robert Menendez (D-NJ) will introduce legislation to license and regulate online poker in the United States on Thursday, according to Dow Jones Newswires.

During National Poker Week, which occurred from July 19th to 25th, it was revealed that Menendez would likely drop legislation during the festivities or the following week. Then, Poker News Daily learned that a bill similar to last Congressional session’s S 3616 would likely be introduced this week. Poker Players Alliance (PPA) Executive Director John Pappas stated during a working dinner to open National Poker Week, “Pushing poker will be an immediate lift and will be easier than [legalizing] other things.” He also reminded over 30 of the PPA’s State Directors, a handful of poker pros, and media in attendance, “Poker has always been played in people’s homes. We are the Poker Players Alliance. We aren’t the Roulette Alliance. We love the Menendez bill because it focuses on our core beliefs.”

The PPA had a draft of the bill in mid-July. Menendez’s S 3616 was introduced last September and dubbed the Internet Skill Game Licensing and Control Act. The bill’s definitions specifically included online poker, explicitly legalizing the game in the United States: “The term ‘Internet skill game’ means an Internet-based game that uses simulated cards, dice, or tiles in which success is predominantly determined by the skill of the players, including poker, bridge, and mahjong.” The bill called for the legalization of skill games not backed by the house, meaning that the action was primarily player versus player. Online poker rooms like PokerStars and Full Tilt Poker raise revenue by taking a percent of each pot or tournament buy-in, dubbed the “juice” or “rake.”

In order to apply for a license to operate a skill game online and solicit customers from the United States, complete financial information was required. Also required were an outline of an organization’s corporate structure and the “names of all persons directly or indirectly interested in the business of the applicant and the nature of such interest.” Background checks of individuals and directors associated with each licensee would have been conducted and betting on sports was specifically prohibited. S 3616 vanished from the record after the 110th Congress adjourned.

According to the PPA, the legislation to be introduced by Menendez on Thursday will be similar to S 3616. The Dow Jones report notes, “It would establish a regulatory framework that would allow online poker companies to register in the U.S.” A 10% tax on deposits would be added, 5% to State Governments and 5% to the Federal Government. During the last Congressional session, Congressman Robert Wexler introduced a similar measure in HR 2610, the Skill Game Protection Act, which exempted poker and other skill games from existing internet gambling legislation.

At the beginning of May, Congressman Barney Frank (D-MA) introduced HR 2266, which would delay industry compliance with the Unlawful Internet Gambling Enforcement Act (UIGEA) by one year to December 1st, 2010. In addition, the Massachusetts lawmaker unveiled HR 2267, which establishes a comprehensive licensing and regulatory framework for the internet gambling industry in the United States. HR 2267 currently boasts 54 co-sponsors, while HR 2266 has 35.

We’ll have full details on Menendez’s new Senate bill as soon as it’s released right here on Poker News Daily.

Chris “Fox” Wallace Lobbies Congressmen for Legalizing Poker

On Tuesday at the Poker Players Alliance (PPA) Fly-In held as part of National Poker Week, 30 of the organization’s State Directors and a handful of the game’s elite met with Senators and Representatives from around the United States. The goal: Push for the legalization and regulation of online poker in the United States.

Poker News Daily joined poker pro and PokerXFactor instructor Chris “Fox” Wallace as he met with staffers from Representative James Oberstar (R-MN) and Senator Al Franken (D-MN). Congressman Oberstar’s district contains 1,544 PPA members and the lawmaker has a poker-related voting record of “D” according to the one million member strong organization. Wallace sat down with John Schadl, the Communications Director for Congressman Oberstar. Topics included Wallace’s personal story of playing and teaching the game to 300 students from his home in the Land of 10,000 Lakes as well as key stats about the industry.

In the end, Wallace and a lobbyist from the PPA called for Congressman Oberstar to support HR 2266 and HR 2267. The former delays financial services industry compliance with the Unlawful Internet Gambling Enforcement Act (UIGEA) by one year until December 1st, 2010. HR 2267 establishes a comprehensive framework to license and regulate internet gambling operators in the United States. It sits at 47 co-sponsors after being introduced on May 6th, although the PPA claims 52 or 53 Congressmen have lent their names to the measure. Schadl called the meeting “very informative” when it concluded and was full of questions.

On the walk from the Rayburn House Office Building to Senator Franken’s office in the Hart Senate Office Building, Poker News Daily caught up with Wallace to get his impressions on the meeting:

Poker News Daily: Give us your thoughts on your conversation with John Schadl, Communications Director for Congressman James Oberstar.

Wallace: I thought it went great and he was very receptive. He didn’t seem to know much about poker, but wanted to learn about it. It seemed like we gave him a good foundation to understand what it is.

PND: Was the conversation what you expected?

Wallace: I actually expected that the person would know a little bit more about the issue and be asking us more technical questions. Schadl was asking us how poker online is played, so it was helpful that we were there to tell him how these things work rather than fight over technical issues in bills.

PND: Were you sufficiently prepared?

Wallace: He didn’t ask any questions that I didn’t know the answers to. I’m not a legal expert, but it seemed to go well. I think he was impressed with how much we knew and how much we were able to help him out with answers to questions. I got the idea that he was on our side by the time we left.

PND: Can anyone educate Congressmen effectively on this issue?

Wallace: People who are not comfortable speaking and people who are not terribly persuasive would have trouble doing it. Knowledge of the issue is really important. I didn’t have to tell him “I don’t know” to any of his questions. While that’s acceptable to do every once in a while, if you did it through a whole meeting, you’d get nowhere.