Poker News

Doyle Brunson Draws Criticism for Barack Obama Tweet

It has been widely documented that longtime poker pro Doyle Brunson is quite the Twitter aficionado.  While Brunson, better known to his Tweeps as @TexDolly, typically utilizes his Twitter feed for updates on DoylesRoom, chatting with his celebrity friends, updating the world on his prop and sports betting, and providing the world with a seemingly endless stream of blonde jokes, a recent post about politics landed him in hot water.

On January 20th, Brunson decided to comment about President Barack Obama on his Twitter account with the following: “The Democrats say ‘give Obama time.’ Us Repubicans [sic] agree, 25 to life seems appropriate!”  The typo in that post was not the only thing that Brunson followers took offense to.  The ten-time World Series of Poker (WSOP) bracelet winner received a barrage of Tweets in response to the post.  A number of users re-Tweeted Brunson’s statement, while a large contingent chastised the poker pro for his comment.  Here is just a sampling of some of the less-than-positive responses Brunson received:

@JoTinsley: “@TexDolly what has Obama done that is criminal? Bush did warrantless wiretaps. Why isn't he in prison?”

@pattydukesny: “@TexDolly Really? Be a Republican but don't be an idiot.”

@pokerfire26: “@TexDolly It took years to destroy the economy and ruin healthcare do you honestly believe it can be fixed in one year”

More than one person suggested that Brunson’s distaste for the current administration stemmed from racially motivated feelings towards the President.  Brunson was quick to snap back at his critics, Tweeting the following statement just a few hours later: “Just because I don't like the way things are going with Obama's 1st year has nothing to do with the color of his skin. Stop the racist BS!”  He also blocked a couple of his critics from viewing his feed.

However, when one poster, @dfmaicher, informed Brunson that he would no longer be playing on DoylesRoom as a result of the statement.  “Texas Dolly” was apologetic towards the man, replying, “Sorry about that, I hope you reconsider leaving Doylesroom. But if you don't we still have 2,247,000 players left. Don't leave!!”  Since then, @dfmaicher has continued to probe Brunson for a more in-depth explanation of why he is not an Obama fan, but Brunson failed to respond.

One of the people to comment on the hot button Tweet was none other than Full Tilt Red Pro and 2006 WSOP Player of the Year Jeff Madsen.  Madsen respectfully disagreed with the living poker legend via his own Twitter feed, @JeffMadsenObv.  “I respect u doyle but it seems that ur politics aren't very informed are they. Don't listen to television,” wrote Madsen.  Brunson kept the disagreement relatively cordial when he responded to the young pro with this insight: “@JeffMadsenobv..Yep, when I was 23 years old, I thought everybody should get a handout too. Now, I know better, let em get out and work.”

The tiny Twitter spat between the two pros ended on a happy note when Madsen responded with a joke, a smile, and a correction: “@TexDolly hey hey hey! I'm 24!! ”  Madsen later responded to another Tweet Brunson directed towards a mutual friend, which is yet another indication that the two are more than able to agree to disagree.  That may not be the case for some of Brunson’s followers, but hopefully they can take a lesson from the two card players about how to keep their Twitter feuds civil and pleasant.

As for Brunson, he appears to have laid off the political Tweets for a while, although one of his latest blonde jokes had a Presidential theme to it: “Q..Name the most influential 1st Lady in American history...(hint...she was married to John Kennedy)...Blonde answer..Mrs Kennedy.”

David Carruthers Gets 33 Months Jail Time in BetOnSports Case

In April, former BetOnSports CEO David Carruthers pled guilty to racketeering charges stemming from his operation of the popular online sports book. He faced up to 33 months in prison and a maximum sentence was handed down on Friday.

U.S. District Court Judge Carol E. Jackson sentenced Carruthers on Friday after he was indicted by a grand jury four years ago, according to an article that appeared in Business Week authored by Bloomberg. In court late last week, Carruthers expressed remorse for his actions: “I understand now that the business was operating outside the laws of the United States. I realize I made the biggest mistake of my life. I am sorry for the actions of BetOnSports and the trouble it caused.” The company purportedly raked in over $1 billion in 2004 alone, with Bloomberg noting that a whopping 98% of wagers came from customers in the United States.

Carruthers had been under house arrest in St. Louis since 2006, but found time to get out and stretch his legs as part of the St. Louis Marathon. BetOnSports had been traded in London on the city’s stock exchange and Bloomberg added that Judge Jackson fined BetOnSports $28.2 million. However, the firm owes creditors in the United Kingdom and would likely not be able to make good on the $28.2 million penalty. Attorney Jeffrey Demerath told the financial news outlet, “We won’t be able to pay the $28 million. We have an obligation under the laws of the United Kingdom to pay the creditors first.”

A bevy of guilty pleas were entered in the BetOnSports case. In August, the company’s founder, Gary Kaplan, pled guilty to violating RICO in a Missouri courtroom. Kaplan received more than four years behind bars for his role in the company as well as a $43 million fine, according to the AFP news service. Assistant U.S. Attorney Steven Holtshouser commented in a press release distributed by the U.S. Department of Justice, “The prosecution and conviction of Carruthers is significant to the government's efforts at enforcement of U.S. laws against offshore Internet and telephone sports wagering businesses, because Carruthers was both a foreign national and a top executive of BetOnSports.” Kaplan was arrested in 2007.

In June, Neil Scott Kaplan, Lori Kaplan-Multz, and Penelope Tucker all entered guilty pleas in front of Judge Jackson in the BetOnSports case. Each agreed to hand over money in Swiss bank accounts, but would not face any jail time. Scott Kaplan and Kaplan-Multz also received time in a halfway house. An article that appeared in the St. Louis Post-Dispatch explained why the trio received significantly lighter sentences than Kaplan and Carruthers: “Assistant U.S. Attorney Steve Holtshouser said the sentences reflect the minimal roles that Neil Kaplan and Kaplan-Multz played, their lack of decision-making power there, and their willingness to surrender their BetOnSports money.”

The USA-facing online poker site Bodog, founded by Calvin Ayre, continues to accept wagers on sporting events. The site is in the midst of the National Football League (NFL) playoffs, which kicked off over the weekend. Carruthers assumed the head role at BetOnSports in 2004 after joining the company in 2000. Both the Internal Revenue Service (IRS) and Federal Bureau of Investigation (FBI) participated in the investigation of the former CEO. Besides Holtshouser, Steven Muchnick and Special Assistant U.S. Attorney Charles Birmingham led the case on behalf of the United States Government.

On Capitol Hill, the Poker Players Alliance (PPA) is carrying the flag for explicitly legal online poker in the United States. Financial services industry compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) was delayed six months to June 1st. The delay came after a November decision by U.S. Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke. Congressman Barney Frank (D-MA) is championing the cause on the Hill with HR 2267, which establishes a full licensing and regulatory framework for internet gambling outfits to solicit U.S. customers. The measure is up to 63 co-sponsors on both sides of the aisle, but would not permit online sports betting.

Stay tuned to Poker News Daily for the latest from the BetOnSports case.

Inside Gaming: The eDeck Grows on Casinos; Harrah’s Sends a Big Gun to AC

With poker at the center of our universe here at PokerNews, it's often easy to overlook everything else going on in the gaming industry. Today we bring you the portable sports betting device that is making an impact and Harrah's makes a strategic...

Inside Gaming: The NBA Considers Sports Betting; Facebook Bans Online Gambling Ads

With poker at the center of our universe here at PokerNews, it's often easy to overlook everything else going on in the gaming industry. If you're as interested in all things gaming and casino as we are, you'll enjoy the fruits of our research by...

Everest Poker Acquired by Mangas Gaming

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

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

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

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

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

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

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

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

CNBC Investigates Illegal Gambling, Online Poker

A one-hour CNBC program entitled “The Big Business of Illegal Gambling” aired on Wednesday night, featuring discussion of “illegal” land- and internet-based operations. “The Call” anchor Melissa Francis hosted.

The show began with Francis telling viewers, “The same computer used to connect with work or friends can be used to wager outside the law.” In 2005, when the Chicago White Sox won baseball’s World Series, a man simply named “Vegas Runner” bet $4,000 on 50:1 odds that the team would take down the sport’s most coveted title. He told CNBC cameras, “It’s a gray line. Sports betting is the one topic no one wants to talk about, but everybody does it.”

R.J. Bell, founder of PreGame.com, told CNBC that just 1% of wagering on sports comes from Las Vegas, meaning that the other 99% is purportedly illegal. Meanwhile, a man known solely as “Paul,” whose face was not shown on camera, runs his own online sports betting website in Nevada as part of a conglomerate based in Costa Rica. He revealed that he makes between $80,000 and $100,000 per year and that collecting on bets is the most difficult part of the job.

CNBC’s attention then turned to the Chicago Mob, including Nick Sarillo, whose van was blown up because of illegal gambling, but he survived. Francis narrated, “Illegal gambling is the Mob’s number one moneymaker, the grease that keeps the wheels turning.” Meanwhile, Scott Damiani, the Executive Director of the Outreach Foundation, relayed his tale of excessive gambling, eventually losing his house and business. Upon owing members of a football league $50,000 at the end of 1994, Damiani attempted to drive his car off of a bridge, but hit a guardrail and was unsuccessful.

Attention then turned to Jay Cohen, the first American prosecuted for running an online bookmaking operation under the Wire Act of 1961. From his home in Antigua, Cohen told CNBC cameras, “We didn’t feel we were doing anything illegal. We were not hiding from anyone. We were using our real names and operating in plain daylight.” The site in question, World Sports Exchange, booked more than $200 million in wagers at its peak and received favorable press in publications like the Wall Street Journal and Washington Post.

In 1998, the U.S. Attorney’s Office indicted Cohen, who faced up to five years in prison. Cohen voluntarily traveled to the United States to fight his case, claiming that the Wire Act did not apply to the internet. However, a jury disagreed and he found himself behind bars for 21 months.

Upon passage of the Unlawful Internet Gambling Enforcement Act (UIGEA) in 2006, Antigua lodged a complaint with the World Trade Organization (WTO) alleging unfair gaming practices by the United States. The tiny island nation was successful, but the U.S. ignored the decision. Cohen remarked, “The last administration was so intellectually dishonest about all of this that even when Antigua won, they put out press releases claiming victory.”

Attention then turned to the cheating scandals at the online poker sites Ultimate Bet and Absolute Poker. Todd “Dan Druff” Witteles, who appeared on the CBS news program “60 Minutes” in November of 2008, discussed his encounter with “Graycat” on Absolute Poker: “This was someone who seemed that he had no clue what he was doing. He was playing all the wrong strategy to be able to win.” Then, David Paredes battled “NioNio” on the virtual felts of Ultimate Bet, telling CNBC, “This player was playing a wide variety of hands. It’s so hard to play profitably playing so many hands.”

CNBC claimed that UB.com was “operating in violation of U.S. law” and then the COO of the site’s parent company, Paul Leggett, explained who Russ Hamilton was. Hamilton declined to talk to CNBC despite being fingered as the main person responsible for the multi-million dollar cheating scandal on Ultimate Bet. The now-infamous RawVegas.tv footage of Hamilton leaving a Las Vegas golf course also aired. To date, no one has been prosecuted in either cheating incident.

Finally, two Congressmen took to the airwaves, Jim McDermott (D-WA) and Bob Goodlatte (R-VA). McDermott candidly explained, “Usually, when we talk about putting a tax on people, we get all kinds of [pushback]. They’re saying, ‘Legalize it, please, and tax it.’” Goodlatte, one of the brains behind the UIGEA, evaluated the law: “It certainly hasn’t eliminated all internet gambling by any means, but surveys that I’ve seen indicate that fewer than half as many online gambling operators are offering their services in the U.S. than before this law was passed.”

Recognized in the credits were a variety of industry veterans, including World Series of Poker Media Director Nolan Dalla, Poker Players Alliance Executive Director John Pappas, Sue Schneider, and iGamingNews.com.

Mangas Gaming Acquires Everest Poker

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

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

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

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

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

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

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

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Bwin Downplays Party Gaming Merger Talks

Party Gaming and Austria-based gambling group Bwin are allegedly involved in merger discussions, according to stories published in The Times and Sunday Times over the weekend. The move would potentially create a £2 billion online poker, casino, and sports betting company.

Shares of Party Gaming and Bwin jumped 2.5% and 4.1%, respectively, on Monday morning after the reports broke. Both companies have similar market value; Party Gaming is worth £1.1 billion, while Bwin is valued at about €1.3 billion.

Party Gaming and Bwin have refused to confirm the story, according eGaming Review. Bwin, Europe's biggest sports betting provider, said it wanted to take part in sector consolidation, but added that it is in talks with everyone in the industry on an ongoing basis and was not in advanced talks with Party Gaming. The Austrian group also told Reuters that it is not in advanced merger talks with anyone.

Party Gaming, meanwhile, has been looking for a major sports betting platform for years despite acquiring Gamebookers in 2006 for £102 million. The company has openly stated its determination to hunt for a bigger target in order to become a leading sports book operator and complement its online poker, casino and bingo platforms.

James Hollins at brokerage Daniel Stewart said a Bwin-Party Gaming merger would be “exceptionally strategically compelling," adding, "the combined groups' poker operations would drive clear scale economies and liquidity to compete squarely against the U.S.-facing giants of PokerStars and Full Tilt.”

Analyst Nick Batram at KBC Hunt is confident that a large deal is in the near future: "There was lots of press comment over the weekend suggesting that Bwin and Party Gaming have held informal merger talks. This doesn't come as a surprise, as online groups frequently talk informally. However, we believe that the recent sector consolidation will gain momentum through 2010 and it is only a matter of time before we see further sizable deals."

Party Gaming has been busy in deal making talks as several countries are in the process of regulating online gambling, most importantly the United States. In November, Party Gaming purchased the World Poker Tour (WPT), with many believing the company was attempting to set itself up for a return to the U.S market. Party Gaming’s Chief Marketing Officer, Chris Welch, later verified that idea: “This is the first step toward us returning to the United States."

WPT announcer and PartyPoker spokesperson Mike Sexton agreed, saying, “We all think [the Unlawful Internet Gambling Enforcement Act is going to be reversed] at some point. It’s just a matter of when. I’m convinced we’re going to see another poker explosion like we saw six years ago. It’ll be second to none.”

Party Gaming was reportedly involved in buyout talks with GigaMedia Limited earlier this year, but nothing developed. GigaMedia is the company behind the online poker site Everest Poker. Party Gaming purchased Cashcade, owner of the Foxy Bingo website, in July to enhance its own online bingo site, PartyBingo.

PartyGaming to merger with Bwin?

The purchase of WPT was just the beginning for PartyGaming in a quest of becoming the biggest poker site in the world, again. The next step apparently is adding sports book to their supply, as the company has started merger talks with Austrian gambling company Bwin.

PartyGaming is set to welcome Bwin.

The merger would create a huge gambling company worth of £2 billion. Talks about the merger have been held on and off since the summer. If the two sides can agree a tie-up, the deal would be a merger of equals, as the value of both companies are about the same.

PartyGaming is currently offering poker and casino games. The merger, that is expected to be clarified early this week, of PartyGaming and Bwin would be logical, because PartyGaming is looking for new revenues from sports betting, something that Bwin is good at.

PartyGaming has been looking for expanding their business recently under CEO Jim Ryan. Before the UIGEA was set PartyGaming was estimated being worth of £5 billion, nearly 90% of its revenues coming from America. Closing their American operations lost them huge share of poker markets.

Everything is pointing to a fact that PartyGaming is preparing a return to US market. Mike Sexton, the WPT announcer and PartyPoker spokesperson told cardplayer.com that people at PartyPoker are sure UIGEA will be reversed and it will start a poker boom like six years ago, When Chris Moneymaker won the WSOP main event.

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PartyGaming to merger with Bwin?

Sportingbet PLC Reports Strong Third Quarter 2009 Revenues

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

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

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

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

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

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

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

BetClic Signs Isabelle Mercier

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

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

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

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

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

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

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

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

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

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

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PokerNews Op-Ed: Sports Betting Erodes Your Poker Bankroll

Cue the "X-Files" theme music because it’s “Tin Foil Hat” time. I discovered a new conspiracy in Las Vegas and it is that casinos purposely situate poker rooms near sports books to siphon money from poker players. Poker rooms do not generate...

Internet Gambling Revenue Analysis Released by Joint Committee on Taxation

Today, Congressman Jim McDermott (D-WA) released a study by the Joint Committee on Taxation (JCT) revealing that up to $41 billion could be generated by regulating and taxing the internet gambling industry over a 10-year period.

This is one of several studies to be released by various outfits, but is the first to be handed down by an agency of the United States Government. On the importance of the JCT’s findings, McDermott commented in a press release distributed on Thursday, “I suspect that many of my colleagues… will take more interest in this issue once they see $41 billion available that they can match up with any number of worthy programs.” Being debated on Capitol Hill is major health care reform, one social program that could conceivably be funded through internet gambling.

McDermott continued, “I would suspect it’s only a matter of time before Congress appropriately moves to regulate the industry in order to protect consumers and reverse the flow of billions of dollars currently lost offshore as Americans gamble billions online despite attempts to prohibit the activity.” In May, the Washington Congressman unveiled HR 2268, the Internet Gambling Regulation and Tax Enforcement Act. The measure imposes a fee of 2% of deposits on licensed internet gambling operators.

HR 2268 is a companion bill to Congressman Barney Frank’s HR 2267, which establishes a comprehensive framework for companies to solicit U.S. customers. The two bills were introduced on the same day and HR 2267 is up to 62 cosponsors on both sides of the political spectrum. Safe and Secure Internet Gambling Initiative (SSIGI) spokesperson Michael Waxman told Poker News Daily, “This is a very significant development in support of the push to regulate the industry. We would expect that there will be more conversation and more interest in internet gambling regulations as Congress is attempting to figure out funding for health care and other various programs.”

Today, Democrats in Congress unleashed health care reform that comes with a price tag of nearly $900 billion. While not able to cover the full amount, legalizing internet gambling could, in theory, put a dent in the price tag. The JCT’s analysis does not include online sports betting, which is barred in Frank’s legislation. Moreover, the findings assume that states will not opt out of HR 2267. A February study by the U.S.-based firm PricewaterhouseCoopers revealed that up to $52 billion could be raised by taxing internet gambling companies over a 10-year period.

On the significance of a $4 billion per year revenue stream when programs like health care run over 200 times that total, Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan explained, “It’s realistic to see it packaged with a number of revenue enhancers. As a standalone, in my opinion, it’s not enough money to be able to get people off the mark who have been against this in the near-term.”

Information released today by the SSIGI noted that Frank planned to hold a markup hearing on HR 2267, but the House Financial Services Committee has released no official information. For the balance of the week, Frank’s committee will be bogged down in discussion of systematic regulation, overdraft protection, and investor protection. The grizzly state of the U.S. economy has been the committee’s main focus since September of 2008.

Frank has also introduced HR 2266, the Reasonable Prudence in Regulation Act. The measure delays industry compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) by one year. As it stands, the financial services industry in the United States must come into full compliance with the 2006 law by December 1st, which is just five weeks away. The Poker Players Alliance (PPA), the industry’s main lobbying force, has been working feverishly to delay the deadline through other means, including appealing directly to U.S. Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke.

The JCT study assumes that wagering taxes will be levied and that HR 2267 will be amended so that internet gambling companies doing business in the United States must also be incorporated in the United States. Read the full internet gambling study.

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

Ladbrokes Cutting Costs After 15% Revenue Drop in Q3 2009

A recent announcement from the London-based online gaming company Ladbrokes revealed that it is continuing to struggle during the global recession.  The numbers in the statement reflect the company’s performance over the past three months and indicate that overall revenue for Ladbrokes was down 15% from the same period in 2008.  Rather than sit back and ride out the recession, the company is taking action and outlined several changes designed to cut costs and increase profits over the rest of the year.

The company’s current Chief Executive, Chris Bell, explained the rationale behind the changes in the official statement to shareholders: “Against a weak economic environment and a recent period of lower gross win margins, we have already announced decisive cost actions which, together with further savings recently identified, will leave Ladbrokes well positioned when the upturn comes.  Whilst we have decided not to pay a final dividend in 2009, we intend to re-instate dividend payments at the interim results next year.”

While Bell remained optimistic about the company’s performance in 2010, the numbers for the third quarter of 2009 were lackluster, as operating profit dropped a staggering 58% from £52.8 million in 2008 to just £22.4 million for the same period this year.  Ladbrokes saw its biggest drop in revenue in its telephone betting business, which is down a whopping 73% from 2008.  Ladbrokes also took a small loss in High Roller betting from July through September, dropping £2.8 million to bring total profit from these wagers in 2009 to £55.8 million.

In addition to seeing drops in sports betting in the Irish and U.K. markets, Ladbrokes also experienced a 13% drop in overall revenue for its various e-gaming ventures.  The online sports book saw the greatest decline in revenue, falling 31%, while the company’s online poker venture also saw a substantial drop of 21%.  Ladbrokes posted small gains for its online casino and bingo departments, but they were not enough to compensate for the losses in other e-gaming fields.  The report did state that, despite the declining revenue for e-gaming, the ventures are still showing year to year growth from 2008 to 2009.

Several major steps are being taken to curb spending for the company, including a salary freeze for the Board of Directors that will be effective until January of 2011.  The company has also set out to raise equity capital and intends to reduce capital expenditure in 2010 to less than £50 million.  Ladbrokes will also be cutting costs and staffing in both e-gaming and telephone betting, with an overhaul of what it termed “call handling resourcing.”

The Board of Directors also recommended forgoing the final dividend payment of 2009, but resuming a progressive dividend payment schedule in 2010.  Ladbrokes is a publicly traded company on the London Stock Exchange, where it can be found under the symbol “LAD.”  Since its October 8th announcement that it would be flooding the market with new shares to help raise equity capital, trading prices have fallen from $171.30 to its current price of $135.60.

Sportingbet Reports 28% Increase in Earnings for FY 2009

The yearly fiscal report is out for Sportingbet PLC and the results for the publicly traded gaming company were generally positive.  Sportingbet, the parent company of online poker room Paradise Poker, saw growth in net revenue, earnings, money wagered, and profit thanks in part to a focus on emerging online gambling markets.  While the sports betting and casino ventures have been on the rise for the company, it appears as though it is paying less attention to its poker holdings, which saw a decline in earnings from 2008 to 2009.

Sportingbet, which is publicly traded on the London Stock Exchange under the symbol “SBT,” saw its net gaming revenue jump to £163.6 million from £144.3 in 2008, an increase of 13%.  Profits saw a 26% increase as well, coming in at £31.1 million thanks to more than £1.5 billion wagered on the site over the course of the year.  Last year, the company received a total of £1.35 billion in wagers.  The company’s Chief Executive, Andrew McIver, commented on Sportingbet’s performance in the official audited results through July 31st, 2009:

“This has been a very solid year for the Sportingbet Group. We are now seeing consistent profitable growth resulting from the structural changes made following our withdrawal from the U.S.  Our focus on sports betting and geographical diversification is helping to support earnings in these troubled economic times. Additionally, our commitment to offer industry-leading sports betting products and excellent customer service has helped us to recruit and retain core customers.”

The diversification McIvan spoke of includes launching versions of the site in Romania and South Africa as well as moving into other emerging markets like Canada and Brazil.  While the company continues to struggle against stiff competition in Britain, its efforts in Eastern Europe have been much more successful.  Sportingbet blamed the global recession and an expensive and over-saturated media market for its performance in the U.K., but its results in Eastern Europe more than compensated for its 21% decline in the British Isles.  The Eastern European revenue for Sportingbet grew by 26% and now accounts for more than 15% of the company’s total revenues—more than the entirety of its online poker operation.  The company attributed some of its success in that region to a launch of more than 90 Flash-based casino games.

The company saw several other changes this year as a number of national governments addressed the issue of online gambling via new laws, regulation, and licensing. The company noted, “Regulation continues to define the internet gambling industry across Europe and the rest of the world.  In general, we continue to see pressure on European countries to justify their national gambling regimes in light of the free-trade requirements of international law.”

Sportingbet took a pro-regulation stance on the issue and representatives of the firm are continuing to meet with a number of national regulatory bodies, including the U.S. Department of Justice, to discuss Sportingbet’s legal standing.  Sportingbet and Paradise Poker do not accept U.S. customers, which has resulted in a steady decline in revenue for its online poker venture since the site’s withdrawal from the American market following the 2006 Unlawful Internet Gambling Enforcement Act (UIGEA).

In Europe, Paradise Poker’s revenue is down 7.6% from last year, bringing in only £22 million of the company’s total earnings.  The poker branch of Sportingbet used to be a major component of the company’s holdings, but it now represents only 12% of total revenue.  The company attributed its struggle in the online poker market to a high level of competition, “with certain large U.S.-focused poker companies using their significant cash flows and high liquidity to continue to attract customers from existing European only companies.”  This is a similar complaint to the one voiced by Party Gaming executives in its mid-year report, which was released last month.

Sportingbet is currently traded on the Alternative Investment Market (AIM) of the London Stock Exchange, but the recent report revealed that the company would try to move to the General Equity Market in the near future.  At the close of trading on October 14th, Sportingbet stock was fetching $76 per share.

PokerStars Loses Isabelle Mercier, Gains Field Hockey Star Fatima Moreira De Melo

The roster of sponsored pros at the online poker room PokerStars continues to change, as the company both parted ways with players and signed on new faces during the month of September.  Longtime PokerStars representative Isabelle Mercier of Canada ended her relationship with the site a few weeks ago, but another woman has already been added to the roster.  PokerStars recently announced the signing of Fatima Moreira de Melo, an Olympic gold medal winning field hockey player from Denmark, to its Team PokerStars SportsStars.

News first broke of Mercier’s departure during the European Poker Tour (EPT) Barcelona stop.  The live reporting team and television commentators reported that Mercier, who worked with the online site for five years, was moving on to pursue other projects.  At the time, it was not clear what those projects would entail, but the mystery would be revealed in just a matter of days following the announcement that she was moving on.

On September 18th, the European gambling site Betclick announced Mercier would be serving as its new spokeswoman.  The site, which is primarily known for its sports betting, is aiming to expand its online poker brand and turned to the well-known Mercier to help them do so.  “We are very strong on betting, but poker is not the strongest part of our offering,” said a spokesman in Betclick’s official press release. “The signing of Isabelle Mercier means we will be putting in place a strategy to develop and improve our offering, but this will not be put into action for a few months yet. It is part of our overall project to enhance our poker platform.”

Mercier first rose to poker notoriety when she won Ladies Night II of the World Poker Tour (WPT) in 2004.  On her road to victory, WPT commentator Mike Sexton first referred to her as “No Mercy,” a nickname that has stuck with her to this day.  Prior to her WPT victory, Mercier got her start in poker on the other side of the table.  The French-Canadian law school graduate began as a poker dealer before working her way up to poker room manager and eventually giving it a shot at being a pro herself.  She found success as a pro and, in addition to her Ladies Night win, she has also more recently made an appearance at the EPT London High Roller final table and won the Ante Up for Africa charity event held in conjunction with the EPT Grand Final in Monte Carlo.

Team PokerStars’ newest face did not start out as a poker player either.  The field hockey star made her claim to fame serving as a striker on the Dutch national team in the 2000, 2004, and 2008 Olympic Games.  She helped lead her team to a gold medal in Beijing, adding to her bronze medal in 2000 and silver medal in 2004.  In addition to her athletic ability, De Melo is known in Denmark for her singing and has performed at several athletic events around Europe.

De Melo will be a part of Team PokerStars SportsStars, an elite group of five athletes who have a passion for card playing.  She is the first female to join the team, which already consists of tennis star Boris Becker, hockey player Mats Sundin, rugby player Sebastien Chabal, and powerboat racer Sami Selio.  In addition to representing PokerStars at live tournaments around the world, De Melo will also play on the online site under the screen name “FatimaDeMelo.”

The room’s official Twitter account recently revealed that it is looking for a group of strictly online players to serve as Team PokerStars Online Pros.  PokerStars will be accepting online applications through October 31st.

Betclick poker signs Isabelle Mercier

The former Team PokerStars Pro announced today she would be working as an ambassador for Betclick's upstart poker room.

"We are very strong on betting, but poker is not the strongest part of our offering," said a Betclick spokesman.

"The signing of Isabelle Mercier means we will be putting in place a strategy to develop and improve our offering, but this will not be put into action for a few months yet. It is part of our overall project to enhance our poker platform."

It's unknown exactly what will be required of Mercier as a Betclick ambassador or if she will return full-time to the international poker tournament circuit.

The announcement also mentioned Betclick's intentions to launch regionally oriented poker sites for players in the Czech Republic, Hungary, Belgium, Romania and the Netherlands. The sites are scheduled to go live by the end of October 2009.

Although Mercier could not be reached for comment she did mention to PokerListings she wanted to "take on new projects" in an email on Monday.

Mercier rose to poker notoriety when she won the WPT Ladies Night tournament in 2004.

She spent the last five years as a member of Team PokerStars Pro playing in numerous events and representing the brand around the world.

Betclick is mostly known as a sports betting site but has been rapidly expanding its poker operations in the last year. Signing Mercier is the site's biggest poker talent acquisition to date.

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WSOP edges closer to online poker with 888 deal

Harrah's Interactive Entertainment and 888 Holdings reached an agreement where 888's Dragonfish division will provide online poker and casino software to Harrah's as it attempts to enter the online gaming market.

"The intent is to be in the online gaming space, wherever it's legal," said WSOP Communications Director Seth Palansky. "We've partnered with 888 to develop a platform."

No timeline was given for Harrah's online launch, but it was confirmed that both the WSOP and Caesars Casino brands will have an online presence. In addition, Dragonfish will also provide ePayments, VIP services and Customer Service to help develop both brands.

888 Holdings is a major player in the online gaming market in Europe, but not as well-known in the U.S. after pulling out of the market when the Unlawful Internet Gambling Enforcement Act (UIGEA) was passed in 2006.

Although the 888.com website offers no games, it acts as a portal to popular gaming sites like Pacific Poker, 888sport (sports betting) and Reef Club Casino.

"This is a ground breaking deal for 888.com and demonstrates our ability to provide real value to globally renowned, land-based casinos and their leading brands," said Gigi Levy, CEO of 888.

It remains to be seen if the WSOP having an online presence would be a conflict of interest with live event sponsors like Everest Poker and Betfair Poker.

Palansky didn't see it becoming an issue.

"I really don't think there's anything for anybody to worry about," he said. "The WSOP will remain a premier live poker destination. Our offline events are great opportunities for our sponsors.

"If all this goes through and we do develop an online gaming site then we would be competing in some of the same markets. We would still have relationships with the other sites, however."

Mitch Garber, the CEO of Harrah's Interactive Entertainment, went into more detail about why they decided to go with 888.

"As we develop and roll out our interactive strategy, we have chosen to work with 888, primarily for their world-class technology, scalability and strong commitment to compliance and responsible gaming," said Garber.

The announcement of the joint effort between Harrah's and 888 comes just as the U.S. appears to be warming up to the idea of legalizing and regulating online poker.

An article by conservative columnist George Will appeared in the Washington Post calling for the legalization and Barney Frank's pro-online poker bill HR 2267 is scheduled for a hearing in September.

Palansky said it wasn't a factor in the deal, however.

"Harrah's has been looking into this for years," he said. "We just felt the timing was right for us to start exploring our options.

"Obviously we are hopeful the U.S. government will recognize that - like our brick and mortar gaming establishments - online poker can be regulated, taxed and run with the utmost confidence.

"If that happens, great, if not we'll focus on other markets."

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PartyPoker Earnings Down 29%

The mid-year financial report is in at PartyGaming and while earnings are up for the company’s online casino, sports betting and bingo ventures its online poker room PartyPoker saw a 29% dip in earnings compared to this time last year. Overall, PartyGaming profits were down 6.5% from 2008, but in a recently issued earnings report the company remained positive about its future in the online gaming industry.

The report, released on August 28th, cited the overall economic downturn, currency movements and an increasingly competitive online poker market as the three major factors affecting their overall financial performance thus far in 2009. In the company’s year-end report for 2008 PartyGaming Chief Executive Officer Jim Ryan echoed similar sentiments about competing online poker sites, most notably those who continue to serve US customers in the years following the passage of the Unlawful Internet Gambling and Enforcement Act (UIGEA) in 2006. Since it pulled out of the US online poker market in 2006, PartyPoker has struggled to keep up with sites like Full Tilt Poker and PokerStars, both of which still accept real money players from the States.

PartyPoker’s net revenue for the first half of 2009 dropped to $102.6 million from $153.9 for the same period in 2008.  The company’s online casino, bingo and sports book also saw drops in net revenue, but their dips were minimal in comparison to the drop for the online poker room.  In fact, the PartyGaming online casino outperformed PartyPoker earnings by more than $10 million.

It was not entirely bad news for PartyPoker as the report highlighted several areas in which the site was making strides. While the poker room did report 20% drops in active users and daily number of customers, it did experience gains in new real money account sign-ups with 250,300 new accounts so far in 2009 compared to 235,200 in 2008.  The report also gave credit to the newly revamped loyalty program for PartyPoker customers for helping to increase player retention rates from last year. However, despite the increased retention the site still saw a noticeable drop in unique users over the period, down to 532,000 players from 2008’s 698,300 players. According to the report, PartyPoker currently holds a 7% market share of the global online poker market, down slightly from 8% in 2008.

The report also lauded the fast success of their Italian online poker venture Intralot. The tournament-only site launched in May of this year and quickly established itself as one of the top Italian poker sites. PartyPoker also expects to be able to offer cash games on Intralot before the year is over, which should lead to an even stronger performance in the second half of 2009.

A statement from Ryan affirmed that PartyGaming would continue seeking out business to business deals like the Intralot deal. In 2009 the company also acquired the European bingo venture Cashcade, inked a deal to develop an online casino for the British television station Five and, most recently, acquired World Poker Tour Enterprises for $12.3 million last month. “Our B2B strategy has delivered four deals so far this year that will start to contribute during the final quarter of 2009”, said Ryan. “With more deals in the pipeline we remain confident that we can continue to grow this important new source of revenue.”

Since the report’s release PartyGaming’s stock, which is publically traded on the London Stock Exchange under the symbol “PRTY”, has dipped. After trading at a monthly high of 276 pence on August 25th, shares were trading as low as 235 pence on September 2nd.

ChanceRoom.com Launches Sports Betting, Poker and Casino Site Powered by G2 in French and English Markets

Press Release - ChanceRoom.com, a new G2-powered gambling site with sports betting, poker and casino games, has launched in French and English. The site features a complete range of entertainment, all with the convenience of one account and one wallet, as well as some unique and generous VIP rewards.

ESPN Inside Deal Features WSOP November Niner Eric Buchman

This week, “Inside Deal,” which airs on ESPN.com, welcomed World Series of Poker (WSOP) November Nine member Eric Buchman, who will hold the second largest chip stack when play resumes in November.

Talk of recent additions to the Caesars Cup teams opened the show, which is sponsored by PokerStars. Phil Hellmuth and John Juanda will join Team Americas, while Dario Minieri and Bertrand “Elky” Grospellier will become part of Team Europe. “Inside Deal” host and Poker News Daily Guest Columnist Bernard Lee gave his take on the selections: “Daniel Negreanu was going to mold his team around team chemistry, solid heads-up play, and high-profile players.” Negreanu and Annette “Annette_15” Obrestad serve as team captains.

Discussion on “Inside Deal” then turned to Doyle Brunson’s Hall of Shame, which features Puggy Pearson, John “Doc” Holiday, Nick “Shoestring” Simpson, Nick Lanette, Stu Ungar, and Nick Vacchiano. Brunson unveiled his Hall of Shame in a recent blog post, with the only criteria for entry being that the person had to be deceased. Lanette earned his induction after biting a dealer’s ear off at the Stardust. “Inside Deal” host Bernard Lee was asked who he would add to the Hall of Shame, dead or alive. His nominee was Tony G, who berated Ralph Perry after eliminating him from the 2006 Intercontinental Poker Championship, among other incidents.

Results from the PokerStars Sunday Million, Asian Poker Tour (APT) Macau, European Poker Tour (EPT) Kiev, and Foxwoods Mega Stack Challenge were displayed before Howard Lederer joined the show via satellite. On the young guns of poker, Lederer told “Inside Deal” hosts, “I feel like 2009 was really the true arrival of the internet player, the player who got started in 2004 and finally got enough live play under their feet.”

Lederer and sister Annie Duke were an integral part of the National Poker Week Fly-In, which took place last month in Washington, DC. On the future of legalized and regulated online poker in the United States, Lederer remarked, “A bit of it is timing and a bit of it is politics. The practical effect of [Congressman Barney Frank’s] bill is that there wouldn’t be any sports betting on the internet, but that doesn’t mean the professional leagues aren’t scared of it.” Lederer was one of a half-dozen high-profile players to turn out to the nation’s capital in an effort coordinated by the Poker Players Alliance (PPA) to lobby for Frank’s bill.

Attention then turned to Buchman, who was asked how he was turned onto poker. The WSOP November Nine member responded, “My brother got me interested in it. We’d play in clubs in New York and go to Atlantic City.” He has a pair of runner-up showings in WSOP and WSOP Circuit tournaments, experience that he hopes to parlay into a bracelet in the 2009 Main Event: “Final table experience is invaluable when it comes to improving your game and performing under pressure.” Buchman will have three short-stacks to his left when play resumes in November.

ESPN Poker Editor Andrew Feldman, returning from a one-week vacation, asked Lee, “Inside Deal” host Laura Lane, and Buchman who they would add to the American and European Caesars Cup squads. Buchman noted that he’d add reigning National Heads-Up Poker Championship winner Huck Seed and Carlos Mortensen. Lee suggested Chris Ferguson and Gus Hansen. Lane threw out Erik Seidel and Vitaly Lunkin. Feldman told the cast that he’d add Lindgren to the U.S. team and Patrik Antonius to the European roster.

Viewer questions included whether Buchman would treat the final table as a continuation of play in July or as a new tournament. He responded, “The experience I have playing against these players and the footage I’ve seen on ESPN will help me get reads on players.” Many in the poker industry have questioned chip leader Darvin Moon’s experience. Buchman noted that, despite Moon’s lack of background on the felts, he is a formidable force: “He’s definitely a threat to win. He doesn’t have as much experience as everyone else, but he definitely can play.” In the end, Buchman predicted that he would be heads-up against Moon for the Main Event title.

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

Gary Kaplan Pleads Guilty in BetOnSports Case

Gary Kaplan, the founder of BetOnSports, has pled guilty to violations of RICO and the Wire Act in a Missouri courtroom. He will face between 41 and 51 months behind bars and pay the United States Government $43.65 million.

According to a press release distributed by the U.S. Department of Justice, Kaplan established businesses in Costa Rica, Antigua, and Aruba. One company was BetOnSports, which advertised heavily to U.S. customers and offered the following technological prowess: “Kaplan’s toll-free telephone lines terminated in Houston or Miami and then were forwarded to Costa Rica by satellite transmitter or fiber-optic cable. Some of Kaplan’s Web servers were located in Miami and were remotely controlled from Costa Rica.”

The Department of Justice contends that in 2004, BetOnSports had 1,700 employees in Costa Rica alone and nearly one million registered customers. Its clientele issued more than 10 million bets that combined for over $1 billion. Also in 2004, BetOnSports held an initial public offering (IPO) on the London Stock Exchange that earned Kaplan $100 million. He was arrested in March of 2007 and sentencing will take place on October 27th. He has been held without bond ever since being detained by U.S. authorities.

Former BetOnSports CEO David Carruthers pled guilty to racketeering charges in April and now faces up to 33 months behind bars. Carruthers, who was detained in St. Louis, will learn his fate during a sentencing hearing on October 2nd. In June, Neil Scott Kaplan, Lori Kaplan-Multz, and Penelope Tucker all pled guilty for their roles with BetOnSports. None will receive jail time, although Tucker was issued a one year probation. Kaplan’s trial had been scheduled for September 21st before last week’s plea agreement was announced.

Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan, who has been closely monitoring the actions in the BetOnSports case, told Poker News Daily, “It sounds like Kaplan’s plea agreement is complex. However, his risk against going to jail for a long time seems to have been minimized. There may also be some recognition that he’s already spent a significant amount of time behind bars.” Last August, William Hernan Lenis, Will Lenis, and Manny Lenis became the first BetOnSports staffers to admit guilt. The trio advertised the online sports betting outfit; one stunt involved bringing an RV to a St. Louis Rams game in 2002, enabling fans to place bets before entering the stadium.

In June, the Southern District of New York (SDNY) seized over $30 million in payments destined for more than 24,000 online poker players in the United States, marking one of the first times that the industry has been the target of federal law enforcement actions. Brennan explained, “Under the new administration, there has been no softening of the stance by the Justice Department towards internet gambling. When you look at what happened with Kaplan and what’s happening with the SDNY, it may be discouraging to those who thought that with the new administration, there would be less hostility towards internet gambling.”

On Friday, attorneys for Account Services will appear in the Southern District of California calling for the return of $14 million seized by the SDNY in June. Recently, Douglas Rennick, an individual associated with the company, was indicted on bank fraud, money laundering, and illegal gambling charges. He faces up to 55 years in jail and $1.75 million in fines. Brennan forecasted, “I’m sure that during the course of Friday’s hearing, there is going to be some discussion that the Department of Justice may prefer to see the criminal matter resolved before any civil action can move forward.” The Poker Players Alliance (PPA) has submitted an amicus brief in the case outlining that poker is a game of skill and therefore not illegal gambling.

FBI Special Agent John Gillies noted that Kaplan’s guilty plea was monumental: “Today’s guilty plea should have a lasting effect because Kaplan was not only the founder of BetOnSports, he was also one of the pioneers of illegal online gambling.”

Bodog bettors like Ivey

"To win overall and also on head to head, the early money is on the name recognition of Phil Ivey," Bodog.com Sportsbook Manager Richard Gardner said.

"People really believe he will be able to last longer than Darvin Moon, which has moved the line down on Phil Ivey from +350 to +300."

Bodog sets lines for the November Nine on everything from who will win the tournament to who will be the first player eliminated, head-to-head last longers and the suit of the river card in the final hand.

Gardner said a lot of the money wagered on the November Nine came in the first couple days after the final table was set, and the action has since cooled off.

"Most people are waiting until it gets closer to fight time," Gardner said. "There are a few thousand dollars on most of the head to heads, although as mentioned, we do expect a lot more closer to the event.

"Once the episodes featuring the final-table players air on television and the public can become more accustomed to the players, we expect interest and activity to pick up."

In fact, Gardner is predicting more than six figures will be booked by Bodog by the time the Nov. 7 final table rolls around.

"As it gets closer we expect the majority of the handle to come in especially in the last day before the tournament," he said.

Bodog has hundreds of thousands of customers worldwide and although November Nine betting has come from all over the globe so far, Gardner said with the heavy American final table, most of the bettors have been from the United States.

Last week, Betfair's International Public Relations Manager Richard Bloch told PokerListings most of the money wagered on the November Nine on Betfair has been on Phil Ivey so far, moving the odds of him winning down substantially.

Bodog still lists Moon as the favorite to win at 1.7:1. Young-yet-experienced American Eric Buchman is the second favorite at 3:1 while Full Tilt's Ivey sits in a group at 4:1, including Wall Street banker Steven Begleiter and CardPlayer editor Jeff Shulman.

21-year-old Michigan native Joe Cada currently sits at 10:1 with French Everest Poker qualifier Antoine Saout and 51-year-old Floridian Kevin Schaffel right behind at 12:1.

Brit James Akenhead is the long shot at 22:1.

For an up-to-date look at all the November Nine lines on Bodog, check out the sportsbook's poker props page.

Those looking for more on the future of internet sports betting and sportsbooks in general can find it here and here.

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888 Releases Q2 2009 Financial Results

888, the parent company of Pacific Poker, reported Total Operating Income of $61 million during the second quarter of 2009, a 7% increase compared to the year’s first quarter. However, it translated into a 12% dip year over year.

During the second quarter of 2008, 888 reported Total Operating Income of $69 million. Its business to consumer (B2C) Total Operating Income was $48 million in the second quarter of 2009, representing a growth of 7% over the first quarter, but a drop of 19% compared with the same interval last year. 888’s business to business (B2B) Operating Income weighed in at $12 million, a 4% increase over the first quarter this year and a 20% increase year over year.

Gigi Levy, Chief Executive Officer of 888, commented in a statement made to the London Stock Exchange, “We enter the seasonally quieter summer period with delivery of our strategy on track and we remain committed to investing in the business in spite of the macroeconomic environment. We are confident of delivering further growth during 2009 based on additional planned B2C activities and a set of newly launched B2B partnerships which we expect to start generating revenues in the coming months.” Given the global economic meltdown, 888’s Operating Income sank 13% during the first half of 2009 year over year to $118 million.

Casino Operating Income came in at $29 million, a slide of 20% in comparison to the second quarter of 2008, but an increase of 10% from its first quarter tally. Its Poker Operating Income totaled $13 million, a fall of 36% compared to the second quarter of 2008 (when revenues were $20 million) and a 9% drop from Q1 2009. The company’s Operating Income from Emerging Offerings grew by 88% in comparison to Q2 2008 and rose by 40% compared with Q1 2009. Emerging Offering Operating Income amounted to $7 million.

888 reported a customer base of 180,000 during the second quarter of 2009 for its poker and casino arms, a decrease of 8% from the headcount reported during the same period last year. However, the 180,000 customers translated into a 7% increase over the first quarter of 2009. The number of active poker customers was 142,000, a decrease of 7% over last year’s second quarter, but a growth of 7% over Q1 2009. The publicly traded company reported a casino base of 67,000 players, a drop of 10% year over year, but a growth of 7% over the first quarter. All told, the company has 6.4 million casino, poker, and sports betting customers.

The Quarterly Total Operating Income per casino customer, $439, was down 11% in the second quarter of 2009 in comparison to the same period in 2008. That total was on par with the first quarter of this year, increasing by 2%. The Quarterly Total Operating Income per poker customer amounted to $88, a fall of 32% in comparison to the second quarter of 2008 and a slide of 15% in comparison to the first quarter of 2009. 888 officials attributed the dramatic dip in poker revenue to “an extensive campaign late in the quarter which brought many customers toward the end of the quarter who did not have sufficient playing time to materially contribute to revenues.”

During the first half of 2009, Poker Operating Income was $26 million, a decrease of 37% in comparison to the $42 million taken in during the first half of 2008. The company also revealed that its average daily revenue during the first 28 days of July (the start of the second half of 2009) was 2% higher than during the first half of the year and on par with the overall tally during the second quarter.

888 is traded on the London Stock Exchange under the symbol “888.” It closed trading on Thursday down £0.05 to £79.95. Its full H1 2009 results will be released on August 27th.

Online Poker Warrants to be Unsealed as Judge Sides with Gambling911

In breaking news out of the Southern District of New York, Judge Laura Swain has sided with Costigan Media, the parent company of Gambling911, and ordered the warrants and affidavits associated with the seizure of over $30 million in funds destined for online poker players to be unsealed.

Swain submitted 14 pages in support of Costigan Media and the online poker community. In Tuesday’s ruling, she decreed, “The Court is required to order disclosure absent compelling reasons to deny access and even then must employ the least restrictive means of doing so.” Several sections of the warrants and affidavits are redacted, while the complete versions will remain under seal. In addition, Judge Swain mandated, “The Government is directed to make a report to the Court… as to the status of the relevant investigative and seizure activities, within 120 days… and in any event within seven calendar days of any occurrence that obviates the need for continued redaction.”

Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan told Poker News Daily why Judge Swain’s ruling on Tuesday was groundbreaking: “Costigan Media was afforded the same right of access that the New York Times and Washington Post sometimes receive. The Department of Justice has to report back to the Court on an ongoing basis in order to determine whether the remaining information can be released.” On what information was axed from the warrants and affidavits before they were made public, Brennan speculated, “It’s more than likely names of people who are cooperating witnesses or the targets of investigation.”

Poker News Daily has obtained a copy of the affidavit sworn to by FBI Special Agent Dana Conte for the seizure of funds located in a Wells Fargo branch in California. It reads, “There is probable cause to believe that the Defendant Account Services contains property involved in actual or attempted money laundering transactions… In addition, there is probable cause to believe that the Defendant Account contains property that constitutes or is derived from proceeds traceable to the operation of an illegal gambling business.”

The affidavit reveals that the FBI has been tracking “illegal internet gambling businesses” since 2006. The target sites offer online poker, sports betting, and casino games. A six-page section outlining the issuing of payment checks and funds transfers was marked out. Conte’s document concludes with, “I also respectfully request that this Affidavit be sealed until further order of the Court, so as to not jeopardize the investigation of this case.” Conte swore to the affidavit on June 2nd. The document was signed by Judge Theodore Katz, who then ordered it sealed until further notice.

The affidavit filed by Conte relating to funds held in a Union Bank branch discusses the Wells Fargo seizure that took place three weeks prior. On the offshore internet gambling outfits, Conte comments, “Although these gambling businesses are based offshore, the vast majority of their customers are in the United States. Consequently, the internet gambling businesses necessarily rely on the United States financial system to move funds.” Once again, a six-page section was redacted from the record. The Union Bank affidavit was filed on June 24th, 12 days after the actual seizure occurred, and signed by Judge Henry Pitman.

Brennan explained that attorneys for Costigan Media will review the redacted documents and can appeal: “They could appeal to have the documents fully released. Their legal team will take a look at it and decide.” Each affidavit is 13 pages long; half is redacted.

Judge Swain had originally indicated that she would release a decision on the motion to unseal the records last week after lawyers for both sides debated the issue on July 27th. On Thursday, Costigan Media issued a letter to Judge Swain outlining the indictment of Account Services’ Douglas Rennick on bank fraud, money laundering, and illegal gambling charges.

Online Poker Payment Processor Indicted in New York

Douglas Rennick, who worked with the internet gaming payment processors KJB Financial Corporation, Account Services, My ATM Online, Alenis Limited, and Check Payment Financial, has been indicted on bank fraud, money laundering, and illegal gambling charges.

The announcement came via a press release distributed by the U.S. Department of Justice on Thursday. U.S. Attorney for the Southern District of New York Lev Dassin and FBI Assistant Director Joseph Demarest headed the indictment, which charged Rennick with “bank fraud and other offenses stemming from his role in processing more than $350 million for Internet gambling companies.” Rennick is a Canadian citizen who was involved in the business of processing payments for various companies since 2007. The investigation into his activities was concluded in June, coinciding with the seizure by the Southern District of New York of over $30 million in funds destined for online poker players.

When Rennick and company opened the accounts in question, they stated that funds would be used for activities like “issuing rebate checks, refund checks, sponsorship checks, affiliate checks, and minor payroll processing,” according to the statement from the Department of Justice. In addition to processing online poker payments, Rennick’s accounts were also used to issue winnings for online blackjack, slots, and other casino games. No mention of sports betting was given. Funds were sent to U.S. residents under the names KJB Financial Corporation, Account Services, My ATM Online, Alenis Limited, and Check Payment Financial.

A bank in Cyprus funneled $350 million to U.S. bank accounts for the payment processing. Rennick was charged with one count of bank fraud, one count of money laundering, and one count of operating an illegal gambling business. He faces up to 55 years in prison combined, with bank fraud carrying up to a 30 year sentence, money laundering carrying up to a 20 year sentence, and illegal gambling carrying up to a five year sentence. He also faces up to $1.75 million in total fines for the three charges.

Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan told Poker News Daily just moments after the news broke this morning, “We’re taking a wait and see attitude instead of taking the knee-jerk reaction to defend the processor. We’re going to take a step back to see what the processor has been doing. If they’ve been engaged in bank fraud, then they are not doing the online poker world any favors.”

The Department of Justice is also seeking the return of $565,000 from Rennick as well as the funds in Union Bank and Wells Fargo branches under the name Account Services. That payment processor recently filed a motion for return of property of $14 million in funds seized from bank branches in California. Its hearing in the United States District Court for the Southern District of California is scheduled for August 21st, two weeks from tomorrow. The Poker Players Alliance (PPA) submitted a motion to contribute an amicus brief in support of Account Services and the organization officially has until Friday to submit it. PPA Executive Director John Pappas told Poker News Daily that the PPA will still file an amicus brief in the case that will focus on proving that poker is a game of skill.

On the future of the Account Services case, Brennan speculated, “It’s going to be difficult for them to do both things at once, to bring a civil action in California while Rennick is the target of a criminal indictment. It’s going to be difficult to proceed with both of the actions.” Pappas had no comment on Rennick’s indictment. Account Services counsel Michael Pancer was out of the office on Thursday.

A call placed to the U.S. Department of Justice revealed that no timetable has been set for the indictment from here. We’ll keep you posted on Poker News Daily.

Senator Robert Menendez Introduces S 1597 Legalizing Online Poker

On Thursday, Senator Robert Menendez (D-NJ) officially unveiled S 1597, the Internet Poker and Games of Skill Regulation, Consumer Protection, and Enforcement Act. Congress remains on recess until after Labor Day in the United States.

As its name implies, Menendez’s legislation explicitly legalizes and regulates games of skill like online poker, which should come as a welcome sign to players in the United States who question the legality of the game. The bill notes that poker, bridge, mahjong, backgammon, and chess are examples of games in which a player’s skill dominates the outcome: “While each of these games contains an element of chance, over any substantial interval, a player’s ultimate success is determined by that player’s relative level of skill.” Menendez’s measure weighs in at a hefty 89 pages.

The bill focuses heavily on online poker, noting, “Poker is part of the cultural and recreational fabric of the United States and has been since the founding days of the United States. United States poker aficionados have included presidents, judges, and statesmen.” S 1597 calls for the continuance of laws against sports betting online in a similar fashion to Congressman Barney Frank’s (D-MA) HR 2267, which establishes a complete licensing and regulatory framework for the internet gambling industry in the United States. HR 2267 was introduced exactly three months ago and is up to 54 co-sponsors.

The Secretary of the Treasury is responsible for overseeing the licensing process for skill game operators and prescribing regulations. Each applicant for a license must submit a comprehensive financial background, an outline of the company’s structure and that of its affiliates, criminal and credit histories of executives, and how each licensee plans to combat underage gambling and compulsive gambling. In addition, they must convey how the games offered will be fair. All gamblers must be at least 21 years-old.

Licenses run for five years and can be renewed at the end of each term. Like other recent internet gambling legislation, Menendez’s S 1597 calls for a list of “persons self-excluded from gaming activities at all licensee sites.” States have a period of 90 days to opt out of the legislation after it becomes law; Indian tribes can also exempt themselves from the bill. S 1597 addresses problem gambling, allocating $14.2 million per year between 2010 and 2014 for awareness, treatment, and research.

S 1597 clearly states, “Nothing… shall be construed to repeal or amend any provision of State or Federal law prohibiting, restricting, or otherwise addressing bets or wagers on sporting events.” Professional sports leagues like the NFL have expressed a desire for Frank’s HR 2267 to contain clearer language outlawing sports betting. During a working dinner as part of National Poker Week, the Poker Players Alliance (PPA) claimed it was part of a “broad coalition” that included the NFL.

The Federal Government and State Governments will each reap 5% of a licensee’s deposits during each calendar month in taxes. Unauthorized gambling is subject to a 50% fee. Menendez’s S 1597 is similar in scope to last session’s S 3616, the Internet Skill Game Licensing and Control Act. However, Thursday’s version focuses on consumer protections. The PPA reviewed a draft of the bill in mid-July with what the organization called a “commitment” from Menendez to introduce it. The online poker measure was scheduled to be released before August 1st. However, it was ultimately revealed to the world on Thursday.

The 1.2 million member strong PPA will likely push its members to call their Senators and urge support of Menendez’s S 1597. As of the time of writing, no companion bill exists in the House of Representatives. Frank’s HR 2267 encompasses all forms of internet gambling except sports betting, whereas Menendez’s only legalizes games of skill. Congressman Robert Wexler (D-FL) introduced the Skill Game Protection Act (HR 2610) during the last Congressional session. It exempted player versus player games from internet gambling law, including the Wire Act of 1961 and Unlawful Internet Gambling Enforcement Act (UIGEA).

The PPA had not released an official statement on S 1597 as of press time. We’ll have full industry reaction to Menendez’s online poker legislation on Poker News Daily.

Barney Frank’s Internet Gambling Bill Breaks 50 Co-Sponsors

This week saw Congressman Barney Frank’s (D-MA) HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act, officially break 50 co-sponsors. The bill establishes a complete licensing and regulatory framework for internet gambling outfits to solicit U.S. customers.

The addition of two Congressmen officially pushed the support to over 50 co-sponsors. On July 27th, just a few days removed from the conclusion of National Poker Week, Congressman Mike Thompson (D-CA) lent his name to the bill to become co-sponsor #50. One day later, Congressman Dan Maffei (D-NY) joined on. Flanking Thompson and Maffei are Congressmen from both sides of the aisle. Each has come out to support legalizing the internet gambling industry in the United States and reaping tax revenue in return. Here is a full list of HR 2267’s co-sponsors, as given by the Safe and Secure Internet Gambling Initiative (SSIGI), along with the political party each belongs to (Democrat or Republican):

Alaska
Don Young (R)

Arizona
Raul Grijalva (D)

California
Michael Thompson (D)
George Miller (D)
Michael Honda (D)
Linda Sanchez (D)
Bob Filner (D)

Colorado
Jared Polis (D)
Ed Perlmutter (D)

Connecticut
Joe Courtney (D)

Florida
Robert Wexler  (D)
Alcee Hastings (D)

Hawaii
Neil Abercrombie (D)

Idaho
Walt Minnick (D)

Illinois
Luis Gutierrez (D)
Bill Foster (D)

Indiana
Andre Carson (D)

Massachusetts
James McGovern (D)
Barney Frank (D)
Michael Capuano (D)
William Delahunt (D)

Michigan
John Conyers (D)

Nevada
Shelley Berkley (D)

New Hampshire
Paul Hodes (D)

New Jersey
Robert Andrews (D)
Frank LoBiondo (R)
John Adler (D)
Steven Rothman (D)

New York
Tim Bishop (D)
Steve Israel (D)
Peter King (R)
Carolyn McCarthy (D)
Gary Ackerman (D)
Joseph Crowley (D)
Jerrold Nadler (D)
Edolphus Towns (D)
Mike McMahon (D)
Charles Rangel (D)
Paul Tonko (D)

North Carolina
Melvin Watt (D)

Ohio
Steve Driehaus (D)
Tim Ryan (D)

Oregon
Earl Blumenauer (D)

Tennessee
Steve Cohen (D)

Texas
Ron Paul (R)
Ciro Rodriguez (D)

Virginia
Bobby Scott (D)
Tom Perriello (D)
James Moran (D)

Washington
Jim McDermott (D)

HR 2046, introduced during the last Congressional session and labeled the Internet Gambling Regulation and Enforcement Act, garnered 48 co-sponsors. Frank unveiled it to the world in April of 2007, but it was not acted upon. The new version forbids gambling on any event that would violate the Professional and Amateur Sports Protection Act. However, Poker Players Alliance (PPA) Executive Director John Pappas noted during National Poker Week that sports leagues are seeking clearer language in the bill. He explained, “Changes need to be made to explicitly outlaw sports betting.”

HR 2266 was introduced on May 6th, the same day as HR 2267, and calls for industry compliance with the 2006 Unlawful Internet Gambling Enforcement Act (UIGEA) to be delayed by one year to December 1st, 2010. The measure is dubbed the Reasonable Prudence in Regulation Act and is up to 32 co-sponsors. On its sister bill reaching the milestone 50th co-sponsor, SSIGI spokesperson Jeff Sandman commented in a press release, “Reaching this milestone illustrates that momentum is growing for a shift in U.S. policy and a rewrite of U.S. internet gambling laws. We also expect an increased spotlight on internet gambling as a way to augment federal revenues and help cover the cost of necessary policy initiatives.”

During a Fly-In orchestrated by the PPA as part of National Poker Week, over 100 meetings were held with Congressmen and their staffs from around the United States. Attendees included 33 PPA State Directors and a handful of poker’s elite, including Poker News Daily Guest Columnists Annie Duke and Linda Johnson, PokerStars pros Dennis Phillips and Greg Raymer, Full Tilt Poker pros Andy Bloch and Howard Lederer, and online poker sensations Chris “Fox” Wallace and Jordan “iMsoLucky0” Morgan.

Over 375,000 concerned players signed an online poker petition, which was presented to U.S. President Barack Obama last week. In addition, nearly 200,000 letters and e-mails were sent to Representatives and Senators during National Poker Week. The PPA’s Randy Law admitted that just 80,000 were sent during the entire 2008 calendar year. The organization currently has over 1.2 million members after boasting only 50,000 in mid-2006.

Costigan Media Files Suit to Open Warrant in Online Poker Funds Seizure

Amid the fanfare of the 2009 World Series of Poker (WSOP) Main Event in Las Vegas, Costigan Media, the parent company of Gambling911, has filed suit to open warrants in the case involving the seizure of $30 million in online poker player funds by the U.S. Attorney’s Office for the Southern District. It is the first legal action brought after the Southern District acted in June.

The reason for the Federal Government’s seizure remains a mystery. In the past, media outlets have been authorized to file legal action in matters of public record. Costigan Media’s filing notes, “Resolution of this issue will require the Court to define the scope of the public’s and the media’s First Amendment and common law rights of access to judicial documents.” The Southern District seized well over $30 million last month, adversely affecting more than 24,000 online poker players. Many rooms reimbursed players for difficulties cashing out and, in some cases, awarded an extra 10% cash bonus for any inconvenience.

Costigan Media is seeking the unsealing of the warrant, the affidavit for the warrant, and any other relevant documents that remain under wraps. The warrant in question was used to seize funds from a Wells Fargo branch in San Francisco, California on June 2nd. Magistrate Judge Theodore Katz signed the document, with an affidavit sworn to by Dana Conte, a Federal Bureau of Investigation (FBI) agent. Costigan Media’s filing reveals that Katz stated, “I am satisfied that there is probable cause to believe that the property so described is subject to seizure and civil forfeiture.” The parent company of Gambling911 added that the order sealing the warrant is also sealed, further complicating the situation. Funds were held in account 7986104185 under the name Account Services. The case is numbered 09-MAG-1320.

Gambling911 boasts affiliate links for UltimateBet, Players Only, Doyle’s Room, Absolute Poker, and a host of online sports betting sites. Noticeably absent are Full Tilt Poker and PokerStars, two of the heaviest hit sites by the funds seizure. Interactive Media Entertainment and Gaming Association (iMEGA) Executive Director Joe Brennan told Poker News Daily, “The government can’t even make a substantive claim that Gambling911 is acting on its own financial interest because of its own affiliate marketing. Instead, they want the news and opportunity.”

The court filing also questions, “The narrow but important issue presented in this case is whether the well-established First Amendment and common law rights to public proceedings and access to documents that ordinarily apply to judicial documents extend to a civil seizure warrant that has already been executed, but where no criminal charges have been brought.” On the media conglomerate’s chances of successfully opening the seizure warrants, Brennan told Poker News Daily, “It depends on who does the asking and where they do the asking. This is a little different in that there’s not a lot of precedent for new media outlets. It is a little groundbreaking for them to be doing this, but the precedent varies from district to district.”

Costigan Media also questions the reason for document being sealed. It speculates that “secrecy in ongoing investigations to protect confidential sources,” and “concerns of all of the un-indicted parties implicated by the Conte Affidavit” may be to blame. The company explains, “The public’s interest in criminal prosecutions should not be held hostage by a government’s blanket unsupported assertion of confidentiality or privacy concerns.” Brennan noted that the legal matter will take at least 10 days, which may be elongated by the upcoming Fourth of July holiday weekend in the United States.

Costigan Media is represented by Baruch Weiss and Matthew Trokenheim of Arent Fox in New York City. The action is dated July 2nd, just one day before the start of the 2009 WSOP Main Event from the Rio All-Suite Hotel and Casino in Las Vegas. The $10,000 buy-in tournament kicks off today with the first of four starting days.

Stay tuned to Poker News Daily for the latest news surrounding the online poker funds seizure.

Kentucky Attorneys File Response Brief to Supreme Court in Internet Gambling Case

On Thursday, attorneys for the Commonwealth of Kentucky filed a 20 page response brief to the state’s Supreme Court. The case pits Kentucky Justice and Public Safety Cabinet Secretary J. Michael Brown against the Interactive Media Entertainment and Gaming Association (iMEGA).

The response brief was actually due on Wednesday, June 17th. Upon submitting the document on Thursday, Commonwealth attorneys were also asked to file a Motion for Enlargement. In it, the state’s legal team expounded on the reason for the one day delay: “In this action, ten separate parties have sought to participate in this litigation as amicus curaie parties, with many such motions still pending, and numerous parties currently litigating this case as Appellees.” The Commonwealth added that, based on iMEGA’s brief being submitted on June 3rd, it “calculated a due date for the filing of a Reply Brief in this action on Thursday, June 18th.”

Despite the confusion, Commonwealth attorneys officially submitted the brief on Thursday to the Kentucky Supreme Court. The highest court in the Bluegrass State is not obliged to take the case and no indication has been given as to when a possible hearing could occur. The brief begins with an argument that Brown has standing to bring a civil suit against the owners of 141 internet gambling domain names that were seized by the Justice and Public Safety Cabinet last September at the urging of Governor Steve Beshear. If successful, the seizure and forfeiture would result in the domain names of industry behemoths like PokerStars and Full Tilt Poker being inaccessible not only in Kentucky, but also around the world.

Besides standing, another dispute in the case is whether the State is spearheading a civil trial to prosecute a criminal illegal gambling charge. The brief asserts, “The text of the statute contains no such language. It does not reference a conviction, criminal action, or even person against whom a criminal action might be brought… This case was brought as a civil proceeding, not out of a desire to be creative.” The 141 internet gambling domain names in question were seized on the grounds that they constituted illegal gambling devices, a term that has traditionally referred to tangible objects like slot machines and roulette wheels that would be employed in an underground casino.

On whether the State had jurisdiction to seize the domains, Commonwealth attorneys explain, “The true intention or will of the legislature is the law, not the literal language of the statute… Courts must consider the intended purpose of the statute, the reason and spirit of the statute, and the mischief intended to be remedied.” On the national level in the United States, online poker players have run into a similar dilemma with the Wire Act, which has traditionally applied to local telephone carriers and online sports betting outfits. Based on recent funds seizures by the Southern District of New York, the 50 year-old law has been interpreted by the U.S. Government as potentially covering online poker.

The brief spends considerable real estate on the question of whether Kentucky can seize property like a domain name, which is not located within its borders. One of its main arguments focuses on the Civil Asset Forfeiture Reform Act, which was introduced in the 1990s by current Poker Players Alliance (PPA) Chairman Alfonse D’Amato in the U.S. Senate. The Commonwealth notes that a subsection of the bill “addresses a problem that arises whenever property subject to forfeiture under the laws of the United States is located in a foreign country… It is probably no longer necessary to base in rem jurisdiction on the location of the property if there have been sufficient contacts within the district in which the suit is filed.” Senator D’Amato’s first name is incorrectly given as “Alphonse.”

The brief also alludes to a suit brought by the PPA’s Washington State Director, Lee Rousso, who filed legal action arguing that the State’s harsh stance on internet gambling constituted a violation of the Commerce Clause of the United States Constitution. The Kentucky brief explains, “The Rousso court ultimately concluded that the State’s interests in protecting its citizens from the ills associated with gambling outweighed the relatively small cost imposed on out-of-state businesses.” In Washington, playing online poker is a Class C felony.

iMEGA and the Kentucky Justice and Public Safety Cabinet now await word on whether the state’s Supreme Court will take up the case.