Poker News

Leonardo DiCaprio to Star in Online Poker Movie

Move over, “Titanic,” there’s a new sheriff in town. Hollywood heartthrob Leonardo DiCaprio will star in an untitled film about internet gambling outfits in Costa Rica, according to the Hollywood Reporter and Entertainment Weekly.

The screenplay will be written by Brian Koppelman and David Levien, who both served in the same capacity in the 1998 film “Rounders,” which turned many of today’s poker prodigies onto the game. According to the Internet Movie Database (IMDB), “Rounders” marked the first official writing credits for Koppelman and Levien. The duo has also teamed up with DiCaprio to bring “Beat the Reaper” to the big screen. The film, which will be released next year, has the following plot according to IMDB: “ER doctor Peter Brown’s life is turned upside down when he crosses paths with a mobster who appears to know him from his former life as a hitman.”

No release date has been given for DiCaprio’s online poker movie. An article on MTV.com noted that DiCaprio’s plate is quite full: “DiCaprio has an enormous list of films in pre-production. For the time being, at least, he’ll be working on Christopher Nolan’s ‘Inception.’ Whenever he’s finished with that, he will probably have developed five more projects.” IMDB notes that DiCaprio has 21 films in development.

Whether the film will focus on online poker, casinos, or sports betting remains to be seen and various websites pitch the movie in several different ways. Tokwiro-owned online poker rooms Ultimate Bet and Absolute Poker are both based in San Jose, the Central American country’s capital city. A report by CBS News program “60 Minutes” identified the offices of the sites as being located in a “strip mall.” Both Ultimate Bet and Absolute Poker comprise the CEREUS Network, which was formed in November.

Action Poker, the flagship site of the network of the same name, has offices in Costa Rica. Joining the site in the tropical nation is Doyle’s Room, which opened the 2009 calendar year by jumping to the USA-friendly Cake Poker Network. Ten-time World Series of Poker (WSOP) bracelet winner Doyle Brunson, whose “Texas Dolly” moniker has made him one of the industry’s foremost faces, is the site’s namesake. Also holding a presence in Costa Rica is PokerStars, the world’s largest online poker site. According to PokerScout.com, which ranks online poker site traffic, PokerStars has a seven day running average of 22,000 cash game players. It happily accepts customers from the United States.

“Rounders” starred Edward Norton and Matt Damon. The movie was released five years before Chris Moneymaker became a household after the Tennessee accountant defeated Sammy Farha in the 2003 WSOP Main Event. Since then, Koppelman and Levien have kept their love for poker alive, teaming up for ESPN’s short-lived series “Tilt,” which starred Michael Madsen as Don “The Matador” Everest. “Tilt” premiered in 2005, ran for one season, and featured appearances by poker superstars including Phil Hellmuth, Daniel Negreanu, Erik Seidel, and T.J. Cloutier. Negreanu is fresh off a cameo in “X-Men Origins: Wolverine.”

Finally, Koppelman and Levien wrote “Oceans Thirteen,” which came out in 2007. It was the third installment of the franchise, which stars Damon, Brad Pitt, George Clooney, Andy Garcia, and Julia Roberts. “Oceans Thirteen” returned to its roots in Las Vegas as the team sought revenge on casino owner Willy Blank (played by Al Pacino). The movie also stars Don Cheadle, who founded Ante Up for Africa along with Norman Epstein and “Celebrity Apprentice” runner-up Annie Duke.

We’ll have more information for you on DiCaprio’s online gambling movie as it becomes available right here on Poker News Daily.

European Commission: US in Violation of WTO over Internet Gambling

As a result of a complaint filed by the Remote Gambling Association (RGA), the European Commission has found the United States to be in violation of its World Trade Organization (WTO) obligations due to its stance on internet gambling.

According to a statement posted on the European Commission’s website, “The report concludes that the U.S. measures constitute an obstacle to trade that is inconsistent with WTO rules. As a result, WTO proceedings would be justified.” However, the Commission may elect to forge an agreement with the Obama Administration rather than pursue WTO action. The RGA represents a bevy of European internet gambling companies, many of which are traded on major stock exchanges in London and Vienna. Its member roster includes Party Gaming, 888, Ladbrokes, Sportingbet, and Playtech, which owns and operates the popular iPoker Network.

The 2006 Unlawful Internet Gambling Enforcement Act (UIGEA) drove publicly traded internet gambling sites out of the U.S. market in deference to shareholder interests. However, U.S.-based sites that permit online wagering on horse racing were allowed to flourish. In addition, sites like PokerStars and Bodog, which are not publicly traded, continued to solicit customers from the North American nation. The Commission’s final report assessed, “There are serious adverse effects for the E.U. They include revenue and stock market value lost by affected companies as a result of their absence from the U.S. market and also the threat of serious sanctions hanging over them that affect their normal operation outside of the U.S.”

The European Commission’s investigation was launched in March of 2008. In the end, its report outlines many of the ambiguities and shortcomings of the UIGEA, including the lack of a definition of “unlawful internet gambling” and the propensity of credit card companies and other payment processing companies to “overblock.” The latter has taken center stage in North Dakota and New Hampshire, where legal online lottery purchases have been stunted by UIGEA regulations. Moreover, the report dives into the specifics of the Professional and Amateur Sports Protection Act (PASPA), which allows sports betting in several U.S. states, including Delaware and Nevada. In total, the European Commission report spends countless pages assessing convoluted U.S. gambling laws.

As a result of withdrawing from the U.S. market, the stock price of publicly traded internet gambling companies took a nosedive. Party Gaming, 888, and Sportingbet lost 75% of their value for a sum of ?5.7 billion between January of 2006 and October of 2006. In addition, bwin, which is traded in Vienna, lost €120 million as a result of exiting the U.S. market. In December of 2008, Party Gaming Co-Founder Anurag Dikshit admitted to violating the Wire Act of 1961 in a New York courtroom. On the same day as Dikshit’s agreement was struck, shares of Party Gaming shot up 27%. According to the Commission, the increase is evidence of how “uncertainty created by the [Department of Justice] investigations is affecting the business prospects of E.U. remote gambling and betting companies.”

Safe and Secure Internet Gambling Initiative spokesperson Michael Waxman told Poker News Daily, “We hope that members of Congress are paying attention to all of these very compelling arguments about why regulation is needed. We hope that, following Congressman Barney Frank’s leadership, members of Congress will start paying attention and move in support of regulation.” Frank’s Internet Gambling Regulation, Consumer Protection, and Enforcement Act (HR 2267) outlines a comprehensive regulatory environment for the internet gambling industry in the United States. It was introduced on May 6th and is up to 30 co-sponsors.

On the future of the European Commission’s activities, a recent Wall Street Journal article noted, “The E.U. said Wednesday it would hold off on filing a formal complaint in hopes of negotiating some sort of solution with the Obama Administration.”

PPA Director Reacts to U.S. Government Seizing Online Poker Funds

The month of June has been a roller coaster ride for the Poker Players Alliance (PPA), the poker industry’s primary lobbying group in the United States. Last week featured a seizure of over $30 million in online poker payment processor funds by the U.S. Attorney’s Office in the Southern District of New York.

The move marked one of the first shots fired at the online poker world, as past enforcement has focused squarely on sports betting. PPA Executive Director John Pappas told Poker News Daily, “We were confused by it and also believe the Government is on shaky legal ground in terms of being able to justify doing this under any act that has to do with gambling.” According to the PPA, the Southern District claimed that the Wire Act of 1961 and Illegal Gambling Business Act were both violated. Now, over $30 million and at least 24,000 online poker players are affected.

The PPA told the Wall Street Journal that 10 million Americans play poker on the internet and wager $6 billion annually. Although no formal legal action has been filed, Pappas questioned whether the Federal Government’s Wire Act charge would hold up in court: “The highest court to rule has concluded that the Wire Act applies to internet sports betting. Not to mention, in the state of New York, statutes say it’s not unlawful for players to place a wager. There are a lot of hurdles they have to face.”

Assistant U.S. Attorney for the Southern District Arlo Devlin-Brown has emerged as the driving force behind the seizures. The PPA sent a letter to Devlin-Brown questioning whether due process was violated in the seizure of funds from Citibank, Goldwater Bank, Alliance Bank of Arizona, and Wells Fargo. In addition, poker players have been speaking up in droves, firing off letters and e-mails to their Congressmen from the PPA’s website. Pappas revealed several key talking points: “Please cite the authority and precedent for the Southern District of New York to go after poker players’ winnings. Please cite the authority and precedent that playing poker on the internet is an unlawful activity. The appropriate response to all of this is to make policy to license and regulate the industry, not force poker players to be criminals and have their money seized.”

Jeff Ifrah, attorney for the payment processors affected, speculated to Poker News Daily that the seizure may have been timed to coincide with the running of the 2009 World Series of Poker (WSOP), which began back on May 27th. In response to the adversity, online poker sites such as Full Tilt Poker and PokerStars have fully reimbursed players and in some cases offered a 10% bonus for the inconvenience of a bounced check. Many poker players have recently reported that their checks and echecks are once again clearing without setback. On the online poker sites compensating customers, Pappas lauded, “It bolsters our argument that we’re not dealing with a rogue industry that is cheating people out of their money. It’s an industry that cares about its customers.”

In the meantime, the PPA and attorneys for payment processors are engaged in dialogue with the Southern District. On the possibility of a lawsuit or court order, Pappas told Poker News Daily, “It’s not a situation where poker players are out of money. Should there be further seizure attempts going forward, then perhaps we’d be forced to jump into it with a legal injunction, but the facts of it right now leave us to believe that we can come to some sort of immediate solution through dialogue.”

Congressman Barney Frank (D-MA) has introduced the Internet Gambling Regulation, Consumer Protection, and Enforcement Act to establish a complete licensing and regulatory framework for the industry in the United States. The measure was unveiled to the world on May 6th and has since attracted 30 co-sponsors, including four new additions on Friday.

Bodog.com is Back for All Poker Players

Bodog.com is back. The popular online gaming site, which offers poker, sports betting, and other casino games, has returned to its original …

Unibet Releases Q1 2009 Financial Highlights

The parent company of Microgaming Network online poker room Unibet released its 2009 first quarter financial statements on Monday. The company is traded under the symbol “UNIB” on the OMX Nordic Stock Exchange.

Among the highlights given by Unibet was that gross winnings revenue totaled ?36.1 million during the first quarter of 2009, up from ?31.3 million during the same time period in 2008. The company boasted 314,000 active players during the three-month period, up from 288,000 last year. Overall, 3.3 million players call the online sports book, casino, Bingo parlor, and poker room home. Unibet’s profit from operations was ?10.3 million during the first quarter, while its profit before taxes was ?10.7 million. The latter number was up significantly from 2008, when profit before taxes was just ?2.9 million. Unibet recorded a profit after taxes of an even ?10.0 million during the year’s first three month period.

For its investors, Unibet announced that earnings per share were ?0.357 during 2009’s first quarter, up from ?0.078 during the same time period in 2008. The net cash per share, however, fell from ?1.525 during Q1 2008 to ?1.318 this year. Net cash per share is defined as total cash at the end of the time period in question less customer balances. A statement released by Unibet previewing its financial figures heralded the company’s cash flow position: “Our strong business model and the well balanced product portfolio have resulted in another strong quarter in terms of gross winnings and operating cash flow.”

In March, Unibet inked a deal to become the main “web partner” with the Paris Saint Germain soccer club. In addition, “Pokermilliomos” began airing on Viasat 3 in Hungary. Unibet’s software is translated into 20 different languages and permeates more than 100 countries around the world. The site does not accept players from the United States, as is the case with all Microgaming Network online poker rooms. In terms of its poker offering, Unibet’s financial recap explained, “Unibet Poker had a good quarter with record intake of new players [despite] a very competitive landscape in Scandinavia. The Unibet Open poker tournament carried on its successful development with a highly appreciated event in Budapest. Local versions of this tournament were also launched in Poland and the Czech Republic.”

Unibet’s gross revenue for its sports betting offering was ?14.3 million during the first quarter of 2009, up from ?10.5 million year over year. Gross revenue for its other business units was ?21.8 million, up slightly from ?20.9 million for the first quarter of 2008. In Western Europe, Unibet reported total gross revenue of ?13.9 million during the first quarter of 2009, up from ?11.9 last year. The same figure for the Nordic regions was ?17.6 in 2009, up from ?17.2 from 2008. Other areas of Europe reported revenues of ?5.9 million in Q1 of this year, up from ?3.6 million over the same time period in 2008. The company’s gross margin on sports betting was 11.3%.

Providing a glimpse into the operations of a major multi-faceted online gaming site, Unibet noted that it has 446 total employees (up from 333 at the same time last year). At the close of the 2008 calendar year, a total of 412 employees called the company home. According to PokerScout.com, which ranks online poker room traffic, the Microgaming Network is the eighth largest worldwide with a seven day running average of 2,150 real money ring game players. At its 24 hour peak, the Network boasted 3,963 cash game competitors. Other Microgaming Network sites include Ladbrokes, BetOnBet, Eurolinx, Gnuf, PokerTime, PokerWize, and Purple Lounge. The Unibet Group is headquartered in Malta.

Andres Iniesta robs Ilari Sahamies!

Ilari “Ziigmund” Sahamies, gambler like he is, played little sports betting about UEFA Champions League semifinal matches. First match, Arsenal versus Manchester United went wrong when he bet a draw and United won easily, but the second semifinal between Chelsea and Barcelona was the match that drove Sahamies mad.

Sahamies tilts again.

Sahamies was hanging out with his friends and watching the game with some snacks. He was relaxed and in good mood. Ziigmund had bet for Chelsea and everything looked fine after a good start and early leading goal for Chelsea. But in the end disaster struck.

Game was already on the injury time when Barcelona midfielder Andres Iniesta fired a huge shot from just outside the penalty box that found the way in to Chelsea’s goal (check the video from below) and put Barcelona in the final.

That goal tilted Sahamies so bad that he soon found himself playing a heads-up match against Tom “durrrr” Dwan. In the first hand Dwan rivered a $200k pot with 6-outer and that was the final nail in Ilari’s coffin: He was officially tilting.

Well, we all know what happens when Sahamies is tilting and soon Ziigmund was feeling nothing but relaxed anymore. Eventually he lost $650k that day and for sure he still wonders why everything went like it did. Still, it was a nice goal:

Source: coinflip.com

You just read Poker News from HighStakesNews.com

Andres Iniesta robs Ilari Sahamies!

PPA Director John Pappas Appears on Bloomberg

This week, Poker Players Alliance (PPA) Executive Director John Pappas appeared on Bloomberg television to break down Congressman Barney Frank’s (D-MA) Internet Gambling Regulation Consumer Protection and Enforcement Act.

The bill, numbered HR 2267, was introduced on Wednesday and calls for a complete licensing and regulatory framework for the internet gambling industry in the United States. Although similar to a bill that Frank introduced during the last Congressional session, HR 2267 focuses on how proper regulation can mitigate the perceived social ills of gambling. Pappas told Bloomberg’s television outlet, “We want to make sure that the Federal Government puts the standards in place so that there is safety for minors, that there are services for problem gamblers, and that adult consumers can enjoy the game without fear of fraud or abuse. A prohibition never stopped a child from getting online. A prohibition never stopped a problem gambler. Regulation is the only way to do it.”

Congressman Spencer Bachus (R-AL) and others have argued that a computer with the ability to gamble online may provide the outlet for children in the United States to begin playing at a young age. Bachus even quoted a non-existent McGill University study during a House Financial Services Committee meeting last July, claiming that one-third of college students who gambled online attempted suicide. Pappas explained that online poker sites currently employ safeguards to combat underage gambling: “Most of the online sites today already are using very high-tech, sophisticated age verification technologies. They have no interest in having children on their websites playing against adults. They want adult consumers playing on their sites. The only way to ensure that all sites have that is to pass a bill like Barney Frank’s.”

Pappas’ appearance on Bloomberg also included a discussion of whether playing online poker is illegal in the United States. Poker players can vividly recall the CBS News program “60 Minutes” stating that the game was against the law on multiple occasions after show producers allegedly contacted the Justice Department. However, Pappas revealed what the legal status of the game in the United States is: “For the U.S. player, it’s not illegal for them to go online and play internet poker. What the law in 2006 attempted to do was to make illegal the transactions. It puts the burden on the financial institutions, not the actual player.” The law in question is the Unlawful Internet Gambling Enforcement Act (UIGEA), which was ushered through Congress in the waning moments of the 2006 Congressional session by then-Senate Majority Leader Bill Frist (R-TN). The UIGEA’s text gave no indication of what was legal or illegal under it. Instead, it deferred to existing State and Federal laws.

Some would cite the Wire Act of 1961 as grounds that playing online poker is not allowed in the United States. However, the 48 year-old measure traditionally applies to online sports wagering. Pappas told Bloomberg, “The Wire Act states that illegal gambling is being in the business of betting or wagering. An internet poker site isn’t in the business of betting or wagering. They’re simply allowing a venue in which people can compete in games of skill like poker against each other.”

In recent months, the PPA has seen judges in Pennsylvania, Colorado, and South Carolina conclude that poker is a game of skill and therefore should be treated separately from online casinos, Bingo parlors, and sports betting outfits. During the last Congressional session, Congressman Robert Wexler (D-FL) introduced HR 2610, the Skill Game Protection Act, which would have exempted poker, bridge, chess, mahjong, and other player versus player games from the UIGEA and Wire Act.

At the time of writing, HR 2267 has 16 co-sponsors, including Wexler, Shelley Berkley (D-NV), Steve Cohen (D-TN), Peter King (R-NY), Jim McDermott (D-WA), Ron Paul (R-TX), and Melvin Watt (D-NC).

Spencer Bachus Responds To Frank Bill

After the announcement on Wednesday of Massachusetts’ Democratic Representative Barney Frank’s bill to curb the Unlawful Internet Gaming Enforcement Act (UIGEA) of 2006, reaction has been quick. The ranking member of the House Financial Services Committee - of which Frank is the Chairman – has issued a negative response that should come as no surprise as he was one of the key players in the creation of the UIGEA.

Republican Representative Spencer Bachus of Alabama issued a statement after Rep. Frank’s announcement yesterday that insinuates that he will fight any legislation that Frank attempts to put into law. Rep. Bachus’ website trumpets proudly that he, “…is an author of the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006, which banned the use of credit cards and other financial instruments from being used for illegal on-line gambling.”

Rep. Bachus’ statement touches on many of the reasons that the Republican-led Congress used in 2006 for pushing the UIGEA through. “Illegal off-shore Internet gambling sites are a criminal enterprise and allowing them to operate unfettered in the United States would present a clear danger to our youth, who are subject to becoming addicted to gambling at an early age”, he states. He also offers that the passage of the UIGEA in 2006 was, “…commonsense, bipartisan legislation aimed at combating criminals from preying upon American’s youth. That legislation was supported by a broad coalition that included college presidents, the American Bankers Association, the American Psychiatric Association, and major sports organizations.”

Rep. Bachus does not comment, however, on how the UIGEA was tacked on to a piece of legislation that was viewed as a “must pass” portion of national security, the Port Act. He also fails to address that there was no debate over the UIGEA, either in committee or on either floor of Congress; in an important difference, Rep. Frank’s bill is being put to committee for discussion on its own merits and freely debated in the halls of Congress.

The bill that Rep. Frank is proposing is the H.R. 2267 - the Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2009 - and it would be a significant change to current views of Washington regarding the regulation of online gaming and poker. Language of the bill states, “Internet gambling in the United States should be controlled by a strict Federal licensing and regulatory framework to protect underage and otherwise vulnerable individuals, to ensure the games are fair, to address the concerns of law enforcement, and to enforce any limitations on the activity established by the States and Indian tribes.”

The federal government – and in particular the Secretary of the Treasury – would be in charge of licensing and regulating the online gaming industry under the Frank proposal. Companies that pursue licensing would have to provide in-depth detail as to their personal backgrounds and the solidity of their companies. It also includes a proviso that ensures the potential licensee would vigorously work against, “fraud, money laundering, and terrorist finance.” The licenses would last for a five year period and would not allow the holder of the license to partake of any actions that are covered by the Professional and Amateur Sports Protection Act, which explicitly prohibits sports betting.

With Rep. Frank finally proposing his bill to curb the UIGEA, the debate can now begin. It is thought, with a Democratic-controlled Congress as well as the current Obama Administration in the White House, that the possibilities for change regarding the online gaming and poker industry can be achieved. Poker News Daily will continue to monitor the situation in Washington and report on any new developments.

iMEGA Sends Letters to Minnesota Internet Service Providers

In the wake of the order by the Minnesota Department of Public Safety to 11 internet service providers (ISPs) calling for the blockage of 200 internet gaming domain names, the Interactive Media Entertainment and Gaming Association (iMEGA) has struck back.

iMEGA sent a letter of its own to ISPs, which states, “iMEGA wants you to know that it believes that the Notice lacks any legitimate foundation in the law and requests that you not block access to the websites identified.” The Department of Public Safety charged that ISPs were in violation of the Wire Act of 1961, which has traditionally applied to online sports betting. Nevertheless, USA-friendly online poker sites such as Bodog, Full Tilt Poker, and Players Only were among the 200 affected. Also coming under fire were a number of online poker rooms that do not accept U.S. customers, such as Everest Poker, Titan Poker, and CD Poker. The former is even the on-felt sponsor of the 2009 World Series of Poker (WSOP) in Las Vegas, which begins later this month from the Rio.

iMEGA asserts that the Wire Act “simply does not apply to website operators and imposes no duty upon you to comply with the Minnesota Department of Public Safety’s request.” The question of whether multi-faceted companies such as Verizon and Comcast, which offer residential home telephone service, high-speed internet, and cable television, constitute “common carriers” as outlined by the Wire Act was also addressed. To answer it, iMEGA quoted a Congressional statement: “It is the policy of the United States… to preserve the vibrant and competitive free market that presently exists for the internet and other interactive computer services, unfettered by Federal or State regulation.”

iMEGA charges that the Minnesota Department of Public Safety is overstepping its bounds, noting that ISPs have been asked to “block access to certain websites by your Minnesota end-users even though these websites are not located within Minnesota.” The trade organization also warns that, prior to blocking a site, ISPs must provide written notice to their customers of any service changes. The letter questions whether the Department of Public Safety’s request entails a violation of the Commerce Clause of the United States Constitution or a “blatant” trampling of First Amendment rights.

For ISPs that are unfamiliar with the internet gambling industry in the United States, iMEGA’s letter points out, “The Notice shows evidence of selective enforcement insofar as the list of websites identified is not exhaustive. The website list is also inaccurate insofar as it lists some websites that are not accessible by Minnesota end-users and other websites that are defunct.” In addition, it questions why Time Warner Cable, which provides internet services to Minnesota residents, was not among the 11 companies that received notices.

John Fleischaker of Dinsmore and Shohl LLP’s Louisville office sign the letter. ISPs were expected to respond within two to three weeks of receiving the Minnesota Department of Public Safety’s notice. In addition to the aforementioned online poker sites, the casino arms of Ladbrokes and Party Gaming are also listed; publicly traded companies on the London Stock Exchange own both sites. Party Gaming yanked its online poker site, Party Poker, from the U.S. market shortly after the 2006 passage of the Unlawful Internet Gambling Enforcement Act (UIGEA). The company has even signed a non-prosecution agreement with the U.S. Government. One of its co-founders, Anurag Dikshit, admitted to violating Federal law and is in the midst of paying a $300 million fine.

Today, Congressman Barney Frank (D-MA) introduced legislation outlining a comprehensive licensing and regulatory framework for the internet gambling industry that focuses on consumer protections. In addition, the Massachusetts lawmaker and Chairman of the House Financial Services Industry introduced legislation to delay the implementation of UIGEA regulations by one year to December 1st, 2010.

Barney Frank Introduces Comprehensive Internet Gambling Legislation

On Wednesday morning, Congressman Barney Frank (D-MA) unveiled the Internet Gambling Regulation Consumer Protection and Enforcement Act, which establishes a comprehensive licensing and regulatory framework for the industry in the United States. Legislation to delay the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) by one year was also introduced.

Although the bill has not yet been formally assigned a number, Frank’s licensing measure focuses squarely on protecting consumers when they gamble online. The bill states, “Internet gambling in the United States should be controlled by a strict Federal licensing and regulatory framework to protect underage and otherwise vulnerable individuals, to ensure the games are fair, to address the concerns of law enforcement, and to enforce any limitations on the activity established by the States and Indian tribes.” Operators must be in good legal and financial standing, utilize proper safeguards to thwart underage and problem gambling, and have systems in place to prevent money laundering. These concerns have been brought up repeatedly in markup hearings of past internet gambling bills introduced by Frank.

The Secretary of the United States Treasury is charged with overseeing the industry and licensing the companies that would be allowed to accept U.S. customers. Applicants may be asked to provide criminal records, credit histories, comprehensive financial statements, an outline of the corporation’s structure, and their methodologies to combat underage, compulsive, and problem gambling. Licensees must also protect against “fraud, money laundering, and terrorist finance.” Licenses last for five years each and may be renewed at the end of that time period. The bill also calls for the establishment of a “program to alert the public to the existence, consequences, and availability of the self-exclusion list, and shall prepare and promulgate written materials to be used in such a program.”

Sports betting or any wager that would be considered a violation of the Professional and Amateur Sports Protection Act (PASPA) is not allowed under Frank’s legislation. However, fantasy sports and other “simulation games” are exempted. The bill does not overturn the UIGEA, which was passed in 2006. Instead, it exempts licensees from the three year-old law.

The bill appears to require a companion measure to provide for taxation of the industry. During the last Congress, that piece of the puzzle came in the form of HR 2607, which prescribed that 2% of the funds deposited online be taxed. PricewaterhouseCoopers released a study utilizing a similar bill along with Frank’s HR 2046, the Internet Gambling Regulation and Enforcement Act, to reveal that up to $52 billion could be raised over a 10 year period by taxing and regulating the industry. However, that figure relied heavily on the involvement of professional sports leagues.

A separate bill introduced by Frank on Wednesday, dubbed the Reasonable Prudence in Regulation Act, called for the regulations of the UIGEA to be enacted on December 1st, 2010, one year after the scheduled date. The House Financial Services Committee website explains, “The legislation will stop Federal regulators from enforcing the UIGEA until Congress has had a chance to decide national policy.” In essence, lawmakers on Capitol Hill will have an extra year under Frank’s second bill in order to pass legislation concerning internet gambling. The regulations of the UIGEA were approved in November as midnight rules and implemented on January 19th, one day prior to U.S. President Barack Obama taking office. As it currently stands, the financial services industry must come into full compliance by December 1st, 2009.

Poker Players Alliance (PPA) Chairman and former three-term Senator from New York Alfonse D’Amato commented in a press release, “Online poker is a legal, thriving industry and poker players deserve the consumer protections and the freedom to play that are provided for in this legislation. We are grateful for Chairman Frank’s leadership and will be activating our grassroots army made up of over one million members to help him drive legislation.” In an article published by the Associated Press last month, it was revealed that the PPA is planning to sink $3 million into lobbying efforts during the current Congressional session.

Chris Wallace (Fox) Calls out Minnesota over Internet Gambling Ban

In the fight for the rights of online poker players in Minnesota, PokerXFactor.com instructor and St. Paul resident Chris “Fox” Wallace has taken a stand, calling for the Justice Department to arrest him if playing online poker is illegal.

Wallace’s actions follow written notice served to some of the country’s largest internet service providers (ISPs) such as Comcast, Charter, Qwest, and AT&T. The notices, which were authored by the Minnesota Department of Public Safety and received on Monday, call for 200 internet gambling websites to be inaccessible by the state’s residents. Appearing on the list of affected sites were U.S.-friendly rooms Bodog and Full Tilt Poker along with a bevy of online poker establishments that do not accept customers from the United States. The latter group includes Action Poker, CD Poker, Noble Poker, Mansion Poker, and Titan Poker. It also includes the title sponsor of the 2009 World Series of Poker (WSOP), Everest Poker, whose logos will don tables in the Amazon Room at the Rio for the second straight year. The Department of Public Safety is also calling for companies to block telephone access to the sites’ support numbers.

Wallace told his hometown newspaper, the Minneapolis Star-Tribune, last week, "I have e-mailed the Justice Department and I've volunteered to be arrested. I play online poker. Come and get it." He revealed that he faces a potential loss of $2,000 per week. If the ISPs successfully block the sites in question, he not only would potentially be unable to play online, but also would be barred from browsing any of the domain’s pages. David Axtell, an attorney at Leonard Street and Deinard in Minnesota, told the Star-Tribune, "This is an old law put in place before the Internet and there may be an argument that it doesn't cover Internet service providers.”

The law in question is the Wire Act, which was passed in 1961 and has historically applied only to online sports betting. Many question whether the age-old law is applicable to online poker, casino, and Bingo games; each genre of internet gambling had sites appear on the list of 200 released last week. Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan questioned the Government’s professionalism in generating its list. According to a statement found on iMEGA’s website, Brennan explained, “We question how much thought was put into the selection of these sites. To propose censoring Minnesota residents’ Web access and not to know which sites are even in the U.S. market makes me wonder just how seriously the Department of Public Safety is taking this action. It comes off as a half-baked attempt at intimidation rather than thoughtful enforcement.” The list of 200 was generated randomly without regard to what type of internet gambling each site was engaged in.

Other websites that are affected include Betfred, Betway, Bet U.S., Crazy Poker, Euro Poker, Gnuf’s online casino arm, Hollywood Poker, Intertops Casino, Players Only, Total Poker, Ladbrokes Casino, and Party Casino. Publicly traded companies on the London Stock Exchange own the latter two sites. At the time of writing, neither had written statements about the Minnesota internet gaming issue given to the Exchange. Party Gaming entered into a non-prosecution agreement with the U.S. Government last month and agreed to pay a $105 million fine. In the process, it admitted to processing transactions from U.S. customers using third parties, which was “contrary to certain U.S. laws.” Upon passage of the Unlawful Internet Gambling Enforcement Act (UIGEA) in 2006, Party Gaming exited the market.

ISPs have up to three weeks to respond to the Minnesota Department of Public Safety. The state has legalized Indian casinos, card rooms at horse racing tracks, and a lottery that features second chance drawings online. Next week may see Congressman Barney Frank (D-MA) introduce legislation to clarify or overturn the UIGEA. The bill, which was originally scheduled to be introduced in March, may outline a complete licensing and regulatory framework for the industry similar to last Congressional session’s HR 2046, the Internet Gambling Regulation and Enforcement Act.

Minnesota Department of Public Safety Discusses Internet Gambling Ban

John Willems, Director of the Minnesota Department of Public Safety’s Alcohol and Gambling Enforcement Division, is leading the effort to compel internet service providers (ISP) to block state residents' access to at least 200 websites. He sat down with Poker News Daily to discuss the written notice served to ISPs this week.

Poker News Daily: The basis for the blockage is that internet gaming sites are illegal under the Wire Act, which has traditionally applied to online sports betting. In addition, the list of 200 websites has not yet been made public. What can you share with us about what sites will be affected?

Willems: The Wire Act has been used in other arenas as well. The list, which is only 200 out of literally thousands of websites, was selected at random without regards to what type of internet gambling each site is engaged in. Online poker would fall within that possibility.

This is a new process for everyone involved. There are differing opinions on the issue and we respect that. We initiated a civil notice. We haven’t seized property or discontinued service. We requested that the telecom companies not allow Minnesota customers, and only Minnesota customers, to be able to access them. Online gambling has been held to be illegal by the past three Attorney Generals and Minnesota is one of the first states to take action.

PND: Do you plan to pursue any of the internet gamblers directly or just use ISP blockage to stunt the industry?

Willems: We’re not pursuing any of the bettors and we’re not keeping people from accessing their money. We wanted to let everyone in the world know what we were up to in order to be transparent. We wanted to let them know that if we were successful, it might impact their ability to get funds they may have online. The last thing that we wanted to do was surprise everyone. Our actions have also increased the level of conversation on this topic.

PND: Minnesota has tribal casinos, card rooms at racetracks, and a state lottery, among other forms of gambling. Is the move, at least in part, due to wanting to protect the explicitly legal versions?

Willems: The motive is to deal with sizable illegal gambling activity and to use the most reasonable tool we can to deal with it. We are an enforcement agency that has very few tools available. As the contraction of the telecom industry has occurred, this statute seems much more viable today than it was before.

PND: What feedback has the Department of Public Safety received so far?

Willems: I hope we’ll have a mutually satisfying outcome to whatever occurs and I hope we’ll get good public policy because of it. It appears to me, based on voice messages and phone conversations, that the Poker Players Alliance must have contacted their membership because I’ve gotten a lot of feedback. I respect their viewpoint and understand it. As much as I can, I try to take the calls, but there are too many of them. I do understand their concerns and I’m not disrespectful of that, but there is a difference of opinion. If they want to make their case, they should also do so to the state’s policy makers.

PND: The press release notes, “U.S. code cited [for] first time in effort to halt illegal online gambling.” Talk about being the first such state to take action.

Willems: We can’t find any precedent elsewhere and we are doing it in a different way, on a different scale, and with a different attitude than has been done in the past. We understand there is a controversial aspect to it and we’re sorry for that. We’re enforcing the laws. If there is illegal gambling, we have to do our best to deal with it. That’s created some pushback by some people. Even in our own state, we have social card games, which are given direct instructions as to how they can operate, but they have not yet expanded online. The policy makers of Minnesota may want to dive into it.

Barney Frank Internet Gambling Bill Delayed Until Week of May 4th

According to an article released by Reuters on Tuesday, legislation to alter the landscape of the internet gambling industry in the United States will not be introduced by Congressman Barney Frank (D-MA) until next week.

Frank had originally stated that a bill favorable to the industry would be introduced in March. Then, an interview with The Hill revealed that it would not be seen until after Congress’ Easter recess. Now, legislation to overturn or clarify the Unlawful Internet Gambling Enforcement Act (UIGEA) will likely become a reality during the week of May 4th. A source close to Poker News Daily explained that pressure from “the guys writing checks” to release a bill may be taking precedence. In order to see time on the floor of the House of Representatives, past bills have undergone mark-ups and received amendments. Therefore, the bill Frank ultimately introduces may not be the final legislation enacted.

Frank told Reuters, "We'll be introducing it next week and I plan to move on it.” His previous attempt at creating a full licensing and regulatory framework for the industry came in the form of the Internet Gambling Regulation and Enforcement Act, which was introduced in 2007 and numbered HR 2046. The bill, along with a companion tax bill that was introduced by Congressman Jim McDermott (D-WA), would have generated up to $52 billion in revenue over a 10 year period for the U.S. Government, according to a study conducted by PricewaterhouseCoopers. On the reason for the two month delay, Reuters explained, “Frank said his Committee has been busy with other measures addressing the credit crisis and proposals to reform financial regulation.”

Frank made two attempts to clarify the UIGEA during the 110th Congress. Together with former Republican Presidential candidate Ron Paul (R-TX), Frank sponsored HR 5767, the first version of the Payments System Protection Act. However, amid pushback from Congressman Spencher Bachus (R-AL) as well as the failure of an amendment by Congressman Peter King (R-NY), HR 5767 failed to make it out of the House Financial Services Committee. In a June vote, King’s amendment was trumped by virtue of a 32-32 tie vote. An oral vote on HR 5767 saw the “Nays” outnumber the “Yays.”

In September, Frank introduced HR 6870, the second installment of the Payments System Protection Act. The bill passed out of Committee by a 30-19 vote, but then fell by the wayside as the global economy sputtered shortly thereafter. HR 6870 called for the U.S. Treasury and Federal Reserve to collaborate with the Attorney General’s office in order to determine what is legal and illegal under the UIGEA. The bill would have also suspended the UIGEA except for its directives related to online sports betting.

Despite being allowed to opt out of HR 6870, professional sports leagues such as the NFL came out against it. In March, the New York City-based NFL hired Jeff Miller to be its first full-time in-house lobbyist. His is charged with monitoring events on Capitol Hill and has pledged to support enforcement of the UIGEA. Miller told the Associated Press last month, “We want to maintain the integrity of the game, and gambling threatens that." The NFL completed its annual Draft over the weekend, with University of Georgia standout Matthew Stafford being chosen first overall by the Detroit Lions. Stafford received a six-year contract with over $40 million guaranteed.

Although a final copy of the proposed legislation has not been publicly released, Reuters claimed it “would overturn a law imposed during the Bush administration that has hurt U.S. trade ties with the European Union. Frank said the bill was being drafted this week.” Late last month, investigators from the European Commission found the United States to be in violation of its World Trade Organization (WTO) obligations due to the country’s stance on internet gambling. The Commission’s findings came as a result of a complaint filed by the Remote Gambling Association.

A call placed to Frank’s press secretary was not returned as of press time. Stay tuned to Poker News Daily for the latest news from Capitol Hill.

Entraction Network Sells Online Poker Rooms to iGame

In the online poker world, it is common to hear about rooms being created or smaller rooms joining a larger network for a bigger share of the consumer market. Rarely is it heard that a room is sold, but that is exactly what has occurred during the last week.

The gaming group Entraction, which held ownership of Casablanca Gaming Group AB and operated online poker rooms under the Entraction Network, has signed a letter of intent to sell the operation of its Casagaming Ltd outlet of the company to iGame. Entraction is a gaming group that offers its partners software systems for online poker, sports betting, and casinos. In addition, it provides access to the poker network and a range of peripheral services. Casagaming Ltd is located in Malta and operates 24h Poker and Martin’s Poker. Those Casagaming sites are among the best-known rooms for Scandinavian players and, with a burgeoning market in that area, should make significant inroads into the online gaming world. Martin’s Poker is named for Martin de Knijff, a former World Poker Tour event winner.

Peter Åström, CEO of Entraction, announced the sale earlier this month and commented, “The selling of the gaming operations is a milestone for Entraction and enables us to focus one hundred percent on our supplier operation. In a time when many of our competitors do the opposite and start to mix the roles of operator and supplier, Entraction's focus makes us both more attractive to new partners and more transparent to investors. I am certain that iGame Ltd will continue to successfully operate the sites in the Casagaming Network.”

The Entraction Network, according to traffic ranking site PokerScout.com, is the 11th largest worldwide. Over the past six months, the Network’s average cash game player count has grown by about 50% and can top out at 2,000 during peak hours.

The news of the Casagaming sale comes at a time when many rooms are either consolidating with other networks or shutting down entirely. On April 14th, PokerRoom and CasinoRoom shut down and informed their players that any current accounts would be transferred to the European site bwin.

Prior to that, two notable poker rooms moved networks to be able to access American action. Both PokerHost and Doyle’s Room, which had previously been on the Microgaming Network (among others) that do not accept U.S. customers, moved to the Cake Poker Network and have immediately had a sizeable impact on their player numbers. This is in addition to other rooms that closed over the past few months, affecting the online poker landscape. The popular poker room Bugsy’s Club was forced to close its doors in March and, prior to that, subscription-based online poker sites such as Fleet Street Games, Duplicate Poker, and Zosoz have ceased to operate due to financial concerns.

Casey Reese, Son of Chip Reese, Dies of Drug Overdose

The son of the late Chip Reese, Casey Reese, has passed away from an overdose of prescription drugs, according to comments by Daniel Negreanu and Doyle Brunson on Full Contact Poker and Doyle’s Room. He was 20 years old.

On Tuesday, the following text appeared in Brunson’s official blog on his online poker site, Doyle’s Room: “It happened again yesterday, only this time it was Chip’s only son, Casey Reese. Casey was found in his apartment from an apparent overdose of prescription drugs. I had seen Casey a few days ago and he looked great. He was very handsome and extremely personable. I will always remember the closeness between Chip and Casey.” Brunson heard the news from his nephew and felt that he “let Chip down, but I don’t know what I could have done to help Casey.”

The news was confirmed by Negreanu, who posted in a thread on Full Contact Poker that speculated something might have happened to Casey. Negreanu noted that he was at the Bellagio when he heard the news and wrote on Full Contact Poker, “Everyone took it pretty hard. Kid was 20 years old, an incredible baseball pitcher, super smart, good looking kid... very sad. Chau [Giang] was a very good friend of both Chip and Casey and while he came down to play poker, he just couldn't do it. It was a shock. People were both sad and also pretty angry at the same time.”

Casey passed away nearly 16 months to the day after Chip, who died on December 4th, 2007 in his Las Vegas home. At 56 years old, the elder Reese was the owner of three World Series of Poker (WSOP) bracelets and took down the inaugural $50,000 HORSE Championship in 2006 for $1.7 million. He defeated Full Tilt Poker pro Andy Bloch heads-up in that event; Phil Ivey, Jim Brechtel, T.J. Cloutier, David Singer, Dewey Tomko, Patrik Antonius, and Brunson were also at the final table. Chip also won bracelets in 1978 in a $1,000 buy-in Limit Seven Card Stud High-Low contest and in 1982 in a $5,000 buy-in Limit Seven Card Stud tournament. He logged over $2.2 million from WSOP tournament play.

According to ESPN, last December, Reese was “complaining of pneumonia symptoms, but never went to a hospital and died in his sleep He was found by his son… at his Las Vegas home.” Chip was inducted into the Poker Hall of Fame in 1991, at the time the youngest player to hold that honor. ESPN added, “Brunson and Reese eventually became business partners, investing in everything from oil wells and mining to TV stations and racehorses and becoming sports betting consultants.”

A 28 page thread developed on online poker forum TwoPlusTwo bidding farewell to the poker legend Chip Reese. Andy “BKiCe” Seth expressed his remorse of the loss of an ambassador of the game: “Is this real? I've never met Chip and don't really even know much about him, but for some reason I feel like a good friend just died.” Pictures of Reese playing in high-stakes tournaments around the world pervaded the thread, as did anecdotes of players’ past experiences battling against the giant of the game.

The HORSE Championship trophy is named in Chip's honor to this day. In 2008, it was won by Scotty Nguyen, who pocketed nearly $2 million for his victory. Nguyen defeated Mike DeMichele heads-up, capping an eventful run through a final table that also included Erick Lindgren, Barry Greenstein, 2009 National Heads-Up Poker Championship winner Huck Seed, and World Poker Tour founder Lyle Berman. Winning the tournament is a prestigious honor and players will receive their next opportunity when it kicks off on June 26th from the Rio in Las Vegas during the 40th annual WSOP.

We at Poker News Daily would like to express our sincere condolences to the entire Reese family.

New NFL Lobbyist Seeks to Protect UIGEA

Recently, the National Football League (NFL) enlisted the services of Jeff Miller, who will serve as its chief lobbyist on Capitol Hill. According to an article authored by the Associated Press, Miller seeks to preserve the ban on internet gambling in the United States.

In 2006, the Unlawful Internet Gambling Enforcement Act (UIGEA) was ushered through Congress at the last minute by former Senate Majority Leader Bill Frist (R-TN). Although the UIGEA did not define what was legal and illegal under its jurisdiction, its effect was driving some of the world's largest online poker sites out of the U.S. market. Now, only a handful of rooms, such as PokerStars, Full Tilt Poker, Ultimate Bet, and Carbon Poker, accept U.S. residents. In addition, the UIGEA also eradicated payment processors such as Neteller and Citadel Commerce from the market.

On January 19th, the regulations of the UIGEA finally came to fruition as “midnight rules” passed by the outgoing Bush Administration. Many in the internet gambling industry questioned the role of Special Assistant to George W. Bush William Wichterman, who had also served as an NFL lobbyist. Whether the urging of Wichterman resulted in the UIGEA's regulations being pushed through remains unknown. However, his involvement prompted a letter by Congressman Steve Cohen (D-TN).

The NFL's newest hire, Miller told the Associated Press, "I'm a lifelong NFL fan, grew up in Wisconsin, [and] rooted for the Packers at my father's knee every Sunday. I had had opportunities in the past to leave the Hill and do other things, such as work at a law firm and lobby firm. But when the NFL calls, you can't turn that down." When asked about the upholding the existing internet gambling legislation, which consists of both the UIGEA and Wire Act of 1961, Miller responded, "We want to maintain the integrity of the game, and gambling threatens that."

The Associated Press article added that Miller will be at the forefront of sports leagues' efforts to preserve the status quo with regards to internet gambling. Congressman Barney Frank (D-MA) has led the effort to overturn the UIGEA, or at least clarify it for the benefit of the financial services industry. HR 6870, the second version of the Payments System Protection Act, was passed out of the House Financial Services Committee, of which Frank is the Chair, by a 30-19 vote last September. However, due to the then-emerging economic crisis in the United States, it did not see time on the House floor.

According to the Associated Press, the NFL previously sought outside counsel. Miller's hiring bucks that trend. He explained, "The emphasis is to have a full-time person spending every waking moment thinking about how what Congress or the administration is doing is going to affect the NFL's business model." The NFL held its annual owners' meetings last week in California, instituting a number of rule changes as well as adjusting the draft order based on a team's finish in the playoffs. Fantasy sports received a specific exemption from the UIGEA, although the law forced industry websites to guarantee prize pools and not allow a manager to have all of his players come from the same team.

Joe Brennan, Chairman of the Interactive Media Entertainment and Gaming Association (iMEGA), told Poker News Daily why sports betting has received such a bad rap: “It's the only type of betting where the courts have been explicit. The Wire Act arose out of a couple of sports betting scandals back in the 1950s. It always comes back to trying to protect the integrity of the game.” iMEGA is suing to declare the Professional and Amateur Sports Protection Act (PASPA) unconstitutional. The case has been assigned to Chief Judge Garrett E. Brown, Jr. of the New Jersey District Court.