According to the Las Vegas Review-Journal’s Howard Stutz, Sandoval admitted Thursday that he has been in discussion with other state governors on opening up Nevada’s online poker system to include players from their states. “I’ve talked with a few governors and I’m introducing the concept of compacting,” Sandoval said to the Nevada media following a tour of BMM International, a gaming testing site for the state. “It’s very much in the early stages and we have a great opportunity because we have the infrastructure and other states have the players.”
While Governor Sandoval wouldn’t mention any states in particular as a target for compacting with Nevada, Stutz does state that there is a surprise in one of the states cited by gaming experts. Texas, with its roughly 25 million residents, is considered one of the frontrunners for a potential deal with the state of Nevada. As the second most populous state in the U. S., it would be a gem for any online gaming system to join forces with. The problem is, at this point, is that Texas hasn’t legalized online gaming and poker.
A bill in the Texas legislature would look to change that situation. The Poker Gaming Act of 2013 was introduced earlier this year and, since its debut, has undergone a few changes. Originally the bill was only for regulating “brick and mortar” poker rooms but, since its January introduction, it has opened up the possibility for “social” poker rooms and recently also introduced an online poker element into the bill.
There is a fervent anti-gaming coalition in the state of Texas and even the state’s governor, Rick Perry, has previously commented that he would not sign such legislation into law. In a bit of “political poker,” however, Stutz says the gaming experts see the connection between the two governors as a potential tipping point. During his run at the Republican nomination for President of the United States in 2012, Sandoval was a key advocate for Perry’s nomination and it could be possible that it is “payback time” for that support.
What is also interesting is that the two other states that have already passed some form of online gaming, New Jersey and Delaware, are mentioned only in passing by Stutz and are not included as potential partners for Nevada in the burgeoning U. S. online gaming scene. New Jersey and Delaware both passed full online gaming regulations and are expected to come online with their offerings in the fall but both states’ populations (Delaware around 900,000, New Jersey around eight million) pale in comparison with such a monolith as Texas.
In addition to the three states that already have online gaming regulations of some sort on the books, others are looking into passing legislation. Along with Texas, California, Illinois, Pennsylvania and Iowa have some sort of legislation in the channels of their respective halls of legislature, but none have stepped forward and passed those laws as of yet.
Overall, Governor Sandoval has been pleased with the process of the online poker industry in the state of Nevada. Reacting to comments that the sites aren’t coming online as quickly as customers would like, Sandoval stated, “The (Nevada) Gaming Control Board needs to be extremely careful on how they do this. Over time, people will forget about that part and see how successful it will become.”
Currently in the state of Nevada, only Ultimate Poker is offering its wares to customers. After their debut at the end of April, there have already been over one million hands dealt to customers on the site. During the World Series of Poker conference call on Wednesday, WSOP officials stated that their online poker site, powered by 888 Holdings, would open for business during the schedule of the WSOP. If Nevada was able to negotiate a compact with a state such as Texas, the online poker industry in the Silver State would definitely expand as other players look to get into the game quickly.
Nevada Governor Sandoval Reports Internet Poker Deals
The chairman of the Senate committee that oversees the gambling industry earlier this year re-introduced 2012 legislation that would legalize online games.
And a group of prominent tribes with casinos has circulated its own proposal recently to license Internet poker.
The draft language, which has not emerged as legislation, was crafted by leaders of eight tribes, including the Pechanga Band of Luiseno Indians near Temecula, the Agua Caliente Band of Cahuilla Indians in the Coachella Valley, as well as members of a group called the California Tribal Business Alliance.
“Conversations are being had with key members of the Legislature,” said David Quintana, a lobbyist for the tribal business alliance Monday.
Other proposals could surface. The San Manuel Band of Mission Indians near San Bernardino, and possibly others, have worked on a plan that could emerge as early as this week.
A few years ago, it seemed as if California would be the first state in the country to license intrastate poker and take advantage of a provision in the federal law that otherwise bans online gaming. Many of the state’s residents already play on illegal sites based offshore in the Isle of Mann and elsewhere.
But disagreements among the state’s gambling interests have repeatedly stymied the issue. No hearings have been scheduled on it this year.
Meanwhile, three states — Nevada, Delaware and New Jersey — have legalized online poker and the first legal game debuted a few weeks ago in Nevada.
The 51-page bill by state Sen. Rod Wright, D-Inglewood, who leads the Senate Governmental Organization Committee, would require $30 million fees for each license, plus 10 percent payments of gross revenue that would be applied to the license payment.
His measure would allow any entity already engaged in legal gambling operations in California to get a license to offer Internet poker.
“What you want to have is robust competition,” Wright said at an online gaming conference earlier this month sponsored by Capitol Weekly, a publication that covers state government.
“The ability to have an online gaming platform is an asset that belongs to the people of the state of California,” he said. “It is not an asset that belongs to anyone else.”
Many potential licensees view the $30 million license fee in Wright’s bill as prohibitively expensive. The proposal from the tribal group that includes the Pechanga and Agua Caliente bands requires a $5 million fee. The plan calls for contributing an unspecified percentage of gross revenue to the general fund.
In addition, the group said it makes sense to limit the license eligibility to just tribes with casinos and the state’s 88 card rooms because they already offer poker.
Another difference is that, under the draft language from the tribal group, online poker licenses would be good for 10 years. That is double the five years in the Wright bill.
Quintana said the group of tribes commissioned an in-depth analysis of California’s online poker market potential. Goals of getting $200 million from legal online poker games are not realistic, he said.
“That looks rosy for the state but it doesn’t pencil out for anyone who wants to get involved in the industry,” Quintana said.
There have been other groups of tribes that have worked together on proposals to license online gaming. The Riverside-based California Online Poker Association included the San Manuel band and the Morongo Band of Mission Indians near Banning, as well as smaller tribes and some card clubs. It disbanded last fall.
Supporters say the latest tribal proposal is different because it emerged from talks involving tribal leaders. Consultants and lawyers were not in the room, they said.
“It is not unusual for tribal leaders to work together on issues of great importance — and let us be clear, this is an issue of great importance to us,” Leslie Loche, chairwoman of the Paskenta Band of Nomlaki Indians, said in a statement Monday. Loche and Wright had several testy exchanges during a forum at the Capitol Weekly event.
State Sen. Lou Correa, D-Santa Ana, also has introduced a bill to legalize online poker, but that measure remains just a placeholder for now.
There is an expectation in the Capitol that the bill will become a vehicle for a proposal from the San Manuel or Morongo tribes, or both.
Representatives of those tribes were unavailable for comment Monday.
INTERNET GAMING: Online poker bill still no sure bet | Politics | PE-com - Press-Enterprise
Ultimate Poker launched using cell phone triangulation. There were several technical issues related to this method. The most obvious problem was that Verizon, a carrier that serves about 40% of the Las Vegas market, was not included at launch. Several other carriers were also not available when Ultimate Poker went live. These included Virgin Mobile and MetroPCS, though most omitted operators were eventually added. It seems unlikely that future operators will launch before contracting with virtually all cell phone carriers in its market.
Ultimate Poker knew of the cell phone carrier issues, but wanted to provide online poker to a community that had been longing for it. Those that were able to access the first regulated online poker room in the US were extremely happy with this decision.
XYVerify had proposed using cell phone triangulation in Nevada during the public comment period. Verifi/CAMS was chosen by Ultimate Poker for player location services and cell phone triangulation was the method used to ensure online poker players are within Nevada’s borders while playing.
Beyond the triangulation carrier issues that future Nevada operators will probably not have to deal with, there is another potential problem with this method. Ultimate Poker, and presumably other operators using the same location verification method, will be unable to accept players near a state border. This is not a substantial problem in Nevada since most of the state’s population lives in Las Vegas, Reno, Carson City and a number of mining towns. Only about 1.5% of the state’s population is excluded by the 1 mile buffer around the state line that is used to ensure players across state lines are unable to play. These excluded communities include Laughlin, Primm, Mesquite, West Wendover and portions of the Tahoe area. While inconvenient and frustrating to those residents and visitors, the main population bases of Nevada have access to Ultimate Poker using this method.
Cell Phone Triangulation May Not Suffice in More Populated States
This may be a problem in future regulated jurisdictions. For example, a large number of New Jersey residents live just across the Delaware River from Pennsylvania and Delaware or across the Hudson River from New York. The difference in a one mile buffer could potentially shut out hundreds of thousands of players.
Responsible Gaming Networks proposed a solution that may resolve this problem during the Nevada interactive interstate licensing public comment period. The company recommended their Safety Net USB technology.
The company’s USB key must be plugged in to the user’s computer for a player to participate in online gaming within a legal jurisdiction. This key would carry a user’s personal information, as well as fingerprint technology that would ensure the proper user was tied to the device. The key also includes GPS technology that will log a player’s exact latitude and longitude location. Responsible Gaming Networks states that this device would make it impossible for a player to find a backdoor through cell phone triangulation and IP spoofing.
Neither Technology is Perfect
There are issues with both forms of technology. As mentioned, players close to jurisdictional borders may be excluded when cell phone triangulation is used. On the other hand, many players will be uncomfortable providing a fingerprint to gamble online. This is especially true since for the past 15 years of online gambling this has never been a requirement. It is possible that some regulated online gambling sites will offer both forms of location services to allow a player to access the site close to borders or if their mobile devices fail triangulation checks, which has been a problem in Nevada, especially for players accessing the internet through nontraditional connection methods.
Both companies have legitimate arguments for their services. It will take a trial and error system to find which system, or a combination of the two, will provide operators with a safe and legal way to offer online gambling.
Documentation Services
Location services are not the only form of verification services available. Player Verify will offer players the ability to securely upload their documents to their company’s website. These documents will be shared with companies that both the player and Player Verify enter into an agreement. Players may also set responsible gaming limits within the software that will be shared among all participating sites. Other verification services may also be provided in the future by the company.
Negative Database Providers
The use of Iovation came to light upon Ultimate Poker’s launch. While Iovation itself may not be a legitimate company, the service it provides is in high demand in the online gaming industry. Unfortunately, fraud is a serious issue when it comes to gambling online. A handful of fraudulent deposits can wreak havoc on an operator.
It is not just the money lost to fraud that becomes an issue. The resources spent investigating it can be a burden for any operator.
Online gaming fraud comes in several forms. The most common form is where losing players submit a chargeback to their credit card company or bank. Another form is where stolen banking information is used to make a deposit by an identity thief. Collusion is another form of online gambling fraud. All of these issues must be addressed so that operators do not lose their profits to scammers.
Legitimate online poker accounts can also get caught up in these types of fraud if those accounts become significant winners from illegitimate deposits. It is in everyone’s best interest to put an end to this.
This type of business goes well beyond credit card
Duke followed up by issuing a lengthy statement on Facebook Saturday, defending herself against people who are accusing her of misconduct.
“The release of this audio has spurred accusations and I want to make it clear that I have never used a tool on a delay or otherwise that gave me or anyone else access to hole cards for use during real money play nor was I aware that such a tool existed until the scandal broke,” Duke wrote.
“The audio recordings and the data dump from Travis Makar and others also make it completely clear who the perpetrators of the UltimateBet-com cheating were, and that I was not involved in their scheme in any way. For those who have not taken the time to listen to the full audio, at one point Russ Hamilton mischaracterizes my legitimate role as a commentator as he tries to concoct a cover story for his scheme. I can only assume that he is referring to the several times that I commentated on tournaments in which a delayed broadcast was provided to the public, as this was the only delay that I was ever aware of,” she added.
Online Poker Scandal: Annie Duke Responds To Leaked Russ Hamilton Audio Recording
First, to open an online gaming account, applicants must establish their identity by submitting two forms of ID (presumably scans of these documents are acceptable) one of which must be a government issued ID such as a driver’s license. In addition, the regulations provide for a multi-source verification of applicants’ identities to ensure that the applicants are who they claim to be. The regulations permit casinos to use third-party and governmental databases that are commonly used in identity verification tests in the form of multi-choice questions regarding former addresses and vehicle registration.
Once the players establish their accounts, the regulations require them to establish a PIN, challenge questions, and a password or security feature to prevent unauthorized users from accessing the account. The accounts are non-transferable, and players are prohibited from allowing other persons to use them.
Finally, once the casino has established that the applicant is who he or she claims to be, it must verify that the individual is legally permitted to participate in online gaming. This requires verifying that the player is 21 years of age or older and not self-excluded or on the exclusion list. There is no requirement that players be New Jersey residents.
Geo-Location
The proposed regulations address the legal requirement that players must be physically within the territorial limits of the state of New Jersey when participating in online gaming. They require that Internet gaming systems employ a mechanism to detect the physical location of the player when logging into the system, and re-verify the location every hour thereafter. If the system detects that the player is no longer in an authorized area, the system will disable the account and not accept wagers until they return to an authorized area.
What New Jersey Online Poker Regulations Mean for Players | Pokerfuse Online Poker News
Applicants must have their “principal establishment” in the European Union or in a “state appointed by the Minister of Justice as guaranteeing an adequate level of protection of the interests that the Betting and Gaming Act aims to serve.”
A two tier tax system is suggested with a top rate of 29% for land based providers and 20% for internet operators. There will also be mandatory charitable donations.
Industry consultation and responses will start immediately and are due to end on 21 July 2013. Pokerfuse will publish a full examination of the proposals shortly.
New Dutch Regulation Proposals Could Theoretically Exclude PokerStars | Pokerfuse Online Poker News
While there are still sites that allow U.S. players to enjoy poker online, the biggest players, including Full Tilt and PokerStars have not been operational. Slowly but surely the tide is turning. Three states have already passed laws to legalize online poker for their citizens.
Those states that have passed legislation include New Jersey, Delaware and Nevada. So far only Nevada has started offering online gaming to poker players and the play is restricted to games between Nevada residents.
While the return of poker is going to be slow, now that the levy has broken you can expect to see more states follow suit. Eventually, I expect to see national regulation that will allow play to be conducted across state lines, and even internationally.
The ugly side of all of this is that millions of dollars in players' funds remains tied up by the Justice Department. Full Tilt Poker has yet to repay American players, but PokerStars actually has, and after reaching a deal with the D.O.J it hopes to be able to set up shop in the states again in the not-too-distant future.
The biggest problem is that the company's founder, Isai Scheinberg, remains a wanted man. The U.S. has charged him with a long list of complaints, including money laundering, bank fraud, and illegal gambling operations. The only reason he has kept his freedom is that the U.S. does not have jurisdiction over the 200 square mile Isle of Man, where PokerStars is headquartered. New Jersey's online poker law says that that only operators of actual casinos in the state will be able to obtain online gambling licenses. PokerStars tried to get into the market through the purchase the Atlantic Club Casino Hotel in Atlantic City, but the owner of the casino backed away from the deal, apparently believing it could get a higher price.
It is hard to imagine online poker returning to the U.S. on a national level without PokerStars being a part of the game, but it is going to face some stiff opposition. Opponents will point out not only the fact that the company's founder is wanted by U.S. officials, but also that the company continues to operate in countries with questionable gambling laws such as Russia.
Last year, Russia's Supreme Court ordered one of the country's internet providers to block access to online gambling sites, but Russians still represent a major portion of poker players on PokerStars.
PokerStars does have some things in its favor: the company has excellent software, huge marketing power, it reached a successful deal with the D.O.J, and has powerful lobbyists working in its favor. It seems primed for a successful return to the U.S., but for now the door remains closed.
The online poker industry is huge, and with so many states facing budget shortfalls it appears to be online a matter of time before we see a full return to the states. You can be sure that it will become legal once again, but whether or not PokerStars gets back into the market is still a big question mark.
As online poker comes back to U.S., PokerStars tries to get back in
The Danish poker pro lost $1.1 million on Thursday, according to HighstakesDB.
Unknown high-stakes grinder Cottonseed1 benefited the most from Hansen’s huge slide, siphoning off more than $500,000 from Hansen during a short session at limit Omaha eight-or-better. In addition to that game, Hansen was playing the $500-$1,000 capped pot-limit Omaha games. He won numerous pots with the max of $80,000, but still lost overall.
With the loss this week, Hansen is back to nearly $9.5 million in losses on Full Tilt Poker over his career playing on the site under the screen name “Gus Hansen.”
Things were looking up for Hansen when he won almost $1.6 million during a single 19-hour session at the nosebleed limit tables on or around May 14. However, true to form, he wasn’t able to maintain any traction, giving it all back over the next 10 days or so.
Hansen has lost just under $3 million online this year.
His online poker life has been wild for years, though he was largely a winner over the first couple years of his time as a sponsored pro for (old) Full Tilt Poker. He started to go on a downswing around mid-2009, and by late 2010 it had amounted to a horrific slump. However, around the time of his first WSOP bracelet Hansen went on a historic heater that lasted nearly a year. He had to take a break from online poker when Full Tilt shut down.
Since returning it has been brutal for one of the best live tournament players of all time. Once in awhile he puts together a strong week, but then he quickly gives it all back before the poker community can start to actually wonder if he has figured things out.
According to the numbers, Hansen is arguably the most unsuccessful player in online poker history, at least among the regulars who grind seemingly day in and day out.
High-Stakes Online Poker: Gus Hansen Loses $1.1 Million On Thursday
Two free places in the event are up for grabs to players who send in a photograph of themselves dressed as Zorro to [email]PokerHero@bodognetwork-com[/email].
Free seats will also be warded to the first person to bust out of the WSOP Main Event Day 1A and to the Bubble Boy (or Girl)—the last person to exit the Main Event before the prize money starts to be awarded.
Jonas Odman, President of the Bodog Poker Network explained: “When we launched the APS the event was designed to give those who’ve had a bad poker experience a better one… and feel these players fit the parameters perfectly.”
Bodog has committed itself to the recreational player model and promotes its anonymous tables as a way for players to avoid being targeted by poker sharks.
Bodog Wants More Zorro
“I owed people a bunch of money, and it’s something that I’ve been working on for a long time, but I definitely slipped up, made some really bad mistakes and I needed to address that.”
Now it seems the poker pro who is 27th overall on poker’s ‘All Time Money List’ with $8,569,334 in winnings may finally have gotten his life back on track. This month, not only did he take down the $1,500 WPT World Championship in Las Vegas for $39,722, but he has now made the final table of the $25k WPT Championship Main Event, where he has already guaranteed himself a minimum payout of $173,993.
Nevertheless, Erick Lindgren’s focus will purely be on taking down the top prize worth $1,150,297, and adding another WPT title to the two he already possesses. As the final days action gets underway later today, Lindgren will start the final table of six in second spot (3.355m), behind another player who had also had his fair share of controversy, namely Chino Rheem (5.495m). Other finalists also competing for the title include Jonathan Roy (1.9m), Matt Hyman (1.56m), Brandon Steven (1.21m), and David Peters (1.085m).
Before succumbing to a gambling problem, Erick ‘Edog’ Lindgren was the toast of the poker tournament scene and had fans wherever he travelled. Similarly, Lindgren will still have his die-hard supporters at the WPT Championship final table, as well as the support of those players still hoping to retrieve owed money from the Las Vegas resident.
A big score now could see Lindgren’s rehabilitation put firmly back on track, and as he explained earlier; “I don’t want to stop my profession. I just want to get better at it. I want to stay in full control, which means not gambling wildly, not going beyond my bankroll and gambling with other people’s money. I want to gamble the right way and do my profession as well as I can.”
Erick Lindgren On The Rise Once More?
Gus Hansen has come crashing down after a big upswing during the middle of the month, which makes one wonder if he can ever recover the magic he had before Black Friday in April 2011. He was on a $6 million upswing during the spring of that year.
The Danish poker pro lost $1.1 million on Thursday, according to HighstakesDB.
Unknown high-stakes grinder Cottonseed1 benefited the most from Hansen’s huge slide, siphoning off more than $500,000 from Hansen during a short session at limit Omaha eight-or-better. In addition to that game, Hansen was playing the $500-$1,000 capped pot-limit Omaha games. He won numerous pots with the max of $80,000, but still lost overall.
With the loss this week, Hansen is back to nearly $9.5 million in losses on Full Tilt Poker over his career playing on the site under the screen name “Gus Hansen.”
Things were looking up for Hansen when he won almost $1.6 million during a single 19-hour session at the nosebleed limit tables on or around May 14. However, true to form, he wasn’t able to maintain any traction, giving it all back over the next 10 days or so.
Hansen has lost just under $3 million online this year.
His online poker life has been wild for years, though he was largely a winner over the first couple years of his time as a sponsored pro for (old) Full Tilt Poker. He started to go on a downswing around mid-2009, and by late 2010 it had amounted to a horrific slump. However, around the time of his first WSOP bracelet Hansen went on a historic heater that lasted nearly a year. He had to take a break from online poker when Full Tilt shut down.
Since returning it has been brutal for one of the best live tournament players of all time. Once in awhile he puts together a strong week, but then he quickly gives it all back before the poker community can start to actually wonder if he has figured things out.
According to the numbers, Hansen is arguably the most unsuccessful player in online poker history, at least among the regulars who grind seemingly day in and day out.
High-Stakes Online Poker: Gus Hansen Loses $1.1 Million On Thursday
As a representative for Ultimate Poker owned by the UFC and a division of the Ultimate Gaming company, Esfandiari proved to be a good face for the online poker room speaking intelligently and candidly on the success thus far of Nevada’s first legal online poker site.
After all, the headlines read on a daily basis, “Its Not a Question of if Online Poker Will Be in Your State, It’s When!” States like New Jersey and Nevada are at the forefront of these headlines in their charge to projecting just what type of budget they can prepare for. For example Governor Chris Christie is projecting a $180 million tax take from gambling.
Its also been reported the that “troublesome twelve” casinos in Atlantic City reported a first quarter profit of $41.4m in 2013 thus far, I’m sure PokerStars would argue part of that profit was due to its $11 million investment into the failed partnership deal with the Atlantic Club Casino; who posted a Q1 operating loss and still was $5m in the red.
Despite some setbacks New Jersey continues to move forward, this week hiring Mario Galea, former head of Malta’s Lotteries and Gaming Authority, as the state’s official consultant on online gambling regulations. Galea will assist in the implementing of any proposed regulations governing online gambling activities.
Earlier this week New Jersey announced plans to publish a draft of proposed Internet gambling regulations in the New Jersey Register on June 3. Some analysts believe this will give the state the upper hand getting more players down the shore and more importantly logging online as they push to offer online bets by the end of the year.
New Jersey definitely seems to be heading in the right direction with its plans of legislation of online gambling, even having the lead over Nevada, who only offers poker. New Jersey will have the advantage in online gambling, offering all the games currently in its 12 casinos.
John Kempf, managing director of RBC Capital Markets, estimated Internet gambling could be a $500-million-to-$600-million-a-year market for New Jersey.
As far as PokerStars, I don’t believe they are out of the equation, with an overwhelming 54% share in the global online poker market, you can expect something to happen soon.
The Dirty Stack, Online Poker Projections, Proposals and Profits | CS Report
The players played the tournament online, rather than live, and Rafa finished about half way up the field when his K-Q was beaten by J-6.
The top 20 finishers all received a PokerStars chip set signed by the tennis legend.
Rafa joined the PokerStars Team six months ago and since then has been prominent in many of their promotions.
On top of his Grand Slam victories, he won the Olympic Gold medal in Beijing in 2008. He is currently defending his title at the Roland Garros event in Paris, where today, he overcame losing the first set against Daniel Brands to make it to the second round.
Rafa Nadal On Court for Poker Tournament | Pokerfuse Online Poker News
The online poker system will be provided by Caesars Interactive’s partner, 888 Holdings Plc, the company that already operates the World Series of Poker websites in the United Kingdom, France and Italy.
CZR to launch online poker system this summer :: GamingToday-com
His latest book is called Straight Flush: The True Story of Six College Friends Who Dealt Their Way to a Billion-Dollar Online Poker Empire–and How It All Came Crashing Down. In this interview, Ben talks about how he comes up with the ideas for his books and tracks down sources, why he focused on the online poker world for his new book, and the inner workings of the online poker world.
How do you come up with ideas for books and find sources?
Actually, ever since Bringing Down The House, I have been inundated with stories- people pitch me about ten times a week, just about every college kid who has ever done something crazy sends me an email. So most of my stories have come via email, twitter, or through phone calls from mutual friends. Once i get a story that interests me, i work my way in with the main characters; i become a part of the story as much as possible, and spend about three months getting inside whatever craziness is going on.
What got you interested in Online Poker and the Story you tell in Straight Flush?
Basically, it started with an email from one of the founders of Absolute Poker; but previously, i had played a little online poker, and i had many friends who lost money when the government shut down the industry on Black Friday. (as it became known). Once i started talking to the guys who had gone to Costa Rica and built this wild company, i became hooked. It had all the elements i like to write about- money, sex, exotic locales, vast fortunes made and lost- and it was also wrapped around what i perceive to be a hypocritical bullshit use of the justice system.
How were they able to maintain their online poker empire for so long?
Initially, there was nothing obviously illegal about running an online poker website. The Wire Act from the 1960′s was focussed around sports betting, and poker is mostly a game of skill, not chance; it was never clear- still, to this day, it is unclear- that online poker is illegal. When, in 2006, the unlawful gambling act was passed, it was still murky as to whether or not there would be any prosecution. The AP guys grew their business because there was a very hungry customer base; millions of people play poker, all over the world. When the other poker companies fled the us market after the 2006 law, the AP guys decided to take the risk and stay in business.
How did they initially react when they found out that poker was banned?
Poker was never banned. Online poker is not illegal. The thing that became illegal in 2006 was the transfer of money used in “an illegal gambling enterprise” as defined by any state legislation. So in certain states, the movement of money into an online poker company became illegal. When this passed, the AP kids were blown away, very upset; they’d gone from almost being billionaires to taking legal risks- to eventually becoming fugitives- basically overnight.
What are a few of the lessons they learned throughout the book?
Cocaine is a dangerous drug. The New York State’s Attorney Office is not to be trifled with. Antigua is a very beautiful island but the thought of being trapped there for the rest of your life is pretty terrifying. Sometimes you really do need to know when to hold em, when to fold em, and when to just walk away.
Do you feel that online poker should be banned in america?
Of course not. The lottery is legal and regulated and run in nearly every state. Horse racing exists in many states. There are casinos nearly everywhere. The whole country bets on March Madness. Poker is a game of skill; online poker should be regulated and taxed, like it is in nearly every other country in the world.
Ben Mezrich: How 6 College Friends Built A Billion Dollar Online Poker Empire - Forbes
As legislation slowly progresses on a state level, federal lawmakers are trying to put together a workable online gambling bill which all states could benefit from as long as it is approved by state legislature. States would have the option of opting in or out of the bill.
It is expected that a second federal bill will be introduced later this summer.
Pappas recently met with Rep. Joe Barton, who is sponsoring the bill, and was told that it is a work in progress. Previous attempts by Barton to introduce bills have failed to gain enough support.
While there has been successful state legislation, players are eager for federal legislation as it will eliminate many problems that could arise on the state level. Furthermore the whole country will be able to begin playing much more quickly if there is an opt-in federal plan.
Federal Online Poker Bill Expected Next Month - Online Casino Archives
Porter was sharing his views at a panel featuring Mark Lipparelli, former chairman of the Nevada Gaming Control Board, and Tom Breitling, chairman of Ultimate Gaming. The trio spent around two-and-a-half hours talking about how the land gambling industry can peacefully co-exist with the online gambling industry.
Ultimate Poker, an online poker brand largely belonging to Station Casinos, is an excellent example of the peaceful co-existence of traditional land-based gambling and online gambling. The first licensed online poker site to be launched in the US, Ultimate Poker has half of the loyal Station Casinos customer base as its registered users. Moreover, Ultimate Poker players can use the loyalty points they have earned through real money online poker play at any Station Casino property in Las Vegas.
Breitling said: “We’re creating jobs, generating tax revenues, and protecting players. We’re learning every single day.” All the three agreed that it is high time the US federal government legalized online gambling, but only Porter expressed optimism that such a bill might be passed in the current term. He said, “It will come back this season. It won’t be a stand-alone bill. It will be attached to something else.”
While giving Senator Harry Reid the credit of proposing and popularizing the federal online poker bill, he said that Reid will not be able to manage it alone as he will not get the support of the Republicans.
Lipparelli and Breitling agreed that state-wise legalization is now the major focus of gambling companies. Now that Delaware, Nevada, and New Jersey have already legalized online poker, other US states such as California are seriously considering following in their footsteps. All speakers were absolutely sure that online gambling will stay in the US for a long time.
When asked about PokerStars, Porter expressed fears that Nevada, which has a “bad actor” clause in its regulations, would suffer if PokerStars got a license in New Jersey.
Former Congressman Optimistic about Federal Online Poker Bill
David ‘Doc’ Sands has just become the fifth player in less than eight weeks to secure a seven-figure score playing live tournament poker. Sands paid $100,000 to take a seat in the World Poker Tour Super High Roller event, in the season finale at The Bellagio in Las Vegas, where he defeated Joseph Cheong in heads-up action to win $1,023,750 - his second seven figure score of 2013 after receiving $1,259,320 for finishing second in the $98,000 Super High Roller in the Bahamas back in January.
Joe Cheong picked up $614,250 for his runner-up spot, but he is one of the five who has been fortunate enough to grab a million after winning the Macau Millions in April for $1,343,370. Cheong currently has $2.5 million in live tournament earnings this year alone.
The European Poker Tour Grand Final also saw three people join the millionaire club. First, Steve O’Dwyer won the Main Event for $1,604,972 and then Max Altergott and Jason Mercier hit the one-two in the €100,000 Super High Roller. Altergott picked up $2,289,970 for first and Mercier snagged $1,462,964 for second.
Millionaires are becoming more frequent at the poker tables - more than an incentive to play...and hopefully win!
Live Tournament Poker Makes Five Millionaires in Eight Weeks - Mirror Online
Online poker would generate $10 billion in added revenues by 2017 if allowed by federal statute, according to the American Gaming Association. About $4 billion is now being spent for illegal sites, the AGA said.
U.S. casinos have been slow to launch online poker sites because the slow pace of state approvals doesn't allow them to cross state lines to attract more gamblers and bigger winnings.
MGM Resorts International believes Nevada may be too small a market for it to serve with an online site, Chief Financial Officer Dan D'Arrigo told Reuters.
The bills will likely face opposition by state legislatures and lottery officials. If passed, the legislation would allow the federal government to preempt states like Nevada and New Jersey that are moving ahead with their own laws and accelerate efforts in states like California and Illinois that are considering such legislation.
Congressmen Peter King, a Republican, and Joe Barton, a Democrat, will each introduce bills, according to aides.
Previous bills in Congress have failed. The bills, as currently contemplated, would allow individual states to opt out of federal online poker requirements.
Bills to legalize online poker will be introduced in Congress | Reuters
Online poker affiliate PokerVIP has allegedly been enabling players from the USA to access the network via virtual private networks. Affiliate Muchos Poker has also be prohibited from accessing iPoker with the network sighting “security concerns.”
PokerVIP allowed players from the USA to cash in and out from European poker sites “without worrying about ID verification.” Jamie Nevin who operates the service has denied that the iPoker investigation is targeting his company in particular and has stated that “in no way do we knowingly facilitate players from banned territories to play on any network.”
While the complicated nature of this issue is still being assessed the Playtech organization is concerned this scandal will affect the company’s ability to enter the online gambling market in the USA. The argument from officials who are allocating licenses may contend that a firm who can’t determine if a player is from a regulated environment how could they be capable of determining if a player is from a certain state.
A Poker Affiliate Listings forum post relayed information regarding the VIP issue. “The US players were registered on the rooms with different addresses and used a VPN, then pokervip-com transferred money to them per person to person transfer … once a player wanted to cash out they transferred back to pokervip-com and got the money transferred in a way US players can accept such as Paypal, or bank transfer.”
This issue can be volatile for iPoker which is hoping to pass the ‘suitability’ test by online poker regulators in the USA. The stakes are high for Playtech which has been attempting to play the game by the rules in the USA by leaving the American market immediately after the UIGEA was imposed. Digital chicanery is part of a problem that is sure to surface again and again with problems arising with adverse results.
Playech's Online Poker Network Affiliate Concerns