Proposed gaming regulations covering the operation of Internet poker in Nevada -- should the federal government legalize the activity -- drew lots of attention Monday, but little in the way of controversy.
The Gaming Control Board spent about 75 minutes taking public input into the proposed regulations, which cover all matters of regulatory oversight for a company looking to set up an Internet poker business in Nevada.
Just a handful of comments were offered during the session, which filled the control board's hearing room at the Sawyer Building with gaming lawyers, gaming industry consultants and representatives of various Nevada slot machine makers and casino operators.
"I think we have a solid foundation for regulations," control board Chairman Mark Lipparelli said. The proposed regulations were released at the end of August.
Lipparelli said the planned timetable for the regulations would be for additional public hearings at the control board's and Nevada Gaming Commission's November meetings, followed by adoption votes in December.
The state Legislature, through the passage of Assembly Bill 258, mandated that Internet poker regulations be established by Jan. 31.
"This timetable gives us some flexibility if something changes before January," Lipparelli said, such as Congress taking up legislation covering Internet poker.
Lipparelli said minor "clean-up language revisions and changes" for various subsections of the regulations came from nearly a dozen proposals submitted by gaming equipment manufacturers, such as International Game Technology, Bally Technologies, and Cantor Gaming, and by casino operators, including Caesars Entertainment and Boyd Gaming Corp.
Equipment testing company Gaming Laboratories International also suggested modifications.
Most of the companies asked the control board to keep their comments private.
Lipparelli expected to have a new draft of the regulations available within two weeks.
The only flare-up Monday was over the difference between Intrastate poker -- gambling online within Nevada's borders -- and Interstate poker -- gambling online across state boundaries.
Gaming attorney Anthony Cabot, who was representing Fertitta Gaming -- the company that owns 45 percent of Station Casinos -- suggested the regulations carry some type of language that they could not be used for Intrastate wagering until a federal ban on Internet gambling is lifted or there is a clarification from the U.S. Department of Justice.
Former control board member Randall Sayre, however, said the language was clarified during a Senate Judiciary Committee hearing on AB258. The regulations prohibit deployment of an Intrastate system before the federal government takes action on Interstate gaming.
Sayre, a past consultant to PokerStars, wouldn't say whom he was representing.
Cabot also wanted the regulations worded so that a gaming customer would have the "seamless ability" to transfer gaming funds between a casino account and an interactive gaming account, if they were operated by the same company.
Lipparelli said other language changes would define marketing representatives working with Internet gaming sites.
In answer to a question from an attorney, Lipparelli said any Nevada-licensed gaming equipment manufacturer or casino operator would have to apply for a second interactive gaming license under state statute.
Equipment makers pay a licensing fee of $125,000, plus $25,000 annually. The major casino operators pay $500,000 for the initial license fee and $250,000 annually.
The Internet gaming regulation proposals include rules for the finding entity suitability, technology approvals, audit and record-keeping, and customer enrollment. The proposals spelled out regulatory oversight of internal controls by the online gaming companies and established a disciplinary process for regulatory violations.
Two weeks ago, the American Gaming Association began a concerted lobbying effort to push for regulation of the online poker industry in the United States. Last week, the U.S. Attorney for the Southern District of New York released an amended civil complaint accusing Full Tilt Poker’s owners of paying themselves more than $440 million over the past four years and leaving players in the lurch for $390 million.
It’s been a rocky time for the online poker industry. Americans who enjoyed playing the game on their home computers are demanding regulation so they can get back in the game without fear of having the balances in their accounts seized by the feds.
But there is danger in the rush to regulate. Good public policy is essential for all regulations. And if Congress doesn’t get online poker regulations right, everyone (the players and the industry) will suffer the consequences.
So here is my plea to Congress: get it right. My top-10 wish-list items for online poker regulation will be a good start.
10. Allow direct registration to live events from online satellites
It seems unlikely that any legislation regarding online poker in the U.S. would address this issue, but if it did, it would probably be to ban it, which would be a mistake. The World Series of Poker’s heyday came in 2006, when Jamie Gold won the Main Event in a field of 8,773 players for a record $12 million first-place prize. However, in the wake of the passage of the Unlawful Internet Gambling Enforcement Act in late 2006, the WSOP stopped permitting online poker rooms that allowed U.S. players to directly register their satellite winners, and as a result, the sites had to give satellite winners cash in their accounts and let them decide whether they wanted to play or just take the money. The result was that many players chose to take the $10,000 payday, and attendance at live events suffered. Sure, having the option was great for players, but I want to see enormous fields at live events. If you don’t want to play in a live event, then don’t play in the satellite. If players were directly registered by poker rooms and didn’t have the option to take the cash, the WSOP Main Event would have more than 10,000 players, and I’m all for that.
9. Eliminate rakeback
There are quite a few multi-table online grinders who will take umbrage with this suggestion, but I’m an equal opportunity kind of guy. I didn’t know about rakeback when I signed up for my first few online poker accounts, and as a result, I could never get rakeback on those sites without creating a second account, something I was unwilling to do. (It’s against the terms and conditions of sites to have more than one account.) I’m not a high-stakes or high-volume player, but over the course of seven or eight years, that probably cost me a few hundred dollars. I don’t think that’s fair. I’d prefer a system with a lower rake charge for all players and/or a more robust player loyalty system. Reward players with bonuses and freerolls, rather than a rakeback scheme that rewards only those in the know.
8. Regulate the staking marketplace
There have been too many scandals of late involving the staking of players, with the most recent being Nick Rainey’s alleged scam to get investors to stake him for the WSOP Main Event and then, after getting together enough (or perhaps more than enough) cash, deciding not to play. (According to a thread on twoplustwo, Rainey is now paying players back.) The current system, based on a code of ethics and reputation, is not working. It’s too easy for cheats and scammers to steal from people (or at least try … poker sleuths are notorious at uncovering scandals). However, if online sites allowed players to sell pieces of themselves through their own software, they could make sure any payouts went to the right people, at the right percentages. And if a player decided not to play an event, the money would simply be returned to the backers. Perhaps most importantly, from a Congressional point of view, this would allow for accurate tracking of winnings for tax purposes.
7. Allow casinos to link loyalty programs
This is a no brainer, and I can’t imagine that any online poker regulations in the U.S. would not allow casinos to link loyalty programs in their online poker rooms to their brick and mortar properties. Can you imagine paying for the WSOP Main Event with player points? I can, and I’d do it in an instant.
6. Prevent minors, allow self-exclusion
There are too many stories about underage players gaming online poker rooms and finding a way to play. And I’m sure there will always be underage players who will try to play online. But they need to be stopped. Require social security numbers if you have to. But online poker should be an adult-only game. Additionally, should Congress regulate online poker, there should be a place where people can go to sign up for a self-exclusion list, and all sites should be required to make sure that no one on the self-exclusion list is able to play on their sites.
5. Allow global play
This may be a much harder sell to Congress, unfortunately. I fear that Congress will only allow U.S. play in a segregated market, such as France does. And while the U.S. will certainly be able to produce a robust online poker market, it likely won’t match what PokerStars currently offers its players, thanks to its global reach. (The U.S. market represented only about 25 percent of PokerStars’ player pool before Black Friday.) Online poker players are used to being able to play against anyone in the world at any time of day. Please, Congress, don’t take that away from us.
4. Ban data mining, hand histories sales and HUDs
I hate the fact that you can buy hand histories online. I hate that people use information that they didn’t personally gain at the table against you. I hate that players use software that takes all that information and neatly package it so players can see your tendencies right there, in blac
This past friday, A man in Doncaster, Yorkshire in Great Britain suffered serious head injuries and was taken to the hospital after an assault. The incident took place in a car park after a poker night at a local pub. The 37-year-old, from Carcroft, was beaten up outside the Grove Inn, York Road, in the early hours of Friday morning, according to police.
The incident took place around 1:15 in the morning according to the police, who want to talk to anyone was in the pub that night. Witnesses should call South Yorkshire Police on 0114 2202020 quoting incident number 45 of September 23, 2011. They can also ring Crimestoppers anonymously on 0800 555 111.
Poker's a game that brings people together, but it should be remembered that care should be taken when the game is taking place, especially when there's alcohol and tensions are running high. Stay alert when leaving any gaming space and always bring a friend whenever possible.
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The US federal prosecutors stated Tuesday that one of the online poker rooms that was driven out of the US online poker market in April is actually a major Ponzi scheme at a global level. The Department of Justice (DoJ) made certain amendments in their civil complaint against Full Tilt Poker, the online poker room referred to, in which they alleged that the online poker company used player funds to pay the owners hundreds and millions of dollars. According to the investigators, the online poker company used $444 million belonging to online poker players to pay its board members, including professional poker pros Howard Lederer and Christopher Ferguson.
Full Tilt Poker had led its US poker players to believe that their funds were safe, secure, and protected and wouldn’t be used for any other purpose; but the US DoJ says that company was down to $60 million in its bank accounts in March while it had to pay around $390 to its players. FTP stands accused of mixing up player funds with investor and owner funds and using other players’ deposits to pay out winnings.
Preet Bharara, the US attorney, has issued a strong statement to the effect that FTP is not only guilty of bank fraud, as previously alleged, but is also guilty of cheating its own players of millions of dollars.
It may be recalled that the US federal government had cracked down on 3 major poker giants Absolute Poker, PokerStars, and Full Tilt Poker this April and had lodged a criminal complaint against FTP executives Raymond Bitar and Nelson Burtnick. The federal government is yet to make certain arrests.
According to US law, accepting gambling-related funds amounts to unlawful gambling, which is punishable by law. But big online poker companies continue offering online poker services to US players on grounds that they are outside the reach of US gambling laws, being based in offshore locations.
In its amended lawsuit, the US DoJ holds that Full Tilt Poker had assured its poker players that their funds are separate, safe, and secure and have nothing to do with FTP operating funds, but had actually used player funds for various purposes such as paying board members and owners.
According to the DoJ indictment, Bitar and Lederer received $41 million and $42 million, respectively. It also states that, while Ferguson was supposed to have received $87.5 million, he might have received just $25 million.
Who came out on top in the weekly $100,000 guaranteed online poker tournament held this past Sunday, September 25th? bryder took first place this week, earning $23,600. They were followed by Caesar17 ($13,600.00) and suchaduberstein , who rounded out the top three spots while earning $9,100. Here's the rest of the final table results: loll ($7,000.00); bratty5 ($5,700.00); UFPokerStar ($4,500.00); RockyC ($3,300.00); kingkai ($2,200.00) and VIsualFusion ($1,300.00).
In addition to our show-stopping Sunday events, Bodog hosts its regular weekly tournaments to players, and here's the winners of last week's events!
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September 23 • $10k Guaranteed Turbo Double-Stack slimmer06 ($5,197.50)
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This weekend five more players won their way into the Punta Cana Poker Classic, so let's have a big hand for wausau, Hixx, bjrobins123, Beesterbunny and AArdvArKK
If you've never heard of the Punta Cana Poker Classic: here's what you need to know.
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A productive, constructive Monday hearing was a sure sign that Nevada is moving full speed ahead on one of its most important economic initiatives.
No, it wasn't the opening meeting on the Southern Nevada Water Authority's plan to pump large amounts of groundwater from rural areas and pipe it 300 miles south to the Las Vegas Valley. No doubt, pipeline opponents will continue their fight long after the hearings conclude Nov. 18.
That contentious daylong gathering in Carson City was a stark contrast to a Las Vegas meeting of the Nevada Gaming Control Board, which addressed proposed Internet poker regulations. The board heard public input for about 75 minutes, taking just a few comments from a room packed with lawyers, consultants and gaming industry representatives.
"I think we have a solid foundation for regulations," board Chairman Mark Lipparelli said. Once cleanup revisions are made, regulations that were released just a month ago should be adopted by the control board and the Nevada Gaming Commission by December.
That's just the first step, of course. Federal law still prohibits Internet gaming, and although the Justice Department is coming down hard on online poker sites that ignored the ban, Congress seems inclined to repeal the heavy-handed statute.
Nevada is moving quickly because officials want an oversight structure in place the very day Congress legalizes Internet poker. That will enable Nevada companies to jump into a multibillion-dollar market immediately and establish the state as the best place for poker sites to do business.
To describe legalized, regulated Internet poker as a game-changer for the battered Nevada economy is an understatement. It holds the potential to create high-paying, technology-related jobs and boost tax collections without raising existing levies.
Now Nevada's congressional delegation, led by Senate Majority Leader Harry Reid, needs to press the issue in Washington. Congress is consumed by budgets and President Obama's class warfare agenda, but could easily complete the process of legalizing Internet poker by early next year.
There is no compelling reason for the federal government to deny millions of Americans the ability to compete in a game of skill from the comfort of their own homes.
The water authority's pipeline might need a decade to navigate court challenges and complete construction. But Nevada will be ready in just a few months to open a massive pipeline to a new kind of business. That's something the state can be rightly proud of.
The 2011 World Championship of Online Poker drew to a close over the weekend, with victory in the $5 million guaranteed Main Event going to Thomas “Kallllle” Pedersen from Denmark.
Thomas Pedersen rose from being in the middle of the pack with just three tables remaining, to dominate the final table, claim the $1,260,000 first prize and championship bracelet. Speaking in a post-match interview, Pedersen said his next goal was a live Championship, and he could be making the short journey across the North Sea this week to compete in the EPT London.
Big Nemo Forces Tie at Top of WCOOP Leader Board
The Main Event was also the final tournament in which players could earn points for the WCOOP Leader Board competition. Having been out front since the first week, Joel Adam Brown (“2FLY2TILT”) was caught on the line by Canada´s “big_nemo”, with Daniel Negreanu (“Kid Poker”) holing out in third. The two winners will each receive an EPT Season 8 Grand Final prize package, 2012 SCOOP Main Event ticket, 2012 PokerStars Caribbean Adventure package, and a Special Edition Chip Set. Negreanu wins a SCOOP entry and a chip set.
The WCOOP Surpasses Guarantees by More Than 50%
The WCOOP Main Event smashed it $5 million guarantee by sharing out $8.135 million to the 189 players who made it through the bubble on Day 2. This level of “over-subscription” was typical of the 61 Championship tournaments which had preceded the Main Event. Originally, the whole series had been guaranteed with $30 million in prize money, but throughout the three weeks of the World Championship of Online Poker, PokerStars distributed $47,120,800.00 in prize money – making it the third most successful series of all time without any Yankee dollars contributing to the pot.
Moving to Canada can be Good For You
With the absence of players from the USA, Canada took top place in the prize money tables – winning $6,473,000 of the cash on offer. Despite Thomas Pedersen´s fantastic effort in the Main Event, Denmark did not feature near the top of the country standings for total amount of money won – with Russia finishing second, the UK third and Germany fourth. Canada and Russia also provided the 1-2 for the most number of cashes and tied for the number of players from each country who reached the final tables of the 62 events. Russian players won a total of 10 WCOOP events, with the UK in second, the Netherlands in third and Canada in fourth.
No Rest for the Wicked
The next major online poker event (for UK poker players at least) happens tonight at 7.25pm (BST), when PokerStars are hosting an EPT London Super Satellite with 10 packages guaranteed for the EPT Main Event which starts on Friday (travel expenses, accommodation and entry in the EPT Main Event). The buy-in is £525.00 and PokerStars will be adding further packages for each £8,000 in the prize pool. If the £525.00 buy-in is a bit steep at short notice, qualifiers for the Super Satellite are running throughout the day from just £3.30. Checkout PokerStars for more information.
The Nevada Gaming Control Board held a public regulatory workshop on Monday to field questions and possible revisions to the new Regulation 5A, which lays out the framework for online gambling in the state. According to several reports, the hearing went extremely smoothly, as attorneys, former regulators, and officials from gaming companies raised few concerns during the 75 minute session.
Assuming the rest of the process for finalizing regulations goes as smoothly as the workshop, Regulation 5A should be set by the end of the year. Gaming Control Board Chairman Mark Lipparelli told the Las Vegas Review-Journal, “I think we have a solid foundation for regulations.”
The new regulations designed to have everything in place so that the state of Nevada can begin to issue licenses to online poker firms should one of two things happen: a) the federal government formally legalizes online gambling, or b) the U.S. Department of Justice tells the Nevada Gaming Commission or the Gaming Control Board that interactive gaming is allowed by federal law. Regulation 5A establishes the framework for all things online gambling related, such as licensing, internal controls, and self-exclusion requirements, along with dispute resolution procedures.
Prior to any final changes, some items which may interest online poker players include:
• Legal online gambling age will be 21.
• Licensees will be required to maintain a revolving fund of $20,000 to pay for compliance investigations.
• Players may only have one account at a given operator and may not use fake names.
• Credit cards are allowed as a means to deposit player funds.
• Inter-account transfers between players are not permitted.
• Hand histories must be kept by the operator for five years.
• Operators must take proactive steps to prevent bot use.
According to VegasInc.com, RedRockOne CEO Michael Jabara spoke up at the workshop, urging the Gaming Control Board to adopt the regulations as soon as possible so that Nevada can have a first mover advantage on other states that may be considering similar online gaming regulations. As stated earlier, it does sound like everything will get done sooner rather than later, as Nevada wants to be both the brick and mortar and online gaming capital of the United States.
In a statement made in August after Regulation 5A was drawn up, Lipparelli said, “Internet poker has become a multibillion-dollar business around the world.
“The technology supporting it, while not perfect, has improved dramatically since its introduction. Similar to our land-based requirements, Nevada will establish high standards giving players as much confidence as possible in the entities and technologies that might eventually gain approval.”
Unlike other online poker and gambling legislation in various stages in other states, these regulations would govern a game open to players worldwide (or just within the United States, depending on what the eventual federal law says), rather than simply within state borders. This is a long-term plan for Nevada, which wants online poker companies to lay their U.S. foundations in the Silver State once the game is legalized on the federal level. Not only would Nevada receive licensing fees, but the gaming firms would create jobs for state residents.
LISTED BOOKMAKER Paddy Power has applied for a gaming licence in Nevada, positioning itself to become the first European player to enter the US state’s online market if it is liberalised.
The Irish company yesterday confirmed reports it had applied to the Nevada Gaming Commission for an online gaming licence.
A decision is due on its application in November.
If it were to be approved, it would be the first European business to get the green light from Nevada regulators to operate online gaming in the state.
Nevada politicians recently approved regulations that will allow online gaming in hotel bedrooms and other “non-gambling” areas of resort casinos.
The company has applied for the licence in order to be in a position to capitalise in Nevada should the opportunity arise, rather than because it has any firm plans.
It is likely that any opportunity it does pursue would be similar to the deal that it has with the Pari Mutuel, the French state-owned betting business. Paddy Power supplies and operates the company’s risk-management systems.
The Irish company, meanwhile, has won a long-running planning battle to get permission to open a betting shop in Newmarket in Suffolk.
Some local bodies objected to the plan on the grounds that the town already had too many betting shops and that the site chosen was a prime retail location.
Newmarket is the traditional epicentre of flat racing in Britain and is home to two racecourses and many of the leading training yards.
Representative Barney Frank, one of the biggest political advocate for legalization of online gambling, has not changed his views in spite of the bank fraud, illegal gambling, money laundering, and Ponzi scheme allegations levelled against the owners and operators of Full Tilt Poker This online poker giant that was driven out of the US online poker market in mid April this year. Responding to the allegations levelled against professional poker players Howard Lederer, Rafael Furst, and Chris Ferguson that they cheated loyal Full Tilt Poker players of nearly $440 million, Frank said that he was disappointed to hear the latest developments, but will not change his views about the pressing need to legalize, regulate, and tax the US online poker industry. He even stated that he is now more convinced than ever that online poker has to be legalized at the earliest.
Barney Frank has been urging for the legalizing of the online gambling industry from 2007. Those opposing moves to legalize online poker used the Full Tilt Poker example to strengthen their arguments, with some of them even accusing Frank of supporting criminals and receiving thousands of dollars as campaign contributions from illegal online gaming sites.
Tim Buckley, the spokesman for Massachusetts GOP, said that Frank should return every cent he received in the form of campaign contributions from online gambling companies.
In response, Frank said that he will return all the $18,600 he had taken from Furst, Lederer, and Ferguson, stating that he would donate it to any fund created to compensate Full Tilt Poker victims or poker players still waiting for their money. In the absence of any such fund, Frank said that he will turn over the funds to some charity.
Most of the people in the online poker industry feel that the Full Tilt Poker saga has intensified the need to legalize US online gambling. Since the online poker sites are based in offshore locations, there is nobody to monitor them and ensure that players’ money is really safe and always accessible, owing to which the US needs to form strong laws to regulate the industry.
Frank and other advocates of legalized online poker feel that the US federal government is wasting valuable time and resources by pursuing online poker rooms instead of nabbing the real criminals. He also suggested that US attorneys focus on mortgage fraud and spend more time on empty houses than on full houses.
The Nevada Gaming Control Board held a public hearing to discuss a proposal to allow legalization of online poker, hoping to become the first state to have regulations in place when the federal government passes legislation permitting internet poker in the U.S.
“I think we’re fairly close,” said Control Board Chairman Mark Lipparelli, on the prospects of the board being ready to sanction online poker. “I think we have a solid foundation, but there may be changes based on written comments that were submitted.”
The hearing was conducted as a workshop in which the board members answered questions and listened to testimony from poker players, attorneys, regulation experts and company representatives aiming to have a financial stake in online poker.
The proposed guidelines, known as Regulation 5A, require that no Nevada licenses be granted until a federal law is enacted or until the control board is contacted by the Department of Justice and given approval to operate online poker games. This guideline was apparently established keeping in mind the recent civil charges filed against Full Tilt Poker and its board members Howard Lederer, Chris Ferguson and Rafael Furst, who were accused by Preet Bharara, the U.S. Attorney for the Southern District of New York, of running a “global Ponzi scheme.”
Additional components of Regulation 5A include protection of poker players’ account information and identity, affirmation that the poker player is of legal age, never extending credit to any players, and that online players not be blacklisted from any Nevada casino. Also, online poker rooms are required to report any wagers that might be suspicious and any new online poker license awarded will be separate from any existing Nevada gaming licenses. All online gaming systems are subject to review and approval by the Nevada Gaming Commission.
The licensing fees have been set at $500,000, with yearly renewals to cost each licensee $250,000. Service provider licenses are fixed at $125,000 with an annual renewal rate of $25,000.
An additional Nevada Gaming Control Board meeting had been scheduled for October, but since Monday’s hearing ran so smoothly, Lipparelli indicated that October’s meeting may be cancelled. The board and the Nevada Gaming Commission are planning public hearings in November, setting the table for the commission to make its final approval of the regulations in December, well in advance of the deadline of January 31, 2012, set by state law.
One of the speakers at Monday’s forum, Michael Jabara, President & CEO of RedRockOne, Inc., a Las Vegas-based startup company specializing in getting brick and mortar casinos into the online world, urged the board to approve the regulations as soon as possible to maintain an advantage over other states that might be proposing the regulation of online poker.
Paddy Power which is based out of Ireland and supplies numerous venues of online gambling establishments to gamblers in Europe and other International countries has begun to position itself into the US online gambling market once it becomes legalized by applying for a Nevada gambling license. This license will allow this well respected and renowned company to manufacture and operate their own brand of mobile gaming devices and supplies.
Paddy Power CEO, Breon Corcoran stated that “Using this method of allying for a license in Nevada for manufacturing and distributing online gaming is a tried and true means to allow a broad number of options when the market opens its doors in the US. Nevada is the target zone right now for international online gaming companies to apply for future license because they are the first state that is on its way to a regulated online gambling future. Laws have been passed this year in Nevada that will allow online gambling once the Federal Government changes its stance on internet gaming, which seems to be getting closer and closer as days go by. Regulators in Nevada have told lawmakers that preparation should be made for the future on gambling as we know it, once online gaming is legalized they need to be prepared to compete.
Nevada Gambling operators have lost many customers since the economic recession and legislators have been trying to find ways to make the gambling industry viable again. Its believed that if and when online gaming becomes regulated in the US, it will be the land based casinos that will take over the market first before letting international companies enter the market and this is why we have seen big names in the gambling industry such as Caesars and Harrah’s creating their own brand of online poker and casino sites that as of now are only marketed in foreign countries. But the backend work is already done, and Nevada operators are just waiting for the market to open up legally in the US. By partnering with already established foreign gambling companies it will solidify Nevada casino owners in the online gambling industry immediately with a customer base already in place.
Troubled online gambling operator Full Tilt Poker said Friday that French business tycoon Bernard Tapie has agreed to buy the company and its assets despite its legal troubles in the United States and the revocation of its gambling license. Full Tilt said in a news release that Tapie — a former government minister, sports tycoon and actor — has agreed to the sale on condition that the company settle its legal troubles favorably. Company executives are facing federal charges of money laundering and fraud to run a gambling business in defiance of a 2006 law that prohibits online poker operations in the U.S.
The site attributed its announcement to Laurent Tapie, managing director of Groupe Bernard Tapie. Laurent Tapie said the group signed an exclusive agreement with Full Tilt's board for the sale, according to the statement.
Attempts to reach Tapie were not successful on Friday. A telephone call to Groupe Bernard Tapie by the Associated Press went unanswered.
Full Tilt said the agreement includes a plan to repay balances of players worldwide who haven't had access to their gambling funds since April.
Federal prosecutors in New York said that in March, Full Tilt had $60 million in funds to cover $390 million in player balances, and had used $444 million to pay company executives and board members, including a few well-known poker professionals.
U.S. Attorney Preet Bharara last week said Full Tilt was running a Ponzi scheme, an allegation the company said is untrue.
Bharara spokeswoman Carly Sullivan declined comment to the AP on the report of a Full Tilt-Tapie deal.
The announcement comes one day after gambling regulators on the British Channel Island of Alderney revoked Full Tilt's gambling license that it used to operate its online card room worldwide. The executive director of the Alderney Gambling Control Commission said Full Tilt had severe financial problems including bogus accounting, unauthorized loans and a failure to report significant material events.
Full Tilt shot back with an unnamed statement saying the commission's decision potentially damaged its ability to be sold.
Full Tilt's operations in the United States were effectively shut down after several top executives were named in an April 15 indictment that went after Full Tilt, Absolute Poker and PokerStars, as well as individuals accused of helping the companies process money.
Prosecutors said the companies tricked banks into processing payments by setting up shell websites and disguising transactions as sales for things like golf balls and flowers.
Full Tilt on Friday cited Tapie's experience in saving financially troubled businesses and bringing them to profitability. It specifically cited his 1990 purchase of sportswear maker Adidas.
Tapie was awarded $449 million in 2008 (285 million euros at the time) over the botched sale of Adidas after he said he was defrauded out of millions in the sale.
Tapie served six months in prison in 1997 after being convicted of bribing soccer players to throw a 1993 match against Olympique Marseille, a team he owned. He was also convicted of fraud for deliberately misleading authorities about a luxury yacht.
It was not immediately clear whether Tapie's past would hinder Full Tilt's ability to obtain a new gambling license. Gambling regulators typically investigate potential licensees, though commissions in different jurisdictions vary in how strict they are on background checks.
Several phone calls to the Alderney commission received only a busy signal after business hours in Alderney on Friday.
But the commission's executive director, Andre Wilsenach, said in announcing Full Tilt's revocation that the business could be licensed again.
"It is important to note that the revocation of (Full Tilt Poker's) licenses does not, as has been suggested, prevent a reactivation of the business under new ownership and management," Wilsenach said.
The top official at the Channel Islands regulator that licensed troubled Full Tilt Poker to run an online poker business said Saturday that he became aware the site had major financial problems only after the U.S. government in April indicted executives for the company and filed charges against the company.
"What wasn't known to us is that the Department of Justice had frozen funds associated with the operation of Full Tilt," said Andre Wilsenach, chief executive of the Alderney Gambling Control Commission, in comments to gambling attorneys and regulators at a conference in Las Vegas on Saturday. "The funds we thought were cash was not cash and were not available to players or to the company."
The gaming regulator is a key actor in the implosion of Full Tilt, which was one of the most popular poker sites in the world until April when the U.S. government indicted executives at the company and other online gaming sites, alleging bank fraud and other charges.
The U.S. Justice Department then singled out Full Tilt earlier last month, accusing the company of defrauding players in what it called a Ponzi scheme. Poker players around the world are owed more than $300 million from Full Tilt, including $150 million for U.S.-based poker players. The company has denied wrongdoing but acknowledged it had a shortage in funds. The U.S. government says online gambling is illegal under various laws.
The Alderney commission last week said it revoked Full Tilt's license to operate around the world after concluding the company had falsely reported it had access to funds that weren't available.
On Friday Full Tilt said it had received an offer from a French investor that could allow it to pay back money it owes players. However, the details of how Full Tilt would do weren't described in the terms of the deal, a person close to the situation said. Completion of a deal is conditioned on a settlement with the Justice Department in a civil suit seeking more than $1 billion, among other factors.
Alderney was one of the first jurisdictions to offer licenses to operate Internet gambling, which are accepted by regulators in some other jurisdictions, including the U.K. The island's regulators have been criticized by some poker industry observers recently for continuing to allow Full Tilt to operate even though the company was running low on funds. Alderney temporarily suspended Full Tilt's license in June and then permanently revoked it last week. It said the company could reapply under different ownership and management.
Mr. Wilsenach on Saturday said the commission had granted Full Tilt a license after the regulators received legal opinions from various attorneys in the U.S. that suggested the laws could be interpreted to allow online poker. While the Justice Department has long contended Internet poker is illegal, the laws don't specifically state that running an online poker site is illegal.
"It was not evident whether what they were doing in the U.S. was lawful or not," Mr. Wilsenach said.
He said the situation underscores the importance of sharing information between various jurisdictions because Alderney wasn't aware the U.S. had targeted Full Tilt and was freezing funds associated with the company.
"The lack of cooperation around the world resulted in a situation where we were not as effective as we could have been," he said. "There is absolutely a need for broader and fuller cooperation."
The commercial casino industry is pushing a federal bill that would legalize online poker in the U.S. The industry has seized on the Full Tilt case to argue that online poker should be legalized so that U.S. regulatory bodies could oversee poker companies that are taking bets in the U.S.
The possibility of new Internet poker legislation has become a focal point for many U.S.-based casino companies hoping to gain from a potential new source of revenue as growth of their casinos slows.
At the conference Saturday, executives from such casino giants as MGM Resorts International and Caesars Entertainment Inc. said they are evaluating how to structure poker sites they would run if the federal government legalizes Internet poker.
Caesars has teamed with an online poker company to offer poker outside of the U.S., but the company would likely develop and own such a site on its own if it is allowed to operate in the U.S., said Jonathan Halkyard, chief financial officer of Caesars.
Executives from Station Casinos Inc. and MGM Resorts International said they also expect online poker to become a big part of their business, but said they haven't determined how they would structure an online operation.
The executives said they don't expect online gambling to take business away from their land-based casino businesses.
"We certainly believe this is coming," Mr. Halkyard said. "Our industry is about the only retailing industry that doesn't serve its customers online. We think it's going to be a huge business and that it won't cannibalize an existing business."
At a later session on Saturday, Michael Leven, president of Las Vegas Sands, another large casino company, said his company is far more tepid than its peers and doesn't think that the federal government is likely to legalize online gambling any time soon.
Instead, Mr. Leven said he expects Internet gambling to be operated at the state level in systems that are closed to people who don't reside in that state. Several legislatures have recently considered such legislation.
The company is concerned that online gambling will take away from casino gambling, he said.
Las Vegas Sands is in a somewhat different situation from MGM, Caesars and some other U.S. casino companies pushing the federal Internet poker legislation because it sees the vast majority of its revenues come from overseas casinos and isn't as dependent on the slow-growing U.S. casino market.
The top official at the Channel Islands regulator that licensed Full Tilt Poker to run an online-poker business said he became aware the site had major financial problems only after the U.S. government in April indicted company executives and filed charges against Full Tilt.
"What wasn't known to us is that the Department of Justice had frozen funds associated with the operation of Full Tilt," Andre Wilsenach, chief executive of the Alderney Gambling Control Commission, told attorneys and regulators at a conference in Las Vegas on Saturday. "The funds we thought were cash were not cash and were not available to players or to the company."
Full Tilt was one of the world's most popular poker sites until April, when the U.S. government indicted executives at the company and other online-gambling sites on bank-fraud and other charges. The Justice Department singled out Full Tilt last month, accusing the company of defrauding players in what the government called a Ponzi scheme. Poker players around the world are owed more than $300 million from Full Tilt, including $150 million for U.S.-based players. The company has denied wrongdoing but acknowledged it was short on funds. The U.S. government has said online gambling is illegal under various laws.
The Alderney commission last week said it revoked Full Tilt's license to operate around the world after concluding that the company falsely reported that it had access to funds. The commission said the company could reapply under different ownership and management.
Full Tilt said Friday that it had received an offer from a French investor that could allow the gambling operator to pay back players. Completion of a deal is subject to a settlement with the Justice Department in a civil suit seeking more than $1 billion, among other factors.
Alderney was one of the first jurisdictions to offer licenses to operate Internet gambling, which are accepted by regulators in some other jurisdictions, including the U.K. The island's regulators have been criticized recently by some poker-industry observers for continuing to allow Full Tilt to operate even though the company was running low on funds.
Mr. Wilsenach on Saturday said the commission had granted Full Tilt a license after the regulator received legal opinions from attorneys in the U.S. that suggested laws could be interpreted to allow online poker. While the Justice Department has long contended Internet poker is illegal, the laws don't specifically say that running an online-poker site is illegal. "It was not evident whether what they were doing in the U.S. was lawful or not," Mr. Wilsenach said.
He said the Full Tilt situation underscores the importance of sharing information between jurisdictions because Alderney wasn't aware that the U.S. had targeted Full Tilt and was freezing funds associated with the company. "The lack of cooperation around the world resulted in a situation where we were not as effective as we could have been," he said. "There is absolutely a need for broader and fuller cooperation."
The casino industry supports legislation that would permit online poker in the U.S. The industry has seized on the Full Tilt case to argue that online poker should be legalized so U.S. regulatory bodies could oversee poker companies that are taking bets in the country.
Executives from such big casino companies as MGM Resorts International and Caesars Entertainment Inc. said at the conference Saturday they are evaluating how to structure poker sites if the federal government legalizes Internet poker. Caesars has teamed with an online-poker company to offer poker outside of the U.S., but the company likely would develop and own such a site on its own if it is allowed to operate in the U.S., said Jonathan Halkyard, chief financial officer of Caesars. Executives from Station Casinos Inc. and MGM Resorts International said they expect online poker to become a big part of their business.
Executives said they don't expect online gambling to take business from their land-based casino businesses. "We certainly believe this is coming," Mr. Halkyard said. "Our industry is about the only retailing industry that doesn't serve its customers online. We think it's going to be a huge business and that it won't cannibalize an existing business."
Michael Leven, president of Las Vegas Sands Corp., said his company is more cautious than its peers and doesn't think the federal government is likely to legalize online gambling soon. He said he expects Internet gambling to be operated at the state level in systems that are closed to nonresidents. Several legislatures have considered such legislation recently.
Las Vegas Sands is concerned that online gambling will hurt casino gambling, he said. The company is distinguished from U.S. casino companies supporting federal Internet-poker legislation in that most of its revenue comes from overseas so Las Vegas Sands isn't as dependent on the slow-growing U.S. casino market.
There is not doubt about the fact that it has been a long and very rocky road for American online poker operators, say nothing of what recent events have meant to many professional players. The AGA (American Gaming Association) started concentrated efforts just two weeks ago – to push for legislation, and Full Tilt are knee deep in the ‘you-know-what’ again. Players have been left in the lurch and apparently as much as $390 million is owed to them, while owner of this poker site have paid themselves more than $440 million during the last four years.
Professional American online poker players have been putting pressure on the government to let them have back their game. For many years; playing poker onkline has been the only way they could make a reasonable living. Let’s face facts, the American economy has not been great, and there are not too many openings in conventional society for ex-professional online poker players?!
However, sometimes a huge catastrophe is what it takes to get things moving in the law, and certainly the reason why the AGA has stepped in to lobby and leverage efforts for legislation, is so that the public is protected. Essentially they don’t want a disaster on the scale of the of Full Tilt fiasco, to ever take place again. Despite the rough road for the US online poker industry, players still want regulation so they can login to their home computers and play without fear, and despite what the DoJ says, the US government works for the people and not the other way round.
Players putting their foot down and demanding action from the Government may make them sit up and take notice, but there are dangers in rushing this legislation. We have to remember that it was the rush to regulate, or rather deregulate, that caused all the problems in the first place, and the dreaded acronym UIGEA, has been the cause of all the problems. Let’s hope that lawmakers don’t make the same mistake again!
The UK's top online virtual poker site PKR has praised the winners of the British Poker Awards, paying particular tribute to the community of online British players in the game today.
The British Poker Awards (BPA) is hosted annually and is where new and seasoned pros from the world of poker congregate to show their appreciation for the year's best card players. The free online poker games at PKR are incentivised with big bonuses such as tickets to major live tournaments like the World Series of Poker in Las Vegas.
Jake Cody, a young professional Brit, claimed the biggest UK accolade of the night - 'Player of the Year.' Cody's table aggression and skill helped towards him bagging 'Best Tournament Player' for 2011 as well. His passion for the game is evident in his play style, which he sometimes takes to the virtual tables like those at PKR.
Cody enjoyed a hugely successful online year before adding to his long list of honours by winning a World Series of Poker bracelet at the heads-up event in June.
Founded in Britain, PKR have always supported the home grown players like Cody and the site has a great community of Brits who play together regularly in satellite tournaments, cash games and 'grand prix' events.
A spokesperson for the poker site commented:
'We want to say a big congratulations to Jake who thoroughly deserved to win his awards. Young, unique players like him are what make the game immortal and who knows - the next young star could be playing on our online tables right now. We're inviting everybody to play for free on PKR and be in with a chance to go to the big live tournaments.'
The award for 'Best Online Player' went to Chris Moorman, who also hails from the UK. PKR are constantly updating their site with free poker tournaments which can lead to major opportunities like Cody and Moorman have gone on to seize with both hands this year.
Membership is free and signing up is easy, to find out more visit pkr-com
He may seem like something out of a pulp novel from the 1930s, but apparently, Jimmy Logan is a real man with a unique skill that has us all a bit agog here: he'd a blind man who wins at poker. Jimmy, who's almost totally blind, can't even tell red from black but by using special big-print cards, he's ended up winning his way up through the ranks in his pub league into £1000-a-seat Texas Hold 'Em poker tournaments in his home town of Edinburgh, Scotland.
The 49-year-old has perfected a method of reading audio cues to figure out of rivals are holding a good hand. He told the UK's The Daily Record: "It's true – I couldn't tell if you were laughing, smiling or crying. But most players have an audio sign. One guy I know, if he rifles through his chips I know he has a good hand. Some make funny noises – and I listen because I can't see. And because there are only two cards, I'm as quick as anyone else – and I am good at concentrating."
Not only is Jimmy a good player: he's an honest one. He rarely uses braille cards, as he believes they give him an unfair advantage.
He said: "If I deal, it means I can tell what hand everyone holds."
Jimmy Logan is definitely someone to keep an eye out for in the future. [Ed note: Ouch!]
The Gaming Control Board spent about 75 minutes taking public input into the proposed regulations, which cover all matters of regulatory oversight for a company looking to set up an Internet poker business in Nevada.
Just a handful of comments were offered during the session, which filled the control board's hearing room at the Sawyer Building with gaming lawyers, gaming industry consultants and representatives of various Nevada slot machine makers and casino operators.
"I think we have a solid foundation for regulations," control board Chairman Mark Lipparelli said. The proposed regulations were released at the end of August.
Lipparelli said the planned timetable for the regulations would be for additional public hearings at the control board's and Nevada Gaming Commission's November meetings, followed by adoption votes in December.
The state Legislature, through the passage of Assembly Bill 258, mandated that Internet poker regulations be established by Jan. 31.
"This timetable gives us some flexibility if something changes before January," Lipparelli said, such as Congress taking up legislation covering Internet poker.
Lipparelli said minor "clean-up language revisions and changes" for various subsections of the regulations came from nearly a dozen proposals submitted by gaming equipment manufacturers, such as International Game Technology, Bally Technologies, and Cantor Gaming, and by casino operators, including Caesars Entertainment and Boyd Gaming Corp.
Equipment testing company Gaming Laboratories International also suggested modifications.
Most of the companies asked the control board to keep their comments private.
Lipparelli expected to have a new draft of the regulations available within two weeks.
The only flare-up Monday was over the difference between Intrastate poker -- gambling online within Nevada's borders -- and Interstate poker -- gambling online across state boundaries.
Gaming attorney Anthony Cabot, who was representing Fertitta Gaming -- the company that owns 45 percent of Station Casinos -- suggested the regulations carry some type of language that they could not be used for Intrastate wagering until a federal ban on Internet gambling is lifted or there is a clarification from the U.S. Department of Justice.
Former control board member Randall Sayre, however, said the language was clarified during a Senate Judiciary Committee hearing on AB258. The regulations prohibit deployment of an Intrastate system before the federal government takes action on Interstate gaming.
Sayre, a past consultant to PokerStars, wouldn't say whom he was representing.
Cabot also wanted the regulations worded so that a gaming customer would have the "seamless ability" to transfer gaming funds between a casino account and an interactive gaming account, if they were operated by the same company.
Lipparelli said other language changes would define marketing representatives working with Internet gaming sites.
In answer to a question from an attorney, Lipparelli said any Nevada-licensed gaming equipment manufacturer or casino operator would have to apply for a second interactive gaming license under state statute.
Equipment makers pay a licensing fee of $125,000, plus $25,000 annually. The major casino operators pay $500,000 for the initial license fee and $250,000 annually.
The Internet gaming regulation proposals include rules for the finding entity suitability, technology approvals, audit and record-keeping, and customer enrollment. The proposals spelled out regulatory oversight of internal controls by the online gaming companies and established a disciplinary process for regulatory violations.