Archive for the ‘Opinion’ Category

April 30, 2012

Casino Poker Rooms Suffer in Post-Black Friday Era

Live poker a weight to recovery without online support

Las Vegas casino gambling revenues have been on a notable rebound. But in the year following online poker’s Black Friday, brick and mortar poker room revenues haven’t necessarily kept pace.

From February 2011 to February 2012, according to the the latest Nevada Gaming Control Board report, the state’s total gaming revenues (excluding sports books) increased by 5.6 percent, while revenues from poker dropped 1.4 percent. Las Vegas’ Clark County grew gaming revenues by 6.6 percent, while poker revenues slipped 1.1 percent.

Atlantic City has struggled with competition from new slot parlors in Pennsylvania. But even here, the toll on poker was larger. The latest report from New Jersey’s Division of Gaming Enforecement, Atlantic City’s total gaming revenue fell 5.0 percent from March 2011 to March 2012. Poker revenues fell 6.9 percent.

One poker room in Atlantic City handily beat the trend. Revenues at the Borgata’s poker room rose 28 percent. The Borgata played host to a number of major tournaments in the past year. The poker room staff is also very active on online poker forums such as 2+2.

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Posted by at 2:46 pm

March 26, 2012

Poker Player Tax Advice

Government wants its cut, and should you file a Form D-bag with your W-2G?

With April 15 right around the corner, poker players are undoubtedly thinking about Black Friday Anniversary Parties remembering in the normal-people world that the real “Black Friday” isn’t until November, and oh crap, you mean federal income taxes weren’t just part of the tournament entry fee!?! And while there isn’t a blank specifically on a 1040 for seized funds or PokerStars T$, poker players (particularly those with online money in play) might-should presume they are being looked at more closely than ever for Fiscal 2011 — assuming, of course, you haven’t already been under full investigation and/or negotiated an IRS settlement as part of turning state’s evidence in the cases against your former poker-mates.

OK, before I over-insinuate: some news-you-can-use for poker players looking to play it straight with the Feds:

Attorney Brad Polizzano (aka @taxdood) has a series on PokerFuse about various tax matters pertinent to poker players — such as rakeback, staking agreements, and Form 8-Ben Lamb, I think it’s called?

And Theresa Fox (@TfoxCPAinc) talks taxable income on Strategy with Kristy n — tackling matters for anyone with gambling winnings in play, especially those that may have transpired in some capacity across international borders:

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Posted by at 7:35 am

March 13, 2012

Is the Price of Poker Going Up?

Statistical Cost Survey for the 2012 WSOP

Vegas was hit hard by the bursting housing bubble and recession. As a result, WSOP-bound poker players found travel and lodging bargains over the past few summers. But with these and other ancillary economic factors in flux, 2012 could prove to be more challenging for frugal gamblers … unless you are an alcoholic vegan who flies no frills with no checked bags, rents a condo instead of getting a hotel room on (or near) the Strip, and opts out of any $1 million buy-in events. Then you should be OK.

Gas prices: If you’ve filled your gas tank lately, you know you’re paying more for a gallon of gas. On average, gasoline prices are running 7.8 percent higher than they were this time last year. If you’re planning a cross-country drive, you can anticipate some additional expense. Check out the gas prices by region here.

Airfares: Airlines are fairly efficient at passing on higher jet fuel costs to their passengers. Surprisingly, airfares to Vegas are substantially lower this year. Use Expedia’s “Trend Tracker” to see how much lower your route is this year over last. Low cost carriers have added flights to Vegas in the past year, keeping a lid on airfares. Spirit Airlines has added 119 weekly flights into Vegas since last year and Allegiant enjoy Air has added 32 flights per week — while higher cost carriers have cut back. Airport statistic geeks will McCarran’s monthly flight activity reports.

Hotel Rates: When MGM’s City Center opened in December 2009, it dumped more than 4,000 hotel rooms into an already saturated market. But the slow and steady economic recovery has been taking up some of the slack. As a result, the average daily rate (ADR) for hotels is higher this year. According to their latest financial statements, the ADR for MGM Strip properties is $127, up 10.4% from last year. The ADR for Caesars Entertainment’s Las Vegas properties is up 8.3 percent to $9.  The Wynn’s ADR is up 15.2 percent over last year, coming in at $242.

Condo/House Rentals: House and condo rental prices are marginally lower this year, according to the latest from HUD’s Fair Market Rents Data Set. If you and your friends are heading out for a prolonged WSOP stay, you might consider a short-term house rental. But be careful. Rental scams in Las Vegas involving foreclosed properties are not uncommon. Read this article to learn more about these scams.

Food and Beverage Prices: Overal, food and beverage prices are up 4.2% since last year. It’s especailly bad if you lived off hamburgers (up 10.6%) and coffee (up 15.4%). Vegans, however, will save this year (fresh fruits and vegatables are down 0.1%). And its not too bad for alcoholics. Stocking the bar at your condo will only be 2.1% more expensive this year. You can check out the BLS CPI report for more details.

WSOP Buy-Ins: If your goal is to play the most expensive event at the WSOP, you are going to have to fork over much more than last year. Last year’s $50,000 Poker Player’s Championship looks like a bargain compared with this year’s $1 million “Big One for One Drop” event. If $1,000 and $1,500 buy-in events are more your speed, however, you are in luck. The 2012 WSOP schedule includes two additional events in the weekend-warrior price range. Less good news for the frugal: juice is still 10 percent for these events (7 percent for entry fees and 3 percent for tournament staff).

Posted by at 12:36 pm

February 28, 2012

Don’t Shoot!

Violence & Poker - Is it worth reporting?

Come in, sit down, and let me slide an analogy across the table. Imagine that two businessmen meet over a game of poker. During the course of that game, they hammer out a deal to create a brand new company. Should the poker media report it? I don’t mean morally. I mean, is that something you – our particular audience – would find interesting? I doubt it. Even if you happen to possess a particular partiality for late-night business deals, that interest is irrelevant to poker. To co-opt a bit of Latin, your interest in the story qua poker is nil.

Here comes the second half of the analogy. Imagine that two gentlemen meet over a game of poker. During the course of the game, they get into a disagreement that results in one player wounding his opponent by means of gunfire. Exciting right? Violence, crime, projectiles! I’m sure you’d be interested in that sort of thing. Hey, and it involves poker too, so that means that we can report it in the poker media. Win win!

But really, does a reader’s desire to learn about this violent crime have anything to do with the fact that it occurred next to an upturned circle of felt? Once again, your interest in the story qua poker is minimal. It’s unlikely that you’ll be asking what the stack sizes were when the shooting took place or whether the man with a bullet in his leg has ever won a WSOP Circuit ring.

At this point it’s fair to ask, ‘so what?’ If a story provides titillation, who cares that it only has a tangential relation to poker? If the audience enjoys it, print it.

There is a problem however and to expose it we can ask for a helping hand from one of the great thinkers of the Enlightenment. Scottish philosopher David Hume argued that we could never truly know when one thing caused another. Instead we could only establish that two events were regularly correlated. We can lay aside his intellectual musings for the moment, but his insight into the human condition is extremely relevant. Hume’s discovery was that when two events happen frequently one after the other it is a natural human tendency to assume that the former plays a part in causing the latter, even if their connection is just coincidence.

In many ways, the press have the power to curate your world view. So far as the poker media are concerned, what we choose to report makes a big difference to what information you absorb. Twitter and Facebook have broken down those barriers to some degree, but a written report from a major poker news outlet still highlights an event in a way that the burbling of social media cannot match. In other words, we can make certain correlations more distinct.

To quote another equally important thinker, “with great power comes great responsibility.” If we choose to regularly report on poker shootings, both ‘poker’ and ‘shooting’ become more commonly correlated in the minds of our readers. The knowledgeable sorts who bookmark Pokerati can see through such illusory causation, but not every site is blessed with such learned readers. The openness of the internet also means that anyone could pick up on a story at any moment, immediately highlighting it in even bolder lettering; adding to the weight of correlation. Not to mention poker’s many enemies, who will leap at the chance to trumpet any bad press they can find.

Let’s leave crime reporting to the crime blogs, except in cases where poker plays a tangible role. Focussing on stories of shootings at poker games adds nothing of interest to the general tapestry of the game and only serves to further denigrate the image of a pastime that is fighting for legal and moral recognition.

Posted by at 7:12 am

February 2, 2012

(Not So) New Episode(s) of The Micros

Award-winning poker cartoons for fun

Jeesh, everything’s so serious these days … or stupid. Either way, it’s been too long since we forgot to tell you about the latest from The Micros. It really was a funny episode a month ago. But like always, lol because it’s true!

And we have a bonus late episode — the Micros’ pitch for people to vote for them in the 2011 Bluff Readers Choice Awards, where Rose, Chase, and Tommy somehow got lumped in with all the podcast/video/live radio newsy shows (in the category The Poker Beat always dominated) and cleaned up.

Enjoy, if you haven’t already.

Posted by at 2:58 am

December 28, 2011

The unco-operative Mr. Beckley (Part II)

No question mark this time—further indications that he's not a co-operating witness

I wrote a blog post a week ago suggesting that Brent Beckley, who pleaded guilty on December 20th to two federal counts in the Black Friday indictments, may not be a co-operating witness for the government. This was based on a reading of the press release issued by the US Attorney’s Office for the Southern District of New York (the USAO) and a comparison of what we know of Mr. Beckley’s situation with what we know of Bradley Franzen’s circumstances. Recall that Mr. Franzen pled guilty this past May to three counts associated with the same superseding indictment. Last week’s post was not based on a review of Mr. Beckley’s plea agreement, a copy of which was posted at the Association of Players, Casinos, and Webmasters’ website.

Based on a comparison of Mr. Beckley’s plea agreement with Mr. Franzen’s plea agreement, I’m even more convinced that Mr. Beckley is not a co-operator.

More…

Posted by at 12:31 pm

December 21, 2011

The Unco-operative Mr. Beckley?

Brent Beckley pled guilty in US federal court in Manhattan yesterday to two counts contained in the criminal indictment unveiled in April of this year (United States v. Scheinberg et al). The first count was conspiracy to engage in unlawful Internet gambling, contrary to 18 U.S.C. § 371—this is a general conspiracy provision applied to the purported UIGEA violations. The second count was conspiracy to commit bank fraud and wire fraud, contrary to 18 U.S.C. § 1349, with reference to offences under 18 U.S.C. §§ 1343 and 1344. Mr. Beckley was the “director of payment processing for Absolute Poker,” according to the government’s press releaseVin Narayanan, who indicates that he has read the plea agreement, reports that federal prosecutors have recommended a sentence of between 12 and 18 months and that Mr. Beckley also agreed to forfeit $300,000 as part of his guilty plea.

One of the more intriguing parts of the US Attorney’s press release is the following sentence: “He [Mr. Beckley] is scheduled to be sentenced by United States Judge Lewis A. Kaplan on April 19, 2012, at 4:00 pm.”

Why is that interesting? Because I think it might indicate that Brent Beckley is not (or at least is not thus far) a co-operating witness for the government. I think he’s made his guilty plea to the court, thereby admitting his own involvement, but without rolling over on anyone else.

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Posted by at 10:12 am

December 13, 2011

Take the Poker Survey – Win an Apple iPad2!

FYI from the PPA

Have you been thinking about buying an iPad? Do you want to help the PPA in its mission to restore your Internet poker freedoms? Well, now is your chance to kill two birds with one stone, by taking this new poker survey. Working with U.S. Gaming Survey, the PPA has created a poker specific survey to help us better understand the playing community and in turn help us better advocate for your interests in Washington DC. Once you’ve fully completed the survey, your name will be entered into a drawing for a brand new Apple iPad2. The survey is completely anonymous, and your personal information will not be shared with anyone. Click on the button below to begin the survey and help the PPA help you! The survey will remain open until December 30th noon EST. The iPad2 prize winner will be announced on January 3rd, 2012.

Posted by at 2:47 pm

November 1, 2011

www.bwinpartymgmboyd.com

Some thoughts on a new joint venture

Yesterday, MGM Resorts International (NYSE:MGM), Boyd Gaming (NYSE:BYD), and bwin.party digital entertainment (LSE:BPTY) announced a joint venture in the United States. This as-yet-unnamed entity – to be owned 65% by bwin.party, 25% by MGM, and 10% by Boyd – would, according to the Las Vegas Review-Journal, ”offer poker to U.S. customers under bwin.party’s brands.”

There appear to be the usual outs for the parties if Congress doesn’t legalize Internet poker. While it may seem that these three are hitching their wagon to federal legislation (no particular surprise for Boyd and MGM), the release from bwin.party mentions the possibility of a state-by-state strategy being adopted. Unlike the federal JV, if the US goes state by state, “[t]he shareholders and shareholdings in a State NewCo may vary, depending on the state concerned and reflecting the contributions to be made by each shareholder. In addition to bwin.party, shareholders in State Newco may include MGM, Boyd and other partners.” Bwin.party seems to be leaving its options open, which is smart for them at this stage.

The various media stories also suggest that the deals are contingent on regulatory approval, i.e., sign-off from Nevada gaming regulators, who are expected to be key regulators under a federal ipoker regime. Will Nevada conclude that bwin.party is a suitable partner? It’s unclear. Bwin.party says it’s “preparing to enter into a suitability review with the Nevada Gaming Control Board in order to secure an advanced finding of suitability in anticipation of future US-facing real money poker opportunities.” Presumably it’s confident that it will succeed.

More…

Posted by at 12:29 pm

October 26, 2011

Not If, But How …

@PPAPoker: Players have shifted attitudes in Washington DC

ppa al damato barton hearingAs you know, the House Subcommittee for Commerce, Manufacturing, and Trade held a hearing [yesterday] examining the potential regulation of Internet gambling.  The hearing entitled, “Internet Gambling: Is There a Safe Bet?” called upon a variety of witnesses to discuss how best Internet gambling can be regulated in the U.S.  Among the witnesses was Poker Player Alliance Chairman and former Senator, Alfonse D’Amato.  A complete list of witnesses and their full testimonies is available here. You can also watch the full 2 ½ hour Committee hearing on CSPAN.com here.

Meeting with members before and after the hearing, I was immensely proud to hear every lawmaker tell us that they are being contacted by poker players. The question on the lawmakers’ minds was not “if” internet poker should be regulated, but rather “how” regulation should look.

Senator D’Amato did an exceptional job and delivered impassioned remarks defending your right to play.  He urged Congress to adopt rules and regulations to ensure American consumers have a safe marketplace in which to play poker on the Internet.  In fact, when it came to consumer protections the conclusion of every witness before the Committee was that regulation was far better than the status quo.  And, more importantly, that sentiment was also expressed almost unanimously by the lawmakers who attended the hearing.  The question on the lawmakers’ minds was not “if” internet poker should be regulated, but rather “how” should regulation look.

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Posted by at 4:46 am

October 5, 2011

Ranking the Rankings

With Ivey off the leaderboard, who else is there?

{democracy:69}

NOTE: this poll is semi-scientific at best, and like my first fake ID, “for entertainment purposes only.”

Phil Ivey recently dropped off ESPN’s admittedly subjective player rankings, The Nuts. ESPN’s was the last of such lists to still include the self-exiled Full Tilt Pro in their Top 10. (Homers.)

I found this out via PartTime Poker, which seems to be doing a pretty cool monthly bit over there — breaking down player standings across four different ranking systems, each with their own calculation biases and level of subjectivity in determining the best poker players in the world.

Perhaps surprisingly, I still recognize most at least half of the 21 names comprising the four different Top 10s … but I’ll bet the rest of the world surely doesn’t. There’s a reason, after all, Jason Mercier doesn’t even have a Q-score.

So with subjectivity in mind … best player, winningest player, field strength, skill measurement, tournament luck, run-good ratios, late position likability, backer’s credit score …

Posted by at 2:59 am

October 3, 2011

Where is the Collective Outrage?

When I looked at the numbers, I had to re-evaluate

tom schneider political humor

Tom Schneider


OP-ED

Ed. Note:  Shortly after Tom wrote this piece, the AGCC revealed that some $330 million had been seized pre-Black Friday. I sent an email asking if this changed the math, to which Tom replied, “That’s almost all that they owed to players, just short $60 million which is purportedly what they had in the bank.  Makes my case even stronger.”


Just yesterday, I heard the news that the Department of Justice accused Full Tilt Poker of running a Ponzi scheme.  A Ponzi scheme is defined as a pyramid investment swindle in which supposed profits are paid to early investors from money actually invested by later participants.

I object your honor.  Taking money I deposit and distributing it to owners is no Ponzi scheme.  But wait, let’s look at some facts/guesses.

Had our politicians not passed a law that restricted financial institutions from transferring money to and from poker sites, all players would still have their money. 

In reviewing the DOJ complaint and other sources, the following information jumped out at me:

Money owed to players  ($390 million)
Cash on Hand, Seized or Frozen Cash, Deposits not Received From Players
Money seized by US Government $115 million
Deposits not received from players* $180 million
Money frozen by banks $42 million
Money in Full Tilt bank accounts $60 million
$397 million
Shortfall to pay account holders None/Zip/No Shortfall

More…

Posted by at 8:00 am

October 2, 2011

Feel the Shame

It's the scummy poker world, not just Full Tilt, on trial

jesse may poker shame
Jesse May

OP-ED

It didnt’t really bother me when Poker Spot folded, because that guy had history. And I laughed about the money Aces Poker stole, because anyone who trusted them couldn’t ever spot a cheat. The Ultimate Bet scandal wasn’t really that surprising, as we’d heard stories about him for years. And it never shocked me when they cheated me in Atlantic City, or went partners against me in Vegas, or at Foxwoods tried to do a runner with my funds. The nips, the moves, the cheats, the angle shooters, and those that were just plain thieves. For the past ten years when the stars put on their caps and badges and smiled for the TV, we used to smile to ourselves. And then we’d laugh as we’d tick off the big names in poker and say, “But he’s really just a little scumbag, isn’t he?” Because they pretty much all were. And that’s the way it’s always been.

I didn’t always think like that, of course, and neither did you. I came into poker just like yourself, wide eyed and dough faced and on the back of a little bit of luck. Full of passion for the game and a romantic view of the poker world and a desire to be accepted by the rambling gambling men who ruled. It’s natural when you have a pocketful of money and a bellyful of gamble and all the confidence in the world, it’s natural that when it comes to people you can be a little naïve. I certainly was, and so probably were you.

I’m ashamed that I have sat by in silence while you all cheated, stole, and lied. I know you, you thieving tournament directors, you scumbag poker players, you dirtbag angle shooters with your names stitched on your shirts. I know you. And I’m ashamed that I’ve sat here for twenty years and let you rule the poker world as long as I was still getting paid.

But you get wiser because you have to. My circle got small and my radar got sharp and I could count all the people that I could really trust on maybe one hand. And I told them they could trust me. And pretty much everyone else were scumbags and cheats. In poker, that’s the way it’s always been. That’s the way it’s been for me, and that’s the way it is for you. And we don’t ever talk out of turn. Because in this world if you shit where you eat, then you’ll end up hungry. That’s what you need to know about poker. That’s what you need to know about me.

I’ve been around long enough so that just one more scam, cheat, or mismanagement of funds, one more of those should be just like more water off another duck’s back. But something happened to me when Full Tilt Poker collapsed. This one is different. This has laid me low. It’s not just anger I feel, it’s not just disdain, and I can’t sit here like I always do and smile to myself and point fingers and call them scum. Because what I feel more than anything else right now, is shame.

More…

Posted by at 5:33 am

September 26, 2011

It’s about to Be Illegal to Phone/Text while Driving in Nevada

Pokerati says: k

A new California-like law goes into effect next week in Nevada, making it illegal to text-and-drive, as well as use handheld devices for verbal and non-verbal communications. While it’s not clear to me if truckers got a carveout for CB usage nor where non-verbal communication via middle finger might fall … @JessWelman will likely be disappointed to learn the ban applies at stop signs and stop lights, too (“intelligent multitasking” notwithstanding).

The imminent talk-and-text ban on the Las Vegas Strip and across Nevada will not only have a notable impact on 10s of thousands of local lives … but also gives a good microcosm look at how a bill may or may not become a law. Stuff to think about as we watch the next push for federal online poker legislation this fall.

safety plate

Online Poker Logic
When I first heard about a “distracted driving” bill in Nevada, I was immediately concerned about lives lost and unnecessarily put at risk my future as a photographer of mildly amusing and sometimes pokery license plates. Though I have obtained many of these images with a handheld calling device while driving on Nevada highways, fortunately, using online poker logic, I’m sure I can find a lawyer who will tell me I’m totally in the clear.

nevada license plates

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Posted by at 5:39 am

September 21, 2011

Under Pressure

New allegations from the DOJ against Full Tilt; a good time to release the AGA Code of Conduct

Yesterday the US Attorney for the Southern District of New York sought leave to file a first amended civil complaint in US v. PokerStars et al. Mr. Pokerati posted a link to the amended complaint; if you haven’t seen it yet, it’s here. The government’s memorandum in support of the motion is here. As widely reported yesterday, the order granting leave to file the amended complaint was granted.

I have read the amended complaint and the exhibits, all of which are available on PACER. Two of the bigger allegations in the amended complaint – I won’t call them “new” – as they relate to Full Tilt are that Tilt: a) didn’t hold player funds separately from operating funds, contrary to its public statements; and, b) distributed money to its insiders when the enterprise was insolvent. The two allegations are discrete but connected; player funds being co-mingled with operating funds set the stage for the alleged misappropriation of ‘easy money’ by the principals.

Some have spoken about the prosecutor’s characterization of this as a Ponzi scheme. This appears to have been mentioned twice in the press release from the US Attorney’s office: once in the headline and once in the second paragraph of the release. There’s no doubt that use of this term was designed to get maximum media exposure, but it wasn’t a true pyramid scheme. A Ponzi scheme needs investors seeking returns and payouts to older investors using newer money. Here, there were players depositing money – not investing – and, while some of the funds may have been paid out to players cashing out, it seems that they were mostly used to line the pockets of the insiders. I wouldn’t have used the term, but the allegations point to something conceptually akin to a pyramid scheme, i.e., an inherently unstable financial structure perpetually relying on new funds to keep it going, so I’m not put out by use of the term “Ponzi scheme,” even if it was done for political reasons.

More…

Posted by at 7:38 am