The 200 companies that are to supposed to be blocked by 11 ISPs to Minnesota residents has now been published by IMEGA, which can be found here on their site . The list of 200 companies is an eclectic list of sites, because it was chosen randomly. While sites like Bodog and Full Tilt Poker are on the list, there are a few notable omissions: Absolute Poker, PokerStars, and Ultimate Bet. The list also contains sites that don’t take US customers (BetFred, Everest Poker, Interops, William Hill, among others).

In previous years, the World Series of Poker would hold a Gaming Life Expo during the first four days of their main event. In the good old days (pre-UIGEA) numerous online poker sites would pay to have their own suites where you could stare at their stars, have a pillow fight with strippers models, etc. Nowadays, the GLE has been a scaled down affair where companies try to sell their various poker related products like books, bobble heads, training sites, poker associations, and many other products.

This year, they’ve retooled their GLE into what they’re calling Poker-Palooza. From their website:

More…

A Judge in Washington State has made a ruling in the Betcha.com online gambling case involving our old friend, Nick Jenkins! Plus, we cover industry news from the United Kingdom about Google’s online gambling advertising policy, and the Toronto Sun article about which finally covers the Absolute Poker cheating scandal.

The new episode is a pretty good one … Joe, Gavin, Shronk (via robot voice), a hot girl, and the other guy Ali Nejad haven’t even gotten to the Annie Duke interview that I clicked over to listen to yet … but they’ve kept me thoroughly infotained talking about the Bellagio 5-Diamond blind structure, November Nine TV appearances, and a few poker hands.

Good stuff. Goes well with FoxNews in the background: PokerRoad Radio, with Annie Duke

UPDATE: OK, I listened … and though I’m not sure I cared to know so many details about Annie Duke-Joe Reitman sex, she does answer some questions revealing why she didn’t participate with 60 Minutes (her claims of their falsehoods to lure her into the story seem totally believable to me — media people do say these things — though I do wonder could they have gone with a more regulation-oriented storyline had she or Paul Legget gone on camera), why she is indeed so confident about AP/UB/Cereus’ commitment to running an honorable business, why she remains a loyal face for the brand (it’s not the money), and how she wants to see Russ Hamilton burn in non-Atheist hell.

She also dances around questions about her rumored appearance on the upcoming season of The Apprentice in a way that semi-confirms she has intimate knowledge of a show beginning in March with a finale in May.

Pokerati’s own Dan Michalski will be on Wise Hand Poker shortly (5:45pm PT?) to discuss the 60 Minutes/Washington Post pieces on the Absolute Poker and Ultimate Bet incidents. To listen live head to www.roundersradio.com.

Tokwiro Enterprises announced that it has chosen to follow the Kentucky court order and block Kentucky residents from accessing Absolute Poker and UltimateBet. In an explanation, COO Paul Leggett said, in so many words, that the purpose it to protect the domain names for the entirety of its customer base.

Being anxious about following the letter of the law when trying to rebuild a reputation is one thing, but could this be jumping the gun a little? The case is currently on hold due to the appeal process, and the deadline for blocking Kentucky residents has been postponed until the appeals court hears the petition, which is scheduled for December 12th. Today is December 2nd. Just sayin’.

The entire press release from Tokwiro is as follows:

TOKWIRO BLOCKS ACCESS BY KENTUCKY RESIDENTS
TO ITS ONLINE POKER SITES

Customers Connecting from IP Addresses in Kentucky Will Be Unable to Play on Absolute Poker and UltimateBet Sites

MONTREAL, CANADA (DECEMBER 2, 2008) — Tokwiro Enterprises ENRG (Tokwiro), the owner of the Absolute Poker (AP) and UltimateBet (UB) poker sites, announced today that, in order to fully comply with the Franklin County (Kentucky) Circuit Court’s recent orders, it is restricting access to Tokwiro’s sites by Kentucky residents.

More…

They report, you decide:

Watch CBS Videos Online

As has been discussed earlier, Mike Sexton, Greg Raymer and Linda Johnson were also interviewed for the story. In this web exclusive, Steve Kroft discusses tells with them, which seems silly to talk about in reference to online poker.

Watch CBS Videos Online

OK, I just read Part 1 of the Washington Post story by Gilbert Gaul on cheating at Absolute Poker and Ultimate Bet. I thought it was great and on target and technically correct to the letter when discussing legal matters. I learned a bunch of stuff I didn’t know, too.

Two-and-a-half specific things caught my eye:

(The name of the alleged cheater has circulated widely among poker players on the Internet. The Post is not publishing his name because, even though he purportedly confessed to AbsolutePoker, the company did not release its records and would not discuss the matter. The alleged cheater declined requests to be interviewed.)

Maybe I just haven’t been following it close enough on the forums, but I’m wondering whom they’re referring to here.

The story also doesn’t reference the new formation of Cereus, after acknowledging that UB would likely lose its license and be out of business soon. Hmmm. But that’s really new, and this story was possibly put to bed a few weeks ago?

The other thing is the last graf:

The Kahnawake now say they operate one of the most secure Internet gambling operations in the world. Tokwiro says it has “established cutting-edge security systems that make us the safest site in the industry.” But Catania said he does not expect cheating to stop: “I’m sure there are people out there right now figuring out, let’s say, ‘Here’s a way we can do it again.’

Yikes, that last sentence leaves it open-ended as to how part two of the story will fall when it comes to legalization efforts.

I really like poker’s chances (because I sincerely believe despite our internal battles with shadiness, our industry is on the right side of legal issues here) … and from what I’ve learned in my rookie dabblings in poker (and strip-club) politics, the treatment this story is getting in Washington DC — a big investigative feature spread out over two days with lots of informative sidebars — now guarantees (I’m like 86 percent sure) that our issue is on the 2009 political agenda. I’m not totally comfortable yet, of course. Current feeling in my gut is comparable to waiting for the river when all-in against an 8- or 9-outer. A little unsettling. But hey, that’s what we came here for, right?

In addition to the story itself, the WP’s got a bunch of goodies for those who want to dig deeper, or just check their work:

• Here’s a timeline titled “Internet Poker and the Law” — they get the UIGEA, imo.
• Paul Leggett’s defense (pdf)
• Video explaining Texas Hold’em — as in how to play … they clearly see poker as a fun skill game, not a dangerously addictive vice; if the investigation were about shady drug runners, after all, you wouldn’t see a similar vid on how to make good meth.

• Also: a video about David Paredes going from intelligent amateur to uber-skilled pro.
• A timeline about how the AP/UB/Cereus cheats got caught.
• And another timeline of the scandal, complete with cool Web 2.5-ish document pop-ups.
• “Reporter’s notebook” about The Mohawk Connection.
• And shoot, wish I had seen this one before linking to the above — an everything page chronicling the entire investigation, complete with fun little numbers about (taxable) online poker revenues.

So there you have it. It would hard to expect anything more thorough. Kudos to “special correspondent Gary Wise“, too, for playing poker-biz fixer for the WP investigative team turning over rocks.

Part 1 of the WaPo investigative report

They’re running the story over 2 days, Sunday covers the AP/UB situation. Monday asks the question: Should Internet Gambling Be Legal?

The Reporters Notebook by Gilbert M. Gaul helps answer the question as to how the Kahnawake Nation became a leader in online gambling.

Dan Druff over at Neverwin breaks down the Paul Leggett memo in a way that might make some think the AP/UB scandal is still going on, or at least a cover-up is:

* Tokwiro agreed not to prosecute the perpetrator in the Absolute Poker cheating, and to protect that individual’s identity, because this was the only way to ensure that the ability to cheat was fully discovered and disabled. Because of this decision, AP could continue operating and begin to reimburse affected players as quickly as possible.

Pretty sweet deal for the guy, huh? Wouldn’t you like to work for a company that will agree not to prosecute you for stealing millions from them, provided that you just show them how you did it, if caught? There is zero chance that this is true. It would have been easy for them to deconstruct this after-the-fact without this asshole’s help. Obviously they are protecting him either due to continued association/affiliation (likely), fear that he will spill the beans on everyone and everything else there (also likely), or both (most likely).

Must-read for anyone who wants to understand what all the hubbub is about.

While most of the poker community will anxiously be awaiting the 60 Minutes piece on the Absolute Poker/Ultimate Bet incidents at around 7pm ET Sunday; the Washington Post, who were investigating the story along with CBS News, will have their own story available in their Sunday edition. Their piece, which will also be found on their website, may be a better indicator as to how the 60 Minutes story will be covered later that night. Also, it’s figured that the Washington Post won’t be as limited in trying to tell the complete story, since 60 Minutes has to try and explain the situation along with discussing the legality of online gambling in a 12-15 minute piece. . There will also be an online chat on Monday with WaPo investigative reporter Gilbert M. Gaul and Serge Ravitch, an online player who was also involved in the investigation.

Nat Arem sure has sources. He recently received a forward of an inter-company memo from Tokwiro Enterprises COO Paul Leggett regarding the upcoming 60 Minutes story. Leggett has reason to believe that there will be a bias against Tokwiro and its companies, going further to say that online poker will emerge with a bad reputation. Thus, they did not appear on camera for interviews. (A little like saying that the jury has a bias, the judge is going to declare me guilty, so why defend myself?)

Leggett wrote:

“We have every reason to believe that the 60 Minutes producers are intent on portraying the online poker industry and our companies in a negative light, and we do not expect that the program will be either fair or balanced.

Because of 60 Minutes’ apparent bias against Tokwiro and online poker, we have decided not to appear on camera. We have, however, had many conversations with the program’s producers. We provided them with extensive background materials and documents, and we answered questions on-the-record, but off-camera. Despite all this, it is not likely that our views will be properly represented. Therefore, it is important that all of our staff know the following facts about our company:”

The remainder of the memo states some facts about Tokwiro Enterprises and the cheating scandals, most of which were released to the public in UltimateBet, Absolute Poker, or Kahnawake Gaming Commission press releases or statements.

The tone of the memo and words chosen by Leggett indicate that the 60 Minutes piece could portray online poker in a bad light. In fact, what Leggett fears is that Tokwiro and its online poker entities will look bad. Well, that is entirely possible because the way in which the scandals were handled was bad, and if that comes out in the reporting, who is really at fault, especially when the company in question refuses to go on camera with a statement and show otherwise? And in truth, what is said about AP, UB, and Tokwiro really doesn’t reflect on the entire online poker world, and there still remains some hope that the reporters for 60 Minutes and the Washington Post will make that clear distinction.

The day that UB and AP finally merge to create the Cereus Poker Network, comes this from the 60 Minutes section of CBSnews.com:

THE CHEATERS – 60 MINUTES and The Washington Post reveal how online poker players suspecting cheating were forced to successfully ferret out the cheaters themselves. That’s because managers of the mostly-unregulated $18 billion Internet gambling industry failed to respond to their complaints. Steve Kroft and The Washington Post’s Gilbert Gaul report. Ira Rosen is the producer.

It’ll be the first story on this coming Sunday’s 60 Minutes broadcast, and should be available online by Monday morning.

Reminded via a Tiffany Michelle MySpace status update — “Excited about the Cereus launch this week!”:

The player pools, tables, tourneys, etc. from Absolute Poker and Ultimate Bet magically merge today.

Trying to keep an open mind … because theoretically it is possible that the combination of two sites caught in the biggest cheating scandals in the nascent history of the online poker industry — having learned painful lessons firsthand — could become a paragon of integrity and security, a model for fully legal American online poker in the future.

But I just can’t help to think back to the Dallas underground … when a saturated market had rooms and games beginning to merge, two shady operators joining forces seldom led to anything good (save for some pretty juicy opening-weekend tourneys).

That’s my bias, I suppose … but with that in the back of my mind, I can’t help but think of how one of these sites seemed rotten at the core (with the exception of Mark Seif, I’ve yet to hear any former employee say anything good about Absolute), and the other … well, sure, they’ve changed management and have plenty of good peeps working for them (Annie Duke, Phil Hellmuth, Mean Gene, et al.) … but the top of the pyramid hasn’t really changed as far as we can tell. And with all due respect to those who are just trying to throw good poker times … the mysterious, closely-guarded nature of Tokwiro+Kahnawake+UB+Chief Joe operating on the protected lands of the Mohawk Nation (with offices in Costa Rica) … that’s the definition of shady! Sorry, it just is.

Still, with $22 million in refunds, the action’s gotta be good.

Of particular interest to me in this series of Tokwiro-sponsored videos was Leggett’s confirmation that no one was or will be legally prosecuted in the Absolute Poker scandal.

When the perpetrator was discovered in the AP insider cheating scandal, he was given protection from prosecution in exchange for information about the crime. If he told Tokwiro exactly how he got the hole card information, his name would not be released to the public and no legal action would be pursued. Leggett said that the Kahnawake Gaming Commission still reserves the right to prosecute if they so choose, but Tokwiro will not.

Leggett noted that the $800K that was stolen during the crime was still in the cheater’s online account and thus confiscated by Tokwiro to repay customers. However, Tokwiro had to pay an additional $800K out-of-pocket in interest to those customers. I guess the perpetrator’s inside info was worth nearly a million bucks…

Also interesting was the specific mention of Scott Tom in order to clear his name. Leggett said that he was only implicated because his IP address was used by the cheater. Really? So, does this make AJ Green a.k.a. AJ Grimard the one and only perpetrator, as no effort was made to clear him? And I suppose the lessons learned in the AP scandal better prepared Tokwiro to identify the problems in the UB scandal, not needing any information from Russ Hamilton and allowing prosecution in that case.

This is discussed in the video below (Part 2, Section 2) and starts at the beginning: