Please forgive any apparent smugness of prescience … I didn’t know about the appeals court ruling when Pauly and I recorded an episode two days ago, where we addressed certain ironies about neither Clonie Gowen nor the people who may or may not have wanted to squash her being at the WSOP.

Pauly published yesterday, and even though we’ve got a fancy autofeeder here at Pokerati, I did not … but LOL(ish) … this episode was next in the queue:

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Dan and Dr. Pauly hang out in the hallway and try to figure out what the 2011 WSOP is missing…

2011 WSOP – Episode 8: Eskimo Yes, Jesus No (4:22) – Dan and Pauly try to pinpoint which pros are noticeably absent (Clonie, Jesus, Howard Lederer), while Eskimo Clark sightings have been rampant. They also try to figure out where the old Bat Beat Bar and Lounge went and why its been replaced by a oxygen bar.

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

For more episodes, visit the Tao of Pokerati archives.

Not sure yet what exactly this all means … but the case of Clonie Gowen vs. Team Full Tilt (that strangely never got to trial) is still alive in some capacity. A federal Appeals court ruled yesterday that the lower federal court — Nevada District — did indeed make errors in dismissing her claim against Ray Bitar, Howard Lederer, and various companies connected to Full Tilt.

Clonie Gowen’s lawsuit of course, was the first of what would prove to be many against various Full Tilt entities — at the time dismissed not just by a Las Vegas judge, but by the “poker world” and industy as a whole. Since then the belief that Full Tilt could do no wrong has definitely reversed itself … in American courts as well as the court of public opinion.

Clonie was seeking $40 million as a part-owner of Full Tilt. But my how times have changed … If she does finally get her day in court, certainly the valuation would have to be reassessed … and these days, were an American court to way declare that yes indeed you are an owner of Full Tilt, would that be a win?

Read below for a summary of the decision by the Ninth Circuit Court of Appeals, based in San Francisco:

More…

Hinted at it in the PAW post, but it probably deserves a hedline of its own, at least to note it for the record.

Tony G says he’s thinking of skipping the 2011 WSOP, too … but the reason he gives — not being able to keep up with the kids these days — seems questionably weak when one of the most influential men in poker has been throwing firebombs at Full Tilt and Howard Lederer specifically, as they relate to player monies and the WSOP.

I think the real question is: Is he looking to skip just the events, or skip out on Las Vegas and/or the US altogether? I mean shoot, I was hoping he’d at least show up to play the media event!

We don’t really know the affiliate world here at Pokerati, but we still sometimes get their emails. And this one reveals, I think, another important cog in the Full Tilt machinery grinding to a halt. Either that or it’s nothing … but I’m not really believing people these days who tell me what seems like something is nothing.

You tell me. It’s different, that’s for sure … I do know Poker Affiliate World is a pretty big mega-affiliate that at least at one point was owned (at least in part) by PokerNews … and with or without Tony G’s involvement, a huge chunk of online poker signups pass through PAW in some capacity.

From: Poker Affiliate World
Date: June 7, 2011 6:01:44 PM PDT
To: Pokerati.com
Subject: Full Tilt Withdrawal Option Disabled – Temporarily

Dear Affiliate,

Due to recent issues with Full Tilt Poker in regards to “Black Friday” we have temporarily removed Full Tilt player transfer from our withdrawal options until further notice.

We are confident of a resolution in the near future so please feel free to use another method or wait until this option is reinstated.

Regards,

The PAW Team

Hoping someone who understands this stuff better than I can clue me in to what I’m missing between the lines.

Meanwhile, Tony G is saying that he might skip the 2011 WSOP … supposedly because he can’t keep up with the young players. Ahh, if only it could be that simple this year.

Glitz. Glamor. Excitement. So far, the 2011 WSOP has had none of these things, and honestly, I’m finding the whole thing kind of sad. It’s not the World Series of Poker we all know and love… it’s more like the World Series of Meh.

The thing is that after spending a number of hours wandering around the Rio during the first week, it’s hard to put a finger on what’s different about this year’s event. Maybe it’s fallout from Black Friday and the fact that sites like PokerStars and Full Tilt Poker don’t have their usual suites. Maybe it’s the fact that the first week’s events were tailored more toward professional players and featured more mixed games and higher buy ins than the casual player is comfortable playing.

Or maybe I’m just jaded.

The halls feel emptier, the rails aren’t as jammed, and people just seem more serious than usual. Event numbers have been good, but no one appears to be having any fun.

Still, jaded or not, the fact remains that the Rio just doesn’t have the same excited vibe that I’m used to feeling during the first week of the Series. The halls feel emptier, the rails aren’t as jammed, and people just seem more serious than usual. What makes the feel of this year’s Series even stranger is that the event numbers have been good. People are playing cards, but no one appears to be having any fun.

So, is there anything that the Rio and WSOP staff can do to loosen things up and pump some more excitement into the proceedings?

More…

The biggest story to come out of day 1 of the WSOP, almost fitting given the cloud of Black Friday, was that a major player within Team Full Tilt would not be playing. What we didn’t realize was that the player in question was in Phil Ivey, and that he had some very choice words for his (former?) employer Full Tilt poker. Before getting too far into things, the statement itself is below:

For many years, I have been proud to call myself a poker player. This great sport has taken me to places I only imagined going and I have been blessed with much success. It is therefore with deep regret that I believe I am compelled to release the following statement.

I am deeply disappointed and embarrassed that Full Tilt players have not been paid money they are owed. I am equally embarrassed that as a result many players cannot compete in tournaments and have suffered economic harm. I am not playing in the World Series of Poker as I do not believe it is fair that I compete when others cannot. I am doing everything I can to seek a solution to the problem as quickly as possible.

My name and reputation have been dragged through the mud, through the inactivity and indecision of others and on behalf of all poker players I refuse to remain silent any longer. I have electronically filed a lawsuit against Tiltware related to the unsettled player accounts. As I am sure the public can imagine, this was not an easy decision for me.

I wholeheartedly refuse to accept non-action as to repayment of players funds and I am angered that people who have supported me throughout my career have been treated so poorly.

I sincerely hope this statement will ignite those capable of resolving the problems into immediate action and would like to clarify that until a solution is reached that cements the security of all players, both US and International, I will, as I have for the last six weeks, dedicate the entirety of my time and efforts to finding a solution for those who have been wronged by the painfully slow process of repayment.

I think Wicked Chops said it best in their article on the subject: Holy shit. Not only was it not expected, but the strength of the words from someone that is in that category of “legally bound not to speak” adds extra weight to it. No doubt Ivey has, as @taopauly put it in his daily recap, “titanium balls.” That said, nothing escapes radar without some further reflection and critiquing, so here goes:

More…

The 2011 WSOP officially kicked off and Day 1 was certainly without any drama, especially regarding a pair of Full Tilt pros.

2011 WSOP – Episode 2: Ivey Drops Drama Bomb by Suing Full Tilt and Skipping the WSOP (6:07) – Change100 joins Benjo and Pauly as they discuss the strange happenings on Day 1 of the WSOP. Phil Ivey became the only thing people discussed the Rio after a rather bizarre series of posts appeared on his Facebook page after he revealed his lawsuit against Full Tilt due to their lack of action getting money back to their players. Also, Benjo explains the scene when James Bord harassed and threatened John Juanda.

For more episodes, visit the Tao of Pokerati archives or subscribe to the Tao of Pokerati feed.

On April 15th, 2011, the US Department of Justice seized the domains and bank accounts of Pokerstars, Full Tilt, and Absolute Poker. One week later we know how they did it, who helped them, and if players will be getting their money back!

Not everyone is unhappy about the elimination of PokerStars and Full Tilt from the American online poker marketplace. Shares of Bwin/Party soared today on the London Stock Exchange, closing up nearly 35 percent on rather high trading volume.

And while in some ways this graph looks like the inverse of Party Gaming’s graph in ’06 come the UIGEA and their subsequent, calculated US pullout. But zoom out and you’ll see today’s rise for Party (now officially Bwin.Party Digital Entertainment) is merely a token blip in their long-term efforts to get back atop the online gaming world.

In fact, they had plummeted rather hard just this month as US legislative efforts began making it seem as if Stars and Tilt would be white-list operators in any future, regulated American online gaming economy.

Meanwhile, Scarlet got her hands on some detailed equity research from the venerable banking institution Barclay’s … assessing the impact of of the US DOJ’s actions on the European gaming market. Good in some spots, not as promising as some might think in others.

Click here to see for yourself.

The “bull case” they make, interestingly, is a scenario where both Stars and Tilt end up in full collapse.

The DOJ dropped an A-bomb on the online poker industry Friday, and, as you’d expect, the impact was devastating. Within hours of the DOJ’s indictments, PokerStars and Full Tilt Poker had shut down real money gaming in the US, effectively killing online poker and leaving millions of customers with nowhere to play.

And while the sites are scrambling to readjust to a world where approximately 40 percent or more of their business just disappeared and mount legal defenses for themselves and their executives, the fallout from Friday’s bombshells continues to spread far and wide from its epicenters in Dublin and the Isle of Man.

I could go on, but I’ll just end up depressing myself and that’s no fun.

While Full Tilt and Stars were certainly the two biggest poker sites operating in the states, their reach extends far beyond the virtual felt. Until Friday, these sites were the drivers of a whole industry that revolved around their players, television programs and live tournaments around the world. With the sites gone, the poker economy they supported is sure to follow.

As I write this, a number of my friends are getting trashed on Pisco Sours down in Peru, where they’re covering the end of an LAPT event for PokerStars and PokerNews. The sad fact is, though, this may be the end of poker reporting as we know it.

Providing live tournament coverage is expensive and resource-intensive, and sites like PokerNews can’t exist without financial underwriting provided by sites like Stars and Tilt. With those players now out of the US market, there’s no reason for them to be spending resources on tournament reporting when that money can be better spent on the high-priced legal teams they’re undoubtedly going to need to put in place. Bottom line – that WSOP coverage that everyone has been gearing up for next month probably isn’t going to happen.

More…

We showed you the 52-page criminal complaint — 9 charges against 11 individuals facing between 5 and 30 years in prison. Now here’s the 80-page civil complaint in the DOJ vs. PokerStars, FullTilt, AP/UB, et al:

http://www.scribd.com/doc/53170382/3bb-Civil-Complaint-DOJ-vs-PokerStars-Full-Tilt-UB-AP-et-al

The Feds’ allegations tell a rather compelling narrative of illegal gambling, bank fraud, money laundering, and conspiracy to circumvent US law — that if proven calls for the forfeiture of not just domain names, but also:

$1.5 billion from PokerStars
$1 billion from Full Tilt
$500 million from UB/AP

The court documents also spell out the details on the 76 bank accounts money allegedly passed through … in multiple countries and currencies, making USA vs. PokerStars+ not just a federal case but also an international one. And with the US Feds seeking to freeze these accounts, industry types get a hint of which Stars- and Tilt-funded paychecks may soon be in jeopardy … if they aren’t already.

With the criminal indictment and civil complaint together, federal prosecutors Arlo Devlin Brown and crew, seem unafraid to telgraph their intent: People have to go to prison and we take their money, but if that’s not gonna work, we’re at least gonna get $3 billion guaranteed … and we now have two tries to take it down!

(I use the term we because these cases are technically “the people of United States of America vs.” … thus it really is you and I and my dad and grandma and her priest and the electrician and Bristol Palin and Justin Bieber … claiming that all those online poker spoils are rightfully ours.)

* * *

The regulated online poker-only “Reid bill”, if you recall, promised to generate $1 to $4 billion a year for the US government. So you gotta figure $3 billion in forfeitures buys another year for the forces who do wanna see fully legal licensed and regulated online poker — and other casino games — to craft a bill to their liking.

The format that seemed to work so well in describing the action at the 2010 WSOP November Nine is going to get the full treatment now (and because I think the daggers that Dan has been sending me with his eyes have finally worked and I need to write something.)

A word about the “scoring system”: This year I want to keep track of how well (or poorly) a player is doing in a given year. +1 point for being a winner, -1 for being a loser, -3 if you have the misfortunate of winning my Screw You award, +3 for being my Player of the Month, and nothing for getting a coinflip. That’s what happens when you have a 50/50 chance. In the long run you just break even.

Winners

• Daniel Negreanu (1): My feelings about the All-time Money List aside, Daniel has hit the ground running in 2011 with his second place finish in the $100k Super High Roller 6-table SnG at the PCA. Pocketing a cool million a few days into the year has got to make you feel good.
• Erik Seidel (1): Sure, it’s aided by a $2.5 million score in an obscene $250,000 buy-in event, but Seidel won even more money than Daniel, $3.4 million for the month of January.
• Hendon Mob (1): For acknowledging the All-Time Money List is kind of turning into a farce and doing something about it by having options to remove Super High Roller SnGs and restricted tournaments.

Losers

• Viktor Blom (-1): If this guy actually owes $149 MILLION dollars to Swedish tax authorities, it will be safe to say that signing with Pokerstars was the worst thing to happen in his life. Going 2-1 in his Superstar Showdowns isn’t gonna be enough to cover that bill.
• Prahlad Friedman (-1): A man has got to pay the bills, I’m not going to get into a “is he a sellout?” conversation. That said, the fact that the forums and media are ablaze about his decision to join UB is probably not a good sign for him. His “brand” is likely to have taken a hit and his words about not joining the man have certainly come back to haunt him.
• The All-Time Money List (-1): Pretty much everyone has been dumping on this lately with the increase in buy-ins reaching astronomically stupid levels. Hendon Mob addressed this and that’s why they are one of the winners, but the list itself still seems like a wasted statistic.

Coinflips

• Annie Duke/Jeffery Pollack: I like the idea of a new Professional Poker League, but I am soooooo skeptical as to whether they can even pull it off. Also, not letting online play count in your formula looks to me more like laziness than anything else, and removes any player that is in the current generation of contenders.
• Phil Hellmuth: For someone that’s got to be the biggest free agent in poker by a country mile, his lack of a sponsorship had better be a calculated decision. Or its just that Phil isn’t as marketable as people thought? OK…that’s a stretch.
• Results from the Bluff Reader’s Choice Awards: Congratulations are in order for The Poker Beat winning its second consecutive RCA, this time in the “Best Web Based Poker Show” category. Still, would be nice to have Pokerati win Best Poker Blog and Cardrunners win Best Poker Resource. Ah well, there is always next year.

The “Eff You, Sir/Madam” Award

Every month there is bound to be at least one player/entity/whatever that deserves special mention for being an idiot for a particular month. It doesn’t have to be rational, its likely to get some flak, and is going to definitely almost always be a mindless rant. So without further adieu, the winner (loser?) is:

• Russ Hamilton (-3…not including negative karma): This month, I’m going for the low hanging fruit and giving this to Russ Hamilton. In fact, I’m tempted to name the award after him. He made the news earlier this month for flying off the handle at a Florida poker room as he was getting jeered about how bad he was when he couldn’t see the hole cards. He then proceeded to call his opponents “fucking dicks” and that “You do not know what you are talking about; you were not there. You just read about it and think you know.” No, Russ, they do know what they are talking about, because everyone from UB to the poker media to 60 FUCKING MINUTES said that you did it. And you did. So the fact that you grace us with your presence at a poker table anywhere on this Earth should come with the caveat that you are going to get verbally abused. And you should just take it or quit. No one remembers you for your WSOP win, they remember you for being the “fucking dick” who screwed people out of $20 million, and just maybe also for receiving the inaugural Pokerati “Fuck You” award. Maybe.

Player of the Month
The Player of the Month is taken straight from the winners list, and is given a coveted 3 points instead of 1 toward becoming the 2011 Pokerati Winners, Losers, Coinflips player of the year. I suppose. We haven’t really worked out all the details yet.

• Erik Seidel (3): Anyone that manages to wade through shark infested high roller waters not once but three times and cashes every single time more than deserves to be named Player of the Month. It was a nice progression too, from going 4th in the PCA SHR to 3rd in the Aussie Millions SHR to winning the “Full Tilt proving they can have a bigger buy-in than Stars” event. Very well deserved, and we’ll see if Erik can keep up the momentum in the coming months. If he is not ranking in ESPN’s “The Nuts segment I’d be pretty shocked. (EDIT: He has, just barely. Erik is ranked 10th this month.)

The midterm elections and the November Nine are over, but interesting things keep happening in the gaming world. For starters, the lame-duck session of Congress is underway; time will tell if anything that affects Internet gaming will pass before the start of the next congressional session. In addition, here are the legal tidbits that I thought were the most interesting and/or relevant coming out over the past week:

1. FullTilt Turns Off Washington - In big news from last Friday, FullTilt Poker has elected to follow PokerStars’s lead and discontinue providing real money games to players located in Washington State. This impacts players residing in Washington and non-residents of Washington visiting Washington. Tilt’s FAQ on the matter is here. This is being done to preserve Tilt’s Internet-poker-only-is-legal argument. A related fact is that they’re able to protect their poker-only and transparent processing solutions by turning off Washington. This leaves fewer offerings out there willing to service Washington State poker players. [Poker News Daily]

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2. New Jersey Moves Forward on I-Gaming - Irrespective of what’s happening in Congress, New Jersey continues to move forward in its review of an intra-state Internet gaming offering. This week, the NJ Senate’s Budget and Appropriations Committee reported out S490 (Permits Internet wagering at Atlantic City casinos under certain circumstances); the bill now goes to the full State Senate for consideration. This bill has State Senator Ray Lesniak as the primary sponsor. It seeks to authorize Internet wagering in Atlantic City casinos, thereby allowing New Jersey residents to place wagers on casino games by means of the Internet. All games, including poker, which may be played at a casino in New Jersey, may be offered through Internet wagering under this bill. Several commentators have been saying for some time that New Jersey is one of the more promising states for intra-state gaming; if this bill becomes law - and there’s a ways to go yet - those predictions may turn out to have been prescient. [NJLeg.state.nj.us]

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3. Kentucky v. PartyGaming - In other US state news, PartyGaming is not (initially, at least) rolling over in the Commonwealth of Kentucky’s attempt to extract damages from Party. Recall that Party was added to the state’s suit against Pocket Kings (Tilt) earlier this year; Microgaming was added last month. Party has now brought a motion to dismiss the complaint on several grounds. This will be interesting litigation as it rolls forward alongside the Kentucky domain name litigation. Watch for one or more of the identified defendants in Pocket Kings et al to settle. [EGR Magazine]

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4. GTECH Worldwide Expansion - GTECH, a Lottomatica subsidiary, continues to generate interesting news and business. Recently it has struck a number of deals with various operators, including with provincial operators in Canada. Last week two more deals were made public. The first was a 10-year agreement with the Shenzhen Welfare Lottery Center to upgrade existing Keno systems, selling online lottery games, and increasing the operator’s terminal base. [iGaming Business] Then came word that GTECH has received a two-year extension to continue providing support to Pronosticos para la Asistencia Publica in Mexico. [Gaming Intelligence] Even though the parent posted a net loss in Q3, keep watching GTECH, folks.

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5. gTLD Expansions - This is the most important ongoing story in Internet gaming (and, indeed, in intellectual property) that you’re hearing nothing about. Basically, the Internet Corporation for Assigned Names and Numbers (ICANN) is opening up the general top-level domain registry well beyond what’s currently available. Instead of .com, .biz, etc., people will be able to create their own extensions and registries. Some of the new registries could include cities (.london, .nyc), Internet auction providers (.ebay), and people with strong trade-marks and domain names in a host of industries (think of .pfizer or .coke). The implications for Internet gaming are huge. Not only could operators register trade-marked names (e.g., .pokerstars), but they could add security to their offerings by owning, domiciling, and managing their own registries. Some think that a more generic name could be registered by one or more parties: .bet or .poker, perhaps. A summary of changes in the proposed final new gTLD applicant guidebook are here - worth a view. [via CircleID]

Looks like they’ve taken care of the patch problem over at full tilt. Ty Stewart was on the verge of blowing up at the media in last week’s conference call when he was bombarded by questions, but now it seems that the people at FTP have found a good workaround:

Full Tilt Patches

• Michael Mizrachi
• John Dolan
• Joseph Cheong

Cardrunners Patches

• Matt Jarvis
• John Racener
• Filippo Candio

Poker After Dark Patches(!)

• Soi Nguyen

That last one I did not expect. Poker After Dark is so obviously connected with Full Tilt its nauseating, and as for Cardrunners, well, its a lot more separate than PAD, but, its also close enough. Harrah’s hasn’t done anything yet, but the cards having gone in the air just yet.

Washington state’s anti-internet gambling law has been getting a lot of attention lately after the Supreme Court in that state upheld the law late last month. Its worth noting, however, that this has been a struggle that’s been going on for over 5 years, where only now sites such as Pokerstars have pulled out of the mix. Here’s a look back at the big dates as we look at how we got to where we are now in my first “news timeline” of a big news story:

• June 2006 – The law is initially passed, specifically banning online gambling and making it a Class C felony to gamble on the internet. This made it an equivalent crime to forgery, possession of child pornography, and possession of marijuana with intent to deliver. As with all Class C felonies it also carried a 5 year sentence and/or a $10,000 fine. Critics even in the early stages said the law was too broad to hold up in court [Seattle Post-Intelligencer]

• April 2007 – In order to protect Washington State citizens from government intrusion, state legislators passed Bill 1243 to correct excessiveness in the 2006 law. Now, it is legal for a Washington state resident to gamble online for recreation, but not for “organized profit” (read: profession). Although the change was made, it is still illegal for online operators to provide online poker to the state, making the change largely cosmetic. [Pokerpages.com]

• May 2008 – A King County court judge is the first to uphold the gambling law from challenges from Lee Rousso (attorney and the PPA’s Washington State Director).The judge in the case, Superior Court Judge Mary Roberts, stated that Rousso had not proven that the state law unfairly protected gambling within the state at the expense of interests outside of Washington. [Seattle Times]

• March 2009 – An appeals court was the next destination for Rousso’s quest to overturn the 2006 law. Unfortunately, he was not successful either. In a unanimous decision by three Division I appeals judges, Rousso would have to prove that criminalizing online poker imposes excessive burdens on commerce. Even by this point, there hadn’t been any prosecutions of online poker players to date, but Rousso felt this was an important enough issue to appeal to the Washington Supreme Court. [Bluff Magazine]

• May 2010 – The PPA hold a rally outside of the Washington Supreme Court to try to show the justices of the court support for overturning the law. [PPA]

• September 2010 – The last possible court before forcing the case to go to federal once again sided with the State of Washington after arguments were heard earlier in the year. While the state was not delegated power to deal with online gambling, the law does not violate the commerce clause nor is it considered an “excessive” law, with the court citing gambling problems that are found in off-line and on-line casinos alike in its ruling. [Eric Goldman Tech & Marketing Law Blog]

• September 30, 2010 – After spending years stating the law did not apply to online poker, Pokerstars announces that Washington state players may no longer play on Pokerstars for real money. They cited the Washington Supreme Court decision as the main reason for its decision, though in theory nothing has really changes so its interesting that Stars waiting until all appeals were exhausted before enacting the ban. [Pokerstars]

• October 5, 2010 – As announced here earlier, Full Tilt has stated that they are monitoring the Washington state situation closely and will make a decision regarding offering real-money play to the state’s citizens in the near future. With Pokerstars’ pullout from the state a week earlier, the pressure has been turned up on other US-facing sites to make a decision. [Part Time Poker]