Former WSOP Commissioner Jeffrey Pollack, who oversaw the WSOP through the boomtime poker era, plans to make professional poker something more akin to the PGA.

He’s founded a new California company — Federated Sports+Gaming — with Annie Duke on the executive team and serving as commissioner of the poker league, which promises to be a professionals-only set-up. Duke resigned from the WSOP’s event-steering Players Advisory Committee two months ago and last month renounced her relationship with UB, the most notoriously beleaguered online poker site in history.

According to @OskarGarcia from the Associated Press:

The yet-to-be-named league is planning four televised regular-season events plus a $1 million championship freeroll at the Palms Casino Resort in Las Vegas this year, league executives said.

“This is incredibly pro-centric,” Duke told The Associated Press. “This is the one piece that’s kind of missing from the poker landscape right now, which is something for the best players in the world to compete against the best players in the world.”

Should be interesting to see who, by Federated’ new definition, qualify as pros … with one obvious litmus test being will @donkeybomber be able to secure his card?

Corporately, Duke is an executive vice president of Federated Sports+Gaming’s, though not a member of its board of directors. The others on Pollack’s team come from YouBet.com, the biggest legal online gaming company based in the US, which was recently acquired by Churchill Downs, the publicly traded online gaming outpost for Kentucky’s horse-race industry. Others on Pollack’s executive team share varying degrees from Northwestern University, to which I say, um … Go Cats!

Pollack, serving as chairman of Federated, maintains his position as executive chairman of PBR, which real cowboys will tell you is very different from traditional “rodeo”. Read below for his full statement announcing his reburstage onto the poker scene:

More…

The latest order in Kentucky v 141 Internet Domain Names has just come down from the Franklin Circuit Court. Remember that this case goes back to 2008 when the Commonwealth of Kentucky tried to seize certain domain names (including www.fulltiltpoker.com and www.pokerstars.com) on an ex parte basis because the domain names were said to be operating in breach of Kentucky law.

In an attempt to kick-start this litigation – which has been bogged down in procedural wranglings and appeals – Kentucky had proposed to divide the in rem defendants into smaller, more manageable groups. Each group would then be addressed by the court using a case management system. The idea was that the owner of the domain name in each group would be given notice and a chance to appear, prove his/her/its ownership of the domain name, and contest the seizure. The first group of domain names was limited to www.playersonly.com, www.sportsbook.com, www.sportsinteraction.com, www.mysportsbook.com, and www.linesmaker.com. The Interactive Media Entertainment & Gaming Association (iMEGA) had opposed Kentucky’s motion and also sought to intervene in the case.

iMEGA has made a case for what’s called associational standing. Associational standing, very generally, allows an organization or group to intervene in a judicial proceeding on behalf of its members. There are a number of tests that need to be met in order to obtain associational standing. While iMEGA would normally have associational standing, the Franklin Circuit Court has now held that it is unclear whether associational representation can extend to an in rem proceeding in Kentucky; this issue is novel and the court needs to consider it further. Accordingly, the next move is that the Court will keep the case management order sought by Kentucky on hold until the associational standing issue can be determined. This is a clear victory for the defendants in this matter, as Kentucky wanted to simply plough ahead with a case management structure and without vetting the associational standing issue.

The parties have 30 days to submit briefs on this issue, after which Kentucky or iMEGA can bring the matter on for an oral hearing.

Stay tuned for more developments in this fascinating state-level case.

I’m attending the Legal Marketing Association’s Toronto conference tomorrow today, so my updates to Dan “Slave-Driver” Michalski had to be in a day early. Also, I’ve picked up a bit of flack for making my updates too US-centric – I’ll try to keep a steadier eye on certain international developments, starting today yesterday. That said, here are some thoughts on the five most compelling stories in gaming in the past week from around the world:

1. Denmark Online Gaming Delays – Denmark had intended to open up its online interactive gaming market by January of next year. However, there has been a complaint about tax rates and a blackout period before the European Commission. The Danish government and the EC are addressing the review and the complaint, but inter-governmental wrangling takes time, especially in Europe. Look for market liberalization to be delayed until Summer 2011.[EGR Magazine]

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2. Kentucky v 141 Internet Domain Names – This is a fascinating and timely case that keeps getting more so. Latest development: A hearing has been scheduled for December 6^th (this will be pushed back to the 13^th) in front of Judge Thomas Wingate, who is the original judge that first dealt with this matter back in the Fall of 2008. The hearing is supposed to address the identification of the owners of the 141 Internet domain names that were part of Kentucky’s original suit. Kentucky has proposed that the domain names be split up into groups and that the initial group to be considered by the court comprise the following 5 names: www.playersonly.com, www.sportsbook.com, www.sportsinteraction.com, www.mysportsbook.com, and www.linesmaker.com. The proposed case management order (to be discussed at the hearing) grants 30 days to anyone purporting to be an owner of these sites to file a motion to intervene and prove their ownership of the site(s). iMEGA plans to make a motion to intervene on behalf of these sites, which does not sit well with the Commonwealth; Kentucky has consistently objected to iMEGA and the IGC being granted standing in the proceeding.

   The Commonwealth may lose here – the Supreme Court of Kentucky seemed to like the idea of associational standing but said that the associations did not yet demonstrate that they had standing. The associations can be expected to do what they have to to show this. If iMEGA loses out in December, look for more appeals and legal wrangling. This case has certainly been a boon to the Kentucky bar – it seems that just about every lawyer in the state has had a piece of this lawsuit. [Poker News Daily]

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3. Cyprus Attempting to Ban (Most) Internet Gaming – Cyprus has drafted a bill proposing a ban on all forms of Internet gambling except sports wagering. This has gone to the European Commission for review. Cyprus argues that the ban on roulette, other table games, slot machines, and poker is in the public interest. Cyprus hopes that the Santa Casa ruling by the European Court of Justice in 2009 in favour of Portugal will work in its favour in this draft. The bill also provides for the creation of a Gaming Board regulating Cypriot online gambling (sports betting only), issuing of licences, and a ban on cash bets and the exclusive use of credit cards and e-wallets to make transactions easier to monitor and tax. [Gambling City]

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4. Excapsa & the Cereus Network Settlement – In a shareholder communication by Excapsa Software’s liquidator, Excapsa and the Cereus Network appear to have settled their dispute over promissory notes and fraud claims on the network. In return for full and final settlement, it looks like Blanca Games (UB’s operator) will acquire Excapsa’s interest in the outstanding debt for US$2M and a percentage of proceeds if the business is sold by Blanca on or before March 31, 2013. Excapsa will get the remaining interest in the old gaming software (the Towkiro Group – UB’s old owners – had retained a residual interest to use the software for internal purposes). [WSBG Accountants, Montreal]

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5. What Congress Shall Wil Probably Will May Do in the US – This is the favoured party game of everyone in the Internet poker industry right now. Few know for certain what will happen, but here’s what I think is becoming reasonably clear: a) the Frank & McDermott bills are probably dead; b) if anything passes during the lame-duck session, it will likely be a Reid bill and will probably be attached to ‘must-pass’ financial legislation; and, c) poker is the only thing that will get through this year. My best information is still that it’s more likely than not that a measure won’t pass, but I have been hearing more and more gossip rumblings suggesting that prospects are perhaps better than I have expected. The next week or two could change things and make passage of an interactive poker measure the odds-on favourite. Stay tuned. [Motley Fool]

   Also …
   interesting conference on US i-gaming to take place in Washington D.C. on December 10^th. This is a should-attend if you are in D.C. at the time:

   http://www.spectrumgaming.com/conferences/

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]

I’ve returned from Spain after attempting to live-tweet a very informative conference with some great minds on the forefront of gaming law. Here’s a look at some important legal developments from @GamingCounsel over the past week …

1. American Midterm Shuffles - Today, everyone is thinking about the US elections. Are the pundits right? Are the Democrats headed for heavy losses? Will Harry Reid prevail in Nevada? What does it all mean for Internet gaming, specifically for poker? Whatever happens today, the trend towards legalizing and regulating Internet gaming will continue in the United States. The focus may move to the state level - although some are saying that a new Reid bill could  be passed before the end of the lame duck Congressional session on December 31^st - and, if Senator Reid loses (which is unlikely), things may be slowed down. However, the push for poker by many interested groups is too big for one person or one election to derail entirely. Some see today as crucial to the industry (see: Offshore Gaming Association); taking the long view, however, I’m a bit more sanguine.

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2. Kentucky vs. Microgaming - Things always seem to be developing in the Kentucky domain name seizure matter. Several weeks ago, the Supreme Court of Kentucky denied the writs of IMEGA and the IGC, sending the questions of standing and jurisdiction back to the Franklin Circuit Court (that was only a waste of 6 months); recently the Commonwealth added Microgaming to its list of defendants in the separate but related suit against Pocket Kings (FullTilt Poker) and PartyGaming for damages. Kentucky is seeking to recover triple the amount of losses of those located within Kentucky against these three “and unknown defendants. [EGR Magazine]

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3. New Bank Seizures - Circumstances continue to challenge those servicing the US-facing Internet poker market. In Seattle, federal prosecutors have sought to cause the funds of Secure Money Inc. (a payment processor based in Canada) to be turned over to the US government. [Seattle Post-Intelligencer]

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4. Boyd Gaming Fundraisers - On October 26^th, Boyd Gaming Corporation announced that it’s seeking to raise $500M through 8 year senior notes in a private placement. The bonds will be guaranteed by certain Boyd subsidiaries. Boyd will use the funds to pay off existing debt. This continues the recent trend of gaming companies reaching out to the broader markets (some through IPOs - see Betfair) to raise funds. [Boyd Gaming]

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5. IMGL Conference Summary - The International Masters of Gaming Law had their fall conference in Madrid last week. It was a great series of sessions and contained lots of stories and gossip (lawyers are as bad as judges and schoolgirls for thriving on gossip). Snippets on the US: rumours about Harry Reid working on his own poker regulation/tax bill; predictions about New Jersey and Florida being the most likely to pass intra-state gaming bills among the states; and, forecasting that current US-facing operators will still have a significant role to play post-US regulation. [Gaming Law Masters]

Barrister Stuart Hoegner is an expert but not quite a “master” in international gaming law whom you can follow regularly @GamingCounsel.

So many socio-political hot-spots right now you’d think the 2010 WSOP were being played in the Paktika region of Afghanistan. Poker’s legal quandaries keep growing … as the industry’s longtime adversaries in Kentucky have filed suit against Pocket Kings, the alleged dba for Full Tilt.

Here’s the actual complaint, filed two weeks ago in Franklin Circuit Court. You’ll see they spell out a host of alleged infractions by Full Tilt according to Kentucky state law against the citizens of Kentucky. And thus, they’re seeking to have all rake and player losses refunded.

More…

From EGRmagazine.com comes word that lawyers from the state of Kentucky filed a motion add additional US citizens and companies to the list of 141 domains the state has been attempting to seize since September 2008. This is an interesting development since a decision from the Kentucky Supreme Court is expected soon from the October hearing appealing KY’s Court of Appeals decision to prevent the seizure. No names or companies were mentioned in the motion, requesting a hearing on January 20 before Franklin County Circuit Court Judge Thomas Wingate, who granted the request for seizure. More details as they become available.

The Kentucky Supreme Court will be holding a hearing at 11am ET today regarding the Commonwealth of Kentucky’s efforts in seizing 141 domain names. A live stream of the arguments will be available on the Supreme Court site for those wanting to watch the proceedings, with updates available over at the Poker Players Alliance website. iMEGA’s site should also have their own analysis of the proceedings this afternoon.

For those interested, video of the hearing is now available below:

Kinda. They probably don’t want to ban it, or even take over Costa Rican domains … but they do want to have their say in how Iowans go about the business of online money games.

From the Iowa Politics Insider:

Iowa should keep its options open and develop plans to “protect its borders” while Internet gambling legislation is being debated in Congress, Iowa Lottery Chief Executive Officer Terry Rich said Tuesday.

[...]

The legislation could include provisions authorizing the federal government to regulate and tax Internet gambling in Iowa if the state’s elected officials don’t take action within a specified time frame, Rich said. He is urging state officials to protect their right to either reject or approve Internet gambling, and to impose taxes.

“The decision may be to do something, do nothing; but to at least have control so that if you do something in the state of Iowa that the state legislature and the governor decides what it should be,” Rich said.

And therein lies what seems to me the next big obstacle for regulated online poker — the states. They want theirs. And eventually all will follow in the footsteps of Kentucky, Minnesota, California, Iowa, et al. and take a look at the revenue possibilities should the Feds want to tax activities within their borders. Then it becomes a matter of who has the right to grab what … and issues of states rights, no matter how any level of legislation looks, is usually only settled in the higher courts.

Mark it on your calendars (or just check back here) around October 22. The case of the Governor Beshear and the Commonwealth of Kentucky trying to claim the ability to seize 141 online gaming domains, or “gambling devices” as they were called, to keep them from accessing Kentucky residents will see the halls of the KY Supreme Court next month on an appeal from the Commonwealth.

Many months ago, a group of organizations representing internet freedoms and the rights of online gambling companies won an important appeal in the Kentucky court system, and that victory prohibited the Commonwealth from proceeding with its attempted seizure of those domains. The state promised to appeal to the Supreme Court, and that latest appeal was granted this month. Those fighting the state on the matter include iMEGA (Internet Media Entertainment & Gaming Association), PPA (Poker Players Alliance), ACLU (American Civil Liberties Union), CDT (Center for Democracy and Technology, EFF (Electronic Frontier Foundation), Internet Commerce Association, eBay, and Network Solutions. (Can we win on number of appellees alone?)

According to iMEGA’s announcement:

The Supreme Court has set oral argument in Commonwealth of Kentucky v. IMEGA, et al for 11 a.m. on Thursday October 22, 2009 in the Supreme Court courtroom. The order allots 15 minutes for each side.

“We’ve been waiting for this for a long time, and we’re going to win again,” said Joe Brennan Jr., iMEGA’s chairman. “From the beginning, Kentucky law has clearly supported our position, and a win in the State Supreme Court will put the final emphasis on that.”

Pardon the unprofessional nanny-nanny boo-boo to Kentucky Gov. Steve Beshear, but I am currently in your airspace — and therefore your jurisdiction — playing a sit-n-go on PokerStars. (UPDATE: Or at least I was; never mind, out in 8th.)

Anyhow, part of the point of this post is a just-because-I-can: First time I have ever played on an airplane — like while we’re actually flying in the air! — and I think that’s pretty darn neato. (And am thankful that AirTran, so far, has not blocked PokerStars, Full Tilt, Pokerati, Wicked Chops, or … actually, I’m kinda afraid to check anything by the Bang Brothers.)

See what I’m getting at here? Me neither … but I swear it’s relevant, because technically I’m in Kentucky right now, theoretically I could be in Washington State, and no matter what the state of the UIGEA, I’m pretty sure there is not proper justification for shooting this plane down.

Anyhow, crap, I gotta finish up this post because I’m running out of power … wi-fi on this Boeing 717 yes, power outlets no … but technology, internet, jurisdictions, mid-air financial transactions … this is the stuff our future laws will have to deal with, and obviously simply trying to prohibit online poker play or even just attempting to enforce the sooo-like-2006 UIGEA won’t cut it.

You may have noticed the Pokerati World Standings (presented by Betfair) for the 2009 WSOP (presented by Jack’s Links Beef Jerky) have been updated. Some interesting trends and plausibly coincidental occurrences over the past several events …

It took some time, but the Europeans have clearly arrived – now with more bracelets and final tables than California, and money won than Nevada.

Some of that came from Crocodile Lisandro, who claimed his first bracelet on behalf of Australia, but his second for Italy. Not sure how that will work out with taxes – but hey, if he wants to spread it around in the official standings, what can ya do? On that same day, Italy lost 0-3 to Brazil.

Similarly, we have our first big mistake (to be corrected on the next go-round) as it relates to Marc Naalden’s bracelet in $2,000 Limit Hold’em … which he won as a Belgian, but claims for the Dutch, the other country that runs through his border town.

ALT HED: Belgian Waffles, lol.

European newcomers to the world beyond the bubble include Portugal and PokerStarzistan Isle of Man.

Perhaps inspired and educated by neighboring Russians, Alaskans, specifically Alaskan’s from Wasilla, keep cashing.

Boooo Kentucky!

One of the other “bad” states representing at the WSOP is Washington. They had four players cash in $2k Limit Hold’em, which in and of itself would not seem like a major accomplishment in a 446-player field … but here all four made the final table.

In the way Northeast of North America, Newfoundland finally got on the board, as did Vermont — leaving Wyoming as the only state to not pop into Vegas and pick up some WSOP cash.

California is still unbeaten — batting 38-for-38 in this year’s WSOP — but just barely, thanks to Isaac Baron’s lone Cali-cash (10th place) in the $5k PLO.

When you’re done scrolling through the Standings, get your European poker news at Betfair.

While online poker forces and their internet freedom allies continue to fight a war of attrition in Kentucky, principals in Minnesota have not just called a cease-fire — the State halting efforts to force telecom companies to block citizen access to a random assortment of gambling-ish sites — but also the potential adversaries, who met face-to-face in St. Paul last week, seem to be forming a truce, looking for ways they can work together to regulate/tax online poker, etc. within Minnesota borders:

Minn. regulators drop bid to block online gambling [Associated Press via @ppapoker]

“We have not folded our hand,” said Andy Skoogman, a spokesman for the Minnesota Department of Public Safety, where gambling regulators are housed. He said he expects new strategies for regulating Internet gambling to emerge.

“The action raised awareness of the broader issue about who is policing the Internet and protecting the consumer,” he said. “At this point, we don’t feel there is anybody. This is an issue that every state is going to face sooner rather than later.”

Let’s get ready to rumble! It’s time for the next round in the battle of iMega vs. the State of Kentucky! Not only that, but this week we show video evidence of Governor Steve Beshear’s true motivations for banning online gambling in that state! Also, we have online gambling news from Intertops, Microsoft, and Denmark! What a show!

This week we look atthe possibility that the UIGEA will be repealed in sometime in 2009. Plus, great news for online gambling from the US, as the state of Colorado joins Pennsylvania in declaring poker a skill game!