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.

More…

Mark Cuban wrote that a sure sign of failure for any start-up is too much promotional gear. I’ve always kinda agreed … believing too many pokerpreneur types come with all the hype but not an actual product (let alone value proposition). But who am I to complain? Everyone knows Pokerati’s business model: to run a haphazard media empire and someday retire by collecting poker swag for future sale on eBay.

Totally coincidental, I happened upon this keyless keyring while cleaning out one of my poker closets last week and couldn’t help but lol-chuckle that none of these three operations made it to a second birthday despite significant hype and promotional spends.

David in Dallas sends an FYI about a big ruling in Tax Court that should prove rather beneficial to poker players:

The key take-away is that poker losses are now deductible for professional gamblers beyond your profits, so you can carry them forward and backward to offset income in other years. You can file on Schedule C instead of Schedule A, which limits deductibility.

Of course, none of you probably have any losses to deduct, but it’s nice to know that you have the right anyway.

Wow. You know taxes and finance aren’t really my game, but if David’s correct, this reversal of interpretation seems nearly as big as the DOJ’s December flip on the Wire Act — microeconomic change poker players can believe in!? Even if my attachment of significance is a bit of a stretch, it probably was about time for the Feds to acknowledge that yes, they know now (after years of investigation), playing poker even semi-professionally comes with legitimate business expenses beyond your buy-in …but bummer for Dan personally, as losses suffered in the Pokerati game apparently are not deductible as marketing write-offs. (Crap, there goes my equity.)

Kinda a big step for poker players seeking a certain legitimacy for their profession. And who knew … “Tax Court,” it turns out, is a real place, not some reality show on Bravo or The Learning Channel.

A quick-and-dirty excerpt from the new issue of the (always-sexy) Journal of Accountancy that jumps right to the end for stuff that matters for poker players who at least occasionally find themselves reporting net-positive results is below:

More…

Buckle up … the news (we care about) has been moving too fast for Pokerati be the lone source keeping up with it all. And with this latest — Caesars has made it official … the Empire is going public (again)! — don’t be surprised if February/March 2012 turns out to be the biggest news month in poker since April 2011.

I haven’t quite yet figured out if and how this is different from an IPO. But I do know these sorta things don’t happen in a vacuum. And considering the last time Caesars — soon to be better known on NASDAQ as CZR — looked serious about going public was the last time they had reason to believe passage of online poker legalization was imminent (Dec 2010) … uh, um, gahhh! So much going on, so many old docs to look at, so much for Kevmath to hopefully fact-check … my head is spinning with the possibilities! (And I can only wonder who Barack Obama met with on the side when he visited Las Vegas long enough to stay the night in the suburbs a couple weeks ago,)

Probably not a bad time to remember that Caesars was a public corporation (called Harrah’s) that went private almost immediately after passage of the UIGEA, controversial legislation that leveled the impact of the biggest online poker sites in the world (at the time).

Read below for an official press release.

More…

Too Soon? PokerStars is proud to announce that this has never happened on any PokerStars Caribbean Adventure.

PokerStars may be without a CEO for the time being, as Gabi Campos, who assumed the chief executive position in 2010, reportedly is no longer big boss of the largest real-money online poker site in the world. While it’s not quite clear who told whom to eff off (and Stars has yet to put out a press release insisting all is hunky-dory) … if confirmed, Campos’ ouster/skeedaddling marks the fourth major executive departure at PokerStars since Black Friday.

First to be disappeared (amid some controversy) was veteran EPT Tournament Director Thomas Kremser in May; then last month, EPT founder John Duthie left. And now supposedly Jeffrey Haas, top dog at Global Poker Tours Limited (parent company for PokerStars live events) has been, er … moved on. (Haas’s LinkedIn page lists GPTL as “Past” … and “Director of New Platforms, Mobile & Social Gaming for Pokerstars.com” as current — sounds like “big-money suit demoted to glorified blogger” to me, but hey!)

UPDATE: Interestingly, Campos’ LinkedIn-from-Israel doesn’t list PokerStars as a past or present employer … says he his now working for 888-subsidiary Dragonfish, which we know, of course, in 2010 became an online partner to the WSOP.

What if anything might be behind this extended shakeup on the international live tournament poker scene is hard to say. Read Wendeen Eolis’ report in Poker Player Newspaper here.

Despite Black Friday, PokerStars has maintained its position as the world’s biggest, arguably most important, and possibly most highly regulated and therefore internationally legitimate online poker site. (And they set a Guinness World Record to boot!)

The US Department of Justice, meanwhile, maintains that PokerStars’ success was built on the ill-gotten gains of an illegal enterprise with ties to organized crime … and their founder is still, according to the DOJ, the #1 most wanted online poker criminal.

CZR FTW?
“Poker Poker!”

It feels like we’ve been talking about Caesars going public since before they were Caesars (we have) … but their latest S1/A filing with the SEC suggests not only that CZR really is might be ready to kick it Zynga-style with a big fat IPO … but also that any public offering from the worldwide gambling empire may be in preparation for imminent legalization of US online poker.

While such hefty levels of high finance are still probably a little beyond my ken … you can read the nearly 300 pages of Big Casino corporate speak and decide for yourself. Somewhere in here, I’m pretty sure, is a blueprint for the future of poker and/or online gambling.

At a minimum, I found this snippet on page 7 suggesting that Caesars is getting ready for something big related to online gambling poker:

We believe that additional jurisdictions will legalize online gaming due to consumer demand, a broader understanding of the need to regulate the industry and to generate income through taxes on gaming revenue. As such, we support efforts to regulate the online gaming industry to ensure that consumers are protected. We believe that the potential for online gaming is substantial and believe that we will command, at a minimum, our fair share in any legal jurisdiction. An H2 Gaming Capital study conducted in 2010 projects that the global online gaming market will grow to $36 billion in revenues by 2012. We believe that the largest opportunity in online gaming in the near term is the legalization of online poker in the United States. [emphasis added]

There’s tons more in this document worthy of perusal … some of which I’ve already skimmed. And it doesn’t take much to see how an actual Caesars IPO — not just talk of it — could-well coincide with legalized American online poker hubbub (finally!) reaching critical mass.

Caesars, after all, formerly known as Harrah’s, was a publicly traded company until going private shortly after passage of the UIGEA in 2006. Changed their name to Caesars in November 2010 — the last time they prepped seriously for an IPO (right after their boy Harry Reid won re-election and owed them a favor) only to withdraw plans for a public offering of stock shares right after someone told them the lame-duck online poker Reid bill was just a farce for other political purposes a couple weeks later.

POKER CON? Lo Toney plays his cards close to the vest when questioned about Zynga’s entrée into casinoville and supposed disinterest in the future of real-money online play.

Wall Street is buzzing about a coming Zynga IPO — set for December 15, according to the Huffington Post — and what it may or may not say about social gaming industry valuations and overall US economic health in a more-global internet age. Expected to raise at least $10 billion, this hotly anticipated initial public offering (one born of poker, mind you) could well be the biggest financial news in the history of our beloved little game.

Big Casinos are paying close attention, of course. It’s a fine line these days between social gaming and online gambling, particularly in a multinational economy built on virtual currency. I spoke with Zynga Poker General Manager Lo Toney a couple weeks ago … he wouldn’t make “forward-looking statements” about the IPO, and as per usual denied any interest in the future of legalized real-money online gambling … even as the company announced further steps into the casino world.

Toney had just two big developments to push — Zynga’s second live tournament event (he was really excited about Zynga players getting to compete against newly crowned WSOP champ Pius Heinz) and the opening of the new Zynga Casino … starting with Bingo, remade to appeal to grandmothers and the “younger generation” alike, he says.

But beyond the promo that usually would have little appeal to a grizzled old Poker blog like Pokerati, we did at least get to touch on the recent removal of tobacco (and water bongs) from the Zynga gift shop, my personal addiction to the Zynga Poker iPhone app, and the advantages, challenges, and social responsibilities that come with being able to market your poker (and now casino) games to 13-year-olds.

Have a listen …

Pokerati Interviews Lo Toney
November 16, 2011

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.

download

Even if Toney is totally sincere about Zynga’s indifference to the possibility of legalized online gambling in the future, brick-and-mortar casinos are still actively trying to emulate Zynga’s social gaming success. No wonder the company appears so well-suited for such a big investment in the next generation of poker player and casino patrons as they come of age.

Joan Rivers’ nemesis’ brother’s online poker company could learn a lot from Trump about how to run a company into the ground and still be rich.

Oh yeah, and now Donald Trump wants in on online poker … should the Feds re-legalize it anytime soon. He’s apparently partnered with New York hedge fund manager Marc Lasry with the intent of entering into the online gambling space as soon as the US opens the hatch.

Not a surprise. Trump got in, then out, of poker early in the boom (remember the US Poker Championships in Atlantic City?). That was a few years before Joan Rivers beat Annie Duke heads-up on Celebrity Apprentice. Trump’s 29-year-old daughter, Ivanka, explains the partnership as Trump Entertainment contributing the gambling licenses, Lasry putting up the capital, and The Donald offering his name and likeness to recruit future players.

“In terms of the Internet, brand is essential toward attracting players,” Ivanka told Business Week. “The Trump brand would be the most powerful one in this space.”

(h/t @TheWookieWay. NOTE: DonaldPoker.com is available should anyone wanna gamble $8 that such a URL might become the most powerful domain in poker.)

Full Tilt laid off some 200 people on the Pocket Kings staff in Dublin last week — leaving pretty much just the head honchos, who apparently believe that ole Chris Ferguson bit about “a chip and a chair” too much and somehow still think they can salvage the company something.

Sucks for the Dubliners, but for the rest of us, that means 200 or more employees with insight into FTP operations over in Ireland, no real reason to necessarily protect certain information anymore, and access to 2+2.

Sure enough, at least two former employees from two different departments are posting away and answering questions. Check it out … worth the skim.

Nothing earth-shattering (yet … gotta figure anyone with the uber-goody dirt probably would go to the DOJ requesting immunity before turning informant) but the virtual deposition one former employee goes through provides plenty of color to paint a decent picture of what life was like in the middle of a corporate collapse … not to mention how the nouvea-poker-riche behave without the cash (and TV shows) that previously formed the foundation of their power.

For example, I learned:

More…

A Full Tilt-supported televised poker game in Cardiff, UK — The Poker Lounge — was canceled mid-event today, when the TV production company walked off the set after an expected wire-transfer from Ireland did not arrive, reliable sources say.

Supposedly, Presentable Productions were waiting on a second installment of funds from Full Tilt subsidiary Pocket Kings that had been promised by today, and at 4pm GMT, after recording the 3rd heat, they sent the camera crew and players home, with no plans for return. (The show is an 8-heat event featuring $20k sit-n-gos with seven players at each table.)

It remains to be seen whether this was just reactionary angst over a technical blip that could normally be resolved with little problem, or indicative of cash-flow and money-transfer issues that have far more severe implications. But either way, it does confirm a certain unease in the UK after problems in the US.

Presentable has been producing poker television shows since 1999, when their show, Late Night Poker, debuted in England.

The first visible indicator that we will be able to see after Friday’s indictments might be coming up in just a few hours. The National Heads-Up Poker Championship is the first new show to air in this new online-pokerless environment in the United States, with its debut episode set to air at 12p ET on NBC.

Could be interesting to see what the advertisements during the broadcast are. If the network’s a bit slow in reacting it might be one of the last times we ever see a FullTilt or PokerStars advertisements on American airwaves. With the exception of a few WPT episodes in production or already in the can, it will almost certainly be one of the last times we see so many patches from the companies involved in Friday’s indictments on players.

The most troubling possibility is that it would not air at all. Sound ridiculous? Consider the following: Kevmath had a retweet late Saturday night in which @buckwild33 noted that a scheduled WSOP Main Event 2007 marathon was not airing and boxing was shown in its place.

While it would certainly be a stretch to try and correlate this change in broadcast schedule on ESPN in some way with the upcoming NHUPC broadcaston NBC, it certainly should not be dismissed outright. There will be several small milestones that come up periodically in the coming days, weeks, and months, and we who are most affected might want to pay attention to their outcomes.

The information that we may be able to get from these indicators could provide a significant portion of the information that comes our way as things progress. Both the sites and the DOJ are likely headed for a process that is going to go very slowly, and information will trickle out slowly.

Again, this is just the direction that my thought process brought me in, and I don’t claim to have any information that is unavailable to everyone else. I think the NHUPC is at least an interesting talking point and the first small event in a series of events that will eventually have effects on millions of people around the world. Now is the time to keep your eyes open.

On a side note, it’s interesting to see how the title sponsor of the NHUPC, GoDaddy, could be the least toxic element at this point in time. Who would have thought two weeks ago that Godaddy’s CEO’s elephant hunting fiasco would become old news so quickly.

Zynga should soon be well aware of my sick rungood in their $5/$10 “cash” games.

Continuing its rollout as serious new kid on the online poker block that is simply too big to be ignored … Zynga has acquired Poker Table Ratings, a Texas-based web-op that challenges current online poker Terms of Service with what technology and a legally enforceable free flow of information allow them to do.

PTR has also proved a key player in issues of online poker security for what their database can reveal not just about individual players, but site trends overall. According to Zynga:

The team’s experience and deep knowledge of the online poker industry will be invaluable as we work together to build out cutting-edge features and further enhance Zynga Poker.

However, Zynga goes on to specify that this acquisition of PTR parent company, MarketZero, a 16-person company in Austin, is not about taking over PTR, but rather about hiring their talent, who apparently will still own and operate MarketZero’s main website, PokerTableRatings.com.

Zynga has been on a hiring and acquisition spree of late — 11 acquisitions in the past 11 months — having obtained massive financing for expansion in the social media and gaming sectors, with estimates ranging from $180 million to $500 million.

Meanwhile, in presumably unrelated political news that may well someday be very related … a California state senator unveiled a “Do Not Track” bill yesterday — which would require all internet companies doing business in that state to allow users to opt out of any tracking or datamining capabilities.

Jon Katkin

---

The Poker Economy

---

A lot of things have changed in the poker world since the Zynga PokerCon ended here in Las Vegas last Saturday. Partnerships have been approved (Caesars/888), announced (PokerStars/Wynn) and speculated upon (Full Tilt/Station Casinos). Legislation surrounding the legalization of online poker has been introduced and debated in various jurisdictions around the country and, I’m pretty sure that Erik Seidel won another high-stakes tournament somewhere in the world.

In short, it’s been a pretty busy week. And yet, with everything going on – or perhaps, because of it – I still find myself puzzling over Zynga’s potential role as a player in the post-regulation poker economy.

For those of you still unfamiliar with Zynga, they bill themselves as the largest online poker room in the world with a database of approximately 38 million players who compete for chips and tokens that have value only within the confines of Zynga’s proprietary system. In other words, Zynga is a play money site in the truest definition of the word. And yet, they came to Las Vegas last weekend to hold a live event for their fans and players.

Zynga has something every major real money site is looking for: players who have yet to make an initial deposit online. Would Zynga really stay out of real money gaming if someone came along with a partnership offer they couldn’t refuse? I don’t think so.

Populated by attendees who either won or bought their way into the event through Zynga’s site, the two-day conference was an interesting mix of Zynga players and industry insiders who were looking for information on this most mysterious of potential competitors or, perhaps, partners. I can’t speak for anyone else at the conference, but I have to admit that I walked away from the event with no clear answers.

As a fan event, I have to say the PokerCon was a success. For the cost of a $125 entry, Zynga’s players received professional instruction from Annie Duke and a plethora of other name pros, the chance to meet legends like Doyle Brunson and Mike Sexton, free food and drink at a Zynga-sponsored party, and a seat in a $100K tournament with a guaranteed payout of $26,000 to the winner. Not a bad deal, if you ask me.

As a “coming out party” for Zynga Poker, however, I can’t say I was as impressed.

More…

Sexton: Ever-gracious ambassador.

I’m pretty sure you’re gonna be hearing about Zynga for awhile … not just because I still have lots of pictures and audio to unload from Zynga’s inaugural PokerCon at the Palms last weekend … but because, imho, as plenty of industry stalwarts seemed to recognize, this company that didn’t even exist in 2006 (that oh-so-glorious year of Jamie-Gold-boom-and-UIGEA-bust) has something that every other big-idea “revolutionary” poker undertaking has lacked since, well, PartyPoker.

Have a listen to Hall-of-Famer Mike Sexton, invited to simply share his brand of poker lore while mingling with Zynga players, give his quick take on the relevance of this relatively small little event and the booming company behind it:

Mike Sexton at Zynga Pokercon 2011

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.

pic by Michele Lewis

Hellmuth: Party crasher?

Phil Hellmuth musta seen something more than just a $100k freeroll going on, too. Whether delivering a “bonus” to Pokercon attendees out of the kindness of his heart or just because his feelings were hurt for not being asked to take part in Zynga festivities, the “poker brat” slipped in as an uninvited (but presumably still welcome?) guest and revealed his presence at the Pokercon final table to a smattering of gasps and boos. When poker’s self-proclaimed badboy tried to educate the fans that they were supposed to boo him, the nice Zynga people didn’t exactly oblige — giving him instead a polite round of applause. You can tell, however, at least a few in the crowd understood the subtext of his unscripted exchange with host Ali Nejad — effectively trying to put PokerStars back in its (2nd) place.

Phil Hellmuth at Zynga Pokercon 2011

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.

Laurence Toney didn’t make the Bluff Power 20 even though he runs the largest online poker site in the world. (38 million active players, they say, 7.5 million a day!) I know I know … I didn’t vote for him either … but spoiler alert: probably will next year.

Lo, as he’s known, Zynga Poker’s General Manager, aka @lo_toney, is quite the new mystery man in poker. He doesn’t come from a poker background, he comes from YoVille … one of the original Zynga games (and before that art.com, and before that eBay-Collectibles). While YoVille in and of itself is rather fascinating — seriously, they actually have a YoVille media, and do real-life biz with companies the WSOP could only dream about some day seeing on its felts — what that understanding of true social gaming brings to poker remains to be seen.

Check out the RawVegas interview with Lo …

… via Wicked Chops