Below is our second DC Update for 2012 available exclusively to 2012 PPA members.  Because we’ve received so many questions from members about PokerPAC and how and why it’s important in our fight for the game we love, I’m providing this week’s DC Update with a bit of background on PACs generally, and specifically why PokerPAC is so important.

PPA DC Update | February 1, 2012 | Bryan Spadaro | Poker Players Alliance

While I am not technically a lobbyist for the PPA, I am excited to write this week’s insider piece to our membership.  This week’s piece is about Political Action Committees, or PAC’s, an area in which I have expertise.

As the Republican primary race continues into 2012 you’ve undoubtedly heard a lot about PAC’s and Super PAC’s, and the role they play in deciding the outcome of these primary races.  A bit of history first.  PACs were first created under the Federal Election Campaign Act of 1971. A PAC enables likeminded individuals to voluntarily pool their financial resources in order to contribute to candidates running for federal and state offices.  This allows corporations and associations, who are barred under law from using their own business (corporate) funds, to create a connected entity that can raise and then disperse funds to candidates they want to support.  This is exactly what PokerPAC is, the connected PAC of the Poker Players Alliance.

One of the questions I hear most about PACs is “where does the money go?” Well, as PPA’s PAC director, I can say, contributing it is a lot easier than raising it.  First, it is important to know that every dollar PokerPAC raises is contributed to candidates and campaigns that support the rights of poker players.  No money PokerPAC raises is used for overhead, salaries, compliance, marketing, etc., 100 percent goes toward the fight for our game.  Another way to answer the question is to look back to the 2010 elections, and explain some of the ways we spent PokerPAC resources.  In the 2010 cycle, PokerPAC endorsed 58 candidates.  1) In many cases, we contributed money directly from the PokerPAC to the campaigns of our endorsed candidates.  This is most common and perhaps most effective way we can support a candidate. 2) Also, in every PPA-targeted race we sent an endorsement email to all PPA members living in the district (or state) letting them know why we support the candidate and encouraged the local poker players to support them too.  These “in-kind” emails cost money and a small percentage of PokerPAC resources went to pay for these endorsements.

In a few cases the PokerPAC went “All-In” for candidates. 3) In Nevada and Colorado, two of the closest Senate races of 2010, the PPA supported candidates who were strong supporters of your poker rights and their challengers were opponents of your freedom to play online poker.  Leading up to Election Day we hosted events for the candidates so the poker community in that state could meet them and learn about why they deserved a poker player’s support.  4) PokerPAC also used resources to run online advertising and phone calls letting poker players know to support our candidate.  In both races we won!  And both Senators have acknowledged PokerPAC’s role in helping them win their races.  That is about as good as it gets for a PAC Director like me: to know that the actions we took had a direct, positive, and tangible effect on a very important outcome.

That is why we ask for your support of PokerPAC, and why it is so important to go beyond your $15 annual PPA membership.  I hope you found this piece to be interesting and informative, and as always, if you have any questions, please send them to email@theppa.org, and we will be happy to answer them for you.

Thanks again for your 2012 membership.  If you haven’t done so already, please consider becoming even more involved with the PPA by becoming a contributor to PokerPAC, the PPA’s political action arm.

Proud to Play,

Bryan Spadaro

Disclaimer: You can only contribute to our Political Action Committee if you (i) are a United States citizen or landed immigrant (e.g., hold a green card), (ii) are over the age of 18 years, (iii) are a member of the PPA, and (iv) are not a government contractor. You can only make contributions from your personal funds; you may not contribute corporate funds or funds from other prohibited sources. Contributions are not tax deductible. You must also provide where indicated your full name (i.e., first name, middle name or initial and last name), your mailing address, your occupation, and the name of your employer.

And if online poker isn’t gonna be at least a bullet point to the national conversation now … well then, really, perhaps poker players will be getting exactly what we deserve?

This Saturday, February 4, 2012, the Nevada Republican Presidential Caucuses will be held throughout the Battle Born State. These caucuses will elevate Nevada into the national political spotlight, with all four candidates making appearances in the state in the next few days.

Governor Mitt Romney

It is important that Governor Mitt Romney, who has a commanding lead in electoral votes, hears from you today that he should support your right to play on safe, U.S. regulated online poker websites.

Let’s welcome him to the Battle Born State with an overwhelming response in support of federal licensing and regulation of online poker in the U.S. There are two quick and easy ways to send your message to Governor Romney.

Facebook: You can click here to go to his Facebook page and send him this fully editable message:

Governor Romney please support my rights to play online poker on U.S. regulated websites. Supporting U.S. regulated sites is the only way to protect consumers, prevent fraud and generate billions of dollars in new tax revenues without raising taxes! Supporting federal regulation of online poker is smart public policy.

Twitter: you can reach him via Twitter by sending him the fully editable message below:

@mittromney Fed efforts to regulate online #poker is smart public policy. Stand with me in protecting consumers and personal freedoms!

Don’t forget, the other three candidates’ opinions matter too. You can send them a Facebook or Twitter message as well by following the links to their respected social networking pages.

Senator Rick Santorum

Senator Rick Santorum does NOT support your freedom to play online poker in the U.S. To watch his interview on Face to Face with Jon Ralston were he clearly states his opposition to federal regulation of online poker click here.

Facebook You can click here to go to his Facebook page and send him this fully editable message:

Senator Rick Santorum please support my rights to play online poker on U.S. regulated websites. Supporting U.S. regulated sites is the only way to protect consumers, prevent fraud and generate millions of dollars in new tax revenues without raising taxes! Supporting federal regulation of online poker is smart public policy.

Twitter Click here to send him a fully editable message below:

@RickSantorum your non-support of a reg U.S. online #poker market only hurts consumers and families & goes against principles of freedom.

Congressman Ron Paul

Congressman Ron Paul is a long time supporter of your rights to play online poker and currently is a co-sponsor of H.R. 2366, Internet Gambling Prohibition, Poker Consumer Protection, and Strengthening UIGEA Act, which is pending before congress.

Facebook You can click here to go to his Facebook page and send him this fully editable message:

Ron Paul, THANK YOU for supporting my right to play on a U.S. based regulated online #poker site!

Twitter Click here to send him a fully editable message below:

@RonPaul THANK YOU for supporting my right to play on a U.S. based regulated online #poker site!

Speaker Newt Gingrich

Speaker Newt Gingrich has yet to announce his policy on whether he supports regulation of Internet poker. The PPA has reached out to his campaign and will notify you when we learn of his opinion.

Facebook You can click here to go to his Facebook page and send him this fully editable message:

Speaker Newt Gingrich please support my rights to play online poker on U.S. regulated websites. Supporting U.S. regulated sites is the only way to protect consumers, prevent fraud and generate millions of dollars in new tax revenues without raising taxes! Supporting federal regulation of online poker is smart public policy.

Twitter Click here to send him a fully editable message below:

@newtgingrich Fed efforts to regulate online #poker is smart public policy. Stand with me in protecting consumers and personal freedoms! 

With the political spotlight shinning bright on Nevada for the next few days we, as dedicated poker players, need to make sure that the presidential candidates understand that our right to play poker should not be impeded upon. Together we can make a difference. Take action today!

Proud to play,

Lupe Soto
Nevada State Director

• Dan Savage’s “It Gets Better” campaign to stop gay teenagers from killing themselves
• Russia’s Wintertime Spring to prevent Vladimir Putin from regaining power
• The Occupy (New York) movement spreading worldwide

Though personally I see Occupy ultimately going the route of Woodstock ’99, overall it’s a good crowd for poker to be runnin’ with. And that sorta social climbing didn’t come because of a Guinness World Record, crazy prop bet, or even a celebrity charity tournament; being on the national radar (in the right way at the right time) comes because of consistent and steady efforts to awaken the right people to what really is total government bullshit! political injustice.

And you gotta think Obama probably got briefed as the DOJ officially changed its position on the Wire Act, September 23rd — the first day of Fall, and the same day the DOJ labeled Full Tilt Poker a Ponzi scheme and took all of Howard Lederer, Chris Ferguson, and Rafe Furst’s money. But why then did the ever-PR-conscious DOJ wait some 60 business days later until December 23rd — the quietest media day of the year — before telling the rest of America about the Executive Branch’s significant change of digital heart?

I suppose it might not even matter at this point; SOPA and PIPA have been tabled for now, Megaupload has been slapped hard with the same government quarantine the Feds beta-tested on online poker sites, and Kim Dotcom is in jail awaiting a fate that Full Tilt and PokerStars lawyers say he coulda avoided simply by changing his name to Kim Dotnet!

OK, maybe I get a little factually carried away sometimes jest … but John Pappas has a serious message for the President — essentially a 22-second synopsis of all those emails and tweets from the Poker Player Alliance’s 1.2 million members, and a plea for “common sense public policy” on the eve of what could be Barack Obama’s final State of the Union address.

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.

OVERSIGHT HEARING on the Future of Internet Gaming:
What’s at Stake for Tribes?
Thursday, November 17 2011, 2:15PM
Senate Dirksen Buldg SD-628

To follow along:

Live Webcast here. And top-quality live tweeting from @PokerScar, @CKrafcik, and @CasinoCityVin.

@PPAPoker too.

The Senate Indian Affairs Committee is holding a hearing to examine the impact of Internet gaming regulation on Indian tribes on Thursday, November 17th at 2:15 PM ET. PPA Chairman former Sen. D’Amato will testify for PPA, to be accompanied by Executive Director John Pappas.

The Senate committee hearing is excellent news for the poker community, as this is not the type of hearing where the poker community would necessarily expect to be invited to provide testimony. The invitation was due both to Sen. D’Amato’s esteemed background and to the activism of all of us in the poker community. Getting a hearing scheduled prior to the Thanksgiving recess was an accomplishment as well. For more, please click here to read PPA’s statement on the issue of tribal online poker, and please click here for details on this important hearing.

Additionally, the U.S. House Subcommittee for Commerce, Manufacturing, and Trade will hold another hearing on Internet gaming on Friday, November 18th at 9 AM ET. Please click here for more on this important hearing, and please click here to read PPA’s memo to the subcommittee regarding bot detection technology, how sites handle Internet service disruptions, and discussion of other issues important to the poker community.

These hearings are hard evidence of the great work the poker community has been doing to ensure lawmakers hear from us. I thank everyone for taking the steps necessary to ensure our elected representatives understand that we poker enthusiasts will not back down and will not simply go away!

Thank you again for your continued support!

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

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

We have come a long, long way from just a few short years ago when Congress could only talk about how best to prohibit Internet gambling and poker.  This shift in attitude has much to do with the advocacy efforts of your PPA and the poker community in general who have done so much to educate lawmakers on this issue.  We have turned opponents into champions for our cause and completely changed the debate in Washington D.C.

As I stood with Senator D’Amato today meeting with members of the Committee — before and after the hearing — I was immensely proud to hear every lawmaker tell us that they are being contacted by poker players in their districts. While politicians often give us reason to be cynical about government, one thing is clear, they appreciate hearing from the voters on issues that matter most. Please keep up the pressure and please continue to make your voice heard. It is truly paying off!

We all have much to be proud of, but there is still much more to do.  I hope you will consider the next step in supporting the PPA by becoming a 2012 member today.  We are offering a special $15.00 deal (normally $20.00) that gives you a PPA membership for the remainder of 2011 and all of 2012!  This should be a “snap call” for any poker player who wants to continue the fight for our poker rights.

Other Highlights

• The PPA would like to thank Congressman Joe Barton for his continued leadership on this issue.  He was excellent at today’s hearing and he is working to educate every member of Congress about the benefits of regulated Internet poker.  Check out his opening statement from today’s hearing.
• This week the National District Attorney’s Association, the oldest and largest professional organization representing criminal prosecutors in the world, issued a statement in support of regulated Internet poker.
• Check out a good opinion piece by former FBI Director Louis Freeh and former Homeland Security Secretary Tom Ridge highlighting the need for Internet poker regulation.
• The Hill, one of the leading publications for Congress, has a good recap of today’s hearing.

Again, I hope you will please stand with the PPA and share in our continued success by becoming a 2012 PPA member today for just $15.00!

Thank you.

Proud to Play,

John A. Pappas
Executive Director

• Bloomberg Business Week @BW | Betfair May Boost Profit With Fixed-Odds Sportsbet
• Fox5 LasVegas | Mobile wagering expands to iPhone {Leroy’s Sports Books/American Wagering}
• The Hill | Let states legalize online gambling to stimulate the economy | h/t @taxdood
• Indian Country | Internet Gaming Tops NIGA Agenda | h/t @taxdood
• Irish Times @the_irish_times | FTP Dublin subsidiary makes 180 positions “redundant”
• Bloomberg Business Week @BW | Online Poker Should Be Dealt a Fresh Hand With Regulation
• Charleston Daily Mail | Lottery funding goes to (WV) casino slots upgrade | h/t @casinocityvin
• Inside Poker Business |  Poker Networks 2012 | h/t @InfiniteEdgeKim
• @hardboiledpoker | Reports from the (FTP) Department of Redundancy Department
• @InfiniteEdgeKim | Buyers Beware {handy shopping tips for iPoker purchasers in US}

Watchit

• Livefeed @ Congress | “iGaming: Is There A Safe Bet?” | http://energycommerce.house.gov/
  The House Energy and Commerce Committee will be holding a hearing Oct. 25 called “iGaming: Is There A Safe Bet?” at 10:30AM EST in the Rayburn House Building RM 2123. Details of this hearing (and witness list – ty to @WriterJen for pointing this out) may be found on the Committee website -> here.
• @AGAupdate posted this testimony from Frank Fahrenkopf for tomorrow’s congressional hearing.

Witness List:

• Parry Aftab | Member, Board of Advisors Chairman | FairPlayUSA
  —> Witness Testimony
• Ernest L. Stevens | Chairman | National Indian Gaming Association
  —> Witness Testimony
• Keith Whyte |Executive Director | National Council on Problem Gambling
  —> Witness Testimony
• The Honorable Alphonse D’Amato | Chairman | Poker Players Alliance
  —> Witness Testimony
• Kurt Eggert | Professor of Law| Chapman University School of Law
  —> Witness Testimony
• Dr. Dan Romer | Director, Adolescent Communication Institute
  —> Witness Testimony

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.)

At the time of this email the witnesses for the hearing are still unknown. The PPA and its lobbying team will continue to meet with members of the subcommittee and their staffs leading up to next week’s hearing. We will be asking PPA members whose U.S. Representative is a member of this committee to contact their member directly before the hearing. Please check the PPA website and your inbox for future announcements about this very important hearing.

We have a nice opportunity to make ourselves heard today, so I encourage everyone to participate. CNN is airing this evening’s GOP presidential debate live from 8 p.m. to 10 p.m. ET from the Venetian in Las Vegas. CNN is seeking questions for candidates via the CNN Politics fan page on Facebook, Twitter (using the #CNNDebate hashtag), and their website. So, let’s all submit some pro-poker questions. As this debate is being held in Las Vegas, our issue will be seen as topical.

To participate:

1. Submit pre-filled pro-poker debate questions via Twitter HERE, HERE, and HERE. Either submit these as-is or, even better, edit them a bit to give them some individuality.
2. Like the pro-poker Facebook CNN debate questions HERE and HERE, then like and post pro-poker questions/comments there and on the CNN Facebook debate page main wall HERE. Just post something straightforward, like, “To all the candidates: What is your position on the licensing, regulation and taxation of online poker?” (To find all the poker questions, scroll to the bottom of the page and click “more posts” until a day’s worth of posts are visible. Then, hit CTRL-F and search for “poker”. Use “highlight all” to spot the poker posts quickly.)
3. Submit pro-poker questions directly to CNN HERE. Again, try something like, “To all the candidates: What is your position on the licensing, regulation and taxation of online poker?”

That is all it takes! With this, not only will you let the candidates know you demand your right to play poker in your own home on your own computer…you will also let CNN know that many of its viewers are deeply interested in this issue.

At the time, many wondered if this marked the end of online poker, which had been booming at a rate that woulda had virtually the entire planet + Jupiter playing by now. Ironically, what was supposed to be a death knell for online poker would actually be what made several of my friends and colleagues (temporarily) rich … and the principals of Full Tilt and PokerStars and Ultimate Bet (momentarily, in the scheme of things) extremely powerful.

Let’s have a little flashback, shall we … to slightly more innocent-til-proven-guilty times … commemorating this uber-significant day in poker history:

Poker Faces in the Crowd
October 16, 2006

Online poker is kinda-sorta illegal now. Pokerati wanted to know America’s thoughts … so we asked the question, How has the new law affected you?

Jennifer Cortez
Account executive

“I think it’s just wonderful. My boyfriend played that PartyPoker like all the time. But now we will be able to see the latest Jennifer Aniston movie, and we can take more walks while holding hands. Do you know how many baby showers we’ve missed because Christopher was ‘near the bubble’?”

Ghassan Abdulhamid Bibi
Starbuck’s barista

“This is total bullshit! I have been playing AQpoker.com step tournaments for two years in an effort to qualify for the WSOP and help Al Qaeda make enough money to purchase nuclear weapons from North Korea. The plan to sneak them through America’s weak ports was almost ready to go, but now we have been foiled again. Damn you George Bush! Allah Akbar al-Poker!”

Maurice Nelson
Quadriplegic

“The new law is clearly discriminatory and violates my rights under the Americans with Disabilities Act. It’s hard to play in a casino when you can’t use your arms.”

Mrs. Michalski
Occasional Pokerati reader

“Dan, I know you’re upset, hon, but try to see the bright side. I think this will be really good for you, because from what I’ve read on the internet, you almost always lose at poker. Will you be coming over for Thanksgiving?”

“Choad”
Official ferret of Kappa Alpha, University of Arkansas

“Uh, poker what? I have no idea. Why are you asking me? I am frickin’ ferret. Look, over there, socks!

Jeffrey Schmollack
Fake WSOP Commissioner

“Off the record? We’re talking off the record? OK, dude, let me tell you, this is so awesome. I mean AWEsome! We didn’t have a fucking clue how we were ever going to handle 12,000 [players at the next WSOP]. And let me tell you something else … those online sites … they made a lot of money. Like billions, man. Give us two years and you’ll see, with soft money greasing the right pockets and the Brits out of the equation, it can all belong to Harrah’s. Why do you think we want that WSOP.com website so bad?”

I was working for Party Gaming in 2006, as chief editor of PokerBlog.com … There, albeit briefly, sadly, I had the freedom to hire and deploy a team to write about whatever we wanted, wherever we wanted, and however we wanted … so long as the content was rich with searchable keywords about poker. Or at least that was the plan pre-UIGEA.

In my time with Party, only one post would get pulled from Pokerblog — my semi-satirical response to this brand new industry-altering US law (above). There would be no argument or debate — the order to remove supposedly came from the very top, Mitch Garber, Party’s relatively new CEO.

“Just put it on Pokerati if you think it’s that important,” my boss in London relented.

Which I did, eventually no longer scratching my head as to why that post may have been such a big deal.

Attorney Tony Cabot moderated a debate between I. Nelson Rose and Martin Owens, two venerable internet gaming counselmen who’ve been following the legalities of internet poker (worldwide) since long before the DOJ knew the names Isai Scheinberg, Ray Bitar, et al.

Episode 2: Giddy-up? “The Inter- vs. Intra-state Divide”

Rose took the strongest position that the federal iPoker legislation stirring up so much excitement is going nowhere … at least not before we see state-by-state legalization … kinda like what happened in the Washington DC, only less sketchy and corrupt?

It’s all about the money, Rose and Owens say. Supposedly horse racing — with maybe a little Powerball lottery mixed in for liquidity’s sake– is where we’ll find the model for the intrastate internet poker … 7-year timeline for laws to populate across the continent … Keep your eye on Iowa as the dark horse in this race.

Check out the lineup for G2E ’11 here.

Just got the press release about what AGA/G2E chief Frank Fahrenkopf plans to speak on in his media address: (Yay. Looking forward to it.)

ECONOMIC IMPACT OF THE CASINO INDUSTRY, ONLINE POKER TO BE
KEY TOPICS AT FAHRENKOPF’S ANNUAL G2E MEDIA BRIEFING
Preliminary Topline Results of Major Economic Impact Study to be Unveiled

Also got word that this year G2E has very clear “no audio or video recording” rules for their extra-informative sessions. (Crap, there go Pokerati’s plans for recording as many as possible and sharing them with you and others who didn’t pay to attend.)

Either that wasn’t policy last year or I mighta missed the memo. (Oops?)

From Pokerati’s vast archive of yet-to-be-seen-or-heard content … have a listen to Fahrenkop’s 2010 G2E media pow-wow. And hear, now with the benefit of hindsight, what the AGA leader had to say about how some wanted to work with (or against) online poker sites such as Full Tilt and PokerStars … and what the vision was (and presumably still is) for a combination of state and federal regulations being the future path for legalized online gambling in the US.

AGA’s “new reality” (circa 2010): 1. Doing the Macau-rena; 2. “Hey Harry, pull my finger!”; 3. Poker (only) face.

MEDIA BRIEFING: Frank Fahrenkopf at 2010 G2E
40:22

* * * * *

G2E: Fahrenkopf Says Don’t Bet on 2267
But combo state+federal regs a new possibility?

Pokerati: Unpublished, 28 Sep 2010

Frank Fahrenkopf, CEO of the American Gaming Association, voice of America’s biggest casino interests in Washington DC, briefed media at last week’s G2E convention on the state of the gaming industry, the overall economy, and online gambling’s future in the USA.

Prior to cutting the ribbon to kick off the 10th annual Global Gaming Expo, Fahrenkopf briefed the media on the AGA’s recent findings that suggest the casino industry seems well on its way to recovery (fingers crossed the US economy holds) …and in some regions has done well all along. He also spelled out the second biggest issue online gambling.

Specifically, he said, that while HR 2267 is all but dead, “poker only” legislation was the gaming industry’s most likely entree into legalized online gambling and associated money transfers; that a combination of state and federal regulation is possible; the industry would by no means cannibalize itself with online play; and absolutely it would lead to jobs, with the right legislation. He also addressed the spectrum of relevant opinions on “rogue” operators — which the folks at PokerStars, Full Tilt and the like prefer to call “incumbent” operators.

FF QUOTES
>>>
But what do you do with the bad guys, the rogues, position of the justice department. if it became legalized, would those people be eligible for licensing. on one extreme — that they wouldn’t be allowed to operate, or even profit off of it by selling their software to a licensee. others say limit them 3 or 4 years.

>>>
it’s clearly seen that poker is different. the public perception is that it’s different, game of skill and chance. viewed differently than other games. what’s doable in congress — you’ve got a better chance of passing a poker-only bill. poker doesn’t have the stigma that exists on the other side of gaming. poker only or poker+casino, everyone is happy with poker.

>>>
leadership in the house is gonna change,the future of the barney frank legislation is clearly in doubt. the lame duck session, not going to hold a hearing in ways and means comm on internet gaming legislation i can assure you.

>>>
i don’t see the barney frank legislation moving in the lame duck session. i don’t see the barney frank legislation moving. whether or not something will happen, i don’t know. there’s a lot of scuttlebutt. i can tell you i dont know. and i don’t know anyone who does. if anyone tells you they know, trust but verify. Reid conceivably could get behind poker-only.

NOTE: The “quotes” above are just notes about quotes, and not necessarily fully transcribed, which probably has something to do with why no one ever pressed publish, semi-coincidentally, one year ago today.

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

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

The criminalization of “distracted driving” relies on what really is a rather poorly written bill (in parts); nothing makes it specifically illegal to play mobile cameraman so long as I’m not trying to live stream video while driving … and the law as written really is about the transfer of voice and data over handheld devices — and manually connecting to the internet — not about capturing Twitpics on a handheld device for later distribution on the internet (in a car with automatic transmission).

You know, gray area.

But perhaps most important to my defense … I still have a 214 area code, so even if I were to transfer voice and/or data “illegally”, it wouldn’t be taking place in a Nevada jurisdiction. Right? Unenforceable, obv. All that and Twitter is a game of skill.

Technology & Government Control
The Las Vegas-to-Reno mobile phone ban goes into effect Oct 1, with fines of $50, $150, and $250 coming into play Jan 1, 2012. Just a little bit of prison time (6 years max) if you happen to kill someone.

Personally, I believe the law is too far-reaching in how it gives police authority to determine a driver’s mental acuity. And kinda lame that cops are allowed to talk and text on the cell phones while driving — suggesting that all the safety data quoted to pass this bill mighta been kinda bullshit, no? Either that or law enforcement safety is less important than mine.

But regardless, check out this provision:

7. For the purposes of this section, a person shall be deemed not to be operating a motor vehicle if the motor vehicle is driven autonomously through the use of artificial-intelligence software and the autonomous operation of the motor vehicle is authorized by law.

Holy crap, we have that!?! If fully legal bot cars coming aren’t reason enough to legalize online poker now, well, OMG, I don’t know what America I’m living in.

#ThatsPolitics
Read the lineage of how SB 140 came to be. (Final bill text here.) This is for just a little bill, on the state level … It took three sessions, two governors, and seven individual bills for Nevada to become the 34th state to enact such a texting ban — one that in the end would be strengthened to include a ban on handheld phone convo, too.

Funny thing is … in the time it took to get the bill to the Governor’s desk, a new study came out with data showing that these laws don’t actually work, and in fact have had the opposite effect — increasing crashes and fatalities in three out of four states.

I have spoken with many poker players who have been deeply affected by the failure of Full Tilt Poker, Absolute Poker, and Ultimate Bet to repay its players since Black Friday. While I have roughly five figures of my own money locked up on Full Tilt Poker, this is nothing compared to the heartbreaking stories I have heard from many of my fellow players. We all need to take a stand — for the present AND for the future.

You all received PPA’s update yesterday detailing how to contact the Justice Department’s Victims and Witness Services program. I encourage everyone affected by this to take a good look at both this program and at PPA’s legal analysis of the options available to individual players who have not been able to access their online poker funds.

PPA has worked to ensure that all proposed online poker legislation includes provisions for consumer protections even well before Black Friday. Needless to say, PPA will continue to push for these important provisions. We all deserve safe, licensed, accountable sites on which to play. I am glad the poker community is standing together, united in this fight for our rights.

Here are some actions we can take right now to continue to advocate for our rights. These take less than 60 seconds each!

“We the People” Poker Petition to President Obama

We the People is a new addition to the White House website that allows Americans to petition the Obama Administration on a range of issues. Per the site, “if a petition gets enough support, White House staff will review it, ensure it is sent to the appropriate policy experts, and issue an official response.”

This is a great way for us to ensure the administration hears from the poker community, so let’s all take a moment to sign the petition electronically.

The site is getting a lot of traffic, so you may get either a “site is under maintenance” or a “404 not found” message. Just try it a few times and you’ll get through. Even with this slight delay, it should take less than one minute to complete:

1. Go HERE and click “CREATE AN ACCOUNT.”
2. The site will send a confirmation email. Click on the link in that email to continue.
3. Click “SIGN THIS PETITION” to vote (if you are not redirected automatically, go HERE to vote).
4. Send a prefilled, editable Twitter message to invite others to sign this petition HERE.

Deficit Super Committee Outreach

The United States Congress Joint Select Committee on Deficit Reduction is made up of 12 members of Congress — six representatives and six senators, with equal representation from Democrats and Republicans — who have been tasked with developing a bipartisan plan to reduce the federal deficit. The plan will be delivered to the full Congress and President Obama by Thanksgiving.

Let’s all take a few moments to visit the super committee’s website HERE to send the super committee members our recommendations. Below is a sample letter that you can edit or cut-and-paste as-is into the message field. Or, better yet, write your own. This is another great opportunity for us to demonstrate support for our position.

SAMPLE LETTER (this has been updated from last week’s sample letter, so feel free to send this one even if you sent the prior one last week)

Dear Honorable Joint Select Committee Members,

HR 2366, the Online Poker Act, is a bipartisan bill that, should it become law, will create thousands of jobs while providing up to $40 billion in new tax revenue for the federal deficit over the next ten years — without raising taxes. It also mandates strong consumer protections and effective age verification.

Former FBI Director Louis Freeh and former Secretary of Homeland Security, Governor, and Assistant District Attorney Tom Ridge support federal online poker licensing because it addresses control of cash flows and mandates consumer protections, while WiredSafety concluded that “combining a thoughtful regulatory scheme with education, technology tools, and support appears to be the most effective means of handling the realities and risks” of online poker.

Licensed U.S.-based horse race wagering sites have proven that online betting sites can successfully implement strong consumer protections while creating American jobs and generating revenues for our government. It is time to allow online poker sites the same opportunity.

I respectfully ask that you seriously consider recommending sensible licensing and regulation of online poker within the U.S. in your deficit reduction report to Congress and the President.

Thank you for your consideration.

Sincerely,

Add your name here

 

Department of Justice Outreach

Let’s ask the Justice Department to consider ALL seized Full Tilt Poker funds as rightfully belonging to affected players. We can do this in less than 30 seconds.

1. Send a prefilled, editable pro-poker Twitter message HERE. Verify that your Twitter account is not set to “private”.
2. Try to wait at least an hour, then send another Twitter message HERE.
3. Like the DoJ Facebook page HERE (you can unlike when done if you wish) and like the pro-poker comment HERE
4. Return to the main Facebook page HERE to post and like respectful pro-poker comments. Either cut-and-paste the following, or write your own respectful post: “Funds seized from Full Tilt Poker and its processors rightfully belong to the affected players, whom you have identified as victims of fraud. Will you please use all recovered funds, including those from prior payment processor seizures, to repay affected players? Thank you.”
5. Please follow the daily action plan on Twitter HERE and on Facebook HERE.

Interviews

PPA comes before poker media to take on the tough questions as often as possible, as the questions we receive at these interviews are representative of the issues in which the poker community is most interested. I hope you will find these interesting and informative:

• Video: PPA Board Member and 2004 WSOP Champion Greg Raymer on CNN
• Executive Director John Pappas on NPR’s “All Things Considered” (9/21)
• Podcast: Short Stacked Radio (9/20) — I come on at time point 1:32:10 in Part 1
• Podcast; QuadJacks Poker Radio (9/20): I discussed the Full Tilt Poker issue at length. The podcast should be available later this weekend.

Thank you again for your support!

Proud to play,

Rich Muny

playerrelations@theppa.org
www.facebook.com/rich.muny

(I think I recognize that woman’s voice from some political attack ad in 2010 … or maybe it was ’08?)

LOL on the “SEIZED” sites — ShadyPoker.com represented by cards with stars on them and ShadierPoker.com with a red triangle. Guess they didn’t want to overreach by indicting the Shady dot-nets? The AGA also opened up a new section on their website — their Online Poker Headquarters.

OK, OK, I get the message … it’s gonna be about poker only, not poker+ casino games … And should it not be clear enough to anyone entertaining the idea of holding a US license that certain old-school online poker ways ain’t gonna fly in a regulated US future, the AGA has also issued a new code of conduct to establish who should and should not become card-carrying licensees:

The Code of Conduct proposes the following six principles online poker companies should follow in order to obtain a license. Companies should:

• Conduct extensive background checks that will keep criminals out of the business;
• Install proper identification of every U.S. online poker player to assist law enforcement and keep minors, consumers from unlawful jurisdictions and cheaters from playing;
• Undergo regular testing and auditing of online poker software to ensure that games are fair and honest;
• Implement rigorous player exclusion processes to prevent minors, players from illegal U.S. jurisdictions and cheaters from accessing online poker sites;
• Institute effective responsible gaming protections on operator sites to educate patrons and provide problem gamblers easy access to tools to help control their behavior; and,
• Maintain stringent anti-money-laundering procedures that will assist the government in its law enforcement efforts.

“Only a few years ago, the technology and operating processes did not exist to implement and enforce the principles of the Code,” [AGA Chairman Frank] Fahrenkopf said. “But online gambling is legal in some 85 jurisdictions today, and the technology that eliminates the risks that once concerned the AGA and others has now been proven through actual use.”

Hmm, a lotta potentially loaded language in those bullet points, no?

But it’s a big step to say hey, this is the message we’re sending to Capitol Hill — and specify what any bill is gonna have to have for it to move through Congress. It’s also rather promising to hear what is starting to sound like a unified voice between the powerful DC lobby group representing Big Casinos and the grass-roots PPA, representing players who used to patronize ShadyPoker and ShadierPoker dot com. We haven’t heard yet from the Indians … but they have been pretty quiet ever since Barack Obama in July of this year expanded Indian gaming rights by rescinding a 2008 George W Bush rule that limited a tribe’s ability to run gaming operations off their tribal lands.

OK, so who all is on the same page?

See similar movement on licensing standards by the Nevada Gaming Commission, and you begin to see how potentially troublesome states might-could be appeased in a federal framework. (California will likely still be a pain, but that state’s so broke …)

If I’m doing my political math correctly (and no promises of that, obv), that’s who would be left for American poker forces in DC to contend with this fall … and I’m pretty sure they don’t have that much of a say. There may be a fine line between protectionism and protecting US online-poker playing citizens, but not sure that matters so much these days. Euros always welcome to queue up.

Not to get extra-corny with the poker metaphors … The US is bleeding chips! but what the release of the AGA’s congress-and-casino education campaign really suggests is that the AGA is all-friggin-in for online poker in 2011, or at least pot-committed.

(And this push comes on a day, no less, where the next post to write is about DOJ assertions this morning that Chris Ferguson and Howard Lederer were running a ponzi scheme to defraud the poker faithful in an effort to fund Phil Ivey’s grotesque craps habit and the rest of Team Full Tilt’s baller celebrity.)

Additionally, Senate Majority Leader Harry Reid (D-NV) has ASKED for questions via Twitter for an upcoming town hall. You can send him pro-poker questions in under thirty seconds:

1. Send a prefilled, editable pro-poker Twitter question: CLICK HERE
2. Send a second Twitter question for good measure: CLICK HERE
3. You can track the pro-poker messages here.

I also wish to discuss the ongoing issue with player funds locked up at Ultimate Bet, Absolute Poker, and Full Tilt Poker. As someone with around five figures locked up on Full Tilt Poker, I certainly empathize with the situation.

PPA has issued statements demanding that Full Tilt Poker, Ultimate Bet, and Absolute Poker refund player balances. Additionally, PPA representatives – including me – have made statements in several interviews with various poker media sources with demands for repayment. PPA does not accept the Department of Justice fund seizures as an excuse. We have also publicly praised PokerStars for doing the right thing in refunding its U.S. players.

Additionally, PPA’s legal team prepared a legal analysis of the options available to individual players who still have not been able to access their online poker funds held on account. The document — “Legal Rights of Players with Unpaid Balances – A PPA Information Guide” — provides our membership with facts and information about steps individuals can seek to take to claim their online poker account balances.

That being said, PPA is neither a regulatory body nor an enforcement agency. We are a player advocacy group, so our ability to force these sites to comply with our calls for action is limited. In fact, this is why PPA is pushing for legislation that gives us the rights we need as players.

The PPA-supported legislation now in Congress focuses strongly on consumer protection. It mandates protected and segregated player accounts, a U.S. presence (to allow for law enforcement action if needed), and many other provisions that protect our rights as players.

I am hopeful that reports of potential suitors lined up to purchase Full Tilt Poker, along with the recent enforcement actions by their regulators, will help generate positive steps toward player repayment. Full Tilt Poker recently released a statement on this. While it is noncommittal, it is moderately encouraging that they are again speaking publicly on the issue:

Full Tilt Poker, August 30th, 2011

As is obvious from the events that have transpired since April 15th, Full Tilt Poker was not prepared for the far-reaching, US government enforcement effort of Black Friday. 

The events of Black Friday came on the heels of prior government enforcement activities and significant theft. Over the two years preceding Black Friday, the US government seized approximately $115M of player funds located in U.S. banks. While we believed that offering peer-to-peer online poker did not violate any federal laws—a belief supported by many solid and well-reasoned legal opinions — the DOJ took a different view. In addition, as was widely reported, a key payment processor stole approximately $42M from Full Tilt Poker. Until April 15th, Full Tilt Poker had always covered these losses so that no player was ever affected. Finally, during late 2010 and early 2011, Full Tilt Poker experienced unprecedented issues with some of its third-party processors that greatly contributed to its financial problems. While the company was on its way to addressing the problems caused by these processors, Full Tilt Poker never anticipated that the DOJ would proceed as it did by seizing our global domain name and shutting down the site worldwide. 

Over the last four months, Full Tilt Poker has been actively exploring opportunities with outside investors in order to stabilize the company and pay back our players. At least six of those groups, including hedge funds, operators of other internet businesses and individual investors, have visited Dublin to inspect the operation. We have recently engaged an additional financial advisor through an investment banking group to assist us in our search for an infusion of cash as well as a new management team to restore the site and repay players. While any deal of this nature is necessarily complex given the current regulatory environment, our players should know that Full Tilt Poker is fully committed to paying them back in full and restoring confidence in our operations.

Noah Stephens-Davidowitz of Subject:Poker wrote a nice analysis of the statement and overall situation: click here to read.

Interviews

PPA comes before poker media to take on the tough questions as often as possible, as the questions we receive at these interviews are representative of the issues in which the poker community is most interested. I hope you will find these interesting and informative:

Wicked Chops Podcast with John Pappas (09/07/2011)

Short Stacked Radio (9/6): I come on at time point 0:41:00

PokerGob Poker Show (9/4) (scroll down to “September 4th Poker Show”)

Thank you again!

Proud to play,

Rich Muny
playerrelations@theppa.org
www.facebook.com/rich.muny

The poker-player’s candidate, Gary Johnson, apparently didn’t make the cut … but poker did enter into the debate when Mitt Romney challenged Texas Governor Rick Perry’s record on job creation … essentially calling him a luckbox.

Not quite the “licensed and regulated online poker” stuff we mighta hoped for … but hey.

Unfortunately, not only do these two look-a-likes reveal an inherent conservative opposition to “regulation” that the Barton Bill will have to overcome, but also they seem to be talking 5-card draw or maybe 7-stud with the four Aces analogy — as if they’re totally unaware that much of the country is playing Pot-Limit Omaha.