Are you one of the 24,000 online poker players missing their cash outs? Well the US Government has your money, and they’re laughing all the way to the bank! Get the scoop on this story, plus the state of Minnesota comes to a decision in their fight to ban internet gambling within it’s borders.
This story seems to have legs. ABC News has a piece — where they lede with a guy who so far is unable to buy into the WSOP main event. I found this story at the top of the Drudge Report … which means everyone in the mainstream media (who doesn’t read Pokerati) is also well aware of the situation. (FWIW, the ABC News story ups the number of banks targeted from four to five.)
Feds Order Banks to Freeze Millions in ‘LEGAL’ Online Poker Winnings…
Even the EU is getting involved again, threatening to take the European Commission’s discrimination claims to the WTO if they can’t reach a settlement with the US to allow their companies to compete without this sort of harassment from the US Feds. In their view, the recent actions in New York’s Southern District Court are merely a continuation of the protectionist policies that began three years ago:
“Internet gambling is a complex and delicate area, and we do not want to dictate how the U.S. should regulate its market. However, the U.S. must respect its WTO obligations,” said E.U. Trade Commissioner Catherine Ashton in a statement.
[...]
“The report comes to the conclusion that these proceedings are legally unjustified as well as discriminatory, because the activities of E.U. companies took place under the cover of U.S. WTO commitments,” the Commission said in a statement.
At a minimum, this guarantees that federal authorities (beyond a lone Assistant US Prosecutor) should be taking a real look at how “American-friendly” online poker sites process the dollars that transact in peer-to-peer poker games taking place on offshore sites before being shipped to American banks.
Word about the payment processor shizznit was definitely part of the buzz around the Rio today. We should know in about a week whether this is poker’s version of the swine flu, or if it spreads into something far more significant. Supposedly Full Tilt checks are back to clearing. However, at least one major PokerStars affiliate had his check bounce — and that’s money he lives on.
Seen in the Amazon cash game area (reading a story in the New York Post):
UPDATE: Oops, maybe swine flu wasn’t the best comparison.
The Associated Press is at least paying attention to the developments reported here on Pokerati in what is sure to be a complex legal situation — one that already is bringing up not just legally questionable issues of non-brick-and-mortar gambling, but also money laundering. They also clear up some of the details about who got tagged and how:
Documents obtained by the AP show that a judge in the district issued a seizure warrant last week for an account at a Wells Fargo bank in San Francisco, and that a federal prosecutor told a bank in Arizona to freeze an account.
In a letter dated Friday and faxed to Alliance Bank of Arizona, the prosecutor said that accounts held by payment processor Allied Systems Inc. are subject to seizure and forfeiture “because they constitute property involved in money laundering transactions and illegal gambling offenses.” The letter was signed by Arlo Devlin-Brown, the assistant U.S. attorney for the Southern District of New York.
In another letter faxed the same day, Devlin-Brown asks that the bank treat the funds “as legally seized” by the FBI, saying that the government has probable cause that the gambling payments of U.S. residents had been directed to offshore illegal Internet gambling businesses.
Meanwhile, the British press is reporting:
America might be about to loosen its gambling corsets
These two stories aren’t as mutually exclusive as they might seem. Often, when times are changing, old holdovers from a previous philosophical era will turn uber-aggressive with their means and methods trying to give their way one last shot, and at a minimum hoping to take a few folks down with them as their kind are pushed out.
That’s certainly plausible considering how emphatic bureaucrats in the DOJ have been about the illegality of online poker/gambling even when the people and courts have repeatedly disagreed.
Ah, once upon a time ret. Sen. Al D’Amato (R-NY) held real power … regardless, he’s still trying to wield his influence over federal actions in his home state, and the PPA statement around his statement says something about the seriousness of the payment processor account-freezing situation while confusing this quasi-legally savvy journo/not-a-lawyer on the difference between warrants and subpoenas:
PPA Statement on Southern District of NY Action Against Online Poker Players
Letter Sent to Assistant US Attorney Requesting Presence at Future HearingsWASHINGTON, DC (June 9, 2009) – The Poker Players Alliance (PPA), the leading poker grassroots advocacy group with more than one million members nationwide, today released the following statement by PPA Chairman Alfonse D’Amato on questionable actions taken by a federal prosecutor in the Southern District of New York to freeze payment processor accounts containing more than $30 million in poker players’ deposits and payouts.
The PPA also sent a letter to the Assistant United States Attorney for the Southern District of New York asking for an opportunity to be heard in any future warrant hearings. The letter is available at www.pokerplayersalliance.org.
The latest on Federal online poker funds crackdown and legally questionable anti-poker court actions …
Pokerstars has confirmed with its players that indeed, some payout funds have been frozen in American banks — but they’ve credited back affected monies with a 10 percent inconvenience bonus and an invitation to try again, Gambling911 reports.
If you wish to resubmit your cashout request, you can do so from our Cashier by selecting the check option (your new check will be issued on a different account and can be deposited as normal) or wire transfer (only available for amounts greater than [$2,500]).
But while Stars’ “take care of the player first” approach may be admirable, wiring money through a new financier may just be a temporary solution to eCheck problems affecting thousands of players — a little game of financial cat and mouse (+ good-will PR) while a bigger, costlier legal battle takes shape.
Under advisement from the DOJ agent, a federal prosecutor in New York’s Southern District apparently got a magistrate to sign off on seizure orders last week for multiple American bank accounts connected to PokerStars payouts. The court also issued subpoenas (warrants?) for two individuals to appear before a grand jury on June 18.
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.”
Fans of the National Football League probably didn’t start off on the right foot anyway, since football is done for awhile and they’re forced to see baseball games/references everywhere. But there is another source of annoyance for NFL’ers, and that is the knowledge that the biggest opponent of online gaming in the United States is their very own football organization.
The NFL has promised to fight any effort by Rep. Barney Frank to push legislation that legalizes online gaming. With a lobbyist, an office in D.C., and a PAC donation committee in place, the NFL is ready to fight online gaming with the help of the Christian Coalition and Rep. Harry Reid of Nevada. Wait…What? Reid on the same side of this fight as Bob Goodlatte? Yessirreee.
Well, one NFL fan in particular sees the ridiculousness of it all. Dan Boone, of Bleacher Report:
The NFL, always a bright beacon of morals in a blighted land, has decided to self-righteously step into the public morals debate. The NFL does not want a bill allowing online gambling, that is a current bill legalizing poker, to pass.
The NFL behemoth is so against people playing online poker that they have hired a high priced Washington Lobbyist, opened a DC office, and set up a PAC Donation committee to help its noble cause.
So that’s where ticket increase money goes. That’s why the stadium beers are nine bucks and the exhibition games are full priced flops. Perhaps that explains the PSL’s. The league needs just craves some spare change to pay some politicos for favors.
Five arrested at a home game … and here, a news report showing local officials trying to explain the concept of rake and why it’s bad:
(via Poker Players Alliance)
One of the groups opposing all things legal-pokery in Texas is the Texas Eagle Forum, which recently spoke out against a bill for full-on casinos in Texas:
From Texas Weekly:
Texas Eagle Forum President Cathie Adams, telling the Houston Chronicle what she thinks about the job growth projected if casinos are legalized: “Why in the world would we want our children to grow up to be card dealers and waitresses?”
So there you have it. OK, now we know where we stand. As much as I like to soapbox about the issues not being moral contentions so much as money and tax-chip-shifting and legally acceptable pocket-lining, Cathie lets us know it really is a cultural issue — one where our opponents see professional casino employees and service industry workers as lesser people who have chosen a life-path their parents couldn’t be proud of. The good side is that she makes our competition seem weak. The bad side is she represents the types of landmines that poker interests will have to maneuver through no matter how well we’re playing.
KTRH-AM 740 out of Houston followed up the Morning News story about our efforts to legalize poker in Texas with one of their own. In their piece, the opposition claims we poker liberators* are simply seeking a regressive tax that will punish the poor, and calls government “weak” for even considering legalization as an alternative to cracking down.
*my term, not theirs
And now, on the front page of KTRH’s website, their question of the day is:
Should Texas add poker to its gaming lineup?
Click here to vote. At the time of this posting, we’re leading 63-37 … as all of us who understand the skillful application of percentages can surmise, this is hardly the spread of domination we’re looking for. Seriously, I’m sorry to keep whining about this … but it’s a one-and-a-half-click vote … if we can’t nail this one down, we don’t stand a chance in Austin this year.
NOTE: This seems to be a very conservative radio station.
UPDATE: Encouraging, what their forum has to say.
As many of you probably know, one of President Barack Obama’s first acts even before assuming office was creating a National Suggestion Box. And though I am concerned that they’ve already forgotten about it (they haven’t yet changed the header at Change.gov from “President-Elect” to “President”), an issue that’s jumped way up to the top of the list is repeal of the UIGEA. Though I’m not sure if this is a good thing or a bad thing, the only folks who seem more motivated are the pot smokers.
Anyhow, you can see all the poker related posts at Change.gov via an on-site search for poker or UIGEA. Or just click “most popular” — where they’ve assigned a point system to all the ideas in America and poker has cracked the top 10. The list of issues attracting the squeakiest wheels, in order (with the number of comments in parentheses):
1. Ending Marijuana Prohibition (3,550)
2. Commit to becoming the “Greenest” country in the world (199)
3. Stop using federal resources to undermine states’ medicinal marijuana laws (17)
4. An end to the government sponsored abstinence education to be replaced by an introduction of age appropriate sex education. (158)
5. Bullet Trains & Light Rail (434)
6. The permanent closure of all Torture facilities. (Facilities such as: Guantanamo, and Abu Ghraib) (119)
7. Revoke the George W. Bush tax cuts for the top 1 % (119)
8. Get the Insurance Companies out the Health Care (362)
9. Revoke the Tax Exempt Status of the Church of Scientology (545)
10. Bring Back the Constitution! (243)
11. Boost America’s Economy with Legal Online Poker (1,713)
UPDATE: We dropped off the front page, from #9 to #11, in the course of my writing this post. I’d say “damn Constitution!”, but that probably wouldn’t help our cause. You can still vote — here’s a link to page 2 of the list, though hopefully it will become an irrelevant link by Monday morn.
We clearly have our first finalist for Best Poker Lawyers ‘09: Pete Campana of Williamsport, PA, successfully defended two clients caught up in an undercover police investigation into a $1/$2 NL game held in a garage (a dealer and a garage operator) on the grounds that they couldn’t have been engaged in any sort of gambling under Pennsylvania law — because poker is a game of skill.
Click here to read the complete ruling. (via PPA-premium.)
But in a nutshell, what Campana convinced successfully convinced the courts:
Commonwealth and Defendant both agree the controlling issue is whether Texas Hold’em poker is “unlawful gambling” under the Crimes Code.
… the controlling sub-issue is whether Texas Hold’em is a game of skill or chance, or, if both, does skill trump chance or vice-versa. Simply, if chance predominates, Texas Hold’em is gambling. If skill predominated, it is not gambling.
… Pennsylvania courts have not specifically addressed the issue … Our courts have found that poker is gambling within the context of the Liquor Code.
… With the advent of internet poker and tournament poker has come a spate of very intrusive law review analyses of gambling law and poker.
… Using the predominance test, in conjunction with analyzing skill versus chance using the four prong dominant factor test, it is apparent that skill predominates over chance in Texas Hold’em poker.
… Skill comes with varying degrees of competence, but that is the case with any competition involving skill.
The academic studies and experts generally agree that a player must be skillful to be successful at poker. At the outset, chance is equally distributed among the players. But the outcome is eventually determined by skill. Successful players must possess intellectual and psychological skills. They must know the rules and the mathematical odds. The must know how to read their opponents “tells” and styles. They must know when to hold and fold and raise. They must know how to manage their money.
This court finds that Texas Hold’em poker is a game where skill predominates over chance. Thus, it is not “unlawful gambling” under the Pennsylvania Crimes Code.
The frontlines in the the War on Poker (or maybe now we should start calling it the War for Poker?) are always shifting … but currently there’s quite the firefight going in what might seem the most unlikely of places: Branson, Mo., which you may recall from an episode of The Simpsons, is “like Vegas … if it were run by Ned Flanders”.
At issue is what to do with upwards of a quarter-million dollars designated for a PR event to bring positive exposure to Branson tourism. With instructions from regional officials to think “outside the box”, the leading contender right now is a three-day “Great American Pie Show”. But the editor of the Branson Courier is calling instead for a squeaky good-clean $150,000 No-Limit Texas Hold’em freeroll.
What if that hand were playing against a hand that held one of the largest non-alcohol, smoke free, and free Texas Hold-em Tournaments ever, with a minimum of $150,000 in prizes? The governing word here being “free,” no pay to play. Given the same level of funding, promotion, and community effort as the pie show, in terms of the potential number of people that the event could bring to Branson and the value of the PR Branson could get, which ranks higher, the pie show or the tournament?
Nice! At first I was gonna kinda joke/be serious in saying they should definitely go with the pie. But then I kept reading what The Ole Seagull had to say (awesome name for an editor, btw), and realized this is an incredibly good sign when some of the most conservative folks in Americana (and poker’s opposition’s base) are starting to consider the game in the following context:
Now let’s not get all emotional, hostile, and judgmental about the morals of gambling and how it will destroy our community. We’re only talking about one three day event. Besides, isn’t gambling used for charitable purposes by some organizations within the Branson community to further the good works and services performed by them? That brings two things to mind.
The first is, “Would these organizations use gambling as a method to raise funds if they thought gambling was morally wrong, after all, what kind of example would that set for the community?” The second is, “Why base a charitable event around gambling in the first place?” An Ole Seagull would respectfully answer, in order, by saying, “No” and “Because it’s a fun entertainment thing that people like to do and helps attract people to the event.”
I recently discovered some new tricks on YouTube, so … In what is sure to be as critically acclaimed as Lucky You, here’s a glimpse of the American political system in action, as seen at a semi-private PPA get-together on Day 1B of the 2008 WSOP main event (July 4th) … where a poker activist braintrust confabbed down the hall, in the Palazzo Suites, about Beltway procedure and parliamentary strategy moving forward:
(click twice for bigger)
A moving and dramatic civics lesson, to be sure. Starring Al D’Amato, Howard Lederer, and Annie Duke. Special appearances by Phil Hellmuth and Jeffrey Pollack as The Commish.
Nice statement from the Poker Players Alliance just came across the transom. We’ll see if it leads to more coverage of our issue in the non-poker political press. Regardless, I think historically November ‘08 will be seen as a period where everything changed for the industry (for better or worse is yet to be determined) … probably the most significant period since Sep/Oct ‘06.
Statement by PPA Chairman D’Amato on “60 Minutes” and Washington Post Coverage of the Absolute Poker and Ultimate Bet Cheating Scandals Washington, D.C. – “The recent cheating scandals underscore the need for U.S. licensing and regulation of online poker to help protect consumers. While even the most highly regulated industries are susceptible to fraud and abuse, regulation does provide assurances that when consumers are harmed they have recourse, and that the offenders will be sanctioned. The continued pursuit of poker prohibition, on the other hand, will only drive this industry underground. As the Washington Post pointed out, prohibition represents a widening disconnect between 21st-century technology and 20th-century laws.
From APCW.org:
Here come the UIGEA regulations! And not a moment too soon, either! What else would the Republicans do with their last few days in power? Also, a brief look at Casinomeister’s 50th Birthday in London!
The PPA always seems to be doing something every day on our behalf — and now they’re looking to pull together some sort of class-actiony lawsuit against the UIGEA. I like it! Why not be the aggressor in the courts, instead of always playing defense?
Here’s the word that just came over the D’amat-phone:
Dear Dan,
Yesterday, in a move reminiscent of 2006 when the Unlawful Internet Gaming Enforcement Act [UIGEA] legislation passed in the dead of night, the Bush Administration finalized the UIGEA regulations. These so called “midnight rules” are set to go into effect on January 19th, 2009, the day before President-Elect Obama takes office. Even though the President stated many times he was against midnight rulemaking, his actions undermine those words.
Right now, the Poker Players Alliance (PPA) is preparing for a potential lawsuit against the UIGEA because its vagueness will likely force banks and other payment processors to over-block lawful Internet poker transactions. Thusly, the PPA is looking for a few good men and women to stand with us in a potential lawsuit. As a paid PPA member, your support has been crucial to our successes. The PPA is prepared to underwrite the complete cost of potential litigation we just need members like you to be part of our action.
As per the PPA and Al D’amato’s request, I made my call to the Feds to weigh in on tonight’s planned attempts to strengthen the UIGEA and extend its reach. The call kinda reminded me of calling PartyPoker Customer Service back in the day, with less of an Indian accent, of course … I can only hope someone was listening.
Really, what a night we have in store … heads-up between two Europeans (one from a Socialist country, and another who was born into Communism) for the lion’s share of 14 million American dollars — and, of course, as said by Drew Barrymore two years ago, the World Championship of Poker! At the same time, the remnants (and some new blood) of the anti-democratic-process insurgents pro-UIGEA forces will be trying to further remove the poker industry’s foothold here in the country that gave birth to the game.
You gotta wonder … Is this part of that huge transfer of wealth out of America we’ve been hearing so much about?
(And if anyone knows where we might be able to follow this — right now I’ll be checking the PPA website, but maybe something’s on Cspan? — please let us know.)
Well, to be truthful, it coulda been a lot worse! On first glance, it may look like Kentucky Governor Steve Beshear has won this court case… but not so fast. While it’s true that the court upheld the state’s right to seize the domain names, the did give online gambling company’s an out! Tune in to see!
We also release the results of our Bodog cash out audits to see how long it really takes for players to get their money… plus ask why so many online gamblers seem to be in favor of electing John McCain!
From APCW.org:
The PPA’s public response to the courtroom loss:
PPA Disappointed in Ruling in KY Domain Name Seizure Case
WASHINGTON, DC. (October 16, 2008) –The Poker Players Alliance (PPA), the leading poker grassroots advocacy group with more than one million members nationwide and more than 16,000 members in the Commonwealth of Kentucky, today expressed its disappointment in the ruling by the Franklin Circuit Court that states poker is not a game of skill and maintained the Commonwealth’s right to seize the domain names of Internet gambling websites if these sites do not “geo-block” access for residents of Kentucky.
“Clearly, we believe the judge in this case got it wrong,” said John Pappas, executive director of the PPA. “First of all, we strongly disagree with Judge Wingate’s ruling that poker is not a game of skill. As demonstrated in the amicus brief we filed, skill plays an essential role in being a successful poker player. Additionally, we believe that by confirming Governor Beshear’s actions, the court has set a dangerous precedent for censorship of the Internet. Today’s ruling is a big step backward for both personal rights and Internet freedom.”
Wow friggin’ wow … sorry, trying to reign in the visceral reaction, but that’s all I can say the more I learn about what’s going on in Kentucky, and Gov. Steve Beshear’s intent on taking unprecedented legal action against online poker (and other online gambling) companies. Don’t think he’s serious — that this is an effort on which he’s willing to stake his political career? The state is already claiming to have seized legal control over FullTiltPoker.com and 140 other sites … and we all remember what happened to Bodog.com the last time American courts got into it with ICANN over issues of not-so-eminent domain.
Have a listen to Beshear’s declaration of war against an industry near and dear to so many of our hearts, and decide for yourself if you think he’s bluffing:
Steve Beshear vs. Online Poker (right-click to save/download)
Kentucky governor on the need for hostile domain takeover
Sep 22, 2008
(5 min 29 sec)
Prediction: If this case makes it into court in any non-frivolous way, it will end up in the Supreme Court. With or without online poker as a defendant, Kentucky is challenging what government can and can’t do in terms of policing/taxing the internet, issues of states rights vs. federal law, and matters of international treaty and internet jurisdiction to boot.
And we thought Washington state was bad for making it a felony to play online poker … now, in Kentucky, Governor Steve Beshear is trying to seize control of 141 gambling-related sites, blocking access to the likes of Full Tilt, PokerStars, Bodog, et al.
[Via AintLuck.com]
Yikes, this is some pathetic/scary shit. Not because he’s declaring sites we know and love as criminal enterprises, but because the guv wants to control its citizens’ private web access!
Um, hello, communism? What makes it worse is that he seems to be doing it on behalf of the brick-and-mortar casino industry … dude, I know you guys are slow in Kentucky, but the idea that online play hurts as opposed to helps casinos went dead in like 2006. No details on how one would actually block the internet within state lines … I suppose you can force your cable and phone providers to behave in certain ways … but, um, out-of-town cell phones maybe? Seriously, ‘Tucky-Guv-Dude, are you really that out of touch with the world/American Constitution?
[Non-topical, anti-Republican rant deleted] Stupid Democrat.
The 100th episode of Perspectives Weekly looks at the passage of the Barney Frank Bill this week, and what that means to online gambling. Plus helping hurricane victims, Bodog rumors, and other industry news …
Just to clarify for some who are writing in a bit confused … the room that got robbed/shot-up the other week was not the same place that got raided by Arlington police most recently …
That raided place was the Longhorn Room — similar neighborhood, I believe, but not certain, as South Arlington isn’t exactly small. I know it’s sometimes hard to differentiate between cops and robbers in these cases.
BTW, why does it always seem that robberies follow raids almost immediately? You’d think it would be the other way around.
In this week’s episode of Perspectives Weekly, J. Todd tries to get to the brass tacks of what’s going down with Bodog — and he confirms that as of right now, American players can’t get their money out (and the APCW is temporarily withholding any support of the site). But this is not a matter of greedy-corp malfeasance, Todd explains … but rather a situation created by the US Government’s seizure of $24 million from Bodog bank accounts and pressure put on American payment processors.
Here’s the story from the McAllen Monitor about the assistant principal who got busted running weekly 5-table tourneys in his house. (Thanks, Carlos, for the link!) Man, naturally I’d be inclined to defend the likes of Jose Luis Esquivel like all get out … but really, the ridiculous neighborhood parking situation, and the two small bags of cocaine … just makes matters worse. Kinda takes away the educator’s argument that poker might be good for kids. And makes me wonder if this was less a case of a good poker room bumpin’ uglies with the overzealous law and more a matter of man who doesn’t really know much about running a poker room and living off a public high-school salary getting addicted to a growing rake.
Would have to see Esquivel’s blind structure, however, before we can really pass judgment on him.
You can see why raiding a poker room seems like such a win-win for the po-po. It’s such a low-risk operation, the busted citizens have little to complain about when they get to settle for an eensy-weensy ticket, and — thanks to asset forfeiture laws — the cops are virtually guaranteed to walk away with some cash for PD coffers.
But a case moving through the system in Seward, Pennsylvania (a rural community outside of Pittsburgh) is challenging this legal MO (which, personally, I think could sell very well on an infomercial: “For three payments of $79.95, I’ll share with you the ‘Dallas Poker Raid Secrets’ that are helping police department vice units all across the country increase usable revenue by tens of thousands, even hundreds of thousands a year!”).
In this case, the room that got busted was the hall of a volunteer fire department — and the guy running weekly fundraiser tourneys was a lawyer, meaning he’s far more inclined to challenge various poker legal issues in court. As things stand right now, the cops want the firemen to turn over $40,000 in poker earnings (they’ve already taken possession of $9k) and firehouse representatives are resisting. Will be very interesting to see how this one is resolved … race situation, imho.
UPDATE: Just to be clear to any non-poker readers out there, by “race situation” we are talking heads-or-tails, not black and white.
Here’s a video of the bust in Mission, TX … clearly a residential home with a weekly tourney that may or may not shoulda been shut down. (Don’t shoot me for saying this, but I gotta think the non-poker residents have a case to be made on parking issues alone.) The news report does not mention, however, that one of the organizers is apparently an assistant principal, which adds to the local hubbub, but of course makes no difference in whatever case will eventually be plead down to a micro-misdemeanor as the cops enjoy the fruits of their confiscated cash.
Also, notice the weakness of the quotes this TV reporter had to choose from when it comes to getting that “other” side of the story, the part where residents now feel safer because the dastardly gamblers have been quelled. (I also love how you can still hear the chips clicking even a few seconds after the police break in.)
I hate that this vid is a commercial for a new online poker site, but love the short-film itself … poignant, and funny … and hence I share it with you:
(via the Weston Poker Forum)
All I can say is wow. Can’t believe I didn’t think of opening such a joint I guess you can’t really have multiaccounting problems with online slots Wonder if federal authorities realize the UIGEA caused this, and if Texas officials see the clear citizen demand to expand gambling options in the Lone Star State. Interestingly enough, police say the problem wasn’t internet gambling per se — they don’t have much problem with it done in private — but with the public nature of a business set up to help senior citizens circumvent the banking nuisances created by the UIGEA.
Tomatoes/Tomahtoes, really … because you can arguably say police simply saw it as an opportunity to claim moral righteousness while adding to its asset forfeiture stacks.
Of the many groups with a presence at the 2008 WSOP, the Poker Players Alliance is doing its best to let the amateur players who flock here know not only that their voice is relevant, but also that there is a plan of action in motion to, essentially, allow online poker sites to advertise with a dot-com. OK, there’s far more to it than that … but establishing poker’s political presence is important — and because it ain’t easy to become the NRA without something akin to the Second Amendment behind you, the PPA is spearheading the efforts both on the grassroots level as well as the important behind-the-scenes ass-kissing palm-greasing politicking in Washington DC.
To help explain the cause and sign up new members, the PPA has poker pros at its booth daily. Click below to read the full press release about these meet-n-greets designed to get everyone on the same team.
Here’s more info on the raid of the “40 Deuce” club in Hurst. It was indeed another undercover narcotics investigation followed by a paramilitary SWAT-team incursion:
Hurst police said they found two dozen people inside the home, which had tables, dealers and even a banker, and was set up to look like Las Vegas.
You know, Pokerati used to defend the police for just doing their jobs, and reminding poker players of that. But c’mon … SWAT teams? That’s so 2006. When you want to shut down a game next time … here’s a hint … try just knocking on the door(s). I know I know … I’m just a blogger and don’t understand police operations — so maybe you can explain to me how, using knowledge gained from your undercover, a knock on the door combined with a marked squad car in the driveway wouldn’t stop any poker crimes from being committed.
In fact, I’ll even give you the answer to this question: “Uh, duh, Mr. Know-it-All, because then there would be no money to confiscate for us to put toward other poker raids/the police “petty cash” fund.”
And while we’re bitchin’ about the money … yo local news media … when “dozens” of players gather with a sum total of a few thousand dollars … since you’re not going to really follow the money to look into what police are really up to with it, at least do the math and realize that this is not “high stakes.” You should be journalistically ashamed of yourselves for being so careless/sensational with your word choice.
For the rest of you, check out the comments on the Channel 5 story. At the time of this posting, they’re running 11-1 in favor of poker and against the police:
A poker room in Hurst (a suburb between Dallas and Fort Worth) got raided Thursday or Friday night. I have few details — perhaps some Pokeratizens can fill us in on the game action, weapons in play, arrests made, etc.? — but according to my source:
Channel 4 said it was a gambling club.
Channel 5 said it was a poker club.
Hmm, makes me wonder if ItsOverJonny may have been right when he suggested that a little extra poker ink tweaks the coppers into action. Not saying that Pokerati or a forthcoming poker documentary is to blame (the doc, after all, wouldn’t be coming out for a long while, and Pokerati generally prefers to pass on responsibility) … but there was apparently a big to-do in Dallas (again) over turning Reunion Arena into a casino … and boom, a few days later, perhaps coincidentally, perhaps not, somebody in some police force decided they didn’t want to look like they were turning a blind eye to “gambling.”
BTW, The Dallas Morning News poll results to the question:
Would you support a casino in downtown Dallas?
So far …
85 percent yes
15 percent no
Oops, while rambling on in the previous post, i forgot to share with you the email Alfonse D’Amato sent out today that made me start writing it. He makes some good points while, of course, also trying to give away a seat to the WSOP. My one question for the for-sale figurehead retired senator is: When are you going to start blogging Why age 25? That seems weird.
Dear Dan,
On behalf of the Poker Players Alliance, thank you for being part of our landmark drive to sign up more than one million members nationwide. Speaking with one voice on behalf of the great game, we have become one of the leading grassroots advocacy organizations in the country.
We have expanded our reach coast-to-coast, opened offices in our nation’s capital, and we are fighting each and every day to preserve your ability to play the great game of poker. Politicians are hearing our message – that Poker Is Not a Crime.
Today, I am excited to announce that the PPA is ready to reward you for your participation. We are launching PPA Online, a new and improved Web site, and a brand new membership package of valuable benefits.
Had a pleasant chat with PPA boss John Pappas yesterday about the state of poker legislation. “We have a new website!” he says. OK, that quote’s semi-made up, but he definitely wanted to pimp the Poker Players Alliance’s new forums, benefit packages, and webtronic goodies. Yeah, yeah, website uh-huh … I didn’t tell him that I get most of my PPA on MySpace, where they share rank with Ed, The Poker Atlas, and RawVegas TV.*
Anyhow, in hearing about what they’re trying to achieve, I came to realize just how much progress the PPA has made. There are currently five bills pending in Congress specific to our issue. You can say all you want about the “special interests” … but that’s what we are. And frankly a rather small one in the Beltway schema. Yet those five bills come with 98 unique sponsors — meaning nearly a quarter of the House of Representatives are more than familiar with poker causes and have affirmatively declared themselves on our side. That’s pretty impressive progress over the course of 18 months.
With that said, Pappas doesn’t necessarily expect to see a legally enforceable undoing of the UIGEA this year. Nor do I, nor does Lavigne in Austin, nor does anyone actively working toward that goal. This being a presidential election year, with so many big big issues in play and seats at stake, Congress just isn’t gonna get around to making the world safe for online poker in ‘08. I could be wrong on this — and hope I am — but I’m not. Fortunately the PPA leadership and lobbyists seem to recognize that hoping is seldom a good strategy … and while there’s always a chance poker could hit a political miracle on the turn and river, the PPA should shove all-in! what’s important now for the PPA is putting us in a position to succeed in 2009, when table conditions are sure to have changed.
* Pauly, dude, when are you gonna get on MySpace?
Not super-related to poker … but as Houston poker-raid cases make their way through the notably harsh Harris County court system, I couldn’t help but think about how in Texas, playing underground poker is basically the same crime as decapitating a corpse and smoking pot out of the skull, which some kids not playing poker did there recently. [via Iggy]
Harris County sheriff’s deputies raided a poker room on the northwest outskirts of Houston this afternoon. There were about 8 tables of action — a $300 tournament had just gotten underway — and 11 were arrested. Police say the raid came after two months of investigation.
Hmm, sounds kinda like the Aces bust in terms of numbers. However some key differences are that nine of the busted were charged with organized crime. Yeow! No no no … Class C misdemeanor … maybe a Class A that can be pled down! Leave it to Houston to try to outdo/be tougher than Dallas.
they weren’t playing ordinary poker matches. Thousands of dollars were at stake in the sophisticated operation.
“You gotta know somebody to get in. They have two doors to gain entry. It’s operated by a button to gain entry, as well as they have cameras to monitor who’s at the front door,” said an officer.
Indeed, a button to gain entry. Case closed, obviously.
One of the other players arrested got cuffed for “unlawfully carrying a weapon” and the other guy ha an outstanding warrant.
This room had reportedly been around since late last summer. We’ll see if we can’t find out more about how this all shook down, where the room went wrong, and what’s really gonna come out of these organized crime allegations.
Thanks, Jim in Houston, for the tip.
In this week’s episode:
There’s No Cheating in Online Poker!
Now that we have your attention…
We thought that we should let ya know that some companies are boldly selling poker bot software for under $200, claiming big returns on your investment! Good luck with that! =0)
Our Tribute to the FBI…
We just LOVE the FBI…
I mean, why wouldn’t we love the FBI? They give us so much free comedy material that we would otherwise have to write for ourselves! God bless those brave men and women fighting the tyranny of online gambling!
Washington State to be a Battleground… Again…
The War Rages on…
First, it was J Todd battling the State Gambling Commission over his websites in 2006. Then our friend Nick Jenkins was actually arrested and charged with online gambling in 2007. Now, in early 2008, Attorney and poker player Lee Rousso is challenging the State’s online gambling ban in court!
According to current forfeiture laws, when the Dallas cops raid a poker game, they generally get to keep whatever money they confiscate. However, assuming the DPD is operating all on the up-and-up, that money is supposed to be used for more poker busts …
In addition to what I was calling “Henser’s Game” (have since learned it might be “Gennser’s Game”), DC’s Poker House also got raided last week — Friday, I believe, about the same time as the robbery at the Ashton.
From a Pokerati citizen journalist on the ground:
Another game that got raided was DC’s POKER HOUSE in dallas off of shiloh & northwest highway. The cops single handedly busted that game because of money laundering. DC had about 40 slot machines in the building that caused his place to be shut down. I beleive what made DC’s place get so hot was when he pulled out a 9mm on one of the players who were getting a little out of hand.
Yikes, mix 8-Liners and 9-millimeters together and you kinda gotta expect some problems, no?
Also, maybe this is where the reports of a triple poker robicide came from … within a few days last week you had two busts and one robbery nearly simultaneously … and as we know in poker, it’s often difficult to distinguish between the two, because the action and results are usually pretty much the same.
UPDATE: Hmm, this is the second time that a robbery and police bust went down at two separate poker rooms nearly simultaneously. Strange coincidence? It’s possible that both sides make similar assessments when it comes to game selection — picking nights when they expect the most money to be in play.
Unconfirmed word coming in over the Pokerati newswire …
Police shut down a suburban Dallas game on Wednesday — I only knew it as [name temporarily withheld]’s Game — located in Mesquite at Motley and I-30. It wasn’t vice or SWAT, reportedly, but detectives … confiscated the money in the game, and issued players Class C misdemeanor tickets outside. The game’s purveyor was “caught on the street” and police supposedly confiscated his car, along with all the cash he was carrying.
I never played in this game before, but I did hear about it and find out about playing. If I recall properly, they were running a 1-2-5 … medium action and pleasant crowd. Can’t remember if it was in a house or office park. That’s all we know for now. If you’ve got any reliable info please fill us in. Interesting to see War on Drugs-style forfeiture laws being applied in poker cases where we pretty much know the results of prosecutions even before they don’t go to trial.
CORRECTION/DETAILS (3/16): A guy named “Henser” was arrested. The game took place in a residential house. Detectives were in the game (?), but they ticketed players outside the house. Not for gambling, but for parking too close to the curb and things like that. And Henser was apparently pulled over (driving away from the scene?) when cops caught up with him.
Been a couple of news items over the last week or so regarding the Unlawful Internet Gambling Enforcement Act of 2006. You remember the UIGEA. You don’t? Look over yr shoulder. It’s that big black cloud over there, heading this way . . . .
First, a U.S. District Court Judge threw out the Interactive Gaming Media Entertainment and Gaming Association’s case against the U.S. government. You might remember iMEGA had attempted to have the UIGEA’s implementation postponed until it could be determined whether or not the law was unconstitutional. (They had some other points in there, too.) The case was dismissed, but iMEGA was recognized as having “legal standing†and so will surely continue the fight.
Meanwhile, we learned this week what the American Banking Association had to say about the proposed UIGEA regulations. Recall that back in October, the feds presented their proposed regulations & asked for comments. The comment period ended in mid-December, and now the Secretary of the U.S. Dept. of the Treasury and the Chairman of the Board of Governors of the Federal Reserve System are considering those comments as they prepare to “finalize†the UIGEA.
The abridged version: the ABA thinks the UIGEA is not A-OK. Gives the banks too much to do — more than they can feasibly handle. In fact, the ABA believes the UIGEA will place most banks in what they call a “compliance trap†and thus do more to hurt the American payments system than it will do to stop folks from gambling online. Read Haley Hintze’s PokerNews article & also check out the full text of the ABA’s comments over at Kick Ass Poker.
And for more from those comments to the UIGEA regs — including some of what the “webmaster of the popular blog Pokerati.com†had to say about ’em — check out Jason Kirk’s article over at PokerListings summarizing them all: “Stakeholders sound off on UIGEA regulations.â€
The political season is well underway, and the PPA, having brought on board a new seasoned politico to coordinate grassroots efforts and direct external affairs, is lining up their state directors and kicking butts into gear. Here is a breakdown of how many members poker’s version of the NRA has by each state, as of noon EDT today. (Go Texas!)
CA: 97107
TX: 58512
FL: 57924
NY: 52090
PA: 50221
OH: 40356
IL: 35147
MI: 34541
NJ: 23999
IN: 23538
Bots, colluders, super-user accounts … all things online poker players need to be wary of … and now, according to a presumably well-respected tech site, we also need to be afraid of Trojans. The claim is that poker players have been ripped off for millions of Euros:
“Online poker players are a massive target for hackers. People play it with real money obviously, so they’re a big target. We were just investigating a case where a professional online poker player was attacked by someone he would play against regularly online. And we’re talking about professional players, and big money. Hundreds of thousands of euros on the table at a time,†he said.
“All of a sudden he started losing. He would regularly lose even when he had a great hand – pocket aces for example. If he had an unbeatable hand, the other players would simply fold. And when he tried to bluff, he would lose. He lost a lot of money this way, we’re talking hundreds of thousands of euros.
“This went on for weeks. And when we looked into it we realised that one of the other players at the table had sent him a tool. A calculater to help optimise the poker playing or whatever. And we found that the application included a Trojan.
“Which means that when he was playing online poker against these people who were in another country, the guy could press a button and he would receive a screenshot of the target’s screen. So he sees the hold cards. If you’re playing poker and the other players know your cards, it’s pretty hard to win.
“It’s a clever attack because the hacker could have just stolen the account and moved the money away. But he would have been caught. But this way the target was losing his money to someone else and he didn’t realise it was a con. I don’t think many online poker players realise that those kind of attacks are being done.â€
I’m not sure if this article is a good warning or just anti-online poker propaganda. It brings to light a case where online poker was apparently used to launder money to fund insurgents fighting against Americans in Iraq. Yikes.
In last week’s episode:
Online Gambling: US National Security Threat?
YES! Online Gambling is a threat to National Security! This according to the United States Trade Representatives office, and it’s one of the most unbelievably stupid stories of 2008… so far. You will not believe this bull stink. It’s good to know we always have American government to make us laugh and keep us on out toes.
Online Gambling Executive Shot in Costa Rica…
One of the founders of BET US was shot in his car in Costa Rica last week. Details were sketchy for a while and other, than the name of the victim and where he works, it hasn’t been cleared up much. We’ve been told he’s ok, but this is a strange story… and Costa Rica is an interesting place to live and do business.
Continuing Coverage of CAP Euro Awards…
We wrap up coverage of the event with a run down of the APCW Members and Supporters who took away awards!
Perspectives Now! Live Radio Call-in Show…
The APCW hosts Perspectives Now on Rounder’s Radio every Tuesday night ! Rounder’s Radio is dedicated to poker talk and industry news, and our show is live every Tuesday night at 10pm eastern. Listen live and call in!
Harold Lee may seem like a bit of a whack-job, but the retired Arizona judge is standing up for poker — beckoning authorities to take him to jail/court for running a legally questionable poker room. He’s convinced a jury won’t convict, and is ready to put to them the question of whether or not poker really is illegal in Arizona, the AZ Republic reports.
Now I know what you’re thinking … wait, don’t they have Indian casinos in AZ? And indeed they do … but he’s got a problem with that, too, claiming it to be an illegal state-granted monopoly. Interesting way to look at it. You can read more about Judge Lee’s Arizona Card Room in Sierra Vista and his poker manifesto here.
The commenters (and the raters of the commenters) overwhelmingly support the crazy-ole judge. And apparently the entire city of Tombstone is behind him and wants to follow suit. (Watch the news vid.) Despite what the state has to say … the city has looked through it’s law books and can’t find anything that says poker is illegal and they’re good with that.
As Matt the commenter informs us, DC’s Poker House in Dallas was raided last night. Hmm, we kinda thought Dallas poker raids would stop now that Pokerati has relocated. Apparently not. Details not clear — am curious to know the number of arrests vs. tickets … also, if someone could let us know where that room was located … and anything else that may have contributed to its shutdown.
You may recall the raid on the Audie Murphy VFW. Comedian Drew Carey thinks it’s a not-so-funny indication of disturbing trends in the nation’s approach to policing as a whole.
We told you a while back about the National Poker Challenge opening up in Little Rock … on the self-declared, “hey, we are legal!” concept. Authorities (DA included) didn’t agree, and a couple of days ago Little Rock Police went in Prohibition-raid-style (like they said they would) and shut the business down. Bummer … but we kinda saw it coming, no?
[link props: ppa blog]
The NPC peeps arrested still contend their rake-free model — players payed $100/month to be “tracked” — is legal, and plan to fight it in court (just like they said they would).
Could this be the battle some sicko, poli-minded action junkies have been jonesing waiting for — a fight that forces at least one state to deal with outdated laws being applied to a game they didn’t really conceive of way-back-when? If so, this bust seems to be part of the plan. The NPC has/had clubs in Little Rock, Portland, and Memphis, where the company is headquartered. When it comes to poker penalties and the statutes behind them, the game in Arkansas might be softer than just about anywhere else.
