From OnlinePokerReport.com for the week of May 20th

STORIES TO WATCH THIS WEEK

#1. PokerStars came out on the losing end of last week’s legal battle with the Atlantic Club Casino. But given the latest statement from PokerStars, and the fact that they’ve sunk $10mm+ into the deal to date, I expect PokerStars to file new litigation in the days ahead.

#2. iPoker has given skins until May 20th to verify the identity of all players referred by certain affiliates. Sources report the action is linked to suspected VPN play from banned countries – including the United States.

Watch iPoker’s traffic – and the traffic of major US-facing sites – this week for clues to the scope of the issue. Based on back-channel chatter, it’s potentially huge.

#3. Iovation will continue to be a story to follow. Nevada regulators are reportedly planning to take a closer look at the company, which has been linked directly to the cheating scandal at Ultimate Bet, most recently in secret recordings released by Travis Makar.

+ THE WEEK THAT WAS

• Lock Poker’s CEO gave an “interview” that failed to resolve player questions. And the room’s cash out rating continued to trail far behind industry standards.
• NV Gov Sandoval suggested Texas as a potential poker partner.
• A draft of Illinois’ standalone online gambling bill was released.
• Merge Network further segregated player pools.
• The DHS took action against the world’s largest Bitcoin exchange.
• A consortium of CA tribal gambling interests released an online poker bill proposal.
• WSOP.com announced plans to launch by summer 2013.

OPR OUTPUT

The latest edition of poker news podcast Rabbit Hunt (sponsored by CardRunners) is now available on iTunes.

PICKS

#GoodRead – Interesting commentary on the relative wisdom of buy in spreads from Kim Lund at QuadJacks. And PokerFuse has a fascinating take on The Rising Concern of Forced Disconnection Attacks.

More from Chris Grove: @OPReport / Google +

This week’s online gambling news comes from New York City, where a “Black Friday” defendant has been denied bail. Plus, is legal Internet betting in Washington DC in jeopardy? Also, updates from Merge Poker, Intertops, and QuickTender.

There’s a little brouhaha I think outta Costa Rica that I’m not really following, but there might be something there. It involves PICClub … one of those loophole-based payment processing alternatives that has found itself embroiled in a 6-figure payment dispute with a network of smaller online poker sites (Carbon Poker, Reefer Poker, ACED, GR88.com, Felt Stars, StinkyFish Poker, and more than a dozen others).

Apparently someone’s ripping off someone, and flaming fingers are starting to point all willy-nilly in a world of folks trying to play as legit as they can providing a service that the US government would prefer they not.

I first learned about PICClub about a year ago … heard about it from one of my old cronies in the Dallas underground, and TJ Cloutier was apparently involved. Though I had decided it was not quite my thing, I wanted a second opinion, so I sought the counsel of a trusted friend and colleague semi-involved in the poker bidness:

On Dec 3, 2008, at 9:22 AM, [name removed] wrote:

[Name removed] told me about it. But I’ve decided it’s in my best interest to steer clear of shady, 4-year-late concepts that are audibly mistaken for porn sites.

LOL, right, exactly …

More…