Legal or Regulated Online Poker--What Would It Be Like?

What the Future Could Look Like for US Regulated Online Poker:

A future in which online poker is legalized and regulated is the ultimate objective of the Poker Players Alliance. It's a common goal that has famous poker professionals and amateurs alike making trips to Washington D.C. to meet with their congressmen. And perhaps the most important part of it is that online poker cheating would be a crime punishable by up to five years in prison, though I will believe that when I see it!

This future seems closer than ever, yet still so far away. The cause has built momentum, but the window for change this year is closing quickly, if not just waiting to be locked. However, the introduction of legislation by Rep. Barney Frank (D-Mass) and Senator Robert Menendez (D-NJ) has shed more of a light on what the online poker world will look like if this goal is finally reached.

Site shakeup: It will be interesting to see who the market leaders are after legalization. Party Poker is likely to return to the U.S., but will American players forgive what was once the world's No. 1 site for abandoning them in the first place? Harrah's, the largest casino operator and owner of the World Series of Poker, is likely to enter the online market in a big way, but whether it offers the incentives and customer service of existing sites remains to be seen. Unexpected contenders for market share will certainly arise. As for the current industry leaders, PokerStars and Full Tilt, one has to wonder whether they will have difficulty acquiring a license in the U.S. after years of operating over objections from the Justice Department. Assuming that they do get licenses, one has to wonder whether they will retain their top spots against some heavyweight competition.

Age adjustment: The age requirement to play poker in a U.S. casino is 21 years old, so it only makes sense that this would be the minimum age set by the U.S. government for playing Internet poker. This would be an end of an era for young guns who amass a fortune playing online before they are even allowed to play in the World Series of Poker. Although surely some players will find a way around the requirement -- there is no one to check identification in the home -- expect the rule to be enforced better than the 18-year-old age requirement currently imposed by poker sites. The days when a teenager decides between college and online poker will come to an end.

More taxes: The bills have made it apparent that taxes will be paid not only on winnings but on all deposits, though there is hope that these extra taxes will be absorbed by the sites and not be passed on to the players. As for players not reporting their online poker income or holding back on winnings not withdrawn, that will no longer be an option. The IRS will know exactly what you won or lost on the virtual felt -- and how old you are. Someone will have to provide a social security number for tax purposes!

Processors change: Moving money to and from the poker sites will most certainly be faster. There will be no more need to wait on paper checks. Not only is Neteller, or Neovia as it's now known, likely to return to the U.S. market but so is PayPal. The largest Internet processor in the world, PayPal abandoned the Internet gaming market in 2002. However, PayPal recently moved back into the online gaming sector -- though still excluding the U.S. -- by partnering with Neovia. Envision clicking the withdrawal button on your poker account and using the money to make a purchase at eBay or at a store with your PayPal account.

Settling disputes: Until now, poker sites have been their own judge and jury when it comes to accusations of cheating. If a site said you cheated and confiscated your account, you had little recourse. Two players who were accused by Full Tilt of using bots had their accounts closed recently but they took the unorthodox step of filing a suit in Los Angeles Superior Court in a desperate attempt to recoup their money. If the U.S. legalizes and regulates online poker, it will undoubtedly create a department that will settle disputes between players and poker sites, providing an independent arbitrator that will require that sites prove their allegations.

Poker by state: While legalizing online poker will make things easier for poker players in most of the country, the proposed legislation shows that it is almost guaranteed that states will be permitted to opt out of the program. In opt-out states, it will be more difficult to play poker than it is now. Fortunately, it's not that hard to move from Washington to California if playing online poker is a priority.

Some of these changes will be accepted with open arms and others will anger some people in the online poker community. The bottom line is that legalization and regulation will legitimize the industry. No longer will be there be worries of the DOJ seizing withdrawals or sites leaving the U.S. market, and that piece of mind is most important of all.

Phil Ivy and Mike "The Mouth" Matusow Named In Full Tilt Online Poker Bot Cheat Lawsuit!

Poker Legends Chris "Jesus" Ferguson, Howard Lederer and a Host Of Others Also Sued For Bot Fraud! And I bet Phil Hellmuth just loves it!

Allegations Of Poker Bot Use At Full Tilt Poker

Since its creation, Full Tilt Poker has been heralded as an honest, no-nonsense online poker site. Other than multi-accounting, which is a player caused problem, not one perpetrated by the site, Full Tilt has for the most part been free from some of the more damaging issues that have plagued some of their competitors. However, this week, they were named in a lawsuit which alleges that some players were using automated bots in an attempt to cheat other player out of money.

What is a poker bot? A bot is computer program whose purpose is to play poker against human opponents or other computer opponents. Generally, well designed bots can win at a high rate and the practice of using them is considered cheating.

On October 1st, heads-up online specialist. Lary pokergirlz Kennedy and former Full Tilt customer Greg Omotoy filed a complaint on October 1st accusing Full Tilt with, among other things, fraud and libel, over the alleged accusation of using bots. Earlier this year, Full Tilt Poker, removed over $80,000 from the accounts of the two players, because they believed the two were wrongfully using bots against other players, which is a direct violation of the Full Tilt Poker Terms of Service. After the seizure of funds, Kennedy posted about the situation on Twoplustwos forum. Perhaps not coincidentally, shortly after posting, Kennedy was then accused by Full Tilt of Multi accounting. This is what finally prompted the lawsuit. The official complaint names Full Tilt Poker, Tiltware and Howard Lederer, Raymond Bitar, Phil Gordon, Chris Ferguson, Andy Bloch, Perry Friedman, Erick Lindgren, Erik Seidel, Phil Ivey, Patrik Antonius, John Juanda, Gus Hansen, Mike The Mouth Matusow, and Allen Cunningham as co-defendants.

As part of the suit, Kennedy and Otomys explain that Full Tilt originally consisted of two separate companies, Tiltware and Vert Enterprises and suggests that, despite Full Tilts assertion that they are separate entities operating out of California and St. Kitts and Nevis, respectively, the two companies the same and are illegally being run in California.

What started out as simple action taken out against 2 players from the sea of online poker, could perhaps turn out to be a complete public relations disaster for Full Tilt. It is believed that Full Tilt likely would have to consider the possibility of settling as to avoid exposure to US courts.

Roulette Player Claims UK Grosvenor Casino Chain Barred Him For Simply Winning! Casino Refuses To Say Why They Barred Him!

A gambler's winning streak was cut short after he was banned from casinos across Britain after winning £28,000 playing roulette with his 'no-lose' system. Balvinder Sambhi, from Birmingham, scooped the fortune in just two months using a secret betting pattern which he has spent years perfecting. But he claims he was so successful that bosses have now banned him from every Grosvenor Casino in the country. Balvinder Sambhi's biggest single daily win was just over £4,000. Angry, Mr. Sambhi, 38, said: "I've never lost with my system and the casinos don't like that. They don't want winners in their premises, just losers. I used to go into the casino every day and there was never a problem when I was losing thousands of pounds.
But after using my system to make £28,000, I was taken to one side and told that I was barred. I can't believe it!"

A letter from the director of security of the Rank Group who run Grosvenor Casinos refuses to specify the reason for his ban. Garage owner Mr Sambhi, who does not want to reveal his winning formula, is writing a tell-all book for other gamblers. He said: "Experts have always said that winning at roulette is just down to luck. But I've spent years developing a system based on simple mathematics which helps me win every time I play. In total, I won £28,000 in two months. Some days I won a little and some days a lot. My biggest single daily win was just over £4,000. But the fact is I was winning consistently and nobody has ever done that before with roulette."

But his winning streak came to an end on September 15 when the businessman visited Grosvenor Casino in Birmingham city centre and was told he was barred. Mr Sambhi said: "I've been a member of that casino for a decade and have never had problems before. I spoke to the manager and pleaded to be told why I had been banned but he refused to tell me. I said if they thought I was cheating, or money laundering, then they should call the police. But he said that was not the case, so the only conclusion is that I was banned because I was winning so much money. Yet my system is not cheating; it's all about the maths."

The Birmingham man has since employed solicitors to ask the Grosvenor Casino chain, owned by the Rank Group, for an explanation. But the company's Director of Security, John Butler, refused and wrote back: "You will be aware that we are under no legal obligation to give reasons from excluding someone from our premises. It is therefore not my intention to assist your client further."

A spokesman Grosvenor Casinos, which has more than 30 UK casinos, declined to comment. Mr Sambhi is now hoping to pass on the secrets of his system in his new book, "Sequential Roulette: End Game." He said: "People have been playing roulette for hundreds of years, yet no one has ever come up with a system that consistently wins. But I've proved that my system works. Now I want to pass it on to other gamblers so they can win big too."

My take: Sambhi is full of shit. He may have gotten barred for winning or perhaps for cheating, but he certainly does not have a winning roulette system because one does not exist. It is quite possible that his system was betting on biased wheels he may have found in some Grosvenor casinos.

Pitbull Poker Shut Down For Cheating, Its Directors Arrested!

Amid rumours and allegations of cheating, fraud, superusers and cashouts which were never delivered it seems that online poker room Pitbull Poker has closed down. 2+2 forum user Chesterboy was the first to suggest there may be problems with Pitbull Poker back in July this year. Following the allegations several players came forward with similar concerns and eventually a former employee of Pitbull Poker came to Poker News Headlines to offer his evidence on the cheating and fraud allegations.

Dave Brenes has commented on Pitbull closing on 2+2 under the username DBReal by saying:

Hi guys, I know you wonder if it is me or not. Let me say this:

Kevin was taken for interrogation as many people at the scene claimed he was trying to leave without notice, but he was released. I was never a director of the company, just a pawn in their game (sure!) and until yesterday I realized they were using my name to front PB here and I truly believed everything they said. I don’t know if there was truth of just plain lies in everything, it is very recent to know for sure but I know they tried to rip us off by leaving us blank with no job, payment or anything.

I felt necessary to post as my name was at stake a long time ago and I trusted Kevin would do what it takes to keep the company clean and show everyone we were legit. I guess that was my real mistake, although questions were asked I never went deep into the company operations to find out what really was lying beneath. I truly hope it gets resolved for players and affiliates left with pending payouts, I have my own financial issues with them and I just want to get out of this mess soon, move on and get a new job to continue my studies.

Thanks all for reading.

Dave

At this stage the PitbullPoker.com website still appears to be in operation. However, it seems all players have now abandoned the poker room with 0 players in the last 24 hours according to Pokerscout.

It now remains to be seen if players will be paid their cashouts? It seems unlikely given the nature of Pitbull Poker closing and the arrests of the directors. I will have all the latest on this story as it develops.

Slot Cheats Sentenced In Nevada

Two casino cheats listed in Nevada's Black Book and a woman who was their accomplice in a 2006 crime pleaded guilty Tuesday in District Court for their roles in a slot machine-cheating scheme they used at several Las Vegas casinos.

William Cushing and Michael McNeive pleaded guilty to the use of a cheating device in a slot machine, and Susan Lewanda pleaded guilty to conspiracy to cheat at gambling. The trio used the scam at several Las Vegas casinos, including Boulder Station and Fiesta Rancho, in 2006. The three are scheduled to be sentenced Jan. 5, 2010.

Police reports indicate surveillance videos show Cushing and Lewanda would stand watch at slot machines while McNeive inserted $1 bills and forged them as $100 bills using the cheating device.

Cushing and McNeive are in Nevada's List of Excluded Persons, otherwise known as the Black Book, and are barred from the state's casinos.

Roulette Sniff Scam!

That's right, you won't believe this highly intelligent casino cheat scam but here is what happened during the month of August in London's chic Casino at the Empire. Two casino cheats happened upon a roulette game where they noticed that every three spins or so, the dealer sniffed as if he were trying to clear his stuffed nose just before spinning the ball. They then cleverly decided to use this dealer's habit in a roulette cheat scam. Being gifted in overall conning and scamming, they hung out in the casino bar looking to bait some heavy-packing punters (gamblers)for the fleece. They came across a wealthy Egyptian and told him that they had an inside scam working with that particular sniffing roulette dealer. They told him that the guy was able to control the roulette ball with a fair amount of accuracy and could hit a section of six numbers on the wheel about a third of the time. They told him that the dealer would sniff the signal when he was about to launch a controlled spin. Of course the dealer had no clue who the hustlers were, nor was his sniffing indicative of anything more than a cold or stuffed nose.

The cheats brought the Egyptian into the casino where he bought in for 500-pound chips at the roulette table. The deal was that the Egyptian and the cheats would split the profits fifty-fifty. Well, the cheats got real lucky and the first ten times the roulette dealer sniffed, he hit the section of six numbers nine times! The Egyptian increased his bets and by the time the dealer finished his shift, he'd won 60,000 pounds! He gave the casino cheats 30,000 and promptly left the casino.

The pair of roulette cheats worked the scam several more nights as the dealer continued to sniff intermittently. They won with a few marks and lost with a few others. The scam came apart when one of the marks, who'd happened to win, overheard the sniffing dealer tell a pit supervisor that he was having an allergic reaction to something in the casino, presumably the carpeting. The mark, in spite of having won, decided to complain to the supervisor about the hustling cheats. They were immediately tossed out of the casino and barred from entering it in the future.

Well, in any case, I think it was quite a creative little gig, and the least I can say for the two casino scam artists is that they sure knew how to think on their feet!

Tran Organization Biggest Casino Cheat Dealer Charged by Feds For Ripping Off Baccarat Game For a Cool $1 Million!

Not only are the Tran Organization baccarat cheat busts continuing to keep pace with the plea deals and sentencings in the huge international casino cheat case, they're getting bigger! As more than 30 cheating dealers, supervisors and players have already been charged, with many of their cases already adjudicated, now the scam's biggest victim, the Resorts East Chicago Casino in Indiana, is getting the satisfaction of seeing its Numero-Uno cheat dealer, Michael Waseleski, charged by federal prosecutors with several gaming crimes. Waseleski is charged with helping a clan of Tran Org. baccarat and blackjack cheats win more than $1 million by rigging games. The conspiracy charges against Michael Waseleski allege that while he was a dealer at Resorts East Chicago Casino, he was trained by the gamblers in how to perform a false shuffle of card decks. Those players won the money there in the summer of 2005.

Authorities say 31 people have pleaded guilty to charges in the rigged games, which were also carried out in Canada and six other states. The scheme involved bribes to casino supervisors and dealers during blackjack and mini baccarat and use of unshuffled cards.

When will these Tran busts stop! PLEASE!!!

Men the Master Sites Budda in His Poker cheating Denials!

We've all heard the poker cheating allegations against 6-time WSOP bracelet-winner Men "the Master" Nguyen, especially those concerning his running a Vietnamese poker cheat collusion ring. Currently playing in the World Series of Poker Europe Championships, the accused master poker cheat had this to say:

"I see a lot of things they say on the Internet," he said. "If they say that in any magazine I'll sue them for slander, but I've never seen it. They slander me on the Internet, but I talked to my lawyer and he said they can say anything they want on the Internet. If I cheated do you think I would be able to go all over the world and play poker? "They are probably jealous. I earned what I won. I came to the United States empty-handed. I got what I won, I got my name out there and people just talk about me now. Show me. Catch me. Until they can prove it they should not talk about it. It's just gossip."

Nguyen fled communist Vietnam in 1978 and settled in Los Angeles, California. He started playing poker in 1984 and won his first WSOP bracelet in 1992. A devout Buddhist, Nguyen reiterated that he would never cheat and never has. "I'm a Buddhist so I am afraid to cheat," he explained. "If I cheat on anything it will come back to me. If I do something like that God will punish me. If I cheated do you think I would be able to go all over the world and play poker? They would kick me out of every tournament."

An emotional player at the tables, Nguyen has also been accused of being abusive to dealers and floor staff. Again, Nguyen denies any wrongdoing. "The problem is that sometimes dealers make mistakes and I just try to correct them," he said. "If you play with me at the table you will see how good I am and how nice I am. I will always be nice.

"People talk and they don't think. People say 'Oh Men, you did this or that,' but they don't know. The dealer comes in and maybe they don't change the deck, so I ask why they don't change the deck, because it's a rule. I'm just correcting mistakes."

What do I think? Well, I think Men the Master cares as much about Buddha as he does about his cheat victims!

Signed to UltimateBet, Top Poker Pro Joe Sebok Should Help UB Shed Online Cheat Image

Top Poker Pro Joe Sebok has signed with giant and tainted online poker room Ultimate Bet, and he will serve as well in a consulting capacity to help the scandal-ridden online poker site prevent the cheat scams that have plagued it. Long considered to be one of the top poker professionals without a major sponsorship deal, it was announced late Monday evening that Joe Sebok will be joining UltimateBet’s roster of poker pros. Sebok will also take a prominent position inside of the Ultimate Bet organization.

Because of his abilities in the world of internet radio and podcasting, Sebok will accept a position as the site’s Media and Operations Consultant. In this capacity, Sebok will help bridge the gap between the Ultimate Bet brand and poker players. His in-depth knowledge of the online poker world will likely raise the bar and make Ultimate Bet the only place players will want to visit. Sebok had previously gained the industry’s respect for his founding of PokerRoad.com, an online media outlet that provides poker fans with fresh, innovative, and often irreverent content from an insider’s perspective. Online poker fans around the world continue to look to Sebok and PokerRoad.com, where he serves as the company’s CEO, for a unique perspective on everything related to land-based and online poker.

“We are ecstatic to bring Joe onto Team UB,” said Paul Leggett, the COO of Tokwiro Enterprises. “He will not only serve as a pro player representing the brand, but more importantly will be instrumental in helping us create a poker site for and by poker players. His commitment to the brand was invaluable, as he worked closely with me to help begin to bring closure on the details surrounding the cheating investigation from last year. I’ll continue to work with him to ensure that we always do everything possible to satisfy the poker community’s concerns and will continue to work together to make Ultimate Bet the premier poker site. I couldn’t be happier to welcome Joe to the team today.”

“UB and I first started talking about a possible relationship almost four months ago and I made it very clear that I couldn’t commit until that point in time when the names associated with the scandal began to be released,” Sebok stated during the announcement. “Paul Leggett has been instrumental in this process and I now feel comfortable and excited about joining the team as we are heading in such a positive direction. While this process isn’t entirely complete, I consider this to be one of my new responsibilities moving forward and intend to continue working very closely with Paul to ensure it happens. I am very happy to be joining Ultimate Bet today and look forward to our future.”

Tokwiro COO Leggett Says Russ Hamilton is Guilty but Doubts He'll be Prosecuted for Masterminding UltimateBet Scam

In a thorough comment on the Kahnawake Gaming Commission's 11-page report on the huge online poker cheat scam, Tokwiro boss Paul Leggett expressed enthusiasm that his company, Tokwiro, was not found liable for any of the cheating that transpired, with the bulk of the blame going to Ultimate Bet’s previous owners. “It is very important to us that everyone understands that our company had nothing to do with the cheating on UltimateBet,” Leggett wrote in his Tuesday blog entry. In an effort to clear up any confusion regarding other information released in the KGC report, Leggett dedicated the rest of his post to discussing his own thoughts on the findings.

He began by trying to put the scope of both UB’s internal investigation and the one conducted by the KGC into context. Leggett claimed most avenues the investigation explored resulted in dead ends, in part, because the KGC lacked resources of a law enforcement agency since it is simply a regulatory body.

“This limited the Tokiwro and KGC investigations because the only evidence available was data,” Leggett explained, before he moved on to address the data itself. The COO claimed he did not know definitively who the other 31 people listed in the report are, but he said he could “make a very educated guess as to which names were included.”

Many who have read the report chided the KGC for releasing only Hamilton’s name and suggested he is being made to be the scapegoat for the actions of many. Leggett agrees with the KGC’s assertion that Hamilton is the person who masterminded the operation:

“In my opinion, the KGC released his name because there was an overwhelming amount of evidence that showed he was the person using the software and accounts to cheat, that his close associates helped facilitate the changing of usernames and the movement of monies, and that he was the main beneficiary of the proceeds from the cheating,” wrote Leggett.

As for any potential legal action that may be taken towards Hamilton and others in the future, Leggett remains skeptical and blames the lack of regulation of online poker in the U.S. for the difficulty inherent against pressing charges and opening up a legal investigation. He explained, “The current legal environment in the United States, relating to online poker, makes it very complicated for the proper authorities to work with us and for us to bring a claim against individuals in the United States.” He then went on to make his own case for pushing for online gambling regulation in the coming months.

Leggett concluded his thoughts by expressing his own personal frustration and sadness dealing with the investigation over the past several months. He even acknowledged his de facto role as bad guy to several members of the online poker community, but concluded by suggesting the worst is behind Ultimate Bet and the $22 million reimbursement and $15 million settlement with UB’s previous owners are two big steps towards proving that the site is a safe and fun place for people to play poker online.