Lou Krieger Poker Blog

Lou Krieger has come a long way in the poker world. Well known as the co-author of Poker for Dummies, Lou has also written 11 best-selling books and more than 400 columns and magazine articles of poker strategy, and is the editor of Poker Player Newspaper. Catch Lou’s views, opinions and commentary on just about everything in the world of poker. Join Lou every Thursday at 9:00 PM ET on www.roundersradio.com, where he hosts the webcast show, "Keep Flopping Aces."

Thursday, June 29, 2006

Protect Your Right to Play Online Poker.

The House of Representatives will vote to ban online poker within the next few weeks, but you still have a chance to make your voice heard. All you need do is click on this link http://capwiz.com/pokerplayersalliance/issues/alert/?alertid=8585611 to make your opinion known.

All that's required is a couple of mouse clicks and your opinion will go striaght to the offices of your congressional representative.

Your opinion counts. It's needed. And it's the right thing to do. Please do it now. Protect your right to play online poker.

Tuesday, June 27, 2006

Irreverent Picture of the Week


If you don't like your next door neighbor, let our irreverent picture of the week show you what to do!

Legal Experts Think Washington's New Law Too Broad

I've Asked this Question Since the Day the Law Was Passed
I’ve been asking this question since the Washington State Gambling Commission first leaned on a reporter from the Seattle Post-Intelligencer, suggesting that he tell his paper not to carry Daniel Negreanu’s column because it violates the new Washington law against online gaming. Now some legal experts have chimed in, saying the law is probably too broad to survive a court challenge.

Anyone who "knowingly transmits or receives gambling information" using the Internet is guilty of a Class C felony, punishable by up to five years in prison according to the law that took effect on June 7.

But First Amendment Experts Think the Law Won't Hold Up....
"Providing a hypertext link does not seem to me to aid and abet gambling," said Michael Overing, a Los Angeles lawyer specializing in First Amendment issues.

And So Do Specialists in Internet Law
Craig Baker, a Seattle attorney specializing in Internet issues, said considerable latitude exists for what people can put on their web sites, with certain exceptions, such urging violence, obscenity and threats to national security. "The basic rule is that there's no liability for placing a link on a Web site," he said. "Traditionally, there is great deference paid toward free speech."

Critics of the new law said the state needs a strong reason and specific law to limit free speech, even in cyberspace.

But Washington State Is Going to Enforce the law
Despite the law's draconian nature, Rick Day, Director of the Washington State Gambling Commission, keps saying that the state isn't out to get online poker players who blog about playing or post tips on gaming. But he believes that links or references to online gambling are an issue.

"What you have to look at is whether that is a solicitation or inducement for people to engage in something that's illegal," Day said, adding that the state will deal with Web sites on a case by case basis and is more likely to go after big corporations that link to gambling sites than "a small local entrepreneur."

Will the Law Survive a First Amendment Challenge?
Washington’s Attorney General's believes any Constitution-based action against the new laws are defensible. Janelle Guthrie, spokeswoman for the state Attorney General's Office was quoted as saying, "We don't believe these laws are vague, and if they were challenged as unconstitutional, we would defend them." State Sen. Margarita Prentice, who sponsored the Internet gambling bill, said “… if it's illegal, it's illegal. We were defending our state, and we cannot have illegal gambling."

The Law's Author, State Senator Margarita Prentice Finally Speaks. But Does It Make Any Sense?
This is the same Margarita Prentice who was unwilling to speak to the media about the law she authored for some time now, only to come up with that gem of legal reasoning. I’m just wondering whether Ms. Prentice made law review with legal reasoning and statements as compelling and insightful as “… if it's illegal, it's illegal.”

Monday, June 26, 2006

Slammed: The Difficulty of Following Through on Poker Challenges

I Get Slammed For My Efforts
Earlier this week posts on Rec.Gambling.Poker — the poker newsgroup — and on Two Plus Two, a privately owned poker forum, were caught up in discussions about a possible debate between poker authors Gary Carson who posts regularly on RGP, and Ed Miller who has very close ties with Two Plus Two. Some bad blood is mixed in with this, since Gary Carson had been banned from posting on Two Plus Two in the past, although it was, and still is, unclear as to whether he is currently unwelcome on that site.

Hey, I'm Just the Guy Offering a Forum For Debate
While neither Mr. Carson nor Mr. Miller said they would take part in a debate, I decided to provide a neutral forum for a debate by offering air time on Keep Flopping Aces, the weekly poker radio show that Amy Calistri and I host at holdemradio.com every Thursday night at 9:00 PM EDT.

If both parties were willing to debate, I’d have consulted with each of them to develop a format that was fair, agreeable to both parties, and met their needs. My only requirement was that no personal attacks would be permitted. Neither of the parties wanted to go along with the debate, so it was a dead issue. At least I thought it was dead.

Was I "Shameful?"
But I was wrong. I was attacked on Two Plus Two for “…shamefully promoting my radio show,” when in all honesty, all I wanted to do was provide a forum for a debate that would have been interesting, and full of information that listeners could use to improve their poker game.

Neither Mr. Carson nor Mr. Miller was among the attackers. The insidious remarks came from others, with their own interests and agendas that clearly did not include stimulating and increasing a dialog about poker.

Well Ed Miller said he was not interested in a debate, and he said so in a courteous manner, and that’s OK with me. If he doesn’t want to debate, that’s his choice, and although I believe the debate would have contributed a lot to those listening, he’s well within his rights to elect to forego this.

My Own Challenge to Rep Bob Goodlatte Falls on Deaf Ears
It looks like I’m 0-for-2 in creating action. On May 26 I issued a challenge to Representative Bob Goodlatte (R-VA) regarding his proposed legislation that would seek to emasculate online gaming. This was my offer to Rep. Goodlatte:

If the bill fails to become law, you agree never to introduce it again. After all, you’ve tried a number of times now and have struck out on each occasion. If your bill is enacted into law, I’ll agree to publicly support it. I realize I’m offering you a wager, Mr. Goodlatte, but since no money is involved, I don’t think my proposition rises to the level of gambling. Are you willing to take me up on this?Or, we could gamble for a good cause. I’m willing to wager $1,000, to be donated to the charity of your choice, against nothing more costly to you than your honor. If I win, you agree never to introduce this or similar legislation again. Will you take me up on this wager, Mr. Goodlatte?

I offered another proposition too.

Since you are quoted as saying poker is “absolutely a game of chance,” why don’t we each put up $1,000 to go to the charity of the winner’s choice, and play a freeze-out poker game? Or we can play a series of freeze-outs where the best two out of three determines the winner.

I’ve never heard from Rep. Goodlatte. While I’m well aware that a member of congress has a lot on his plate, I’d still like to play poker against him. He wouldn’t be gambling, since he would not have to pub any money at risk. If he’d simply like to discuss this bill, I’d love to have him on the radio show too. And although I am an eternal optimist when it comes to most things, I’m not holding my breath when it comes to either playing poker against Rep. Goodlatte or debating him.

Will Clonie Gowan Will Have Better Luck With Her Challenge to Paris Hilton?
Perhaps glamorous Full Tilt poker pro Clonie Gowen will have better luck with her challenge. On the June 21st edition of Fox Sports Network’s Best Damn Sports Show Period, Ms. Gowen challenged Paris Hilton to a $100,000 charity poker tournament.

The winner would get $100,000 (put up by Fulltiltpoker.com) for the charity of her choice. “Paris seems to be a great girl,” Clonie said, adding, “however, she represents everything that I am not, but now that she has stepped into my world (the poker world) I challenge her to put her poker skills to work for charity. $100,000 will go a long way to helping those in need. Paris, are you in?”

Wednesday, June 21, 2006

Interactive, Real-Wagering Hold'em Coming to British TV

Poker Zone Television is launching a new show in the UK, entitled Face-Up Hold’em, a play-along poker show that will run two hours daily on Sky's Poker Zone TV channel. The show displays live Texas Hold'em games with viewers able to see each player's hand and play along. Information about the mathematical strength of each player's hand is provided at each stage of the game and home players can wager real money on the outcome of each hand via Interactive Voice Response.

By showing each hand as the game plays out, players can see how dramatically the strength of a strong opening hand like A-K changes when another ace or king appears in someone else’s cards. It’s not something seen in traditional poker shows.

It’s too bad this sort of show and wagering opportunity is not available e in the USA — and won’t be until we adopt the British model of regulating, licensing, and taxing cyber poker, instead of following our failed policy of attempting to prohibit it.

Tuesday, June 20, 2006

Draconian Enforcement Planned for Washington State's New Law

I've reported about Washington State's new poker law on this blog, but here's a new and frighteningly ominous wrinkle. In his blog, Earl Burton referenced an article in the Seattle Times by Danny Westneat, reporting about a poker information site that provides information about poker rooms on the web. The site’s owner, Todd Boutte, was concerned about the new law but figured he’d be OK because he was just talking about poker sites; he wasn’t taking any wagers.

Is Writing About Poker a Violation of the Law?
But despite his constitutional rights to free speech, the State of Washington considers his site the same as if it was a wagering site. Boutte could face a Class C felony in Washington, and he has shut down his site as a result. Washington’s gambling commissioner, Rick Day, also advised Seattle Times columnist Danny Westneat to advise his paper to quit publishing the Daniel Negreanu’s poker column too, and stated that the commission plans to hire an investigator to enforce the new state law.

Does the State of Washington Plan to Walk All Over the First Amendment?
It appears that Washington’s law is undergoing an expansion in scope by the watchdog groups in charge of enforcement, because now they intend to go after those that write and otherwise communicate about poker too.

How About a Test Case?
So many first amendment rights appear to be trampled by Washington’s law, that it’s time for a test case. Right now, early on, before the Washington gambling commission and Rick Day are able to extrapolate this law’s meaning far beyond its legislative intent.

While the Washington state law is a bad one, the enforcement practices of the state’s gambling commission seem hell bent on making it draconian too.

Monday, June 19, 2006

Irreverent Picture of the Week


Got anything to relieve gas pains?

(1) The Biggest Game in Cyberspace (2) Congress Set to Vote on Bills to Restrict Online Gaming (3) 240,000 New Players to Microgaming (formerly Prima)

Record Online Poker Cash-Game Pot
This was surely the biggest game in town: $200-$400 no-limit hold’em. Freddie Deeb (at least we think it was Freddie Deeb) heads-up against Johnny Lodden on the Microgaming Network (formerly the Prima Network) with over $800,000 on the table.

Lodden took charge early and had Fast Freddie down a few hundred thousand. Towards the end of the night the largest hand in the history of online poker was recorded. The pot reached $465,461 when Freddie spiked 3 aces on the flop. Fast_Freddie and bad_ip raised and reraised throughout the hand, suggesting that bad_ip had flopped 3 aces as well.

When the hand was over bad_ip mucked his cards and Fast_Freddie won with Trip Aces and a King and Jack for kickers.There is still some speculation regarding Fast_Freddie’s real identity. During the game, a bystander asked, “Who is Fast_Freddie,” and in reply Fast_Freddie said he was indeed Freddie Deeb. At the time of the action, however, another bystander reported at twoplustwo.com that Freddie Deeb was being interviewed by the WPT in Paris at the same time.

More than 600 people watched this high stakes cash game. Until now the biggest hand in online history was that between bad_ip and I_Grind_on_u, which reached $357,256. The hand played by Fast_Freddie and bad_ip was more than $108,205 larger.At the end of the day, Freddie left with most of the money but nobody is really sure how much he truly ended up winning after all the rebuys.
Here is the hand history of the largest hand in online poker.

Dealing Cards to Players
bad_ip raises to $1,200
Fast_Freddie raises to $4,000
bad_ip calls for $3,000

Dealing the Flop (7c-Ah-Ac)
Fast_Freddie bets $8,000
bad_ip raises for $16,000
Fast_Freddie raises for $32,000
bad_ip calls for $24,000

The Turn is Dealt (5s)
Fast_Freddie bet for $74,000
bad_ip goes all in for $188,326
Fast_Freddie calls $114,326

Dealing the river(Kc)
Fast_Freddie shows Trip Aces(A-A-A-K-J)
bad_ip mucks hand
Fast_Freddie wins $465,451 with Trip Aces

The report of this game is brought to you by: www.CompatiblePoker.com

House Set to Vote on Internet Gaming Bills
The House of Representatives will probably vote during the next two weeks on legislation that would make it more difficult to fund accounts for online table games, poker, and sports betting. Although similar bills have passed one or the other chamber of Congress in prior years, they never passed both houses and were never enacted into law.

The American Gaming Association urged Congress to study online gambling to determine whether technology now supports a safe way to legalize, regulate and tax online wagering as Britain has done. Both MGM Mirage and Harrah's — giants in the gaming industry —see online gaming as a dramatic opportunity for revenue growth.

Regardless of Congressional action, industry analysts are bullish on the growth of online wagering, because of online wagering’s rapid growth in other parts of the world.

“Online gambling web sites are cash cows, and the greed that propels these companies leads them to solicit bettors in the United States, despite the fact that the Department of Justice already believes this activity is illegal," said U.S. Rep. Bob Goodlatte, (R-VA), author of the measure that would expand the 1961 Wire Act, which focused on outlawing sports bookmaking by phone or telegraph.

Another bill, sponsored by Rep. Jim Leach, (R-IA), prohibits credit-card companies and banks from processing payments by U.S. customers to gambling sites.

The casino industry wants to open the door to legalized online wagering. Although it's too soon to put legalization to a vote in Congress, they hope a yearlong study would show that it makes sense to allow some Internet gambling in states where card and casino games are legal in person.

Gamebookers Brings 240,000 Players to Microgaming Network
Gamebookers, one of the world's largest betting sites with 240,000 players worldwide, announced the launch of its new poker platform live on the Microgaming (formerly Prima) Poker Network.

"Poker is an exciting addition to the Gamebookers betting and gaming portfolio. Online gaming, for us, is no longer 'just' about having the best sports betting platform in the market," said Gamebookers CEO John O. Malia. "We have to ensure that we are offering the best of all possible available services to our customers, and poker is the product that our customers were clamoring for most loudly after we launched our massively successful casino platform."

Friday, June 16, 2006

Going to the WSOP

Well, I've made plans to go to Las Vegas for the WSOP. I'll be arriving July 9 and coming home July 13, then returning to Las Vegas on July 26. If you're gonna be there when I am and you see me, please say "hello."

Right now I don't know which events I plan to play in, or even if I'll be sufficiently motivated to get up from the cash games and invest my time and money in a tournament. What I am looking forward to, in addtion to cash game play, is doing some radio braodcasting. Wade Andrews, who runs www.holdemradio.com will be setting up a remote broadcast facility at the Imperial Palace to supply a steady stream of WSOP color, interviews, and comments from that location.

Since Amy Calistri and I began our radio show, Keep Flopping Aces, I have enjoyed hosting a poker talk show (it's every Thursday night at 9:00 EDT or 6:00 PM PDT, and if you haven't listened yet, please tune in) about as much as anything I've ever done in the world of poker. So I'm looking forward to broadcasting as much as anything else I'll do while I'm in Vegas. I even booked a room at the Imperial Palace, as opposed to my usual digs of choice, the Golden Nugget, because I can be close to the broadcast and have a short commute to the Rio too. I also intend to play at the Venetian's new poker room, and at the Wynn.

The thing I'm looking forward to least is the main event. I know this sounds like heresy, but with Day One scheduled to take place over what seems an eternity, a media room that threatens to be jam packed beyond belief, a floor filled with 2,000 players at 200 tables and limited access for much of the media -- really, it's like an indoor football field full of poker tables -- the best view of the action is online, reading real-time reports.

Since I can read online reports anywhere, and will have already infused myself with the look and feel of the event in the days leading up to the it, never mind a few dozen laps around the Gaming Life Expo that's adjacent to the tournament area, I will probably just follow the $10,000 no-limit hold'em tournament from home.

Somehow the Day Ones eternity seems poorly planned. It's sort of like the movie Groundhog Day, where things are played over and over again. I'd like to suggest to Harrah's that they consider holding Day One, and maybe Day Two also, at Harrah's properties in different areas of the United States.

A model to follow would be the NCAA College Basketball Championships. Regional play winnows 64 teams -- OK, OK, it's 65 if you want to be absolutely precise count the "play-in" to get that one, odd team eliminated -- down to a final four, and they assemble for one weekend of play that concludes March Madness. The WSOP could do this for any event that threatens to see more than 2,000 entrants. It wouldn't harm attendance at the World Series and might even create some additional action at Harrah's properties in other locations that would be tapped to host these "Day One" events.

Stop the Bills to Ban Online Gaming

While major corporations eye ways to profit from the $12 billion a year that’s wagered online, Congress keeps trying to ban it. The House of Representatives is likely to vote soon on legislation that would strike at the heart of our right to play poker on our personal computers, from the privacy of our own homes.

One measure, sponsored by Rep. Bob Goodlatte, (R-Va)., seeks to broaden the reach of the 1961 Wire Act, which focused on outlawing sports bookmaking by phone or telegraph. The other bill, by Rep. Jim Leach, (R-IA), prohibits credit-card companies and banks from processing payments by U.S. customers to gambling sites.

Meanwhile, the American Gaming Association urged Congress to determine whether technology has provided a secure and reliable way to legalize, regulate and tax online wagering. This is the model followed by Britain, and their efforts and approach has led to the formation of numerous publicly traded companies on the London Stock Exchange, along with the migration of jobs and tax revenue to their shores.

Harrah's Entertainment Inc., MGM Mirage and other big publicly traded casino groups see online play as a major opportunity for growth. Just how big is this business now? Estimates point to between four- and seven-million Americans wagering online, and poker is the driving force behind it.

While our representatives scramble to take — or avoid taking — a position on this, even the Los Angeles Times, a newspaper that has historically held an anti-gambling stance has come out in favor of legalizing what is a fact of life for many of us.

A recent LA Times editorial said that in the process of cutting off the money supply for virtual gaming, “. . . the committee also backed a bill that would impose significant new regulatory burdens on financial companies, which would be barred from supporting electronic wagers or payouts.”

The Times went on to ask this question: “Doesn't the federal government have better things to do than try to block people from going online to make a wager on the Super Bowl or the Final Four?”

They summarized their position by stating, “Legalization also would allow the government to tax the industry and mitigate its hypocrisy in sanctioning some forms of gambling, such as state lotteries, but not others. Moralistic members of Congress should not be allowed to thwart online freedoms. It's unlikely they will succeed anyway. The issue is whether Washington is to have any leverage over the burgeoning online gambling world, or whether that world will remain beyond the reach of U.S. law.”

Although I frequently find myself at odds with LA Times editorials, I am in complete agreement with this one. And you should be too. To let your Congressional representative know how you feel about this issue, please go to Poker Players Alliance at http://capwiz.com/pokerplayersalliance/dbq/officials/?lvl=C and send an email today.

Wednesday, June 14, 2006

Online Poker's Growth is Far From Over

Poker is still growing. I saw an announcement earlier today about a site I’d never heard of before called PocoLoco. Although they only launched in January 2006, they have more than 20,000 registered players. They achieved their growth with limited marketing, primarily in Sweden and Norway.

This kind of growth shows me that the market for online poker is still far from saturated, and should continue to grow for quite some time. I think the next great market ignition will occur shortly after the US decides to follow the British model and legalize, tax, and regulate online poker in the United States. That will drive another growth spurt of new players for at least four or five years after legalization occurs.

The growth of poker is far from over, and I'm staying bullish on this. You should too.

Howard Lederer Joins Poker Player Alliance Board of Directors


The Poker Player Alliance (PPA) announced that Howard Lederer joined its board of directors.

“I am thrilled that Howard has agreed to join our board,” said Michael Bolcerek, president of the PPA. “Howard's reputation within the poker community and his ongoing efforts on behalf of our organization and poker players to defend the game from attacks by Congress and others make him a great addition to the board.”

Board members also include Linda Johnson, Greg Dinkin, Mary Magazine, and Jan Fisher. Representing 27,000 poker players, in April the PPA along with Lederer, Chris Ferguson, and Greg Raymer met with members of Congress in Washington DC to educate them about poker and discuss issues of current concern, including efforts to end online poker.

Lederer said, “The Poker Players Alliance's mission is critically important as the game has increasingly come under attack . . . by Congress, and I believe that all poker players should join the PPA and tell Capitol Hill that we do not want the Federal government to ban an American tradition that we love.”

Tuesday, June 13, 2006

Antigua Prods US to Comply With International Trade Rules

The Caribbean nation of Antigua and Barbuda recently asked for consultations with United States over its restrictions on Internet gambling, a step toward establishing a World Trade Organization (WTO) panel to investigate whether U.S. law complies with international trade rules.

This trade dispute has been discussed on numerous occasions in this blog, and this is simply a follow-up step to prod the United States toward a position of compliance with a WTO ruling. The dispute centers on whether the United States should drop prohibitions on Americans placing bets in online casinos. The World Trade Organization ruling said that some U.S. laws were in line with international commerce rules, but others were not.

Antigua’s position is that that the United States has taken no measures to comply with WTO recommendations and rulings. The U.S. takes the position that its laws are in line with trade rules.

Antigua claims that online gaming is a lucrative source of revenue and provides an income for hundreds of islanders. They claim that US prohibitions harm the island nation's efforts to diversify its economy away from tourism.

Antigua filed its case before the WTO in 2003, and the beat goes on in 2006, with the tiny nation — Antigua and Barbuda has a population of approximately 70,000 — trying to tussle with the economic muscle of the United States.

Thus far the results have been mixed, but Antigua continues to push their case to a conclusion that satisfies them, as well as online poker players and gamblers in the United States.

Is a Comprehensive Study of Internet Gaming in the Works?

Forty-two US politicians have endorsed Jon C. Porter's (R-NV) initiative to establish an Internet Gambling Study Commission Act.

The Commission would be charged with conducting a comprehensive study of Internet gambling, including the existing legal framework that governs activities and transactions.

“With technology constantly evolving, we need a much better understanding of online gambling before Congress makes any rash decisions about its future,” Porter said recently. “By establishing a bipartisan, independent study commission, we'll make sure we have all of the facts laid out on the table before considering any possible next steps.”

Porter's efforts are gathering business and legal support, too. The American Gaming Association is lined up in support of Porter’s initiative, and the National Council of Legislators from Gaming States (NCLGS) voted to investigate its position on Internet gaming after holding a hearing on the issue at its summer meeting in Boston. By its next meeting in January, the Council expects to take a position on the issue of online gaming.

Sunday, June 11, 2006

Irreverent Picture of the Week

Someone sent me this picture, and I've been driving all around, hoping to find this sign. Have you seen it anywhere? Posted by Picasa

(1) Pokerhost.com Hacked (2) ESPN Extends WSOP Coverage Thru 2008

Pokerhost.com Hacked!
Earlier this week users of the online poker Web site, pokerhost.com were prompted to re-enter their personal information when trying to enter the members area. Users were then told that the site was seized by the Federal Bureau of Investigation for criminal violations and that personal customer information would be sent to the FBI.

But this was a hack job, not an FBI action, as pokerhost.com recently stated. According to pokerhost, a breach of security occurred at a registrar level. The account where this URL is registered, handling all DNS, contact, and such, information was tampered with and changed without the consent of the LEGAL owners of the account, and of course the URL.

Pokerhost's parent company, online sportsbook SBG Global, regained control over Pokerhost.com as on June 9. Customers should ask the poker site to update all sensitive information, including passwords.

ESPN Extends WSOP Coverage through 2008
ESPN inked a deal with Harrah's Entertainment that extends ESPN's coverage of the World Series of Poker through 2010.

ESPN plans to offer live, pay-per-view telecasting of the final-table play at the $10,000 No-Limit Texas Hold’em event, in addition to ESPN's regular television schedule for the WSOP.

Harrah's also finalized a deal for Miller Brewing Co.'s Milwaukee's Best Light. The brand will become the official beer of the poker tournament through 2008.

Friday, June 09, 2006

Confusion and Inconsistency in the State of Washington

In 2004 the State of Washington’s Legislature enacted a law that made it legal to bet the horses online, on the condition that bets were placed with a state licensed wagering firm.

While online horseracing in Washington State has been basking in the sunshine for a few years now, a new state law took effect a just days ago that raised online poker from a misdemeanor to a felony. And while Washington State officials have been quoted as saying that they don’t plan to go after individual gamblers, a felony is still a felony, and it’s not something most people want on their record.

Do you see the inconsistency here? It is disingenuous at best to brand poker players with a felony, while those wagering on horses can do so with the full support of the state. Wagering is wagering, and if online poker is a danger, why is horseracing any different? And if betting the horses is benign, shouldn’t that be the case for online poker too?

The fact that most online poker rooms are located offshore is frequently raised by those seeking to legislate against online gaming. But it’s a straw man. Many internet cardrooms are well-capitalized, publicly traded companies in the United Kingdom, which has legislation in place to regulate and tax online gaming, while providing for the safety of the bettor.

Now that this legislation has gone into effect, no one in the Pacific Northwest seems willing to talk about it. Not even the legislation’s authors. State Senator Margarita Prentice, the legislation's the main sponsor, has refused interviews. According to her staff, she “. . . doesn't want to participate" in any interviews about online gambling, but wouldn't say why.

If you press them, her staff will send you a copy of a letter the senator wrote to her constituents in which she explained the law and claimed that too many people are confused by the new regulations.

I’m amazed by her reaction. If I were a legislator, the last thing I’d want would be for constituents to be confused by legislation I authored. I’d hold press conferences and take every interview offered in order to explain my point of view to the voters. But Ms Prentice is taking another tack entirely, favoring a convoluted approach to what’s not really a problem at all, then clamming up anytime she’s asked to explain her legislation or defend her intentions.

Go figure.

I sure can’t.

Thursday, June 08, 2006

Did You Realize There Are More Than 250 Online Poker Rooms?

PokerRoomReview.com recently announced that its rating guide has grown to include 252 online poker rooms.

The Online Poker Room Rating Guide rates internet poker sites based on the quality of their website, software, graphics, player community, banking options, customer service and promotions. It also allows players to write and submit a review on any online poker room and have it published on the website to share with others.

But what really astounded me was the fact that there are more than 250 poker websites. Even if many of these sites are parts of larger networks, that’s still a big number.

And probably bigger than it will be in the future. As industries grow and mature, the size of the field winnow away. Some are gobbled up by bigger competitors while others just can’t compete and fade away.

A quick examination of automobile manufacturing in the United States shows that dozens of brands have disappeared over the years. Up market Packards and Duesenbergs have vanished as surely as lower end cars such as Studebaker and Nash. When industry wide consolidation inevitably happens, there’s usually a niche that’s filled by specialty brands. That’s where you run into the occasional eye-catching Lotus or Lamborghini tooling down the highway.

But there’s a major difference between poker and motor cars. In poker, the product and the customer are one and the same. When that happens — when the bigger rooms invariably eat the smaller ones — there’s no space for specialty rooms. An online poker site without a critical mass of players won’t have a sufficient number of games to survive, and unless it joins a network it will die.

Competition will always be there, but I’m looking for far fewer poker rooms in the future. Once the market is saturated and the only way to grow is to attract players from other sites, you can expect consolidation to escalate rapidly.

I’d expect no more than four to seven major players in the future. Some will be networks, such as Prima (now Microgaming), that have achieved critical mass by bringing a number of smaller operators together using a common software to support their online games. Others will be single operators that grew large on their own as well as by swallowing up smaller rivals.

This is a case where the future is more easily understood than the present. I’m still shocked at the fact that there are 252 or more online poker rooms. Even allowing for the fact that many of these rooms are networked, it’s still a huge number, and probably way too large to survive as is in the future.

Monday, June 05, 2006

Legislators Urged to Study Online Gaming Regs; Prima Poker to be Rebranded as 'Microgaming'

Legislators Urged to Study Online Gaming Regulation
Last week legislators from around the country were urged to study current US and world-wide regulations in before altering their policy statement on Internet gambling.

The National Council of Legislators from Gaming States, a pro-states' rights organization, has historically opposed online gaming on the grounds that it interferes with the ability of states to regulate this within their borders.

But Steven Geller, president of NCLGS, said emerging technology has led the organization to consider changing its position. Speakers noted countries such as Australia and Great Britain have succeeded in legalizing and regulating online gaming.

Bill White of Global Cyber, a company that has developed a patented system to regulate Internet gambling, testified that his firm has developed a protocol that establish where a gambler is located and can deny access to online gaming if necessary, enable taxation of Internet gambling, help prevent problem gambling, and provide transparency for regulators.

"What's wrong with Internet gambling is the absence of regulation," White said. "What's wrong is you legislators and regulators can't get control of Internet gambling."


Prima Poker Network Rebranded Under the Microgaming Name
Microgaming, the world’s largest provider of online gaming software, announced that it is rebranding under the single Microgaming name.

The Microgaming Poker Network and Microgaming Progressive Network will replace the old names and that a new ‘Powered by Microgaming’ seal will appear on all the sites which use the company’s software.

The Prima Poker Network brand will be phased out by late summer to give players a period to adjust to the changes. Both of these websites will be integrated into a new microgaming.com website.

By focusing on one single brand, Microgaming believes it can create greater impact in a consolidating market and that ultimately, the Microgaming badge will give players added confidence in an operator’s ability to deliver fair, intuitive, involving play.

Microgaming’s CEO Roger Raatgever said, “We have led the industry for over a decade during which time separate brand names have served us brilliantly and helped our operators attract millions of new players to online gaming. Now we are entering a new stage of growth and we believe that by making these changes we are ready for this new era.”

Thursday, June 01, 2006

Five Years in Prison for Gambling Online in Washington State

Beginning June 7, playing poker or other Internet wagering will be a Class C felony in the State of Washington. While individual online gamblers are unlikely to be targeted for arrest, penalties are harsh, and can be as high as five years in prison and a $10,000 fine. The bill passed unanimously in the State Senate with only five dissenting votes noted in the House. Free or "play money" online poker games are legal, and will not be affected by the new law.

State Sen. Margarita Prentice, (D-Renton), who sponsored the legislation, and Gambling Commission Director Rick Day said the law is needed to protect the gamblers. Prentice and Day also claim that online poker invites organized crime and money laundering, and it's easier for dishonest players to collude against unsuspecting opponents.

Day’s priority is to go after “. . . national and international promoters or operators based in Washington, not individual gamblers.” Although no one was arrested, Gambling Commission agents visited the homes of several gamblers — fewer than half a dozen, according to Day — about a year ago to warn them that online betting was illegal.

Although this law is ill-advised, and the penalties verge on draconian, it’s difficult to see how the State of Washington could trace individual gamblers, even if they had the resources to do so. Nevertheless, it is the law in Washington, and forewarned is forearmed — even when it’s a silly, onerous, sumptuary law that’s difficult to enforce, and prohibits adults from personal behavior that harms no one.

If you’re an online gambler, or even if you’re not, but you believe that nanny-state legislation designed to protect us from ourselves diminishes the freedom of everyone, you know what to do: Vote in the next election and then sit back and play some poker.