Will More Online Gaming Arrests be made in the Run-up to Superbowl?

In the week leading up to the Superbowl, rumors are rampant about additional arrests to be made in the online gaming community by the US Department of Justice.

According to Sarah Treanor, reporting in eGaming Review, “US authorities are on the verge of unsealing another set of indictments against a high-profile US-facing betting and gaming operator.”

Department of Justice officials have dodged but not denied these rumors by saying that nothing would be made public until an individual or firm was charged.

Non-denial denials usually point to an event happening, and in this case it figures to occur sooner rather than later. With Superbowl being the biggest single wagering event of the year, arrests made during the run-up to the game would surely garner the kind of publicity and provide the sort of chilling effect DoJ is looking for as they follows on the arrests of Neteller founders and former directors Stephen Lawrence and John Lefebvre.

Given recent events, the writing on the wall is crystal clear. If you’re associated with an online gaming firm and you’re in the United States now, get out – and don’t waste a moment doing so. Although Lawrence and Lefebvre were foolish to put themselves in harm’s way by visiting the United States after the spate of arrests earlier in 2006, they probably did believe they were off the hook because they were former directors who were not currently active in Neteller.

Anyone arrested in the next DoJ sweep should harbor no such illusions, and anyone who is vulnerable to arrest would be extremely foolish to stick around and wait for it to happen.

If these arrests are to be made offshore, under some sort of extradition arrangement, the world is rapidly shrinking for anyone who might be charged, though I don’t know that this sort of thing will happen.

US Suffers Setback Regarding Online Gaming Restrictions at World Trade Organization

The United States suffered another setback in long legal battle with Antigua over Internet gambling restrictions.

What's this dispute all about?
The trade dispute between the tiny Caribbean nation of Antigua and Barbuda and the United States has been discussed on numerous occasions in this blog, though there's been little to report over the course of the last three to four months. The dispute centers on whether the United States should drop prohibitions on Americans placing bets in online casinos. A World Trade Organization ruling said that some U.S. laws were in line with international commerce rules, but others were not.

The US Ccontinues to drag its feet
Antigua’s position is that that the United States has not complied with WTO recommendations and rulings. The U.S. asserts 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 Antiguan efforts to diversify what is now almost exclusively a tourist-based economy.

Antigua filed its case before the WTO in 2003, and the beat goes on in 2007, with the tiny nation — Antigua and Barbuda has a population of approximately 70,000 — still grappling with the economic muscle of the United States. An April 2005 WTO ruling, which both sides claimed as vindication, focused on the narrow issue of horse racing, saying that foreign betting operators appeared to suffer discrimination.

A review panel meets and comes to a conclusion
A three member panel met a few months ago to review the facts and render a decision. This resulted in a preliminary confidential report issued last week to both parties. A final, public report will be issued in March.

Gretchen Hamel, a spokeswoman for the U.S. Trade Representative's office, confirmed that the WTO panel "did not agree with the United States that we had taken the necessary steps to comply" with that ruling.

Hamel, however, downplayed the decision, saying "The panel's findings issued today involve a narrow issue of federal law" and the United States will have opportunity to submit comments to the WTO before it issues its final, public report in March.

It's a two-edged sword for the Bush administration: They support free trade but support bans on Internet gambling
This creates some thorny issues for the Bush administration, which supports free trade but also supports legislation that bans online gambling.

What's the next step?
So what happens next? I’m predicting that the March report will look substantially similar to the preliminary report issued last week. The US won’t like it and they’ll appeal. By the time the appeal is heard the Bush administration is not likely to be around any longer and the problem will fall to a new administration to resolve.

Why the WTO is important to the United States
In all of this discussion, it's important to realize that the World Trade Organization agreements represent a treaty, and that the United States has historically gotten much more out of the WTO than they’ve had to give up in order to comply with various rulings.

So it’s doubtful that the US wants to pull out of the WTO. It has too much at stake in terms of international agreements that prevent software piracy and that sort of thing. If the US appeals and loses, I’m not sure how our government will handle things. Hopefully, they’ll look for some face-saving way to comply. But that’s not been our history thus far, and because of that, you never know.

Getting Lucky

Getting Lucky with Neteller
Sometimes you get lucky, and even just a little bit lucky is always sweeter than no luck at all. A few days ago a Neteller customer service representative told me that my Neteller Gold ATM Card was no longer operable because I live in the United States. As a result of that conversation, I transferred $1,000 of the $1,550 I had on my Gold Card back into my Neteller account. Then I requested a check for that money, along with some other funds that were sitting in my Neteller account.

So a check is in the mail, or at least it will be within six to eight weeks for most of the money I had in Neteller. That’s what I was told, anyway. In any event, I was led to believe that my Neteller ATM card was no longer functional as a result of Neteller’s response to the arrests of two of their founders a week or so ago.

Yesterday Deirdre and I were on our way to the movies. Right in front of the theatre was an ATM machine. I knew I had about $550 still sitting in my Gold Card and just for the hell of it, I decided to swipe my card and see what happened. I was expecting to see a message saying “This transaction cannot be completed,” or something similar, but was surprised to find that I was able to withdraw $540 just like nothing was amiss.

I wonder if I just managed to get lucky and somehow slip outside the net of US customers who could no longer use their Neteller ATM cards, or if Neteller just hadn’t gotten around to pulling the necessary switches that would render my card inoperable. I don’t know.

But if you do have money in a Neteller Gold Card account, before you go to the trouble of transferring those funds to your Neteller account and then requesting a check that is not likely to be delivered to you before St. Patrick’s Day – or maybe even Income Tax Day a month later – do yourself a favor: Try your ATM card. While it might not work, you may get lucky just like I did. That will give you some cash in hand a whole lot sooner than waiting for it to be delivered by a Leprechaun or some other harbinger of Spring.

Woman Poker Player to Sponsor Inaugural Women’s Ultimate Poker Challenge
The First Ultimate Women’s Poker Challenge is scheduled for February 9 – 10, 2007 at Binion’s in Las Vegas, Nevada. The Ultimate Poker Challenge is America’s number one syndicated poker show, and as with all UPC events, the women’s event will be syndicated nationally on local television beginning in March.

Neteller and my money: Bringing it all back home

All of my posts about the arrests of Neteller founders and former directors Lawrence and Lefebvre has been more or less in the abstract. I’ve talked about their legal plights, the fact that people are leaving Neteller in droves, and about how tough it is to find other means of moving money into and out of online gaming sites.

Today it got personal. I tried to move some money from my Neteller account to my Neteller debit card but I was prevented from doing so. Funny thing is, this was not money from a gambling site, but money I earned from some overseas publications I wrote for.

An email to Neteller brought the following response:

Thank you for your email. Unfortunately, we are unable to provide time estimates for withdrawal options at this time. We would not want to provide even a rough time estimate, because we are unable to do so with any accuracy. We apologize for the inconvenience you have experienced.

If you prefer, we may be able to cancel your withdrawal request. Please be aware that doing so, and withdrawing by check may take as long, or longer than the EFT withdrawal option.

Currently we are experiencing unprecedented volumes through our withdrawals department. Due to this volume we are experiencing difficulties with withdrawal requests. We are not able to process EFT withdrawals at this time. Please be assured that we are doing our best to restore our withdrawal options as quickly as possible.

In the meantime, any balance in your Neteller account is completely secure. We apologize for any inconvenience.

If you have any further questions, please visit http://updates.neteller.com.

I decided to call Neteller, got a very helpful customer service representative who told me that I can no longer withdraw funds from my Neteller account to my Neteller debit card (Neteller sometimes refers to this as a “Gold Card.”)

She did tell me that I could withdraw funds in my Neteller account via check, but the expected time for receipt of such a check would be six to eight weeks. I’m assuming this is because the high demand on Neteller swamped their ability to respond with available cash, so they have to wait for short term investments to mature to obtain the necessary cash to meet the “run on the bank.”

While I was waiting for my helpful customer service representative to find out some additional information for me, I requested a check for the balance in my Neteller account.

But there was money in my Neteller Gold Card account too, and the only way to get hold of that was to transfer it back into my Neteller account – it’s actually a movement from one pocket to another – and then either request another check or do a peer-to-peer transfer to someone in a country in which Neteller is still operating the way it did in the United States until sometime last week.

If I were to have my funds sent, for example, to someone in Canada, they would receive the funds immediately and could then write a check to me or move the money into my bank account via wire transfer. It’s a lot faster than six to eight weeks, but the juice on peer-to-peer transfers is not insignificant. It’s 1.9 percent, or $38 on a $2,000 transfer. While that doesn’t sound like much, if you were moving $50,000, the fee would amount to $950.

This is all the result of a perfect storm fueled by Bill Frist’s ego and presidential aspirations, the religions right and nanny-staters who believe it is their job to legislate morality regardless of how it may impinge on my freedom, and the incredible hubris of Lawrence and Lefebvre who knew they shouldn’t show their sorry asses in the United States. Although the Neteller Two have personal wealth sufficient to make the entire world their playground, they lacked the common sense to avoid turning up in a place where they ought to have figured they would be on the wanted list.

Their delusional thoughts about their own invulnerability aside, their actions cost hundreds of thousands the access to their funds in a timely manner and caused untold issues for poker players, online gaming sites, and others in this business.

Lawrence and Lefebvre were bold visionaries with an idea they turned into great personal wealth, but they lacked the common sense to avoid traveling to the United States, where they knew they would be in danger. Moreover, travel to the United States put them in a place where their arrests would endanger myriad people using the very service they created. The incredible hubris of the Neteller Two has created a situation where their customers – the people that made them wealthy – are themselves locked out of their own funds currently on deposit at Neteller.

How pathetically sad is that?

For a look at Neteller's current FAQ's regarding this stuff, go here: http://content.neteller.com/content/en/member_businessupdate.htm

Jamie Gold dropped from Bodog's roster of poker pros

Jamie Gold, the 2006 World Series of Poker champion, was apparently dumped by Bodog from their roster of poker professionals.

A statement issued by Bodog says,

"In light of our decision to cease all offline marketing initiatives in the U.S., and instead refocus our efforts on growing our entertainment brand in Europe and Asia, Bodog has ended our business relationship with Jamie Gold. Bodog has enjoyed our association with Mr. Gold and wishes him the best of luck in his future endeavors."


While releasing Gold (pictured in happier days wearing a Bodog cap with Crispin Leyser, before Leyser sued Gold for half his WSOP winnings) doesn’t seem unusual under current circumstances, Bodog is apparently retaining their business relationships with players David Williams, Josh Arieh, and Evelyn Ng.

Happy Valentine's Day, Neteller Two

Is this any kind of Valentine’s Day gift? February 14 has been set for the preliminary hearing of former Neteller directors Steven Lawrence and John Lefebvre who were arrested on January 16 on money laundering charges.

A seven-page indictment claims Lawrence and Lefebvre set up Neteller in 1999 to provide online payment services to gambling companies. It also claims that between 2000 and 2003 Neteller Inc. offered payment services to various internet gambling companies so that they could access customers in the United States. From 2004 to the present day, the same operation was conducted by Neteller plc, an Isle of Man-based company which in April 2004 raised some $70 million when they became a publicly traded company.

Lefebvre’s lawyer, Vincent Marella, said that Lefebvre, “…is going to be contesting everything we know about the charges right now.”

Lefebvre reportedly refused to comment on the charges. Instead, his only statement was: “end global warming.”

February 14 doesn’t appear to be shaping up as romantically for Lawrence and Lefebvre as it is for most of us. Maybe someone should send them each a dozen roses, or at least a box of See’s candy.

How the Neteller arrests impacted online poker site traffic

PokerSiteScout, which reports on traffic to online gaming sites, has an interesting graph displaying the early reaction to the recent Neteller arrests.

Bodog and Full Tilt appear to have taken a shot to the chops, with the number of peak players down more than 27 percent and 23 percent in a week-over-week comparison of January 12-14 versus January 19-21, 2007.

The figures for changes in the average number of players is not as bad as peak numbers, but even there, Bodog is down nearly 25 percent while Full Tilt shows a drop-off of more than 20 percent.

Industry leader Poker Stars shows a loss of 13 percent during peak periods, while Ultimate Bet, Tain Network, World Poker Exchange, and Action Poker Network all showed a peak player reduction of between 12 and 17 percent. Microgaming Network, which has a lot of European-facing sites in its group, showed a drop off of only 6.3 percent. Absolute Poker fared even better, losing just slightly less than 2 percent.

Of the European sites, which include Party Poker and Ongame Network, none reported a drop of more than 4 percent, with Everest gaining more than 4 percent during peak periods and 8.4 percent in the average number of players.

I get lucky and win Binion's Poker Author's Challenge

I got lucky on a couple of hands and managed to win the Poker Author’s Tournament at Binion’s on Sunday, January 21. After knocking out well-known tournament pro and author of No-Limit Life, Charlie Shoten I had the chip lead at the final table and managed to eliminate all four of the remaining competitors to capture the championship.

Shoten had reached a point at the final table where his play was either to fold or go all-in and steal the blinds. He had been able to take the blinds a few times and was slowly building up his stack of chips when he pushed all-in on my big blind with Q-J. But I woke up with pocket kings and Shoten needed to make at least two pair to stay alive. He wasn’t that lucky and I won all the chips he managed to accumulate with his all-in maneuvers.

The two key hands of the tournament for me came much earlier. At one point I was down to about ten times the big blind, and my blinds were only two hands away. I found A-8 suited and raised all-in, trying to steal the blinds and survive another orbit of play in an attempt to find a real hand.

To my dismay, I was called in four places – there was a bounty on each author in this event, so that might have been the reason everyone jumped at the chance to get in on the action – but I’m not sure. The flop was ragged and missed me completely. But with four others in the pot, any flop has the look of one that’s going to help someone.

The turn was an ace, pairing me. I had no idea if my ace was any good, because if anyone else had an ace, there was a good chance that their kicker was better than mine.

The river was another rag, and my pair of aces held up to win the pot. I had quadrupled-up and now had 40 times the big blind and was in decent shape.

Sometime later I was in a pot with Richard Sparks, who wrote Diary of a Mad Poker Player. Sparks was in the cut-off seat and I was on the button. Richard was first one in and made a raise of about four times the big blind. This had all the earmarks of a steal, so I came over the top for all my chips, attempting to steal the blinds and Richard’s chips too.

He had a few more chips than I did, though he would be circling the drain if he called and lost. To my shock he called. We both turned over A-K. I had the king of hearts, and was unbelievably lucky when two hearts flopped and I proceeded to catch running hearts for a flush that allowed me to double through Richard Sparks, leaving him near elimination.

The rest of the tournament was really more of an effort to stay out of my own way, not play hands I didn’t need to play, and lose chips in circumstances where I didn’t have to gamble. I had about the third highest chip count at the final table. The two shortest stacks were eliminated in relatively short order and I became chip leader when I KO’d Charley Shoten.

Nothing dramatic happened after that, and once I had the lead, I never relinquished it. I ground down the short stacks and finally won when I flopped a flush with 6c-2c in the big blind and was smooth called by the small blind on the button. He flopped top pair, hand no draws to beat me and it was all over by the turn when he lost any chance of filling up to beat me.

I think all of the authors in attendance had a good time. We signed books at the portable book store the Gambler’s Book Shop set up in Binion’s poker room and we all took turns being interviewed on www.holdemradio.com.

Many of the players came down to meet their favorite poker authors, buy books, play some poker and have a good time at Binion’s. I look forward to this event again next year. It was sweet, and getting lucky and winning it was sweeter still.

US Deparetment of Justice Probe Targets Major Banks Worldwide in Case Against Internet Gaming

At least sixteen of the world’s biggest investment banks have been ordered by the US Department of Justice (USDOJ), accountants and law firms to hand over all records concerning internet gaming firms as part of an investigation into illegal online gambling in America.

Credit Suisse, Deutsche Bank HSBC, and Dresdner Kleinwort are among the banks caught up in the dredging net. This is all part of the USDOJ’s effort to build a case against online gaming.

These subpoenas were issued back in October, right after enactment of the Unlawful Internet Gaming Enforcement Act (UIGEA), but the investigation was under wraps until now.

The investigation, which has been described as one of the biggest fishing expeditions ever undertaken by USDOJ, could force banks and other advisers to online gaming companies to hand over hundreds of thousands of e-mails and files.

The USDOJ probe is sparking outrage in Britain, particularly when the subpoenas do not reveal whom the Department of Justice is targeting. Some believe the ultimate goal is to find information incriminating the founders of the online gambling firms. Others say it is an effort to create a huge chilling effect that will kill off online gaming and Internet poker. Most observers believe both are true.

When should you quit a good game?

When should you quit a good game?

That’s a time-honored question and everyone has his or her own opinion, something that works best in their individual circumstance.

I’m here in Las Vegas for the Poker Author’s Tournament at Binion’s (and if you’re in town, it starts at noon today, with the event being broadcast by www.holdemradio.com, and a buy-one-book, get one free special promotion) but the last few days I’ve been playing poker at the Wynn.

Four archetypical yuppies from New York City were playing in the game the other night, flush with money, bound and determined to gamble, and drinking like bars were going out of business. Every pot was raised, and most were three bet. One of the yuppies occasionally made it three bets to go before the flop without even looking at his cards.

Needless to say, it was a high variance, but very good game. “Juicy” is the word that describes it best.

I played solid, straightforward poker against these guys and was up $1,200 in short order. Not from my own brilliance, mind you, but from their overly aggressive, alcohol-fueled playing style. On one hand, I was reraised before the flop and flopped a set of kings. One of the yuppies bet the turn, I raised, and was reraised by a player with neither straight draw nor flush draw -- and, as it turned out later -- all he had was second pair. It was that kind of game.

The only downside to this incredible opportunity was that I was tired. Dead tired. I tried playing on autopilot and felt like I was doing OK until one of the yuppies seated to my left went down to the felt and asked to buy $800 in chips from me. I started to hand him eight stacks of ten-dollar chips instead of four, when we both caught it simultaneously.

That was my alarm bell. I walked away, came back to the table and cashed out. If I’m too tired to accurately count my own chips, I’m too tired to play.

Still, I keep thinking about that game and wishing I were more alert. But that was it for me. I stuffed my profit in my jeans and quit the game.

What law did Lawrence and Lefebvre violate?

For those of you who asked what Neteller founders and former directors Lawrence and Lefebvre were charged with, here are the specifics:

They are charged with violating Title 18 Section 1956 (a) (2) (A).

Section 1956 is the section on "Laundering of monetary instruments")
"Whoever transports, transmits, or transfers, or attempts to transport, transmit, or transfer a monetary instrument or funds from a place in the United States to or through a place outside the United States or to a place in the United States from or through a place outside the United States with the intent to promote the carrying on of specified unlawful activity."

The unlawful activities are violations of the 1961 Wire Act, which deals with the illegality of sports book operations. It does not speak to poker, although it’s clear that these arrests and Neteller’s subsequent pull back from the US market deals a strong blow to the online poker industry too.

Poker Author's Challenge this Sunday at Binion's

I'm off to Las Vegas today for the Poker Author's Challenge that will be held at Binion's, this Sunday at noon. Earlier that day, at 10:00 AM there's be a book signing by all the authors in attendance, so if you're in the area, either bring a book and the author will sign it, or you can buy books by your favorite authors right in Binion's poker room.

The Gambler's Book Shop, a Las Vegas institution and a de riguer stop for many poker players and all poker authros whenever thye are in Vegas, will set up a temporary book store right in the poker room of Binion's during this event.

While you're at it, why not sit down and play against your favorite poker authors. The tournament is open to everyone and I'm told there will be a bounty on the head of each author. For $120 you can have a bang-up time, play some poker, meet and greet your favorite poker writers, get autographed copies of your favorite poker books, meet and greet the authors on hand, and have a wonderful time in the process.

The entire event will be broadcast live on www.holdemradio.com, and many author interviews will be conducted that can be listened to on the station's archives and as a podcast in i-Tunes. If I'm knocked out of the tournament, I'll turn into a broadcaster and do some of the tournament play-by-play and auhtor interviews. That's me over on the right, broadcasting at last year's WSOP.

I'm hoping you'll be there too. I f you are, please take the time to say hello and let me know that you heard about this event either on this blog on Holdemradio. We expect this event to be at least as enjoyable as the Poker Author's Challenge held in March 2006 at the Taj Mahal in Atlantic City.

Come on down and play some poker with us!

Lawrence released on bail in Neteller case

On Wednesday I reported that Neteller co-founder John Lefebvre posted bail in the amount of $5 million and was released.

Yesterday Neteller co-founder (and John Lefebvre's co-defendant) Steven Lawrence was released on $5m bail into the custody of the FBI, following a hearing in the US Virgin Islands, where he had been detained. Some reports had him entering the court in ankle chains but I have no confirmation of that.

Under the terms of his release, Lawrence boarded a flight to New York accompanied by an FBI agent, and surrendered his passport.

He is set to appear in court in New York on January 26.

OK, the arrests were made, Lawrence and Lefebvre are sort of free on bail -- they're not in the slammer but they really can't go anywhere either -- and court appearances have been set. The Feds have had their day in the sun, news stories, press conferences, posturing, essentially shouting to anyone who would listen, "I'm a B-A-A-A-A-D man."

We'll see what comes of this case when it comes to trial. But there is an abundantly clear object lesson. Anyone who is involved in online gaming, particularly sports betting because that's clearly subject to the Wire Act, or anyone who is moving money in a manner that violates UIGEA ought to tame their hubris and refrain from setting foot on these shores. Landing at an airport and showing your passport can be dangerous to your freedom; you might be on a list you don't know about.

If you must come to the USA, do it the old fashioned way. Walk across the virtually unguarded Canadian border and have someone pick you up in a car, or come in at night, to some isolated cove, on a speedboat -- the way smugglers do it. And when you're here, be sure to hit up an undocumented alien for advice on how to pickup a fake driver's license. Or just get in the Tardis and land here with Dr. Who.

Lefebvre posts bail in Neteller case; no word yet on Lawrence

NETeller co-founder John LeFebvre was released today after posting bail in the amount of $5 million.

He appeared before a Los Angeles magistrate Wednesday morning and as a condition of bail was forced to surrender his passport. He must remain in the central district of California except for trips to New York to face trial.

No word yet on fellow NETeller founder Stephen Lawrence, who was also arrested on the same charges in the U.S. Virgin Islands.

Neteller will no longer allow gaming transactions for US customers

Neteller issued the following Press Release regarding the arrests of former Directors Stephen Lawrence and John Lefebvre. Then they announced they will not do any additional gaming-related transactions with US customers, although US customers may continue to use Neteller for any other transactions.

NETELLER Plc, the leading independent online money transfer business, today issued the following statement regarding the speculation surrounding two of its former directors and founder shareholders, Mr Stephen Lawrence and Mr John Lefebvre.

While travelling separately in the US, Mr Lawrence and Mr Lefebvre, both former directors of the Company, were detained by US authorities on Monday, 15 January 2007. Other than as shareholders, neither Mr Lawrence nor Mr Lefebvre has any current position with or connection to NETELLER.

The Group has not received any communication or correspondence from any US authority regarding this or any related matter. Pending clarification of the situation the Board has sought immediate temporary suspension of NETELLER's shares.

Further information will be issued in due course.

Further information
Mr Lawrence resigned as a non-executive director of the Company on 13 October 2006 having stepped down as non-executive chairman of the Company on 11 May 2006. Mr Lefebvre resigned as a non-executive director of the Company on 15December 2005. Mr Lawrence is the majority beneficial owner of Corvina International Ltd. which holds a total of 7,085,541 ordinary shares representing approximately 5.91% of the issued share capital of the Company.

Mr Lefebvre is the beneficial owner of Eagle Medallion Fortress Investment Corporation which holds a total of 6,638,094 ordinary shares representing approximately 5.54% of the issued share capital of the Company.

About the NETELLER Group
With over 3 million customers in 160 countries and more than US$ 7 billion in annual transactions, the NETELLER Group operates the largest independent online money transfer business in the world. The Group specialises in providing innovative and instant payment services where money transfer is difficult or risky due to identity, trust, currency exchange or distance. Being independent has allowed the Group to support over 3,500 retailers and merchants in many geographies and across multiple industries.

The Group is quoted on the London Stock Exchange’s AIM market, with a ticker symbol of NLR. NETELLER (UK).

The following has been taken directly from Neteller's new FAQs regarding the issue of US based customer use of Neteller accounts. The complete set of FAQs can be accessed at neteller.com. I'll provide updates as this story develops:

Why is NETELLER no longer allowing US members to make fund transfers with online gambling sites? The US government has recently introduced new legislation in the form of the Unlawful Internet Gambling Enforcement Act. To best protect the interests of NETELLER members, employees, shareholders and business partners, NETELLER will no longer provide service to US members to transfer funds to and from online gambling merchants.

Why can’t I access my instaCASH funds in my NETELLER account? NETELLER has made a policy and technical change that has disabled instaCASH for US members.

Can I still use my NETELLER account?

Yes. All US members and non-US members will continue to be able to use their NETELLER e-wallet account for safe online transfers to and from non-gambling merchants, secure peer-to-peer transfers and NETELLER Card withdrawals at ATMs around the world.

Does this change affect withdrawals with NETELLER?
US members who currently have funds in their e-wallet account may keep their funds safe in their account or are free to make withdrawals at any time they choose with a NETELLER Card. US members are not required to withdraw their funds from their NETELLER account.

What’s the quickest and most convenient way to withdraw funds from my NETELLER account?
The NETELLER Card is the quickest and most convenient withdrawal option. When you transfer funds from your NETELLER e-wallet account to your NETELLER Card, you can withdraw those funds from any ATM cash machine on the Cirrus/Maestro network and Pulse Star network, depending on your country of residence. You will have to pay a nominal fee for NETELLER Card withdrawals, but your funds will be available from 15 minutes to an hour after they are transferred to your card.

Is my money safe in my NETELLER account?
Yes, your money is safe with NETELLER. All members can hold their funds safely in their NETELLER accounts until such time as they decide to move the funds. The changes in gambling merchant transfers do not affect the ability of US member to maintain funds in their NETELER e-wallet accounts.

NETELLER protects all members’ funds (all deposited, in-transit and un-cleared funds) by holding the value in independent trust accounts. As the largest independent online money transfer business in the world, we maintain our head office in Europe and are a publicly quoted company on the AIM market of the London Stock Exchange. NETELLER UK Ltd is authorised and regulated by the Financial Services Authority.

Am I required to withdraw my money from NETELLER?
No, there is no requirement for US members to withdraw their funds from their e-wallet accounts. US members will still be able to use their NETELLER e-wallet accounts for safe online transactions to non-gambling merchants, secure peer-to-peer transfers and instant payouts with the NETELLER Card.

Who can I contact for assistance? If your question has not been answered by this FAQ, or if you require further assistance, please contact NETELLER Customer Service by calling 1-888-258-5859.

Using one opponent to block another (warning: contains actual poker content)

I figured you deserved a break from my obsession with the Neteller arrests over the past few days. So here's some real, live poker content, taken from a side game I was involved in at the recent ESCARGOT weekend at the Bicycle Casino in Los Angeles. Pictures are of me at ESCARGOT, and yucking it up at the banquet with World Chowaha Champion Nolan Hee (center) and Mark Kolstad (right). If you come to ESCARGOT next year, you'll have as good a time as we did; I guarantee it.

In a recent $20-$40 hold’em game I raised with As-8s on the button. Two opponents called: the big blind and a player two seats to my right. The big blind was a savvy player, but the guy on my right bluffed often and usually bet the turn if he bet the flop in order to perpetuate his bluff. He was aggressive, yet was his own worst enemy against players who were able to figure him out and would call with good hands, raise with great hands, and mostly fold but occasionally raise with trash.

The flop was Jd-6s-3d. The big blind checked. The player to my right bet. I called. So did the big blind.

The 8h gave me second pair on the turn. I figured the guy to my left for a draw and wanted to make him pay for another diamond. I knew he might also have a very weak jack and called before the flop because he was getting 5-to-1 on his money.

Both the big blind and I knew the player to my right was very aggressive and would certainly raise if he had a decent hand. But I also figured the guy to my right was more likely to have missed the flop based how ragged it was and the high frequency of his aggressive moves. I wasn’t all that worried about the guy to my right, but I was worried about the big blind. He seemed more like the player I’d lose to in a showdown, not the guy to my right.

The big blind checked, the overly aggressive player bet and I raised. The big blind folded.

I got lucky when another eight came on the river. My opponent bet. I raised. He folded and flipped over A-7, so I knew I was right in my assessment and was ahead of him all along. While the guy to my right was bitching about my being a lucky player, the big blind was congratulating me for making a good play on him. He did have a weak jack and told me he folded to my raise because I might have had a better jack than his as well as the high likelihood that our other opponent might have a better hand too. He told me that he did not think his weak jack was worth calling two or more bets on the turn and another on the river.

My bet amplified whatever threat the player on my right created in the mind of the big blind. By betting, I put the possibility of a raise in the big blind’s mind, causing him to release his hand rather than find himself sandwiched between someone betting into him and someone else raising.

When that happened, the enemy of my enemy became my friend.

This concept comes up much more frequently in split pot games and occurs whenever you have a two-way hand that is not strong enough to scoop. When one opponent is going high and the other is going low and you have a two-way hand, you can pull off this play if someone bets into you on the river. Your play is to raise, pressuring at least one of your opponents to fold. When this happens you can usually win half the pot, and sometimes you can even scoop.

When it works, you will either split a pot you would lose if the three of you had shown down, or scoop a pot you otherwise figured to split.

Update on the Neteller Arrests

Here’s what we know today that we didn’t know yesterday in the story about Stephen Lawrence and John Lefebvre (pictured right), founders of Neteller, the UK-listed online payments company, who were charged with conspiracy in connection with internet gambling.

The pair were arrested Monday following an FBI sting operation. Lawrence, 46, who lives on Paradise Island in The Bahamas, was arrested in the United States Virgin Islands. Lefebvre, 55, was arrested at the same time in Malibu, California.

If found guilty, the pair face up to 20 years in jail.

A seven-page indictment claims Lawrence and Lefebvre set up Neteller in 1999 to provide online payment services to gambling companies. It also claims that between 2000 and 2003 Neteller Inc. offered payment services to various internet gambling companies so that they could access customers in the United States. From 2004 to the present day, the same operation was conducted by Neteller plc, an Isle of Man-based company which in April 2004 raised some $70 million when they became a publicly traded company.

Neteller said that the founders were no longer employees or directors of the company, with Lawrence resiging on October 13 and Lefebvre leaving on December 15, 2005. However, Lawrence holds 5.91 per cent of the company, while Lefebvre owns 5.54 per cent.

Neteller supports 3 million customers in 160 countries and over $7 billion in annual transactions.

More on the Neteller Arrests

I've been following the story about former Neteller board members Stephen Lawrence and John Lefebvre who were charged with money laundering charges by the US Attorney General in the Southern District of New York.

A statement from the office of Michael J. Garcia, United States Attorney, Southern District of New York, pictured right, said that the arrests were made for the “creation and operation of an internet payment services company that facilitated the transfer of billions of dollars of illegal gambling proceeds from US citizens to the owners of various internet gambling companies located overseas.”

Neteller said in a statement released earlier today that neither Lawrence or Lefebvre had any current position within the company. It was reported earlier that Lebebvre left Neteller in December 2005 while Lawrence left in October last year, just after the passing of the Unlawful Internet Gaming Enforcement Act.

One legal source was quoted in e-Gaming review as saying “It’s a warning shot across the bows for those still taking money from the US.”

I'll report more details as they become known.

Former Neteller Directors Detained by US Authorities

I awakened this morning to the following story by Jake Pollard in e-Gaming magazine online:

Leading payment processor Neteller has sought the temporary suspension of
its shares after it emerged that two former directors had been arrested in the
US.

Stephen Lawrence and John Lefebvre were detained by the US authorities
while traveling separately. It is believed at least one was arrested in Los
Angeles.

In a statement, Neteller said neither Lawrence or Lefebvre had any
current position within the company. It added: “The group has not received any
communication or correspondence from any US authority regarding this or any
related matter.”

Lebebvre left Neteller in December 2005 while Lawrence left in October
last year, just after the passing of the Unlawful Internet Gambling Enforcement
Act. Lebebvre and Lawrence each own approximately 5% of the company's
capital.

It is not known whether they have been arrested by state or Federal
authorities.

This is a very strange set of circumstances since neither of the two people arrested are current Neteller employees; one left the firm in 2005 while the other departed immediately after passage of UIGEA. Could it be they were arrested simply for being shareholders in the company? If that’s the case, there are thousands of ordinary citizen shareholders in Neteller who are at risk if they set foot in the United States.

I also don’t understand why they (and I, like Jake Pollard, don’t know whether “they” are state authorities or feds) went after these two particular people. My own supposition was that if a crackdown based on UIGEA was to happen, the Feds would arrest high-profile “names” in the online poker world. Stephen Lawrence and John Lefebvre do not qualify as high-profile targets by anyone’s definition.

I’ll report more on this as the story develops and more information comes to light. You can read it online at http://www.egrmagazine.com/item/1530/23/5/3.

Poker Author's Challenge at Binions, January 21

I am reposting an article my friend Earl Burton recently wrote about the upcoming "Poker Author's Challenge" at Binion's in Las Vegas. I'll be there and so will many other noted poker authors, and you can play against us, get your favorite books signed by your favorite authors and have a wonderful time for a very moderate price.... Read on.

For those that have read the words and wisdom of poker authors, the opportunity to play against those same wordsmiths will come to life during a tournament later in the month of January. Woman Poker Player Magazine will be sponsoring the First Annual Poker Authors Challenge Las Vegas, which will take place at Binion's Hotel and Gaming Hall on January 21st.

For a cost of $125, poker players will have the opportunity to meet and play a poker tournament with the people behind some of the best poker books on the market today.

Starting at 10AM, all the authors will be present to sign their books and discuss poker with the tournament participants, then the real action will start with a poker tournament to be held afterwards.

The list of poker authors is headed by the notable writing twosome of Lou Krieger and Sheree Bykofsky (who are the hosts of the event) as they promote their latest release, The Rules Of Poker (writer's note: a review of this book is forthcoming here at PokerNews). Other authors who will be in attendance include Gary Carson, George Epstein, Russ Fox, Tony Guerrera, Susie Isaacs, Maryann Morrison, Neil Myers, Alan Schoonmaker, Richard Sparks, John Vorhaus and Kathleen Watterson.

Adding into the excitement of the tournament, each of the authors will have bounties on them, providing an opportunity to take down some excellent prizes and bragging rights for the people who dismiss the authors from the tournament.

"I am excited to be working with such great sponsors and participants for this installment of our successful ongoing Poker Author Challenges," said Bykofsky (a highly successful Poker Authors Challenge was held in Atlantic City in 2006). "Binion's is a great venue for sponsoring and hosting this event. With low room rates and in the heart of downtown Las Vegas, this tournament will be sure to be a fun and challenging event for all players."

Other sponsors of the event include the Internet poker radio station Hold 'Em Radio (holdemradio.com), The Gambler's Bookshop, Kensington Books and Susie Isaacs. The tournament itself will be broadcast live on Hold 'Em Radio on the 21st and should be an entertaining way for those who can't make it to Binion's to join in on the excitement of the event.

For more details on the First Annual Poker Authors Challenge Las Vegas, check out the latest issue of Woman Poker Player Magazine and to book a room directly for the event, call Binion's at (800) 937-6537.

A really unusual tournament hand...

I ran into a really rare betting pattern at the ESCARGOT fixed-limit hold’em tournament that’s held every January at the Bicycle Casino in Los Angeles.

I picked up pocket aces in early position and came in raising. The player to my immediate left reraised, making it three bets to go. I didn’t know him, and had no line on his game.

No one else called and I capped the wagering by making it four bets, and he called without hesitation.

The flop was J-T-9 of mixed suits, which didn’t exactly thrill me. I knew my hand was vulnerable to a straight. The good news was that I only had one opponent to worry about, not a whole gaggle of them.

Because my opponent reraised before the flop and called my last bet without any delay, it was hard to put him on two pair. I figured him for an overpair to the flop, or maybe A-K, though the former seemed more likely.

Q-Q was dangerous because it would give him a straight draw. Any eight, any king, or any of the two remaining queens would doom me. I also thought he might have K-K, and was hoping he did, because that left me in a dominating position. I don’t think T-T and 9-9 were likely hands since he probably would not have reraised before the flop with them. Nevertheless, because I had not played against this opponent before, I couldn’t completely discount the possibility.

I was not a happy camper, so I bet to get additional information about how my hand stacked up against his. He raised, and I called, although I considered junking my hand at that point.

I also wondered what he thought I was holding. Because I made it four bets to go before the flop, I was essentially playing my hand face up. His raise on the flop told me that he believed he could beat any hand I had, including A-A or K-K, which is what he would assume I was holding given my betting pattern before the flop.

If he had two pair, which I thought unlikely, I was still alive. To my way of thinking, all signs pointed to a pair of queens in his hand, which would give him an overpair and a straight draw.

If he had a pocket pair of queens, he raised as a semi-bluff, or thought I had A-K, A-Q or A-J and believed that he was ahead.

The next card was an eight, which sealed my fate. I checked and folded my aces when he bet. During this hand I capped the betting before the flop, raised the flop, and folded on the turn. You don’t see that betting pattern every day, but it seemed logical under the circumstances.

It turned out that my read was spot-on, because he showed me Q-Q while the pot was being pushed in his direction.

Things aren’t all that bad if you get off of a results-oriented perspective. After all, I raised the maximum during the two betting rounds that I held the best hand, and folded on the turn when I knew I was beaten and had no redraw to a better hand.

ESCARGOT 2007

Tomorrow I’m heading off to Los Angeles — to Bell Gardens and the Bicycle Casino actually — for a weekend of fun, frivolity, and poker at the ninth annual Extraordinary Southern California Annual RecGambling Outing and Tournament, also known as ESCARGOT. It runs from Thursday through Sunday, January 11 -14.

I won’t be there for tonight’s event; I’ve got my radio show to do on http://www.holdemradio.com/ at 6:00 PM PST, but I will be there for the rest of ESCARGOT. In addition to all the poker and renewing of old friendships, there’ll also be some unofficial events such as Roshambo, Chowaha, and a golf outing if it doesn’t rain, or maybe even if it does.

ESCARGOT’s signature event is a no-limit, shootout-to-match play, double-elimination tournament that begins with eight tables. Play continues until there is one winner at each table. That table winner along with each second place finisher advance to match play. Winners play winners, while losers play in a secondary bracket. Table winners who lose a match drop down to the secondary bracket, and anyone losing a match in the secondary bracket is out of the tournament.

The winner of the secondary bracket plays the winner of the undefeated bracket, with the secondary bracket winner having to capture two consecutive matches to win the tournament, while the undefeated player only has to win once to claim victory.

If you’re going to be in the LA area over the weekend, drop by the Bike and say hello. It’s too late to register for any of the official ESCARGOT events, but there will be plenty of side games, fun, and frivolity to keep you occupied.

Season Three of High Stakes Poker set to return to TV on January 15

My personal favorite televised poker show, GSN's High Stakes Poker, kicks off its third season on Monday, January 15 at 9 PM EST. Playing this season will be 2006 World Series of Poker champion Jamie Gold and other top poker players who compete with their own cash — and there’s millions of dollars up for grabs.

heretofore been the analyst and color commentator during the show's first two seasons, debuts as a player during the second episode.

He asks if any of the players want to give up their seat at the table and Daniel Negreanu accepts. Negreanu then makes his broadcasting debut when he takes over Kaplan's role.

The line-up for the first episode includes Doyle Brunson, Daniel Negreanu, Daniel Alaei, Shawn Sheikhan, Victor Ramdin, Bill Chen, and Mike "The Mouth" Matusow.

Harrah's announces dates for 2007 WSOP

Harrah's announced the schedule for the 38th 2007 World Series of Poker, which is set for June 1 through July 17, 2007, at the Rio Hotel & Casino – and televised by ESPN. There will be 55 bracelet events with buy-ins up to $50,000.

New additions to the schedule include a $2,500 HORSE event, a $5,000 Mixed Hold'Em Events, and a $5,000 Heads-up No-Limit Hold'Em World Championship.

In a press release issued today, Harrah’s noted that in addition to an expanded schedule, the 2007 World Series of Poker will offer players more space, with up to 300 tables available for tournament and live-game play. The additional tables will enable tournament officials to reduce the start days for the WSOP Main Event to three. Players entering the WSOP Main Event will be permitted to choose their start dates as long as seats are available on the selected dates.

The Rio will also host the annual Gaming Life Expo July 5-8 to showcase a broad array of gaming and poker products, memorabilia, books and clothing. In 2006, more than 100,000 people visited the Expo.

More information about the World Series of Poker or Harrah's is available at the Web sites http://www.worldseriesofpoker.com/ or www.harrahs.com. A detailed schedule for the 2007 WSOP can be found here: http://www.worldseriesofpoker.com/news/fullstory.sps?inewsid=393478&itype=&iCategoryID=1514.

To learn more about the 2007 Gaming Life Expo, please visit www.harrahs.com/gaminglifeexpo.

In Las Vegas at the Consumer Electronics Show

I'm here in Las Vegas for the next couple of days to host a poker event for the customers and employees of one of the firms participating in the Consumer Electronics Show, a trade show that really takes over Las Vegas -- as indicated by the steep escalation in room rates during this event.

You heard it here first, or maybe you heard it in a million other places already. But media players are the key to this year’s event. Much of the technology on exhibit is aimed at hooking up old and new media, to the point where you can even get network programming on your cell phone and use a service called Autonet Mobile to turn your car into a Wi-Fi hot spot and connect to the internet via a unit that plugs into the car's power outlet.

If people think talking on mobile phone while driving is distracting, what will they think about people answering their email as they drive?

I also saw that Hi-def TVs have continued to drop in price. Last year a 71-inch HDTV was $70,000; this year they can be gotten for a mere $15,000, and at this rate we'll all be able to afford them within five years.

I played poker at one of my favorite spots yesterday, the Wynn. I love it because it is relatively quiet and located just off the parking deck. They had a long list for hold'em, so I played Omaha/8 until the game broke and came away as usual, fond of the ambiance, the dealer skill levels, and variety of games there.
If I have some time, I'll go back today.

The Poker Author Challenge: set for noon January 21 at Binion's

The Poker Author Challenge is happening at Binion's in Las Vegas, Nevada on Sunday, January 21, 2007. Book signing and Registration begins at 10 a.m. and the tournament starts at noon. It’s sponsored by Binion's, Hold'em Radio, Gambler's Bookshop, Kensington Books, Susie Isaacs, and Woman Poker Player Magazine.

Come out and meet your favorite authors in this no-limit hold'em tournament for only $125 (includes fees). Poker authors playing in this event will be Gary Carson, Lou Krieger, George Epstein, Russ Fox, Tony Guerrera, Susie Isaacs, Maryann Morrison, Neil Myers, Alan Schoonmaker, Sheree Bykofsky, Richard Sparks, John Vorhaus, Kathleen Watterson and others. Knock out an author to win a special bounty prize!

“I am excited to be working with such great sponsors and participants, for the second installment of our successful ongoing Poker Author Challenges," said event organizer and author Sheree Bykofsky. "Binion's is a great venue for sponsoring and hosting this event. With low room rates and in the heart of downtown Las Vegas, this tournament will be sure to be a fun and challenging event for all players."

Playtech first company to enter mainland China poker market

The rush to what will be an incredibly huge Asian poker market has begun in earnest as Playtech entered into an agreement with Sino Strategic International (SSI), a Chinese gaming company.

SSI is listed on the Australian Stock Exchange and currently distributes and operates keno, lotto and video lottery terminal (VLT) games through Shanghai Kelo, a subsidiary. Playtech agreed to provide poker software to SSI terminals located in lottery and betting outlets in the Shanghai area. This deal makes Playtech the first major distributor of poker products in mainland China.

Avigur Zmora, Playtech’s CEO, said that poker would be the start of a major roll out in China and will include traditional games such as mah jong in addition to Texas hold’em.

According to SSI’s Richard Li, with the new Playtech agreement in place SSI plans to expand their network of gaming terminals to other parts of China over the next five years through franchise operations.

It's a new Party in 2007

In an expected consolidation move, PartyGaming acquired the assets of Empire Online and Intercontinental Online Gaming, and in the process, assume control over a variety of online gambling sites, including Noble Poker.

None of these sites serve customers in the United States. Empire will, as we reported earlier, be repositioned as a fund to invest in real estate, stocks, bonds, and derivatives.

Empire’s founder, Noam Lanir, was eager to leave the online gaming business, and this deal provided the exit strategy he needed. Empire issued a statement saying, “The directors believe the Company's remaining operating business is sub-critical in terms of size to thrive as a stand-alone business and would be able to grow better as part of a larger group."

Party is optimistic that the additional liquidity and Empire’s marketing skills will help reposition them as a Euro-facing online gaming presence, a sharp turn from their days as the leading US site up until passage of the Unlawful Internet Gaming Enforcement Act three months ago.

Welcome to 2007

Happy New Year 2007.

For me, New Year's Eve occurs when it's midnight in New York. I guess I'll always be a Brooklyn guy at heart and although I stayed awake past midnight here in California, the new year began when the ball dropped at Times Square, not a minute or an hour sooner or later.

I don't care that it's 2007 in London when it's still the middle of the afternoon in Palm Springs, or that 2007 comes to Maritime Canada at 8:00 PM here. What's going to happen in St. Louis, Denver, California, or even Hawaii doesn't really concern me. New Year's Eve lives at Times Square. That's just the way it is.

I’m a day late with a New Year's post. I know it, but I got caught up in all the hoopla of yesterday’s bowl games, where the entire world learned that USC is a really good football team, or that Michigan was overrated. Those who happened to watch the Boise State vs. Oklahoma game saw one of the most exciting football games of all time. Boise State's tying touchdown with only seconds left on the clock, and their two point conversion play to win it in overtime rank right up there with the Flutie to Phalen hail Mary pass; they are plays that will be shown again and again over the years.

I glad to see 2007 arrive. Last year was a shocker for poker, with the Unlawful Internet Gaming Enforcement Act (UIGEA) depleting the value of publicly traded online poker sites by more than 50 percent the day following the law’s passage.

It also shook up the entire online market as publicly traded firms withdrew from the US market and looked to Europe and Asia for their customer base. The good news is that private companies haven’t gone away, and some of the biggest and best of the online poker sites still accept customers from the USA.

The stupidity of this law — appended as it was to a “must pass” port security bill — and it’s 11th hour passage in the middle of the night with neither debate nor recorded vote, is that it was clearly a political act, not one designed to address a public need.

Former Senate Majority Leader Bill Frist, the puppet master who pulled the behind-the-scenes strings, did so only to garner support from the religious right in his bid for the Republican presidential nomination for the Presidency. The scalding irony is that Frist later announced he was not going to try for his party’s nomination after all. My opinion is that his links to some insider trader scandals left him unelectable and caused him to scuttle his plans.

I’m looking forward to another year of poker in 2007, and if you want to check out my New Year’s resolutions, just work your way over to http://www.pokermagazine.com/Poker-Games/poker-games-resolutions-lou-krieger.html and read them for yourself.

Poker journalist Amy Calistri and I will each be talking about our poker resolutions for 2007 this Thursday, Jaunary 4th, on Keep Flopping Aces, our radio show that airs at 9:00 PM EST at www.holdemradio.com. If you can't listen live, you can always listen to the show in the station archives or download it as a podcast on i-Tunes.