To the Smartest Go the Spoils: Join Me at the 2007 CPPC!

Here’s some updated information about my participation in the First Annual CPPC.

You already know that on Saturday and Sunday, 0ctober 20th and 21st, I'll be one of the more than a dozen featured presenters at the First Annual California Poker Players Conference, which is being held in Southern California at Hollywood Park Casino, just a few miles from LAX.

Act swiftly, because the "early bird special" is available only through October 5th.

Whether you're new to the game or aseasoned player, you'll learn the top tips from some of the best minds in the game today. You'll take away concepts and strategies you'll be able to apply immediately!

When you attend, you'll learn to win moremoney, more often from a group of "MASTER TEACHERS" - players who've been winning connsistently for years, and to whom the pros turn when they want to take their game to the next level. It's a great opportunity!

http://www.2007CPPC.com/lou

The faculty includes Mike Caro, the "MadGenius of Poker", who will be your M.C.and Keynote Speaker. Also featured will be Jeffrey Pollack, V.P. of Sports and Entertainment for Harrahs and Commissioner of the WSOP, who will give you his insider perspective on next year's big event.

The roster of presenters is too long to list here - but I can assure you that they're among the world's best players and most respected teachers. And the 2007 CPPC will feature a great group of exhibitors, too! PLUS, the promoters have added a SECOND PANEL DISCUSSION to the schedule. Be sure to bring your most challenging questions!

Conference producers have dedicated a portion of the income to support the Los Angeles Youth Network, (LAYN) a non-profit organization that helpstroubled youth. Visit the CPPC Web site to learn more about this terrific organization and follow the links to be able to make your own personal donation directly to them, if you find it in your heart. The CPPC is being held in conjunctionwith the National Championships. The schedule allows you to attend BOTH without missing a moment of the other.

Find out more and register to join me at this year's premiere educational event by visiting: http://www.2007CPPC.com/lou

I look forward to seeing you there!

Keep flopping aces,

________
Lou Krieger

P.S. Perhaps you're not able to attendthe live event on the 20th and 21st? Well, we've got you covered. Visit the 2007 CPPC Web site and click on Phyllis Caro's picture to discover how you can learn from some of the presenters without having to leave the comfort of your own home, or wherever you're traveling!

Gambler's Book Shop Up for Sale ::sigh::

One of my favorite spots in Las Vegas is up for sale. The Gambler’s Book Shop is on the block, and I, for one, am going to miss it when it’s sold unless future owners are committed to running it in much the same way as current proprietor Howard Schwartz. (That's me on the left, interviewing Howard Schwartz during a live remote broadcast of "Keep Flopping Aces," which airs weekly on HoldemRadio.com).

The Gambler’s Book Shop, located at 630 S. 11th street in Las Vegas, is more than just a store. It is a living history of gaming in Nevada and Schwartz and his chief lieutenant Maryann Guberman are living, breathing encyclopedias of gaming and of the history of Las Vegas.

They also have their finger on the gaming book market like no one else does. Just ask either of them about what kind of books are needed to fill gaps in the market, and what subjects have been done to death. They know. They’ll share their opinions, and most of the time they’re right on the money too.

I always make it a point to talk with Howard before I begin a new book, just to get his take on the current book market and what the poker playing public is interested in reading and buying.

The store itself, located in drab surroundings just off Charleston Boulevard, has more books on poker and gaming, on the history of Las Vegas and Nevada—as well as scads of books on organized crime—than any other bookstore I know of. The Gambler’s Book Shop may be the largest gaming book store in the world, and they stock nearly 3,000 different titles that include books, software, video, and audio formats.

They produce a comprehensive catalog a couple of times a year and you can get hold of the current catalog by calling 1.800.522.1777. You can also visit them online at http://www.gamblersbook.com/.

Howard Schwartz and Maryann Guberman are both looking forward to retiring, though one or both will probably stay on at the store for a few months after it is sold. I hope they do, and I hope they pass on the tradition and organizational culture of Gambler’s Book Shop to the new owners in the process.

This store is an incredible resource for readers, writers, gamblers, poker players, and historians. If any reader is interested in buying it, please email me and I’ll pass the information on to the brokers who are handling the sale.

I realize that change is inevitable, but I hope this place doesn’t change too much when it’s sold. It’s a resource I love, and I hope it continues on in its own inimitable, quirky, helpful, and authoritative fashion, to serve generations of readers to come.

World Trade Experts Urge the US to Embrace Online Gaming Bill

At a press Brussels press conference earlier today, international trade experts including Naotaka Matsukata, former director of policy planning for the US trade Representative, and Mark Mendel, the attorney who represents Antigua before the World Trade Organization (WTO), claimed that the United States might face trade penalties of $100 billion—yes, that’s billions-with-a-“B”—if it cannot extricate itself from its online gaming conundrum with Antigua and the European Union.

“The $3.4 billion claim by Antigua and the much larger claim of over $100 billion by the seven other economies seeking compensation are some of the largest penalties in the history of the WTO,” said Matsukata. “This is by far the most significant WTO case ever and its implications for both the US and the EU are enormous. Given the size of the US gaming market, both the potential benefit for European industry and the corresponding potential damage to US companies is unprecedented.”

In addition to Antigua and the European Union, Macau, India, and Australia are also seeking compensation because of US actions.

Jeffrey Sandman, of the Safe and Secure Internet Gambling Initiative, urged the US to embrace Barney Frank’s internet gambling bill. According to Sandman, “Rather than face paying billions in trade compensation, the US should embrace the legislative solution presented by the Frank bill.”

Although the US has threatened to withdraw from its WTO commitments in its dispute with Antigua, it has much more to lose than to gain by such an action, and could weaken its claims against China at the WTO. Walking away from WTO obligations might even open the door to Antigua receiving WTO backing for abrogating copyright protection and revoking trademark and intellectual property agreements between the two countries.

Negotiations Begin as Antigua, the US, and the European Union Try to Settle their Online Gaming Dispute

The United States offered to settle their dispute regarding online gambling issue with the European Union.

The US offered to open areas that include storage, warehouse services and technical testing to compensate for gaming restrictions implemented with the passing of last year's Unlawful Internet Gambling Enforcement Act (UIGEA).

This offer is inadequate. Opening offers always are. That’s the way negotiations go. The offer the US put on the table will not offset an estimated $4 billion dollar annual loss to EU companies, so it’s only the first salvo—a feeling out process—in a protracted encounter.

The EU asked for an extension until October 22 to review this offer, since the US filed it only days before the deadline. The extension was granted.

The Caribbean island nation of Antigua, which brought this complaint to the World Trade Organization, is also upset at initial US offerings to settle this case. The US claims that the $3.4 billion annual compensation to Antigua should be more in the area of $500,000.

Antigua's lawyer, Mark Mendel, said Antigua’s strategy is twofold: First, Antigua will try to open the online gaming market to its operators. If that tack fails, they will seek to revoke trademark, intellectual property, and copyright agreements between the two countries. This is the nuclear deterrent of trade wars and if implemented, will have serious implications for US business like Microsoft, and variety of pharmaceutical companies who rely on patents to recoup their research and development costs and make a profit. The music and DVD business, the economy at large, and the American people would also be hurt by this kind of action.

But this is only the first salvo in a protracted negotiating process, like boxers pawing at each other as they probe for openings in the first round of what’s scheduled to be a longer fight. It’s a poker game of sorts, with each party riffling their chips as they try to get the other to fold their hand. But everyone realizes this and no one is going to back down now. What the US seems unwilling to admit, however, is that Antigua holds the bigger cards in this game and appears willing to make a big bet when it’s time to go for the throat.

Sean Sheikhan Facing Deportation to Iran

Poker player Shahram “Sean” Sheikhan, a regular on High Stakes Poker, may be deported to Iran because of a 1995 conviction for misdemeanor sexual battery charges involving a 17-year-old girl. Sheikhan was in his early 20s at the time and served nine months for his offense. Sheikhan, now 38, came to the United States when he was nine years old. He is married to an American-born woman and the couple has a young child.

Pushing this case are the U.S. Immigration and Customs Enforcement Agency (ICE), which seeks out foreign nationals convicted of sexual crimes against children and works to get them deported.

According to Sheikhan’s lawyer, David Chesnoff, “It’s not allegations involving a child in the actual meaning of the word; it’s a legal definition,” adding, “There’s a lot of work to be done on his behalf that’s going to be done. He’s a good husband and a good father, and a lot of people have problems when they’re young that shouldn’t follow them for the rest of their lives.”

Sheikhan was arrested August 30 and held for five days before Chesnoff could secure his release on a $10,000 bond. ICE wanted to hold Sheikhan until his deportation hearing and tried to prevent his release, but the judge OK’d bail.

Despite the fact that Sheikhan paid for his crime, ICE wants him out of the United States. An immigration hearing is slated for October 23 in Las Vegas. The judge can dismiss the case at that time or set a date for a hearing.

I’m no friend of Sean Sheikhan, but I do feel that ICE’s efforts to deport him amounts to piling on. After all, he served time for his offense. If deportation was deemed to be the thing to do, it should have been part of his original sentence. Moreover, I don’t see Sheikhan as a threat to repeat this kind of behavior. He’s married, a family man, and has not repeated this kind of behavior in the nearly 20 years since his arrest and conviction.

Sending him back to Iran is absurd. He came over here when he was nine. It’s not like he has any ties to Iran. He may not even speak the language.

This kind of case smacks of the kind of bureaucratic overkill that government officials are prone to employ when common sense and good judgment would better suffice. Sheikhan broke the law and paid for his transgressions years ago. It’s old news that’s over and done with. Give it a rest.

Bad Beats or Bad Bots at Full Tilt?

Full Tilt Poker has refunded money to some players who claim to be the victims of “bots” in limit hold’em cash games, and suspended the accounts of at least two of those suspected of employing bots. Although Full Tilt has not confirmed this, the bot accounts are suspected to be JapintheSack and BeatMe1, according to the Poker King website.

Bots have been a complaint of online players for a few years now, and MSNBC’s Mike Brunker wrote an article about bots becoming an issue for online poker three years ago, in 2004. Brunker’s article, which is well worth reading, can be found at http://www.msnbc.msn.com/id/6002298/.

Full Tilt did not state how many players suffered losses by playing against bots, though some players have suggested the number is in the thousands. not publicly announced the number of poker players affected but some players are estimating the numbers to be in the thousands.

Jose Canseco Enters Commerce Casino's Ladies Poker Tournament

Former baseball slugger, steroids user, and author Jose Canseco, along with five other men, demanded to enter Commerce Casino’s California State Championship ladies event a few days ago. Although tournament director Cheri Dokken made it clear to all potential players that the tournament was a ladies only event, when push came to shove, Commerce Casino, citing anti-discrimination laws, permitted Canseco and the other five men to play.

One way around this would have been for the ladies event to be a “private” tournament hosted by a group other than Commerce Casino. If the sponsor was a member supported organization they might have been able to make this work, but I’m not an attorney and this is only speculation on my part—not a definitive answer.

What’s in it for Canseco? Is this just another way for him to garner some quick publicity for his next book or whatever else he is promoting these days? Or is it a way for him to stay in touch with his feminine side? With Canseco, you never know, and what you see when you look at Canseco is usually quite different from what you get.

This all brings to mind vivid pictures of the “tiltboys” of a decade or so ago dressing in drag to enter a ladies only tournament. Or perhaps that photograph of Oscar de la Hoya in fishnets and a long wig that’s been making the rounds on the Internet this past week is an even better, more contemporary visual.

UK Study Shows Increased Gambling Opportunities Does Not Lead to Increased Gambling

Study Shows Drop in Gaming

A Gambling Prevalence Study conducted in the United Kingdom shows a drop in the number of adults that gambled within the past year.

Sixty-eight percent of the population—about 32 million adults—gambled during 2006. This compares to 72 percent of the UK population who gambled in 1999.

The number of online gamblers was much smaller than I expected, with only three percent of all gamblers using the internet for online poker and casino games and four percent using the internet to place bets with a bookmaker.

Online Gaming is Still a Very Small Piece of the Pie
Online gaming in the UK is miniscule when compared to the National Lottery, with 57 percent of the population participating. Even when compared to scratch cards at 20 percent, horseracing at 17 percent, and slot machines at 14 percent, online gaming is only a tiny piece of the pie.

When you dig into the figures, it’s clear that problem gambling did not increase over the last eight years, despite a rapid growth in online gaming.

Problem Gamblers Still Fewer than 1 Percent of the Population

The results showed little change in problem gamblers in the UK, with numbers hovering around 0.6 percent of the adult population. That’s the same percentage that was recorded in 1999, the last gambling participation survey in the UK. It was also way before the emergence of online gaming opportunities in the UK and most of the rest of the world.

This survey was carried out by the National Centre for Social Research (NatCen). Its aim is to measure participation in gambling, estimate the level of problem gambling and the factors associated with it and to explore the public’s attitude towards gambling.

Since the 1999 survey the nature of gambling in Britain has changed with an increase in the number of gambling products available, yet no increase in gamblers or problem gamblers.

If You Believe that More Gambling = More Social Problems, Read this Report

This is a message that should be hammered home to American anti-gaming forces, who are fond of harping on the message that more gaming means more gamblers and more problem gamblers. In the UK, at least, it simply isn’t so.

“The key message is that overall there has been surprisingly little change either in the number of gambling participants or to the number of problem gamblers since 1999,” said Peter Dean, the Gambling Commission’s Chairman.

Norwegian Teenager Annette Obrestad Wins WSOP-Europe Main Event

Norwegian teen-aged sensation and online poker legend Annette Obrestad—better known as Annette_15, her online alias—became the youngest bracelet winner in World Series of Poker history when she won the Main Event at the first annual WSOP Europe.

Obrestad outlasted a very strong field at the five-day £10,000 buy-in no-limit hold’em event in London’s Leicester Square.

“I never expected to win,” said Obrestad, who turns 19 in just one day. “I’m speechless. I really don’t know what to say.” Her victory over 22-year-old John Tabatabai of London came when her three sevens beat his two pair.

Obrestad won the £1 million, or $2,013,102, first-place prize and a World Series of Poker bracelet. Tabatabai earned £570,150, or $1,147,770, for second place. Matthew McCullough, the last remaining American in the Main Event, finished third after going all in with top pair on the flop. The hopes of the 33-year-old New Jersey resident ended when John Tabatabai, who called with middle pair, matched his ace kicker for two pair that put the full-time anaesthetist to sleep. McCullough collected £381,910 for third place.

The total prize pool for the Main Event was £3,676,990.

Pammie's boyfriend revealed

When the news is hot, it breaks fast. Word on the street is that Pam Anderson's new boyfriend is Rick Salomon, the playboy whose main claim to fame is that he costarred in Paris Hilton's sex tape.

Now Pammie is no stranger to sex tapes. The now famous video she made with ex-hubby Tommy Lee has been seen by millions. Rick's relationship with Pam may give him a chance to make another tape with another costar, and if it doesn't make him famous, he'll certainly be the envy of many.

Somehow this story is just much jucier than the usual scandals in the poker world. Brandi and Capt'n Tom just don't measure up to Pam Anderson and whoever she's involved with. Even events that have only a peripheral relationship to Anderson make for great gossip. After all, Pam was not directly involved in the recent fistfight between Tommy Lee and Kid Rock—the Battle of Anderson's Exes—but just the fact that she was married to each of them makes it a gossip monger's delight.

I guess that's what real star power is all about!

Sex with Pamela Anderson at $250,000 a night

According to the website, contactmusic.com, Pamela Anderson is dating a professional poker player she met when she agreed to have sex with him in exchange for wiping out a $250,000 loss she incurred at the poker table. Anderson has not named the player in question.

According to the report, the poker player offered Pamela an “indecent proposal” when she had a run of bad cards at the poker table.

Our gal Pamela—who had a fling with poker a few months ago, but decided to exit the business about the same time she dumped Kid Rock—was in Las Vegas as the star attraction of illusionist Hans Klok's stage show.

Anyway, Pamela was stuck $250,000 in a poker game when the unnamed poker player offered her an opportunity to wipe her debt clean in return for sex.

Anderson said he told her that she could eliminate her debt if she “made out with him.” She added, "A couple of days went by and he followed me around like a puppy dog … I ended up paying off my debt … It worked out, I liked it … I paid off a poker debt with sexual favors and fell in love. It's so romantic."

She went on to say that it was the first time she played poker and that “… He took advantage of me. We're in love, this is nice. He's a good guy."

Is any of this true? How can it have been the first time she played poker? She was the face of an online poker room and had been at the World Series of Poker, though in truth it might only have been a promotional trip and it is possible she did not play, though very unlikely.

Is she really so broke that she could not afford her losses at the poker table? Has her career run so far down that she is forced to work as a magician’s assistant? While that might be a fun gig, it can’t pay nearly as well as a starring role on Baywatch. Although prostitution at a quarter-mil a night puts her right at the top of the hooker earning chart, is it a good career move? Maybe so. After all. This story made the news all over the world.

I love blogging about Pamela Anderson. She has a body and a lifestyle that’s just made for gossip mongering. I’ve no idea whether this story is true, or what will become of Pam Anderson and her thus-far closeted boyfriend. I’m just glad she’s back in the poker community again. Welcome home, Pam.

The Kept Press: An Ill Wind Blows Hard Through Tournament Reporting

Everybody has a dancing partner, or so it seems. Over the past few months, it seems as though each major tournament series has entered into an exclusive arrangement in which they’ve partnered with a magazine or media group to provide exclusive coverage for their events.

The World Series of Poker has their arrangement in place. So does the World Poker Tour. While the tournament sponsors may have good reasons for trying to control, direct, and manage tournament reporting, the act of doing a deal to get that done turns what once was a free and competitive press into mere public relations arms of the tournament providers.

When you grant exclusivity, it tends to water down the quality of the coverage. And when that happens the coverage is first diluted, then tends to disappear altogether because there’s no room for differing points of view and unique reportage to elbow their way to the table.

The practical side of these kinds of arrangements is greater inaccuracy in reporting. The bigger issue is that exclusive arrangements tend to drive competition away. An even bigger problem is that a kept press is not much better than no press at all.

Knowing when to fold 'em

Here’s a hand I played a few days ago. When it ended, an opponent told me I made a “… very strong laydown.” I’m not so sure. I think it was an obvious laydown, but you can decide for yourself. Here’s how the hand played out.

I caught pocket jacks in a $25-$50 hold’em game at the Agua Caliente Casino in Rancho Mirage. The player under-the-gun called and so did one other before the action got around to me. I raised, and both blinds folded. Nevertheless, I was called in two places.

The flop didn’t figure to help anybody. It was 9-4-4, and three-suited too. It was checked around to me, so I bet. I was called by the guy in early position, whom I regard as a good player. The guy sandwiched between us folded, so now the hand was heads-up.

The turn was a seven. My opponent checked. I bet. He raised. I thought for a minute, and then tossed my hand away. Other than a naked bluff, what could I beat that he was holding? I did not think he was bluffing, and I couldn’t come up with an answer.

I knew he didn’t have a four because he never would have called under the gun with any hand containing a four. If he intended to represent a bigger hand in that position he would have come in raising. But he just called, and then called the flop with no draw possible.

I though he might have a pocket pair of sevens and turned a set, or perhaps he flopped a set of nines. He might have slow-played a pair of kings or aces under the gun too, though I felt a set was more likely. It didn’t matter. I was drawing dead to two jacks if I decided to call his raise.

When I tossed my hand away, he showed me a pair of kings. I told him I released a pair of jacks, which was when he made the comment about my making a terrific laydown. I told him I thought it was a rather obvious laydown, since I could not think of a single hand he might raise with in that position that I could beat.

In retrospect, I was kind of shocked that he slowplayed kings from early position, since that allowed any ace to stick around and beat him if the flop was favorable.

But my hand was dead in the water. That’s the way it goes with jacks. They’re a dicey hand and you’re only about even money to see a flop that does not contain at least one card of a higher rank than your jack.

I didn’t see any cards on board that could beat my jacks, but I was convinced that the two cards my opponent held was a better hand than mine.
Sometimes you do have to “… know when to fold ‘em.”

Bodog Does Brand Licensing Deal with Mohawks

Bodog Entertainment, announced a brand licensing agreement for operations and gaming marketing in North America with Morris Mohawk Gaming Group. The deal includes the use of all Bodog domains and the Bodog trademark.

Morris Mohawk is headed by First Nations leader and former Olympian Alwyn Morris, who won two kayaking medals during the 1984 Olympics. Morris was named a member of the Order of Canada, the country's highest civilian honor in 1985.

Since then, Morris has been involved in numerous sport, civic and business endeavors aimed at assisting First Nations peoples in Canada.

"We could not have found a more perfect partner than Alwyn Morris and Morris Mohawk Gaming Group. Morris is a true Canadian hero," says Ayre. "We are confident that Morris Mohawk will be able to give our North American customers the quality experience they have come to expect from Bodog."

American Legion Fund Raiser Poker Tourney in Iowa City

If you live or visit the area, you might want to support the Iowa City American Legion. The Legion is hosting a fundraising poker tournament on Tuesday, November 13, 7- 11 PM, in Iowa City, Iowa, featuring a silent auction, raffle, and door prizes for all tournament players (we expect about 100 players).

The Legion is home to twice weekly regular tournaments and numerous charity tournaments throughout the year, so our needs for poker supplies are always ongoing.

The Iowa City American Legion is an organization to honor and support the sacrifices of veterans and service members, but also an organization dedicated to community service. In the past year the Legion has hosted poker tournaments raising money for two school foundations, at risk youth programs, disabled assistance, and a music festival just to name a few.

The Legion has been hosting twice weekly Texas Hold’em Tournaments for a number of years. Through the Legion new people are introduced to the game of poker in a non-threatening environment. Legion players have gone on to play in some of the largest on-line tournaments, to play in the World Series of Poker, the Heartland Poker Tour, and to win regional tournaments.

I'll be at the the First Annual California Poker Players Conference

I've been invited to speak at the First Annual California Poker Players Conference on Saturday and Sunday, October 20th and 21st, 2007, at the Hollywood Park Casino. This two-day educational and inspirational event takes place on Saturday and Sunday, October 20th and 21st at the Hollywood Park Casino, in conjunction with the 12-day National Championship of Poker. And the best part--the organizers have set the schedule so that you can attend either, OR BOTH, without missing a beat at the other.

I'll be speaking both days, and will be joined by Mike Caro, Jeffrey Pollack, Vince Burgio, Barbara Enright, George Epstein, Russ Fox, Tony Guerrera, Susie Issacs, John Pappas of the Poker Player's Alliance, Charlie Shoten, Stan Sludikoff, Robert Turner, and Marsha Waggoner.

If you're a fan of my writing, I'll have some autographed books for sale during the event, and look forward to meeting and chatting with as many people as I can.

There's a web site for the event, so if you are interested in registering, or just finding out more aobut this event, you can click your wat to http://www.2007cppc.com/ and check things out.

Maltese Falcon Flying High

With new legislation that took effect in the UK September 1, a number of online gaming sites are revisiting the issue of where to locate in the physical world. The island nation of Malta appears to be the big winner, with a plethora of applications from online casinos and looking to relocate to their shores.

Intercasino, William Hill, Playboy Casino and Virgin Games, plan to have a presence on Malta by the end of September.

Eighty-four online gaming firms are now licensed in Malta with 36 more companies in the application phase. Additionally, letter of intents were issued to 76 others.

“Malta’s becoming the natural hub of online gaming,” according to Mario Galea, who heads the Maltese gaming authority. According to Galea, “Our regulations are very much in line with the EU’s, and we have shown that we are capable of protecting operators - so it won’t be long before the physical operations move to Malta.”

You Wouldn't Believe This Poker Hand Unless You Saw It.

This is the kind of hand you’d expect to see in a bad poker movie. If it happened online, everyone would be screaming that the game is rigged. If you're a poker conspiracy theorist, this hand is your wet dream. But it happened at the final table of the Grand Casino Tunica’s third WSOP circuit event, $500 no-limit hold’em, as Young Phan (pictured right) won a hand almost no one would believe if it hadn't occurred before a gaggle of witnesses.

Here’s how poker reporter Max Shapiro described it: Three players were left. Young Phan was heads-up against Mack Ham with pocket 7s against Ham's pocket 5s. On the flop, Ham took the lead with a set when the flop came 6h-5s-3h. He made a small trap bet of 16,000 and Phan moved in. Then a 4h turned to give Phan a straight. But a river 5h gave Ham quads! He jumped up excitedly, until Phan pointed out that one of his 7s was a heart, giving him a straight flush!!!

Ham busted out, Phan regained his chip lead, and then went on win the event, earning $40,348 and a handsome trophy ring.

This is just proof positive that anything is possible in poker, and if you hang around the game long enough, you’ll see it happen.

Why Poker is Good For You

In a fascinating article in Two Plus Two Internet Magazine (Vol. 3, No. 9), David Sklansky and Alan N. Schoonmaker, Ph.D. state that many people believe poker should be considered differently from gambling in general. According to Schoonmaker and Sklansky, “This argument has been made in discussions of legalization and related topics. Their argument is usually that poker is a skill game, while other gambling games are much less dependent upon skill.”

The authors agree, “… but believe that they have not gone far enough in explaining many of poker's unique attributes. Poker does not just require skill. It demands and develops many skills and personal qualities which are essential for making all types of decisions, such as choosing a career, investing money, performing a job, and buying a house.”

Although the authors describe many of the skills and personal qualities that poker develops, they believe that “… most of poker's lessons are variations on one theme: Think carefully before you act. That principle applies everywhere, and far too many people ignore it.”

At nearly 6,000 words long, their article presents these arguments as a case for poker, and can be found at http://www.twoplustwo.com/magazine/current/sklansyschoonmaker0907.html. They invite readers to reprint as much or as little as they want.

Poker Is A Great Teacher.
Poker Improves Your Study Habits.
Poker Develops Your Math Skills.
Poker Develops Your Logical Thinking.
Poker Develops Your Concentration.
Poker Develops Your Patience.
Poker Develops Your Discipline.
Poker Teaches You To Focus On The Long Term.
Poker Teaches You That Forgoing A Profit Equals Taking A Loss (And Vice Versa).
Poker Develops Your Realism.
Poker Teaches You To Adjust To Changing Situations.
Poker Teaches You To Adjust To Diverse People.
Poker Teaches You To Avoid Racial, Sexual And Other Prejudices.
Poker Teaches You How To Handle Losses.
Poker Teaches You To Depersonalize Conflict.
Poker Teaches You How To Plan.
Poker Teaches You How To Handle Deceptive People.
Poker Teaches You How To Choose The Best "Game."
Poker Teaches You The Benefits Of Acting Last.
Poker Teaches You To Focus On The Important Subjects.
Poker Teaches You How To Apply Probability Theory.
Poker Teaches You How To Conduct Risk-Reward Analyses.
Poker Teaches You To Put Things In Context And Evaluate All Variables.
Poker Teaches You How To "Get Into People's Heads."

Schoonmaker and Sklansky conclude that, “The government's attempts to outlaw poker are based upon a misconception of its nature and value. It is not ‘just gambling,’ and it should not be subject to the same rules and penalties as other gambling games. Instead, the government should allow you to play poker in regulated and taxed places because poker is good for you and good for America.”

New IRS procedures require poker tournament sponsors must withhold and report on payments to winners

The following information was provided by poker player, author, and CPA Ann-Margaret Johnston.

Rev Proc 2007-57, 1007-36 IRB 547
A new revenue procedure concludes that poker tournament sponsors must withhold and report on payments of more than $5,000 made to winning payees in a tax year.

Background.
Under Code Sec. 3402(q)(3)(C)(i) , payors must withhold 25 percent on proceeds of more than $5,000 from a sweepstakes, wagering pool or lottery (other than a state-conducted lottery, which is covered by another withholding rule). Proceeds from a wager are determined by reducing the amount received by the amount of the wager. ( Code Sec. 3402(q)(4)(A) )

Facts.
A poker tournament sponsor charges an entry fee and a buy-in fee for each participant. In exchange for paying the buy-in fee, a participant receives a set of poker chips with a nominal face value for use in the specific poker tournament. The sponsor pays amounts, which exceed a participant's fees by $5,000, to a certain number of tournament winner(s), out of a pool made up of all the participants' fees.

Poker tournament sponsors must withhold.
Rev Proc 2007-57 , which is effective for payments made on or after Mar. 4, 2008, says poker tournament sponsors (including casinos) paying amounts to winners in a manner substantially similar to the facts above, must under Code Sec. 3403(q) withhold and report on payments of more than $5,000 made to a winning payee in a tax year.

They must furnish a copy of the information return to IRS on or before Feb. 28 (Mar. 31 if filed electronically) of the calendar year following the calendar year in which the payment is made. Rev Proc 2007-57 cites legislative history for the proposition that the term “wagering pool” includes all pari-mutuel betting pools, including on- and off-track racing pools, and similar types of betting pools. It also cites a non-tax case (U.S. v. Berent, (CA 9 1975) 523 F.2d 1360, 1361), holding that in common usage “pool” means “a particular gambling practice, an arrangement whereby all bets constitute a common fund to be taken by the winner or winners.”

IRS said it won't assert any liability for additional tax or additions to tax for violations of any withholding obligation relating to amounts paid to winners of poker tournaments under Code Sec. 3402 , as long as the poker tournament sponsor meets all of the requirements for information reporting under Code Sec. 3402(q) and its regs.

WHAT DOES THIS MEAN TO YOU AS A POKER PLAYER?
The IRS has found a way to make sure that you put this on your tax return. This also means that the Form 5750 is VERY IMPORTANT now. You have GOT to do this form IF THE WINNINGS ARE SPLIT BETWEEN PLAYERS (BACKING/STAKING SOMEONE) or the main person will be eating all the withholding money!!

Call or email her with any questions.

Ann-Margaret Johnston, CPA
Author of "How To Turn Your Poker Playing Into a Business"
Host of The Poker CPA radio show on www.holdemradio.com
Tuesdays at 7pm eastern
www.pokerdeductions.com

418 Pirkle Ferry Road, Suite 110
Cumming, GA 30040
770-205-2221, phone
770-205-2141, fax

Antigua has the US by the Short Hairs in Online Gaming Flap

Antigua, a tiny Caribbean nation, appears to have the right stuff to force the United States to reconsider its position about online gaming.I’ve blogged extensively about Antigua challenging the United States’ prohibitions on online gaming before the World Trade Organization. Antigua won their case and then won it again on appeal.

Congress, however, has yet to act to bring US law in concert with our treaty obligations to the World Trade Organization.

For the WTO, this is a big deal. They’ve got to assess some penalty on the United States. They can’t let the US slide simply because they are the big Kahuna and a driving force behind the WTO. The WTO can’t afford to look as though the US is their padrone, and they can’t impose tough sanctions on the small nations and let the 500 pound gorillas slide right by unscathed.

This dispute with Antigua a big deal for the United States too. The US was the driving force behind the WTO’s creation, and has gotten much more from it than this little flap might ever cost. The United States can’t expect to get any respect from other nations if they blithely ignore rulings they don’t agree with, while pushing forward on those that are favorable to them.

Lurking behind the scenes, but very important in this affair are a few trade disputes the US has with China. The US can hardly bring these issues to the WTO unless their skirts are clean. In terms of potential economic impact for the United States, the issues with China dwarf the cost of any online gaming dispute with tiny Antigua.

Because Antigua’s winning claim was based on arguments that the United States is discriminating against online casinos by permitting some online wagering while making it illegal for financial institutions to handle payments for Internet casinos abroad.

The United States can go in either of two directions. They can allow online wagering at offshore casinos or they can opt to ban Internet gaming entirely. The latter is unlikely because it would put the kibosh on fantasy sports leagues and off-track horseracing wagers, and probably lottery tickets sold online.

The right thing is for the United States to allow online wagering, as almost every other civilized country does. That’s probably going to happen too, but not without the United States being dragged kicking and screaming into the modern era by a tiny Caribbean nation of 75,000 people.

Beau Rivage Poker Tournament Marks Complete Recovery from Hurricane Katrina

The Gulf Coast Poker Championship, a 10-event tournament series at Biloxi’s Beau Rivage got underway Thursday, August 30. Six no-limit hold’em tournaments with buy-ins at $300 and $500 comprised the preliminary events. On September 6 a three-day $10,000 buy-in World Poker Tour event begins and will run through September 9.

It also marks the two-year anniversary of Hurricane Katrina, which decimated an estimated 90 percent of Biloxi’s buildings. The Beau Rivage is a four-diamond property that’s been recognized by both Conde Nast Traveler and Travel + Leisure as one of the top resorts in the country. It is a spectacular destination resort that’s made a remarkable recovery from Katrina’s devastation.

Gulf Coast casinos recorded gaming revenue of $1.7 billion during the first seven months of 2007, and are completely recovered from Hurricane Katrina. In fact, July revenues fell only $100,000 short of their record month of July, 2002, when Gulf Coast casinos brought in $266.3 million.

Katrina also changed building regulations in Mississippi. Before the storm, a casino floor had to be a “riverboat,” which meant a floating pavilion, or a moored barge. Legislators realized that casinos had to be land-based to be safe and viable, and this law change allows bigger casinos to be constructed.