Lou Krieger Poker Blog

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

Wednesday, October 31, 2007

It's All About the Bike


Today wasn’t about poker at all. It was all about the bike. I treated myself to a new bicycle, a 2007 Trek Madone SL 5.2, which is similar to the bike that Lance Armstrong and the Discovery team rode. Similar is the operative word. Discovery team rode $10,000 bikes. I got mine on sale for $2,150 at my local bike shop, which was a lot better deal than I was able to find online.

The bike retailed for about $3,200 in 2007 and the 2008 model sells for $3,600. The best I could do online was about $2,600 for a 2007 Trek Madone SL 5.2. But Palm Desert Cyclery had one in stock, and it was my size. The bike was painted with the Discovery Team colors and logo, and since the Discovery Team is no more, I guess I lucked into a great bike at a nice price. It is full carbon, with Shimano Ultegra SL drive train and Bontrager Race Lite wheels and tires.

The high performance carbon construction makes for a stiff, very responsive ride. The bike handles extremely well and is the best bike I’ve ever owned. I treated myself to a new pair of cycling shoes, and once they fitted me to the bike, I rode home from the bike shop and detoured to zip up a hill that previously felt like a lot more work than it did on the Trek.

The Madone in the picture is red. Mine’s blue with Discovery Team decals. That’s the only difference. Now that I’ve got this bike, the only additional performance differences I can make are to the rider. That’ll be the hard part.

Tuesday, October 30, 2007

AJ Green, the culprit in the Absolute Scandal, found hiding in Canada


According to Gambling911.com, a site that does a terrific job covering gaming issues, reports that one of the principals in the Absolute Poker cheating scandal, Alan John Grimard—or A.J. Green, if you prefer (pictured left)—was located in his native Canada.
Gambling911 has uncovered his home address, although they haven’t released it out of concern for his safety. But they did release his email address. It’s peptona@hotmail.com.

Now you can write to him directly, though I’m betting he won’t respond, and ask why he did what he did, and what he plans to do now that he is persona non grata in the world of online gaming.

Even though Absolute Poker has been paying back his victims back, there are probably plenty of folks out there who want a piece of Grimard for this or other reasons. According to the Gambling911 report, Grimard was a complete schmuck aside and apart from his criminal activities, and is not a guy with many friends.

Now he needs eyes in the back of his head too.

UIGEA Places Too High a Burden on US Banks


Rules proposed by the feds to implement the Unlawful Internet Gaming Enforcement Act (UIGEA) place a high burden on US financial institutions, according to the Safe and Secure Internet Gambling Initiative. This is according to a report issued a few days ago from Alston & Bird, a national law firm.

According to Alston & Bird, even with UIGEA in place, US residents would be able to continue to gambling online and avoiding UIGEA’s regulations by processing transactions through foreign banks in jurisdictions where online gaming is legal.

According to the Safe and Secure Internet Gambling Initiative’s Jeffrey Sandman, "The proposed rules create an unprecedented and unwieldy regulatory burden on the US financial services sector. US financial service companies are being left to interpret ambiguous state and federal gambling laws, which do not clearly differentiate between legal and illegal Internet gambling activities or transactions, and then implement unreasonable and costly solutions to achieve compliance.”

Sandman’s group favors regulating and taxing online gaming through the Internet Gambling Regulation and Enforcement Act and the Internet Gambling Regulation and Tax Enforcement Act. These bills seek to allow Internet gambling while requiring operators to obtain licenses, take precautions to prevent underage and compulsive gambling, and ensure safety and integrity of financial transactions.

By regulating online gaming, the United States could collect billions in revenue that is now being lost.

Friday, October 26, 2007

Was Drug Use at the Root of the Absolute Poker Cheating Scandal?


The Absolute Poker scandal is like an onion. The more you peel it, the more layers there are yet to be peeled. Now it seems that the need for drug money might have underpinned this entire fiasco. Absolute founder Scott Tom and a manager brought on in the past months, A.J. Green, are widely rumored to be the culprits in this cheating scandal.

According to a report in Gambling911.com, Green is a drug user. In a post on the gambling911.com site, they report, “His drug addiction is well known within Costa Rica betting circles.”

But nobody knows for sure. A.J. is rumored to now be in hiding in Panama City, Panama.

This story is far from over. I’m curious as to who released the spreadsheet that contained all the details of this deception. Could the person who released this information be someone highly placed in Absolute who was aware of what was going on and wanted to blow the whistle?

Was it a representative who worked for Absolute and released the date inadvertently? But if a customer service representative—clearly not a job that’s high up in Aboslute’s management chain—had access to that data (whether accidentally or on purpose) it points to an abysmal absence of security.

How much security could there be if someone could release information that sensitive? If one customer service representative could release that data, so could all of them. When you have an entire class of employees with information so sensitive it could bring down an entire company—and perhaps an entire industry—something is missing in the security chain.

Stay tuned. This story will continue to develop as investigations get underway. It’s had all sorts of twists and turns so far and there’ll probably be more in the future.

Live Cash Game Poker Set to Open in Macau on November 20




November 20th is the date set for cash game poker to begin in Macau, in a room featuring eight tables at the Diamond Casino in the Holiday Inn. They’ve partnered with the PokerDome group, and are “… planning to have one of the biggest international tournaments ever,” according to Chris Levick, PokerDome Group CEO.

Although the room will open up with eight tables, they plan on adding 25-30 additional tables once poker takes hold. To help that happen, noted professional poker player Jeffrey Lissandro will oversee poker operations and help promote the room.

Games will include no-limit and pot-limit hold'em, and the chances are that they will also offer Omaha and seven-card stud.

Wednesday, October 24, 2007

Deadline Extended in World Trade Organization Online Gambling Case


Yesterday's deadline to negotiate settlements the U.S. must pay the European Union and seven other trading partners as part of a World Trade Organization (WTO) violation related to Internet gambling was extended to December 14. This provides Congress another opportunity to avoid paying trade concessions worth an estimated $100 billion by regulating Internet gambling through legislation. Whether they choose to do this is or not is another question entirely.

The WTO Internet gambling trade conflict is the most significant WTO case in history and its implications are enormous. In response to a dispute filed by Antigua, the WTO previously ruled that the U.S. unfairly prohibits foreign Internet gambling operators from accessing the U.S. market, while allowing domestic companies to legally accept online bets.

In response, the Office of the U.S. Trade Representative announced the U.S. intention to withdraw its commitments to the WTO, thus allowing the United States to keep its markets closed to offshore based internet gambling operators. The European Union, Japan, India, Canada, Australia, Costa Rica, and Macao originally joined Antigua in requesting talks to discuss compensation with the U.S. Australia later dropped its claim, while Japan reached a deal with the U.S., though the terms were not made public. If the U.S. does not settle with each country by December 14, trade concessions will be determined by WTO arbitration.

Barney Frank’s (D-MA), Internet Gambling Regulation and Enforcement Act, introduced in Congress a few months ago, would bring the U.S. into compliance with WTO trade agreements by regulating online gaming.

Momentum has been building for the Internet Gambling Regulation and Enforcement Act, with more members of Congress co-sponsoring the legislation. "Additional support for the Frank bill provides encouragement that the U.S. can avoid a major trade clash along with the payment of billions in trade compensation and penalties," said Jeffrey Sandman, spokesperson of the Safe and Secure Internet Gambling Initiative. "Congressional action now to regulate Internet gambling can provide a responsible policy solution that would allow the U.S. to comply with WTO requirements. It would also give all Americans the right to make up their own mind whether to gamble online."

The Safe and Secure Internet Gambling Initiative promotes the freedom of individuals to gamble online with the proper safeguards to protect consumers and ensure the integrity of financial transactions. More information on the initiative is available at http://www.safeandsecureig.org/. The Web site also provides a means by which individuals can register support for regulated Internet gambling with their elected representatives.

Monday, October 22, 2007

Changes You Can Expect at the 2008 WSOP


I was one of the featured speakers at the California Poker Players Conference held at Hollywood Park over the weekend. For me it was a great opportunity to pick up poker tips—yes, despite having written eleven books, I’m still trying to raise my game at every opportunity—and meet players I’ve never met before.

Day Two of the conference kicked off with a presentation by Jeffrey Pollack, Commissioner of the World Series of Poker, who clued us in on some of the changes we can expect at the 2008 WSOP.

The dreaded tent is gone. I’m not the only one who was happy to hear that. The entire room burst into applause at that announcement.
• A concierge—think about team of people, not just one—will be available during the entire series to assist players
• There will be no more than 55 events.
• The exact list of events should be announced in December or January.
• Players will be able to buy into the events at any Harrah’s property—at least that's what they're hoping for—once the event schedule is announced.
• Since 2009 will mark 40th anniversary of the WSOP, 2008 will host some events as part of a year of tributes and celebrations.
• Close to $1 million in charitable contributions was raised during the 2007 WSOP and they expect to raise even more in 2008.

Poker Tournament Winnings Must be Reported to the IRS


Starting next year, casinos and other sponsors of poker tournaments will be required to report most winnings to winners and the Internal Revenue Service, according to the IRS.

The new requirement, which goes into effect on March 4, 2008, is designed to clear up confusion about the tax reporting rules that apply to poker tournaments. In recent years, some casinos and players have been confused over whether poker tournament sponsors who hold the money for participants in a poker tournament are required to report the winnings to the IRS and withhold tax on the winnings.

For tournaments completed during 2007 and before March 4, 2008, poker tournament sponsors will not be required to report the winnings to the IRS or withhold tax on the winnings. But beginning March 4, 2008, the IRS will require all tournament sponsors to report tournament winnings of more than $5,000, usually on an IRS Form W-2G.

Tournament sponsors who comply with this reporting requirement will not need to withhold federal income tax at the end of a tournament. If any tournament sponsor does not report the tournament winnings, the IRS will enforce the reporting requirement and also require the sponsor to pay any tax that should have been withheld from the winner if the withholding requirement had been asserted. The withholding amount is normally 25 percent of any amounts that should have been reported.

So that tournament sponsors can comply with this requirement, tournament winners must provide their taxpayer identification number, usually a social security number, to the tournament sponsor. If a winner fails to provide this identification number, the tournament sponsor must withhold federal income tax at the rate of 28 percent.

Players who cash in tournaments must report all their winnings on their federal income tax returns. This rule applies regardless of the amount and regardless of whether the winner receives a Form W-2G or any other reporting form. This is true for 2007 and earlier years, and will continue to be the case after the new reporting requirement goes into effect.

Thursday, October 18, 2007

Absolute Poker 'Fesses Up to Pocket Fives


PocketFives, which took the lead in breaking the Absolute Poker story, reported that they received a phone call today from Absolute Poker, "... confirming the suspicions of the online poker community over the past month."

Pocket Fives also reported, "While we need to be vague in this post to respect their wishes, we can say that their systems were compromised, and that they are prepared to provide the details in a statement coming shortly."

Part of the statement Absolute will release is to include a plan to refund money to players affected by this compromise.

Nice work, guys. Take a bow. You earned it.
Anyone still playing on Absolute?

Absolute(ly) Scandalous

Allegations of cheating in an Absolute Poker online tournament have circulated on a large number of poker message boards during the past few weeks. But now things seem to be coming to a head with the help of some good detective work by a variety of interested parties.

Here’s the gist of the story. Online player CrazyMarco loses in a tournament to a guy named POTRIPPER who made a bizarre call with ten-high against Marco’s nine-high flush draw. A perplexed Marco emails Absolute Poker’s support for a hand history. He wants to check out POTRIPPER’s play. By that time rumors that POTRIPPER could see hole cards had begun to circulate. Marco received a huge xls file from Absolute's support that he could not analyze, so he set it aside for a few weeks.

The story continued to develop a life of its own on the internet. Marco shared the Excel file with his roommate Jared “TheWacoKidd” Hamby and some others. Rather than a simple hand history, they realized that what they had was a history of the entire tournament. It was probably sent in error, but it contained every table and every hole card of every player for every hand.

The file in question also contained IP addresses and other user details, including email addresses of players and observers.

One user, User 363, observed POTRIPPER's tables during the entire tournament. He missed just two hands at the tournament’s start. Potripper played every single pot before the flop for 20 minutes. He did not fold until a player behind him had pocket kings and POTRIPPER presumably assumed that the player with the pocket kings would raise and so he declined to enter that pot before the flop.

The IP address for User 363 was tracked to an email account hosted by the Kahnawake Gaming Commission, but it actually belonged to Absolute Poker. Additional detective work showed that the IP address was that of a guy named Scott Tom, who had been high up on the Absolute Poker food chain.

Absolute Poker, in a statement said, “… Mr. Tom has not been involved with Absolute Poker for over a year and to the best of our knowledge, information and belief he has not had access to any of Absolute Poker’s systems, databases or information.”

They also said, "Specifically, Absolute Poker’s internal investigation determined that it is impossible for any person, device, program, script or other means to see hole cards.

"Based on the most recent claims that Absolute Poker has been made aware of and at the request of some of our players and business partners, Absolute Poker has agreed to retain a widely acclaimed independent third party auditor, Gaming Associates, to conduct an independent audit of Absolute Poker’s security systems. Specifically, Absolute Poker has requested that Gaming Associates conduct a thorough and extensive review of Absolute Poker’s practices and security systems to determine whether it is possible for any person, device, program, script or other means to see hole cards thereby gaining an unfair advantage.

"Absolute Poker has agreed to fully cooperate with Gaming Associates and its investigative team and to provide the above with unfettered access to all systems, protocols and databases at Absolute Poker worldwide. Absolute Poker has also agreed to allow Gaming Associate’s final report to be made available to Pocket Fives and Bluff Media for their review.

"With respect to the claims that Scott Tom, a former Member of Team Absolute Poker, is in any way involved in wrong-doing, Absolute Poker has requested a formal investigation into that matter as well.”

Gaming Associates confirmed that the audit will not be paid for by Absolute Poker, and that the audit’s scope will go beyond assertions circulating on the internet. Gaming Associates is a recognized test house and auditor of interactive gaming systems accredited by Government regulatory authorities worldwide, with more than a decade of regulated interactive gaming experience.

I think it’s time to await the audit findings and see what transpires. I’m certainly not willing to reach any conclusion at this point. While it seems a pretty clear case of cheating, I’m not sure who is behind it. Is Absolute Poker itself the guilty party? Is it Scott Tom? Although Absolute claims Scott Tom is no longer an employee, it seems he could have left himself any number of back door entry points into their system when he left. Was anyone else involved, and if so, who are they and what's their relationship to Absolute Poker?

All I know at this point is that fish rot from the head down, and this fish is really beginning to stink up the joint. Will the last player left at Absolute Poker please turn out the lights.

Sunday, October 14, 2007

I Hope to See You at CPPC, this Weekend at Hollywood Park


Have you heard...

1. About he most exciting, least expensive educational event this year, being held this coming weekend? You can check it out at http://www.2007CPPC.com/lou2.

2. About the 12 power-packed "preview interviews" with event emcee Mike Caro and some of the CPPC featured presenters?

Visit the CPPC Web site whether you can join me this weekend or not at http://www.2007CPPC.com/lou and discover what Susie Isaacs, Tony Guerrera, Stan Sludikoff, Vince Burgio, Barbara Enright, Russell Fox, Charlie Shoten, Robert Turner, George Epstein and I have to say about how to win more, how to win more often, and how to enjoy the game to the max!

Hope to meet you at the CPPC! I'll have books there for sale and I'm happy to sign any of my books, whether you buy them at CPPC or not.

P.S. Even if you're not able to attend the live event on the 20th and 21st,you can still learn from the best. Visit the 2007 CPPC Web site and click on Phyllis Caro's picture to discover how you can gain invaluable knowledge and skills without having to leave the comfort of your own home!

Check it all out at: http://www.2007CPPC.com/lou

Thursday, October 11, 2007

IRS Set to Back Off on Poker Tournament Withholding Requirements

On September 2, I reported on a new IRS revenue procedure that would require poker tournament sponsors to withhold and report on payments of more than $5,000 made to winning payees in a tax year. This procedure would be effective for payments made on or after March 4, 2008.

But wait. This nightmare might not come to pass. Reports I’ve received tell me that the IRS is going to back off on the requirement that poker tournament sponsors must withhold 25 percent on tournament winnings.

I have no additional details, no official statements from the IRS, but I do have good sources. And while this isn’t a done deal yet, from what I’m hearing this withholding requirement won’t see the light of day.

Don’t go out and celebrate just yet. But it is good news.

Wednesday, October 10, 2007

Global Poker Strategic Thinking Societies Hit the Ground Running


Back on August 14 I blogged about Harvard Law School professor Charles Nesson’s plan to organize poker strategic thinking societies at universities and secondary schools. At an international conference called State of Play on August 19 in Singapore, Nesson advanced the idea that poker can teach everything from basic life skills to war games at military colleges.


Now students at several top universities are forming poker clubs as part of Nesson’s Global Poker Strategic Thinking Society (GPSTS) in preparation for a national collegiate team poker tournament and conference next year that’s aimed at promoting poker’s educational benefits.

Nesson hopes that poker societies will reach the point where they have an NCAA-style championship in team poker for American universities. Nesson also envisions an open online curriculum centered on poker that will draw the brightest minds together to promote open education and Internet democracy.

Harvard Law School formally approved the GPSTS as an official student organization and sixty-two Harvard Law students signed up. GPSTS chapters are now being formed at Penn State, UCLA, USC, Stanford, Brown, Tufts, and Boston University, as well as internationally at universities in Singapore, Finland, and the United Kingdom. The goal is to have at least two dozen chapters by the end of the academic year.

Harvard is planning several academic panels to explore poker as a tool for learning. The first panel is set for Oct. 15 and will focus on life skills, with Howard Lederer and Crandall Addington on the panel.

On Oct. 16, Harvard's GPSTS will discuss one of the topics I’ve written about extensively over the past two years: the World Trade Organization dispute over the legality of online poker and other forms of online gaming.

The first school-versus-school poker matchup will take place November 16 between the Harvard and Yale chapters of the society the night before the Harvard-Yale football game. On November 30, USC and UCLA will have a similar match on the eve of their football game.

An Intercollegiate Poker Face-off is planned for spring 2008, as universities face off to crown a collegiate team champion.

Tuesday, October 09, 2007

2008 WSOP Dates Announced


Harrah’s Entertainment Inc. announced today that the 39th annual World Series of Poker will again be held at the Rio All-Suite Hotel & Casino in Las Vegas from May 30 through July 17, 2008.

“The team is still hard at work on the schedule of events for next year, but we’ve received so many requests for the dates that we decided to announce them now,” said Jeffrey Pollack, WSOP Commissioner.

“We’ll actually open the WSOP tournament room the week of May 26th for two special events,” said Geno Iafrate, vice president and assistant general manager of the Rio. “This ‘soft opening’ will give players a chance to register early and avoid the lines we had last year during opening weekend—our busiest time.”

More WSOP information is available at http://www.worldseriesofpoker.com/.

Monday, October 08, 2007

A Quickie for Pam Anderson and Rick Salomon


Pammie Marries Rick Salomon
Between her performances in Hans Klok's The Beauty of Magic at Las Vegas’ Planet Hollywood, Pamela Anderson married Rick Salomon, who now has two claims to fame. A few weeks ago he paid off a $250,000 gambling debt that Anderson incurred. In exchange for Salomon paying off her quarter-mil debt, she agreed to have sex with him.
In the process of that sex-for-lots-of-money exchange, they fell in love and have been inseparable ever since. Salomon—a poker player—is better known as the co-star of the infamous Paris Hilton sex tape, One Night in Paris.

A Beginner's Guide to Pammie Watching: The Chronology
For all of you who might be new to Pammie watching, here’s the chronology. Anderson was married to Motley Crue drummer Tommy Lee. They made a famous sex tape. Then she married Kid Rock. Tommy and Kid Rock recently got into a fist fight. Pam’s new hubbie, Salomon, is famous for the sex tape he made with Paris Hilton.
Although Salomon was previously married to Shannen Doherty, there’s no sex tape story there; at least we don’t think there is. We don’t know whether Anderson and Salomon plan to make a sex tape of their current honeymoon, but if we find out, we’ll let you know.

Pammie Fals in Love with Poker
Somewhere along the line Pamela developed an interest in poker and even had her own online poker site for a while. That was about the time she was married to Kid Rock. It’s not clear whether the marriage outlasted her fling with poker or vice-versa, but her marriage to Kid Rock overlapped the poker phase of her life and both lasted about three months.

Donut Holes Instead of Wedding Cake: Is it the New Thing?
According to People Magazine, Anderson wore a white denim Valentino dress and the vows were exchanged between Klok’s 7 p.m. and 10 p.m. shows. Anderson and Salomon didn't have a wedding cake. Given the short lead time, a fake cardboard cake set the stage for jelly donuts or donut holes, depending on the reports you read, which were served instead of wedding cake to the 40 or so guests in attendance.

The Over/Under on Pammie's Latest Marriage
I’m setting the over/under on this latest marriage at six months, so for all you guys out there with a Pammie fixation, please bide your time. You might be next.

The Big Winner
The biggest winner here is Hans Klok. With all the publicity Pamela Anderson generated lately, Klok’s show—featuring Pammie as his assistant—is probably sold out every night of the week.

Charges Reduced in "Murder by Snake" Case


Remember the murder by snake case that I reported about back on August 20? Herbert Paul Beck, 56, and Christopher Lee Steelman, 34, were charged with conspiracy to commit murder after the two Colorado men allegedly tried to kill Matthew Sowash, owner of Amateur Poker Tour, to collect a debt by using rattlesnakes as weapons.

According to the Jefferson County sheriff's office, Sowash owed Beck and Steelman $60,000. Sowash, whose company runs poker games in Denver area bars, was to have his legs placed into a specially constructed wooden box that held the snakes. The box was built so his legs could be inserted but not removed.
Now some of the charges against Steelman and Beck were dropped, including conspiracy to commit murder and kidnapping. Charges of felony extortion are still in place, but bail was lowered from $500,000 to $10,000.

Why did they drop these charges without a plea bargain as a trade off? Who knows? While SWAT teams in Texas are busily busting poker players, Colorado officials are dropping charges against a snaky pair—pun intended—like Steelman and Beck.

I guess I’m looking for logic in all the wrong places. All I’m finding is a box full of snakes.

Houston SWAT team busts illegal poker room


It’s beginning to look like the Houston police are copying their Dallas cousins. A few months ago, the internet was awash with stories about the Dallas SWAT team busting illegal poker games, knocking down doors, and scaring the bejeesus out of poker players who don’t represent a threat to anyone—especially not to law enforcement.

Last Wednesday the The Houston Police Department's Vice Division, accompanied by the SWAT team, raided an illegal poker game at The Palms Poker Room. Thirteen people were arrested, including game organizers and even dealers. While none of the players were arrested, several were given subpoenas to appear in court. The Houston Vice Division also confiscated all the cash on the premises.

It looks like the police will lean heavily on players to testify against the dealers and management of the poker room.

If this is anything like Dallas, it also looks like this will be the first in a series of poker room raids and arrests.
Here is another police event that provides no public safety, wastes valuable police resources, and while it might make good news footage for TV, accomplishes absolutely nothing of value and provides nothing of benefit to anyone. Unfortunatley, this is probably just a little taste of things to come and if you're a Houston poker player, it's probably time to play online—at least until the heat dies down.

Thursday, October 04, 2007

Strong Reaction from Al D'Amato and Others on Proposed Fed Rules to Implement UIGEA


When the Department of the Treasury and the Board of Governors of the Federal Reserve System announced the release of a joint proposed rule to implement the Unlawful Internet Gambling Enforcement Act (UIGEA) a few days ago, the Poker Players Alliance (PPA) responded with a strong statement:

Former U.S. Senator Alfonse D'Amato, who is now the PPA’s Chairman said, "Poker players, the American banking community, and anyone who values Internet and personal freedoms should be troubled by this intrusive rule. Deputizing private U.S. financial institutions to determine what are lawful and unlawful transactions will lead to the monitoring and blocking of the personal and lawful financial transactions of many of their customers who wish to play games of skill, like poker, on the internet. This seems more like the actions of Iran than the USA. We are hopeful that sensibility will prevail before these rules are finalized."

He added, "Congress should act immediately to pass legislation which will effectively regulate Internet poker and provide the proper safeguards to prevent minors from participating in Internet gaming, preserve states' rights and ensure privacy and security of online transactions."

The stir created by the feds proposed rule might help Rep. Barney Frank’s Internet Gambling Enforcement Act gain additional traction in Congress. Although Frank’s bill has 37 cosponsors, it has not yet received the support it needs to ensure passage.

The PPA wasn’t the only group to weigh in on the proposed rule. The Interactive Media Entertainment & Gaming Association (iMEGA) claims these regulations will put the kibosh on internet innovation and stifle the United States’ content-neutral financial system.

In a statement released earlier, iMEGA said, "The regulations, while they are supposed to provide for a system which identifies legal transactions between persons who are allowed to enjoy Interactive gaming, instead virtually condemn the system to complete elimination because of the payment system providers’ risk of criminal penalties and injunction against further financial transactions if they guess wrong."

Stick around; there’s seldom a dull moment in this war of words.

Tuesday, October 02, 2007

Feds Issue UIGEA Regulations


The Feds finally got around to promulgating regulations that will implement the Unlawful Internet Gaming Enforcement Act (UIGEA), a law that was enacted into law in the dead of night, with no discussion, and only after being tacked on to a “must pass” port security bill.

The Treasury Department and the Federal Reserve issued a joint rule a few days ago. According to a statement they released, the regs are "reasonably designed to prevent payments being made to gambling businesses in connection with unlawful Internet gambling."

The US regulations make banks responsible for blocking credit and debit card payments for online gambling. It also bars online casinos and other bank customers from receiving Internet gambling proceeds. Barring online casinos is more show than go, however, since online casinos are all located offshore—beyond the law's reach.

Monday’s regulations did not require US banks to block checks that are written to online casinos. When UIGEA was first passed, we predicted that ensuing regulations would be some sort of coding and blocking scheme that could easily be applied to electronic transactions, but which could not be applied to hand-written checks—at least not without requiring banks to hire oodles of staff to examine millions of checks by hand.

The banking industry was dead set against regulations that would have required them to block checks, and the proposed regulations address this concern. The Feds agreed that it was "not reasonably practical" for the banks to identify and block customers from sending checks and making some other types of transfers.

The Treasury Department and Federal Reserve set a December 12 deadline for public comments on their proposal. Following this public comment period, the Feds will issue final regulations.

The proposed rule is posted at
http://www.treas.gov/press/releases/reports/noticeofproposedrule.pdf

While the US has taken the position that any bets made in the United States—even those made at online casinos—violate the law, the United States’ action was challenged as an unfair trade practice at the World Trade Organization (WTO). The WTO ruled in favor of the complaint by Antigua, and that decision was upheld on appeal. You can read a lot more about that issue right here on this blog.

Monday, October 01, 2007

Is Pam Anderson About to Marry the Guy She Had Sex with to Pay Off a $250,000 Poker Debt?


No poker blog is complete without a good Pamela Anderson story every few weeks. They say that good things come in threes, and now a third marriage for Pamela Anderson appears imminent. Pam and Rick Salomon have applied for a marriage license in Las Vegas, according to a variety of sources.


KVBC-Las Vegas reported that the pair got their license on Saturday, and then headed back to Anderson's Malibu beach house, where they have been staying. On September 13, I reported that Anderson paid off a $250,000 poker debt with sexual favors, and fell in love with Salomon in the process.

Anderson was previously married to singer Kid Rock and Motley Crue drummer Tommy Lee. Salomon is divorced from actress Shannen Doherty. He also appeared in the One Night in Paris video with Paris Hilton.

Since Anderson’s video with Tommy Lee is almost legendary at this point, and starring in sex videos is a skill set they both have, I’m wondering if the couple has any plans to star in a new DVD. If they get married, it’s something that could keep them occupied on their honeymoon.