Poker Cheating and Casino Cheating Blog: American Roulette

My New "Beat The Heat" Blackjack Card Counting Home-Training DVD Is Now Available!

2008-08-20T12:37:00.000-07:00

For those of you who want to be the best at professional blackjack card counting and don't have the time or resources to attend my training seminars, the next best thing is purchasing my Home-Training Blackjack Card Counting DVD. Not only will it teach you the best counting methods, it will also train you in the all important facets of card counting such as how to properly obtain chips, set up the casino, camouflage your play and, extremely important, how to cash out your chips without taking heat. Click here for details.

Alleged Online Master Poker Cheating Living Large while Mocking Online Poker Community!

2008-08-20T08:14:00.000-07:00

ALLEGED FRAUDSTER LIVING LARGE IN COSTA RICA

Does Crime Pay?

With the Absolute Poker and UltimateBet cheating scandals still very much centre stage for the online poker player community, it's perhaps not surprising that characters allegedly involved in the scandal attract media coverage whenever they surface. One such individual is "AJ Green", also known as Allan Grimard, who was the subject of much discussion and conjecture at the height of the "hole card" debacle on which players still seek closure.

This week the online gambling information portal Gambling911 reported that Grimard is apparently living it large in Costa Rica, home to many online gambling companies. The mysterious Grimard is reported to be building a large home in Los Suenos, an upmarket Pacific coast resort in the area, driving a new and expensive SUV and sailing a "huge" yacht.

How a once low level supervisor at an online gambling company who later is alleged to have become involved with the poker company has managed to amass sufficient wealth to indulge in these projects remains a mystery. It has to be noted that Absolute Poker has not publicly identified Grimard as being involved in the scandal despite lengthy investigations by Gaming Associates and the Kahnawake Gaming Commission.

Canadian born Grimard is alleged to have been a close college friend of the man widely regarded as the Absolute Poker founder, Scott Tom, and this was another familiar name that surfaced in the 911 report. The information portal claims that the AP investor for which a sealed US indictment is being held is Tom's father. It is not clear what charges are involved, and it does not appear that the indictment has achieved wide public coverage despite the multi-million dollar nature of the Absolute Poker hole card cheating scandal (see previous Online-Casinos.com/InfoPowa reports).

911 claims that it has been informed by insiders that none of Absolute Poker's management or investors are to travel to the United States for fear of further indictments, although Scott Tom is no longer involved with the company, which is now owned by former Kahnawake chief Joe Norton's Tokwiro Enterprises group.

Absolute Poker and UltimateBet recently announced a planned merger into a new, re-branded super-network titled Cereus. This is perhaps an unfortunate choice of branding, described as it is by Wikipedia as either a cactus or "Bacillus cereus - an endemic, soil-dwelling, Gram-positive, rod-shaped, beta hemolytic bacteria that causes foodborne illness!"

In other related developments, the Kahnawake Gaming Commission, which licenses both Absolute Poker and UltimateBet, recently hired a former New Jersey Division of Gaming Enforcement director, and respected online gambling regulatory consultant, Frank Catania, to head a team investigating the cheating scandals at the two sites (see previous Online-Casinos.com/InfoPowa report).

Judging by the high posting traffic across leading online poker message boards, the poker playing community does not appear to have achieved satisfactory closure on the controversial issues, probably the worst that have occurred in the relatively short history of online poker.

Although Tokwiro brought in the services of Gaming Associates to assess and recommend remedial measures, paid a $500 000 fine to the KGC in respect of the Absolute Poker debacle and addressed the complaints of prejudiced players, scepticism and doubt remains over the apparent lack of public exposure and pursuit of the perpetrators of the massive frauds. Many others emphasise the initial denialist reaction of the sites when players complained of cheating, something that was conclusively proved by expert player investigations, resulting in Tokwiro finally taking action.

Online Gambling and Poker Cheating Linked To Some Brutal Worldwide Murders!

2008-08-19T08:04:00.000-07:00

Whether good or bad, individuals associated with the world of online gambling have met some of the most brutal of deaths. And this is not to say that all such slayings were directly related to the industry. One of the most disturbing murders, that of Adam Anhang, had absolutely nothing to do with Internet gambling, yet his death resonated throughout the community and has remained difficult to talk about even three years later.

The former CFO of Dr. Ho and CEO of CWC Gaming, Adam Anhang, was brutally stabbed to death September 23, 2005 in San Juan, Puerto Rico. His calculated slaying was like something out of an Alfred Hitchcock film. The murder occurred at a street intersection of Calle de la Luna in Historic Old San Juan, which is typically bustling with tourists and locals (even at the time of this murder took place). The frail man was stabbed nearly a dozen time over his entire body while walking alongside his estranged wife.

A Dateline NBC report profiled Jonathan Roman Rivera, 22, the accused murderer who was found guilty in a San Juan courthouse. But in a shocking twist, US law enforcement agents determined that Rivera was not the murderer. He just looked like him...and as it turns out, that may have been the plan all along. Aurea Vazquez, Anhangs's wife, had hired someone to mercilessly "off" her husband.

Anhang was one of the good guys, a pioneering force in the online sector of the gaming industry and he had benefited legitimately from it. Some have not capitalized as legitimately as Adam Anhang however. In recent days, there have been reports on an especially cold blooded murder that has connections to the darker side of online gambling. A billion dollar industry does attract a rather high percentage of scammers and it appears that Yang Zhen Xing fell right into this trap. Investigators are still trying to determine why Yang Zhen Xing and his girlfriend were found brutally murdered in their Newcastle West End flat in what was described as a "frenzied knife attack", quite possibly related to a gambling scam. At least one of the victims had been tortured for more than an hour.

But all implications are that the couple was involved in an online gambling scam with connections to betting syndicates in China. One line of inquiry involves claims Mr Zhen recruited spectators online to send live updates from UK football matches, according to a BBC report. It is claimed syndicates in China, where matches are televised a minute behind, could take advantage of this. Det Supt Wade stated: "Our officers have the support of forces across the country in their efforts to bring the killer or killers of Xi Zhou and Zhen Xing Yang to justice. Detective Wade said that investigators were sifting through phone records to determine a time of the murder and who the couple may have contacted prior to their bloody murder.

It was just last year that an online gambling employee in Costa Rica was murdered for reportedly stealing a customer list and scamming the customers whose contact information was part of the said list. Two Canadians and a Costa Rican were charged in the murder of Luis Muñoz Vargas. Agents allege that two Canadians along with the Costa Rican bodyguard set up a meeting with the victim a year ago on the pretext of purchasing a car. When Vargas arrived for the meeting in Desamparados centro, he was greeted with bullets and died later in hospital.

Like the Zhen Xing Yang slaying, the murders of Ernie Scherer and his wife Charlene Abendroth remain unsolved a number of months after their bodies were found. Both had received numerous stab wounds. Ernie was popular on the poker circuit and his death sent shockwaves throughout the poker playing community.

Whatever the case, my opinion is that, like in any shady business, violence and death will always be one step behind the scams.

Can Casinos and Poker Rooms Make Cheats Out of You?

2008-08-18T07:57:00.000-07:00

Sometimes when you're playing in a casino, things happen that force you to decide whether or not you want to become a poker or a casino cheat. By that I mean mistakes are often made by dealers or other casino personnel in your favor, mainly that you are paid more money than you should have been on any given bet or circumstance. If you accept the unintentional "favor" and don't say anything, does this make you a cheat...or a "passive cheat" to say the least? In my opinion it does not, as most ordinary people out having a good time in casinos would probably just keep the extra payout and say nothing. After all, no one is getting hurt, especially the casino. What do you think?

I came across an interesting survey in the Chicago Herald about this question. Here it follows:

Every once in a while at the casino, the dealer, or the cashier, or another player will do you a little "favor." Sometimes another customer will receive one of these favors while you look on. There's only one little hitch with all of these "favors" however. They were mistakes - and weren't supposed to happen!

Back on July 25, I asked you, the reader whether you'd accept any or all of these mistakes/favors if they were to happen to you. This is how you replied.

Favor #1: You got paid on a blackjack loser.

Consensus: Keep the money. Over 80 percent of the readers said they would keep a mistaken payoff on their losing blackjack hand. Their reasons were that since the house has a built-in advantage anyway, it's OK to accept a financial favor that results from the casino not doing its job correctly. Very few felt obliged to return the casino's chips and their own to the dealer.

One contrarian however, stated that there are many legal advantages obtainable at blackjack, so why go outside the rules to accept one? Another said it was his goal to "beat 'em" - not "cheat 'em" and would return the money.

Favor #2: Dealer forgot to pick up your losing craps prop.

Consensus: Let it ride. Here too, most readers said they would happily accept a free second chance at winning their craps proposition bet, such as on the "hard 8." The same general sentiments applied as with the blackjack hand above, but there were a few dissenters.

One reader cited how some craps dealers attentively coach the players on how to bet appropriate amounts so as to receive maximum odds on their wagers. This reader felt allowing a proposition loser to remain in action would constitute "stepping over the line."

Favor #3: You found a $100 chip beneath a high roller's feet.

Consensus: Split decision. This seemed to be the stickiest scenario of all. Some said if it looked as if the chip belonged to that player, they would simply point it out to him. Others felt was a simple "finder's/keepers" situation. Still others said they would get security involved and let them decide.

Favor #4: You saw a player receive more chips than his buy-in.

Consensus: Unanimously, "Not my business." Everyone said it is the casino's responsibility to count up the buy-in accurately and give the correct number of chips to a new player.

Some even emphasized that they would remain silent to avoid the possibility of a confrontation with the customer who was buying in.

Favor #5: The wrong poker hand was awarded the pot at your table.

Consensus: Split decision. I was surprised at how many readers said they would sit by and allow the pot to be pushed to a player holding the losing poker hand. Only about half said they would stop the dealer and point out the correct winning hand.

The official rule by the way, is that once the cards are shown down, any player at the table has the full right to point out the winning hand.

Also, the house bears no financial responsibility in this matter, and once the cards are mucked (tossed into the discards), the transaction is an officially done deal.

Favor #6: Cashier at the cage gave you $100 too much.

Consensus: Split decision. About 60 percent of the readers said they would return the overpayment at the cashier's cage for various reasons. Some felt the till would come up short and that cashier might either be docked or fired.

Others simply felt bound by their honor not to accept an overpayment in cash for their chips.

The other side reasoned that the casinos get way too much of the customers' money anyway, and any "refund" the players can get should happily be kept.

Send Me $4.95 And I’ll Show You How To Get Rich—Guaranteed!

2008-08-16T07:54:00.000-07:00

You think it’s a scam, right? Well, you’re right, and it’s a good one. How good? Well, believe it or not, it’s the best scam I have ever heard of. Why? Because it’s a license to steal! And even better than that, it’s completely legal. You can’t get busted.

Here’s how it works:

You place an ad in the personals of any major newspaper or on the Internet. Your ad reads: “Send Me $4.95 And I’ll Show You How To Get Rich—Guaranteed!” Then when people send you the $4.95, you send them a note that reads: “See, That’s How You Get Rich!”

Did you get it? Well, if not, what you’re doing is simply telling the people who sent you the $4.95 that if they do the same thing, place the same exact ad in newspapers or on the Internet, they will have the same success you did, which is proved by the very fact that they sent you the money in the first place. Of course you’re thinking that only extreme suckers would fall for the ploy—but think again! The first time I heard of this scam was in the 1984, long before the arrival of the Internet. The same exact ad was placed in major newspapers in major cities all over the United States. More than 200,000 Americans sent the $4.95—in cash, personal bank checks and US postal money orders to the single person who’d placed the ad in all those newspapers. The culprit turned out to be an unemployed gas station attendant who desperately needed money to pay his rent. When the magnitude of the scam came to light, several federal prosecutors in different US jurisdictions found piles of evidence on their desks, mainly newspaper ads, cancelled checks and money order receipts. But not one prosecutor went ahead and filed charges against the gas station attendant. Why? Because they concluded that he had done nothing against the law. His ad stated that if you sent him $4.95 he would show you how to get rich. Well, by replying to his senders that “this is how you get rich,” the clever gas station attendant satisfied his promise of guarantee, and the fact that people actually sent him the money was enough proof that his ruse was indeed not a sham!

Believe it or not, the “send me money and I’ll show you how to get rich” scam has been repeated successfully time and again. It is much better than all those Nigerian and Eastern European Internet scams asking people to pay up-front litigation fees to claim multi-million-dollar inheritances and lottery prizes.

Oh, one more thing: just send me $1.95 and I’ll show you how to get rich—guaranteed!
LOL!

Latest Online Poker Cheat, Natalie 'TheV0id' Teltscher, Confesses!

2008-08-14T09:00:00.000-07:00

'TheV0id' Admits WCOOP Cheating

According to a press release by PokerStars, Natalie 'TheV0id' Teltscher confessed the cheating at the Main Event of the PokerStars World Championship of Online Poker (WCOOP) and withdrew her claim against her disqualification.

In 2007, 'TheV0id' won the WCOOP Main Event. In the aftermath, PokerStars noticed irregularities in her account and decided after an internal inspection to disqualify the account and 'TheV0id'. The prize money of about $1.2M was stripped from her and handed over to the hitherto runner-up 'ka$ino'. All the other players were upgraded by one rank as well.

The Briton Natalie Teltscher went to court against this decision. There she had to admit though that she didn't play herself under the account 'TheV0id'. A not further named "agent" had used the account and supposedly used several other accounts during the tournament. At first it was assumed that Mark Teltscher is this agent, or at least involved in the case as he is the brother of the plaintiff and a poker pro himself. A confirmation of this assumption failed to materialise though.

Below the press report:

"PokerStars™ are pleased to announce that Natalie Teltscher has recently withdrawn her claim in the Isle of Man Courts against PokerStars.

Furthermore, in discontinuing her claim, she has agreed to contribute a sum towards the legal costs incurred by PokerStars in this matter.

Ms Teltscher brought her claim against PokerStars because she was disqualified from first place of the 2007 WCOOP Main Event after PokerStars internal investigations demonstrated beyond doubt that she had not played on the account. On her disqualification all other players were moved one place higher in the prize table and the money confiscated from her account, TheV0id, was redistributed in full, according to the amended tournament placings.

Ms Teltscher initially claimed that she had played the account. However, when faced with the results from PokerStars' investigation she eventually admitted she hadn't played.

The decision of Ms Teltscher to withdraw her claim fully vindicates
PokerStars' decision to disqualify her from the tournament and subsequently defend the claim, actions which were taken in order to protect the integrity of the games on offer at PokerStars."

Golden Card Counting Opportunities Abound In Casinos Everywhere!

2008-08-11T08:30:00.000-07:00

Ever since the ingenious blackjack card counting strategies of Edward O. Thorpe, the father of modern card counting and author of the revolutionary card counting bible “Beat The Dealer,” and Ken Uston, the innovator of blackjack card counting team-play and author of “Million Dollar Blackjack,” became known to casinos, a worldwide casino crackdown on card counters went into effect. It started in the late 1970s and has continued to the present day—or has it? In fact, what is happening now across the world, and especially in Las Vegas and Atlantic city, is that casinos are drastically altering their outlooks and policies concerning card counters. Believe it not, not only are most casinos in the US and UK relaxing their restrictive attitudes toward card counters, many are actually inviting them to come and play at their blackjack tables! Why this sudden change in latitude? Some of you probably guessed it: it’s due to the tremendous success and publicity surrounding the Kevin Spacey blackjack movie “21.” After having seen the movie, everyone and his grandmother wants to rush out to Vegas and become a professional blackjack card counter—and make a killing! But it is possible? Apparently the casinos have decided to make it possible.

For years, or even decades, their attitude has been “absolutely no tolerance of card counters.” Everything from casino security backroom strong-arm tactics to actual Gaming Control Board Enforcement Division arrests (mainly illegal ones as per the James Grosjean case) had been carried out against card counters, and even wannabe card counters. But suddenly casinos have decided to cash in on the newfound blackjack card counting publicity. How? By letting the counters play! Their new consensus, and I agree with it, is that the vast majority of card counters and so-called card counters will only lose their money. Only a small percentage of even what can be considered professional card counting teams will make any serious money in the long-run. So casinos have now been adopting a policy of “let everyone play; we will lose to some really professional card counting teams but we will win tons from those professional card counting “pretenders.” To me their new policy makes great sense, and the casinos will only reap more profits due to the success and publicity of the film “21” based on the MIT Blackjack Team and their new open-door policy.

So, what this really means for those few who are absolutely dedicated and disciplined enough to make a go out of professional card-counting is that golden opportunities to make money will abound—and I think for a long time to come! If you don’t want to take my word for it, take Jeff Murphy’s word for it. Murphy, a casino table games expert as well as an ex-surveillance director and a frequent contributor to Willie Allison’s World Game Protection Conference Newsletter that is sent out to casino surveillance departments all over the world, (and also a personal enemy of mine even though we have never met), wrote in the August edition of the WGPC Newsletter that casinos across the world should indeed welcome card counters with open arms! And don’t forget that his writings are targeted directly to casino executives who make decisions regarding the protection of casino assets, which, according to Murphy, are not threatened by card counters. And, as much as I hate to agree with Murphy on anything, I have to agree with him here: card counters as a whole will never threaten casinos—but for those few who have what it takes, there is indeed a rainbow at the end of the Yellow Brick Road.

For those of you who are interested in more about professional card counting and training, see my blackjack card counting page.

The Luxury Of Being An Online Poker Cheat

2008-08-11T08:26:00.000-07:00

The Luxury of Online Poker Cheating really is just that. As most of you are well aware, the past year has been filled with huge online poker scams happening at top sites such as Absolute Poker, UltimateBet and Full Tilt. We have heard about $500,000fines, rebukes from the Kahnawake Online Gaming Commission (which to many is a complete joke), comments from ex-US senators such as Alphonse D’Amato and even signings of players guilty of online poker cheating to represent online poker rooms! But the one thing we have NOT heard about in the wake of all these online poker cheat scams is arrests. That’s right, not a single person has been arrested for online poker cheating in any of these major scams, nor am I aware of a single person anywhere in the world ever being arrested for cheating at online poker.

But in the real brick and mortar world of casinos and poker rooms such is not the case. In the past year there have been many major cheating scams as well, the most infamous of which was the US/Canadian dealer/player collusion false shuffle baccarat scam. The only difference between an online casino or poker cheating scam and a real brick and mortar poker or casino cheating scam is that when you hear about the latter, you always hear about the arrests—and even often the mention of FBI or even Interpol involvement in the case! So, if I were a cheating man—and some of you may know that I once was!—LOL!—I would surely stake my efforts to cheating online poker and casinos rather than real ones. Why? Because I’d truly have nothing to lose!

UK Casino Rocked By Insider Roulette Scam!

2008-08-07T12:21:00.000-07:00

Crooked Roulette Dealer Rigged £5,000 Win For His Niece at Newcastle Stanley Casino!

THEY say the house always wins, but not if crooked croupier Graham Magee has anything to do with it.

The 28-year-old fiddled his roulette wheel at Newcastle’s Stanley Casino so his niece could rake in thousands.

Magee, of Holme Avenue, Walker, made sure the ball landed on the black 28 when he knew niece Anneka Strachan had placed money on that number.

With the help of girlfriend and fellow casino worker Shelley Butters, 19, he fixed it for Strachan to pocket more than £5,000 through her “bets”.

But the trio were snared when security staff got suspicious at the bumper payout and started monitoring Magee’s tables.

Now the chips are down for the casino con artists after they were convicted of the high-stakes heist at Newcastle Magistrates’ Court.

Edith Sanderson, prosecuting, said: “Mr Magee was employed as a croupier. Miss Butters was also employed at the casino and Miss Strachan is a member.

“On April 24, 2007, Mr Magee and Miss Butters were working at the casino and Miss Strachan was placing cash bets on the roulette table that Mr Magee was in charge of.

“Miss Strachan had won a total of £5,132 in cash and had left the casino.”

Ms Sanderson told how police were called in after security staff monitoring table payouts got suspicious.

Ms Sanderson added: “CCTV was seized and clearly shows that Mr Magee had fixed the spins by planting the ball into the black 28 slot, allowing Miss Strachan to win.

“Miss Butters was seen talking to both of them during the incident. Miss Butters was arrested and she was interviewed and admitted that her boyfriend Mr Magee and his niece Miss Strachan had planned to fix the game to enable Miss Strachan to win more than £5,000 and they had said they would split the money between them.”

Ms Sanderson told how Magee was arrested and interviewed after his girlfriend. She said: “He fully admitted he had had the idea to fix the game because he was annoyed at the way he was treated at work.

“He said he intended sharing the money with Miss Strachan and Miss Butters.”

The court was told former heroin addict Strachan, 22, of Carville Road, Wallsend, tested positive for cocaine when she was arrested in connection with the scam.

The mother-of-one admitted the theft when she appeared before city magistrates.

Magee and Butters, of Brock Farm Court, North Shields, pleaded guilty to theft from their employer and had been warned they faced jail.

District judge Stephen Earl said: “I have read the reports, which were quite properly placed in the all-options band because clearly this was a planned and executed offence, although not the most sophisticated: putting the right ball in the right place for them to win and doing it blatantly.

“When it came to their attention, you were caught.

“It comes down to this, if you’re going to win, win small because the house expects to win and you guys should know that better than anyone.

“So, the first thing they do when you win £5,000, they will look at it, especially when after one spin you win that much. It will be looked at and you are very lucky not to be charged with a conspiracy charge.”

Gerry Bass, defending Strachan, said: “It is not my position to put the boot in but this lady wasn’t employed and she was invited to take part in the theft.

“She became a member to get involved. She filled in the form 24 hours before it took place.”

John Moran, defending Butters and Magee, said: “In respect of Butters, she is a lady of good character and has stayed out of trouble for the rest of her life up to this point.

“By his own admission, this was Magee’s idea. It was suggested to Butters by her boyfriend and she’s gone along with it. She has been the go-between between Magee and Strachan.”

Magee, now jobless, and Butters, who earns £175 a week, were told they were lucky to avoid jail as they were hit with 16-week sentences, suspended for 18 months. During that time, they must carry out 140 hours’ community service.

Strachan was given a 12-month community order with supervision requirements and has a 28-day curfew, meaning she must be in between 9pm and 7am.

All three must pay £260 compensation to the casino.

Harrah´s Victimized By Another Inside Cheat Scam!

2008-08-07T12:12:00.000-07:00

This Time The Casino Cheat Scam Is in Harrah´s Chester, Pennsylvania Casino

Woman pleads guilty in Harrah's scheme.

MEDIA COURTHOUSE - A 26-year-old woman who made her own luck at Harrah's Casino in Chester by faking more than $30,000 worth of machine payouts, pleaded guilty July 7 to a charge of theft by unlawful taking. Qiana Dana Wright of Philadelphia was formally sentenced by Judge Ann Osborne to serve six to 23 months in jail. The plea agreement was ironed out by Deputy District Attorney Gregory Hurchalla and defense attorney Francis Holloran. Hurchalla said that Wright is barred from working in the gaming industry. He said her bail money was forfeited as part of her restitution.
Wright admitted to authorities, that while working as a slot host, she wrote false credited machine payouts on at least 11 occasions between Aug. 16 and Aug. 18, 2007, for $11,309. Hurchalla said it was later shown that she stole a total of $30,181.
He said as a slot host, she would be one who would identify a winner and then write out a form for payment. However, while working at the casino she admitted she would either casually walk the casino floor and write up the phony vouchers or go to an area and lean over the note pad, as to avoid being observed by the surveillance camera. She later cashed in phony vouchers. "This is the largest theft case to come out of Harrah's since the casino opened in Chester," said Hurchalla.

Tips For Playing Roulette

2008-08-07T12:07:00.000-07:00

Roulette is a relatively easy game to play, for both beginners (since table bet minimums are fairly low and the rules of the game are pretty simple) to the experienced gambler who enjoys a classic casino game.

While Roulette’s popularity in the U.S. is waning – due to stiff competition from other more profitable and entertaining games – in Europe it is seen as one of the more popular games at casinos.

One of the reasons is the difference in the house edge (a long-term advantage to the land based or online casino). In the U.S. the house edge is much higher (at 5.25%) due to the two extra numbers on the wheel (0 and 00). European players only face a house edge of 1.4% with only the 0 on their wheel. So if you can, play the European style wheel instead!

Another good tip to know is that the house cannot be beaten. Although there are many different strategies and attempts to beat the wheel (the Fibonacci, Martingale or Cancellation strategies to name a few), none have been able to statistically overcome the casino’s advantage. This however doesn’t mean you can’t play these strategies yourself or even (hopefully) be successful at Roulette!

One sure way to have fun playing roulette is by betting on the more simple bets like red or black, odd or even or even your favourite number or your age. This tactic ensures you’re still in the game but aren’t risking a lot of your chips in one bet!

Major Casino Cheating Ring Busted At Harrah´s In North Carolina!

2008-08-06T08:58:00.000-07:00

Cheating ring thwarted at Harrah’s Cherokee Casino

CHEROKEE, North Carolina – An electronic card game dealer and 11 gamblers are suspects in a cheating ring that took $286,000 from Harrah’s Cherokee Casino, tribal gaming and police officials said today.

No one has been arrested but investigators have questioned the 26-year-old card dealer, said Chief Ben Reed of the Cherokee Indian Police Department.

The FBI has been contacted, he said.

A two-week internal investigation broke up the ring, said Patrick Lambert, executive director of the Cherokee Tribal Gaming Commission, which regulates gambling operations at the casino. Police were called to take over last week, he said.

The casino offers digital blackjack and a digital game based on baccarat. Cheating in the traditional sense is impossible because the card games are all electronic, with a dealer who pushes a button to “deal” cards that show up on small screens in front of each player at the table.

The cheating ring operated with the dealer paying off players for wins that never occurred, Lambert said. The players then took their chips to the counter and received cash. The dealer got a kickback, he said.

The ring operated for about three weeks.

“We will be pushing for full prosecution of all those involved in this theft,” Lambert said in a written statement about the matter. “We want to assure the public that this scheme never put any patrons or the public in danger and this amounted to a system where a single employee had decided to help a group of players cheat at the table games.”

Lambert said computer programs, which match money paid at the cashier counter with winnings on the gambling floor, first alerted casino officials to the problem.

He declined to discuss how casino officials identified the dealer. No other employees are suspected, he said.

Lambert did say that workers who handle money or chips at Harrah’s Cherokee must follow strict procedures designed to thwart any attempt at theft. The casino floor is constantly monitored by video cameras, he said.

The security measures are in place to create a safe and fair casino, Lambert said.

The ring marks the first time the casino has uncovered cheating. All of its other games are video poker type machines.

The FBI could take the case because it occurred on the Cherokee Indian Reservation, where federal authorities have jurisdiction over major crimes. Reed said he has not heard whether the agency will take over.

If it does not, the case will be handled in Cherokee Tribal Court.

The card dealer, who was an enrolled member of the Eastern Band of Cherokee Indians, could faces charges of embezzling, theft and conspiracy, the police chief said.

A spokeswoman at FBI office in Charlotte said the agency would neither confirm nor deny its involvement in the investigation.

Party Gaming Continues Its Excellence and Remains Virtually Cheat Free

2008-08-06T08:53:00.000-07:00

I have been blogging about player safety in internet poker for four years now and Party Poker has been one of the few sites that during this time has both avoided cheating scandals and consistently appeared on my Top-10 rankings for the safest poker sites. In addition to its clean record as far as cheating and player-accounts security are concerned, Party Poker has also been a leader in offering the best player sign-up bonuses as well as maintaining top of the line customer support and service, with online response times among the best in the online gaming industry.

Another field of excellence from Party Gaming is its online betting and sportsbook offering accurate wagering lines on various sporting and gaming events from all over the world including American, Australian and European professional leagues as well as wagering opportunities for popular lawn and pub games like cricket and darts. Just about all the action you can think of is waiting for you at Party Poker, so if you´re new to Internet Gambling or you´re a veteran looking for a change for the better, don´t hesiteate to sign up.

My advice is that you can feel safe and protected from cheating scandals when playing on Party Gaming´s sites.

Canadian Casino Fined For Employing Possible Cheating Dealer

2008-08-04T07:58:00.000-07:00

Provincial regulator fines Halifax casino for unauthorized dealer

Nova Scotia's Utility and Review Board has fined the operator of the casino in Halifax a total of $75,000 for four violations of provincial gaming regulations, one of which concerns the hiring of a dealer who may have been involved in cheating players and the casino where she previously worked.

The largest fine, $25,000, was in connection with the employment of a part-time dealer who had been turned down by the province for registration in 2005, presumably because of cheating allegations.

In Nova Scotia, provincial regulations state that all "gaming assistants" must be licensed by the regulatory authtories and can be turned down if it is believed the applicant may not follow the law or was withholding crucial information.

In a written decision dated July 31, the board is critical of Metropolitan Entertainment Group and its parent company, Great Canadian Gaming Corp. for giving the dealer a job when it was plain that she was not approved by the province.

The board says the woman worked as a card dealer between June 2005 and January 2007.

"It is difficult to understand how an individual who was refused registration as a gaming assistant could be employed at the Halifax Casino for any period of time, let alone the time frame noted above," the written decision says.

The board notes that the registration process is to protect gamblers from the possibility of cheating by casino employees.

Audit in question
The decision says the board is also concerned about an audit done by casino workers at the Halifax facility in October 2006 that did not meet provincial requirements.

Other violations that led to fines involved using an unregistered gaming supplier to replace a slot-machine bank sign and allowing an unauthorized employee trainer to conduct a training session in February 2007.

The fines were originally recommended to the Utility and Review Board by the casino operator, and the Alcohol and Gaming Division of the province's Labour Department.

The board increased the amount of two fines, citing the gravity of the offences.

Nova Scotia has two casinos, in Halifax and Sydney, both operated by Great Canadian Gaming Corp through its local subsidiary.

Great Canadian Gaming also operates casinos in British Columbia and the United States.

Tokwiro COO Paul Leggett Speaks About Online Poker Cheating Scandals

2008-08-02T09:31:00.000-07:00

Paul Leggett, Chief Operating Officer of Tokwiro, the parent company of Ultimate Bet and Absolute Poker, has spoken in detail about the scandal that has enveloped one of his online poker rooms. Tokwiro just released its findings to the Kahnawake Gaming Commission, which is the primary regulating body for Ultimate Bet. Leggett commented to the public, "There has never been any cover up in our investigation. We've made two statements listing the accounts that were involved and we made another statement last week regarding the completion of our investigation."

A bevy of names have been associated as being behind the scandal, but Leggett said he is unable to point fingers currently: "I get asked all the time why we can't name who cheated. There's nothing I would like better than to name the perpetrator's name, but our situation isn't that simple." Tokwiro is considering pursuing legal action as well and naming names now is against the advice of Leggett's counsel.

My question is: Is this an appeasing way to hide a coverup? And, legal action??? Is he kidding us??

Mohegan Sun Casino´s CEO Suggests Gaming Losses Could Be Tied To Cheating!

2008-08-02T09:26:00.000-07:00

Mohegan Sun's Take At The Tables A Bust

Mohegan Sun got beat up this quarter — not only with an expected fall in overall profits but at the blackjack tables as well.

The cards fell poorly for the Uncasville casino: Its table games hold percentage — the portion of gamblers' money the casino rakes in — fell to an all-time low of 11.6 percent in three months ending June 30, the Mohegan Tribal Gaming Authority reported Thursday.

With hundreds of thousands of gamblers betting hundreds of millions of dollars at the tables, the hold percentage has almost always hovered around 16 percent. Games like blackjack and craps produce a steady number of winners and losers over the long run, making this spring's dip all the more strange, when it comes to the odds.

"It really is just a string of extreme bad luck that we had at the table games," explained Mitchell Etess, Mohegan's president and CEO. "We have a lot of higher-level players, and we had some of them that were very lucky."

Bad Luck For The House Graphic Table games revenue dipped by 25 percent, from $101 million to $75 million, even though the amount of money in play on Mohegan tables rose 6.4 percent, to $650 million.

That fall, combined with slower slot machine betting because of the economic downturn, led to an 11 percent overall drop in gambling income, from $371 million to $330 million.

It's possible, but unlikely, that a single high-rolling gambler had a string of luck that caused the dip.

"It could happen for a couple of reasons," said David Schwartz, director of the Center for Gaming Research at the University of Nevada, Las Vegas. "People could just get lucky or there could be some kind of cheating going on."

Etess rejected the possibility of cheating. Mohegan closely monitors each table and watches trends across all games to determine whether players or employees are cheating the casino, he said.

"We are always concerned about that type of thing, but we don't believe that that's the problem in this quarter," he said.

And it's unlikely players are simply getting better at playing the games, Schwartz said, because if they knew the real probabilities of winning they probably wouldn't be playing.

A spokeswoman for Foxwoods, which does not report table game results, declined to say whether the casino has seen similar fluctuations in its hold percentages.

Ironically, one of Mohegan's own development strategies may be responsible for the dip. Over the last few years, the casino has aggressively courted high-rollers, players with the cash to bet thousands on a single hand.

That strategy backfires when players laying huge bets beat the house repeatedly. But Etess said Mohegan will continue to market itself to such players, citing their business as a major driver in upticks in the casino's reported "drop" — the amount of money gamblers put on the table.

Declines in disposable income and rising gas prices also worked against Mohegan last quarter. Revenues from slot machines fell 5.2 percent to $254 million as fewer players made the drive from Boston or New York to play the machines, the casino's report said.

All told, the casino's net income fell nearly 90 percent to $5 million, down from $45.7 million a year ago.

August Casino Cheat Scam of the Month Posted!

2008-08-01T08:18:00.000-07:00

This month´s scam is Blackjack Hole-Carding. Professional Hole Carding teams earn more money than professional card counting teams. To read about Blackjack Hole-Carding click here.

Macau Casinos and Stanley Ho Tied To Atlantic City Cheating Probe!

2008-07-31T16:46:00.000-07:00

MACAU IPO Adds Fuel TO Atlantic City Casino Cheating Probe

Macau's oldest gambling company acknowledges its policies to prevent money laundering may not be working. It admits the possibility its patrons, in collusion with employees, may be cheating or committing fraud. And it says if it fails to establish effective internal controls, it may not be able to accurately report its financial results.

These are not your typical corporate disclosures. Then again, SJM Holdings isn't your typical casino company. It's controlled by Stanley Ho, a colorful and controversial Asian gambling magnate who for years has fought allegations he has ties to the Chinese mob.

Earlier this month, SJM, which is based in the Chinese enclave of Macau, started trading on the Hong Kong Stock Exchange, and its 350-page initial public offering lays out, for the first time, a casino operation that for years remained in the shadows.

Now, the filing has become the latest in a long list of items New Jersey investigators are scrutinizing as they determine whether to sign off on MGM Mirage's partnership with Ho's daughter, Pansy, for a $1.25 billion Macau casino. MGM is licensed by New Jersey regulators because it co-owns the Borgata casino in Atlantic City and has plans for another casino in A.C.

Although Stanley Ho is not the focus of the New Jersey probe, he looms large as investigators examine his relationship with his eldest daughter and the heir apparent to his empire. Pansy Ho is a director of her father's main corporation, Sociedade de Turismo e Diversoes de Macau, or STDM, which owns a controlling interest in his gambling company. And she is a top executive in another business in his expansive holdings.

The question before regulators: Is Pansy Ho truly independent from her father?

MGM says she is. But New Jersey investigators have spent three years trying to answer that question in what is shaping up to be one of the longest casino probes in state history. Meanwhile, Mississippi and Nevada regulators have cleared the partnership, the MGM Grand Macau has opened and MGM has announced plans for both a Macau expansion and a $5 billion resort in Atlantic City.

MGM spokesman Alan Feldman said the company and Pansy Ho continue to cooperate with New Jersey investigators.

"Pansy's track record as an independent businesswoman is impeccable and impressive," he said. "We expect a positive outcome whenever the (division) is ready to give it."

Josh Lichtblau, director of the state Division of Gaming Enforcement, declined comment through Peter Aseltine, a spokesman for the attorney general's office, which oversees the division.

MUCH AT STAKE

New Jersey regulators have a mandate to ensure companies and executives doing business in A.C. are free from "inimical associations." As with any sensitive investigation, the state attorney general's office is expected to sign off on the division's probe before it decides whether to ask for a hearing before the Casino Control Commission, which acts as a judge in licensing cases.

The commission could approve the partnership, impose penalties or restrictions, or force MGM to choose between Macau and A.C., where it co-owns the Borgata with Boyd Gaming.

A heck of a lot is at stake. Macau has quickly surpassed Las Vegas in revenue, raking in $10 billion last year, and is on track to hit $15 billion in 2008 -- more than Las Vegas and A.C. combined.

MGM, one of the world's largest gambling companies, owns 11 Las Vegas casinos and is nearing completion of the $8 billion CityCenter resort there. In Atlantic City, it has plans for what would be one of the country's most expensive casino projects.

Some critics have questioned whether MGM announced its A.C. casino plans last fall to put pressure on regulators at a time when the city has struggled. Casino revenue fell 5.7 percent in 2007; it's down 6 percent so far this year.

"Is this being dangled as a means of getting regulators not to do their job completely?" asked state Assemblyman Richard Merkt (R-Morris), a former deputy attorney general for the gaming division.

"It raises questions as to whether it's appropriate to be talking about those kinds of numbers, and whether it's an attempt to improperly influence a regulatory decision," Merkt said.

MGM officials bristle at the charge, and have been quick to point out they have paid half of the $1.7 billion it took to build Borgata and expand it.

MYSTERY MAN

Stanley Ho is Macau's wealthiest businessman. His empire includes hotels, real estate, a ferry route and an airline, although since his 40-year gambling monopoly in Macau was broken six years ago, his casino market share has plunged to 40 percent.

He has been courted by American politicians, and yet for years he has been suspected of having mob ties. In 1988, the U.S. Justice Department listed him as an associate of an unknown Chinese mob, or triad, that operated in Macau's casino VIP rooms. More recently, the U.S. State Department's 2007 narcotics control report said the triads continue to control the VIP rooms of Macau's casinos through activities like racketeering, loan sharking and prostitution.

Ho repeatedly has denied having anything to do with triads.

VIP rooms represent a majority of Macau's casino business. And for years, the Macau casinos have hired outside promoters to bring wealthy patrons to gamble in the rooms. SJM, in its initial public offering, said it could not provide assurance the activities of the promoters or their patrons comply with "applicable laws and regulations, such as usury or anti-money laundering laws or regulations."

The filing also acknowledged Macau's casino industry is "prone to potential money laundering and other illegal activities." SJM said while it has an anti-money laundering system in place, and it hired Deloitte & Touche to review its procedures, they may not be enough to prevent all money-laundering activities.

Merkt, the state assemblyman, said what he found most troubling was Ho's ties to North Korea. STDM, Ho's main company, owns a stake in a North Korean casino, according to the SJM public offering document. The son of the country's dictator, Kim Jong Il, has been known to take residence at a hotel partially owned by a company Pansy Ho oversees, according to the South China Morning Post. And a bank Stanley Ho controls was reported to be under investigation by U.S. agencies for possible connections to an illegal fundraising network believed to be financing North Korea's nuclear program.

In addition, Stanley Ho's name has been attached to violent incidents. In 1987, his chief assistant was hacked to death by a professional killer in what police said was payback from an Asian gambling syndicate. In addition, two lawyers for Ho's estranged sister, Winnie, have been brutally attacked.

But no allegation has ever been proven, and Stanley Ho has never been charged with a crime.

DAUGHTER'S ROLE

In 2002, Macau, a former Portuguese colony, decided it was time to break Stanley Ho's monopoly over Macau's casinos and open the market to outside competition.

Initially, MGM lost out to other operators in its bid for a Macau casino. But it found a way in by partnering with Pansy Ho, who agreed to compete against her father's gambling business.

Now, Pansy Ho's dealings with her father are the focus of the New Jersey probe.

"It's a case of, are the sins of the father automatically passed on to the children?" said Bill Eadington, the director for the Institute and Study of Gambling and Commercial Gaming.

Pansy Ho and MGM paid Stanley Ho $200 million to get in on Macau. And Pansy Ho and her sister, Daisy, who also is involved, told Nevada regulators a major portion of their $80 million investment in the deal came from their father through a trust fund.

Pansy and Daisy Ho work for their father as executives of Shun Tak Holdings, which owns a shipping business and hotels, among other things.

In addition, Pansy Ho is a director in STDM, which along with Stanley Ho has the ability to exercise "substantial influence or control" over her father's gambling company "in ways that may not be in the interests of (SJM's) other shareholders," according to SJM's public offering.

Despite the business dealings, regulators in Nevada, where MGM has a huge presence, cleared the partnership last year.

Eadington said Nevada regulators "were willing to take Pansy's word she had adequate independence financially and in terms of decision-making."

"Obviously, there weren't any smoking guns," he said. "But I think it still is eyebrow-raising, and the fact that New Jersey has been so slow is perhaps a reinforcement of that."

UK and Canadian Regulators Joining National Police Forces in Effort to Stem Casino Cheating!

2008-07-30T09:50:00.000-07:00

Well, I think the same thing is happening in the US with the FBI, which now has a special unit specializing in interstate AND international casino cheating operations, which, if you don´t know, fall under the RICO statutes that define racketeering activities within American borders--and guarantees prison terms for those convicted of crimes falling under its statutes. The FBI has been investigating organized slot machine cheating teams, and recently the major American/Canadian dealer/player baccarat scam that victimized more than 30 casinos, reaped more than $20 million in illicit profits and sent a parade of dealers, pit bosses and player/agents to prisons in both the US and Canada (the parade is still continuing as more people charged in the huge scam have copped pleas and are awaiting sentencing.

Almost simultaneously, government officials in both Canada and the UK have pledged financial support to police organizations and gaming commissions investigating casino cheating (I am speaking of real brick and mortar casino cheating, not online cheating). The UK has been home to several major live casino scams over the past five years, including the infamous Ritz Roulette Scam, where a trio of Eastern Europeans victimized London casino roulette wheels with laser scanners and cell phones to the "dial tone" of $3 million dollars, and a three-card poker scam using microcameras hidden in sleeves to film the faces of cards as they were dealt to the players.

However, the law is still murky in the UK as to what constitutes actual casino cheating. I am still not 100% sure if using equipment to predict the outcome of roulette spins is legal, but I think it is. But filming cards with hidden cameras is now clearly illegal in the UK, demonstrated by the convictions of the Chinese crew that pulled of London`s three-card poker scam.

When I was the world`s number one casino cheater, I didn´t have to worry too much about the FBI and international police agencies like Interpol--but times are changing!

Poker Cheats Online Stirring More Stew!

2008-07-30T09:35:00.000-07:00

Online Poker Cheating Scandal Echoes!
Cheating at online poker may seem surprising, but it's not impossible. NO KIDDING!

Poker, Fraud, UltimateBet, Absolute Poker, Poker Players Alliance have all been contributing to the Online Poker Cheating Pot in various ways, and one former US senator has been very outspoken in his determination to get online poker in the US legalized and regulated, in a grand effort to stop the cheating and scandals revolving around online poker.

The following account has been published by Nigel K at CasinoReports:

Senator Concerned Over Online Poker Cheat Scandals!

The uncovering of two online cheating scandals at Absolute Poker and UltimateBet has not gone unnoticed by former US Senator Alphonse D'Amato. The New York politician who is the current chairman of the Poker Players Alliance (PPA) has brought the incidents to the attention of the US Senate in an effort to legislate against this new breed of Internet crime. Both poker sites resided in the jurisdiction of the Kahnawake Gaming Commission which initially did not permit inspection of these sites in order to present a clean bill of health.

Kahnawake

The Kahnawake Gaming Commission (KGC) grants gaming licenses to a range of online poker, casino, and sports book websites. A number of these websites are managed and hosted by Mohawk Internet Technologies (MIT), an Internet hosting company located on Kahnawake territory near Quebec. MIT has created a name for itself in the North American casino game hosting market and is currently the most convenient source of online gambling sites for the majority of US citizens.

Poker Players Alliance

Senator D'Amato is particularly sensitive to issues such as cheating of any kind. The fact that the recent scandals occurred on online websites suggests that regulation is required of the Internet media that enables such events to take place. D'Amato's concern is reflected by the fact that while the incidents took place outside US jurisdiction, many US citizens have been affected.

Software flaw

The websites that enabled the cheating to occur had allegedly allowed some of the online poker players to see the cards of other players in the game. The KGC declared their innocence and announced that any players who lost money would be refunded. Additionally, they announced that those employees involved with the scandal had been dismissed. The KGC also stated that the software had been corrected, although the whole incident has left a bitter taste in the mouths of all concerned.

Disappointed

Senator D'Amato expressed concern that no members of the KGC or of the websites in question were charged with criminal action. D'amato released a statement that condemned the online poker cheating scandal and further blamed the KGC for not taking legal action against those concerned.

Regulation, Not Banning

Most significantly, Senator D'Amato used the incident to push for federal regulation of the Internet gambling industry. Falling clearly in line with those calling for regulation, D'Amato is convinced that a ban on online gambling would be counterproductive and unworkable.

Absolute Poker and UltimateBet, Two Online Cheating Giants Merge To Form Online Poker Network!

2008-07-25T19:04:00.000-07:00

Well, if you ever heard the maxim "If you can´t beat ´em join ´em, this is surely it! Absolute Poker and UltimateBet, the sites that hosted the online poker industry´s two biggest cheating scandals in recent memory, have found the perfect solution to make all the cheating scams go away--MERGE! Is it hard for me to believe that this has happened? Not for a second. I mean, it´s just following the pattern started by online poker sites signing admitted online poker cheats to their team rosters, isn´t it? In any case, just watch what happens now as AP and UB take on Poker Stars and Full Tilt.

Read more:

PokerStars and Full Tilt have a pretty strong hold on the Internet poker industry. The two will now receive a bit of a challenge from a group who has recently been mired in controversy.

Absolute Poker and UltimateBet are trying to regroup from a cheating scandal that has severely hurt their customer base. Now they will try and rebuild both their reputation and their customer base together.

The two sites have merged to create the Cereus Poker Network. By coming together, the two brands owned by Tokwiro Enterprises Inc. will look to become the third largest poker network in the world.

Full Tilt and PokerStars are still accepting American customers. That fact alone gives them a huge advantage over their competitors. Both of those sites are watching their customer base grow on a daily basis.

"Our company's goal is to provide poker players with the ultimate online experience. The launch of Cereus is a major step for us in achieving our goal and we look forward to making many more exciting announcements very soon," said Paul Leggett, Chief Operations Officer of Absolute Poker and UltimateBet.

New Megapixel Surveillance Cameras In Washington Casino

2008-07-25T18:55:00.000-07:00

ARECONT VISION SHARPENS THE VIEW AT THE LUCKY EAGLE CASINO!
Arecont Megapixel Cameras Enable Improved Monitoring at Gaming Tables

Casino Cheats put on notice!

The Lucky Eagle Casino in Southwest Washington State has completed a new installation of megapixel cameras from Arecont Vision, the industry leader in megapixel IP camera technology. The casino, which has been in operation since 1995, chose to upgrade their existing analog system in order to improve the ability to view and identify critical information on video.
"It is important that our surveillance operators clearly see the indexes of the cards," said Miguel Grijalva, Director of Surveillance, Lucky Eagle Casino. "We need to view suits and clearly distinguish between a heart and a diamond, and the analog cameras we had were not providing enough of this detail."
After installation on a test server of two Arecont Vision megapixel cameras, the AV2100 and the AV5100, for a two week evaluation, the Lucky Eagle Casino purchased Arecont Vision AV2100M 2 megapixel cameras to upgrade the existing system, supplementing their analog cameras. According to Mr. Grijalva, the Arecont Vision cameras deliver highly detailed images of jackpot hands, as well as increased accuracy in chip activity at the roulette tables.
Arecont Vision AV2100M 2 megapixel cameras have a frame rate of 24 fps (frames per second) with a resolution of 1,600 x 1,200 and a minimum illumination of only 0.1 lux @ F1.4. One of the latest additions to Arecont Vision's MegaVideo(R) line of megapixel cameras, AV2100M megapixel cameras leverage proprietary patent-pending technology and help alleviate the cost and frame rate shortcomings often associated with multi-megapixel camera systems. To help ensure image clarity, the AV2100M delivers full motion HDTV progressive scan resolution and for added cost-efficiency features Power over the Ethernet (PoE).
The HD resolution of the cameras allows wider shots, enabling the casino's surveillance staff to achieve comprehensive coverage using a single dedicated camera for each table. "The frame shot is the same as the analog camera frame shot, but the clarity is several times better," said Mr. Grijalva. "If a guest had a full flush, we can go back and readily confirm it because the picture quality is so excellent."
The camera also features a built-in electronic PTZ (pan/tilt/zoom) function. In addition to the improved clarity, the casino surveillance operators found that the digital zoom was highly beneficial in live monitoring or reviewing footage. These investigative digital capabilities help the casino spot unusual activity or instances of suspicious behavior or cheating, as well as help ensure employee procedure compliance.
According to Mr. Grijalva, his team was particularly impressed with the quality of the images produced by Arecont Vision AV2100M 2 megapixel IP cameras when viewing details on the roulette wheel and for identifying stacks of chips. "The new megapixel cameras have also helped determine if a customer's claim is valid or for claims of short changing on chips," he said. "We are considering adding Arecont Vision megapixel cameras to the lobby entrances for facial recognition now as well."

Cheaters and Card Counters Beware!

Kahnawake Gaming Commission Releases Official Statement on Ultimate Bet/Absolute Poker Scandals

2008-07-24T09:04:00.000-07:00

The Kahnawake Gaming Commission (KGC), which oversees numerous online poker sites using Kahnawake-based Internet services in Canada, has released an official statement regarding the unfolding situation on UltimateBet Poker. The statement follows by several months the KGC's earlier involvement in the resolution of a similar scandal at Absolute Poker.

In its statement, the KGC affirms that a future decision regarding UltimateBet is forthcoming, and that its overriding concerns have been to secure full player refunds and to implement corrective measures to prevent further abuse from taking place. The complete body of the text of the KGC statement follows:

KAHNAWAKE GAMING COMMISSION

Mohawk Territory of Kahnawake
July 23, 2008

Kahnawake Gaming Commission (the "KGC") has been continuously regulating online gaming for over 9 years – longer than most, if not all, other jurisdictions. During that period of time, the KGC has proven to be a world leader with regulations and methodologies that have established a regulatory environment in which online gaming can be conducted fairly and securely. The KGC's success as a regulator is evidenced by the fact that a significant percentage of the online gaming industry has chosen to locate and operate within Kahnawá:ke. Given the length of time that it has regulated this new industry and the significant number of licensees under its control, the KGC's record has been exemplary.

As commentators have correctly noted, even the most well regulated industries are not immune from abuse. Examples can be found in the banking, securities and land-based gaming industries. The fact that the online gaming industry is new and is technologically driven creates additional regulatory challenges. Throughout its history, the KGC has met these challenges and its regulations have been emulated in a number of other jurisdictions around the world.

Over the past several months, it was discovered that individuals within two of the KGC's licensees – Absolute Poker and Ultimate Bet – had created and carried out a scheme to cheat players. In both cases, the improper conduct of these individuals was brought to the attention of the licensees, and the KGC, by affected players. The KGC acknowledges the diligence and sophistication displayed by these players and the role they played in bringing these matters to light.

The first case involved Absolute Poker. After a thorough investigation carried out by the KGC and its agents, Gaming Associates, the KGC rendered its decision in this matter on January 11, 2008. This decision concluded that the cheating that took place was not initiated, nor did it benefit, Absolute Poker as a corporate entity, or its directors or principal ownership. The decision imposed a number of sanctions and conditions on Absolute Poker, including twenty-four specific directions for changes to its management and systems. The KGC was provided evidence that all players affected by the cheating that took place were fully reimbursed for their losses.

Shortly after its decision was rendered in the Absolute Poker matter, the KGC first became aware of similar allegations of cheating involving individuals within Absolute Poker's sister company: Ultimate Bet.

Over the past several months, the KGC has been closely involved in an in-depth investigation of the Ultimate Bet cheating allegations. Significant efforts have been expended to identify and correct the flaws in Ultimate Bet's system that permitted the cheating to take place; to identify the individuals that were responsible for the cheating and to ensure that all affected players were fully reimbursed. Unfortunately, the KGC's actions were not well communicated to the poker industry or public at large, creating an incorrect perception that the KGC was 'doing nothing'.

The KGC's investigation into the Ultimate Bet matter has yielded a number of key findings which, within the next several days, will enable the KGC to issue its decision on the appropriate steps to be taken.

It should be stressed that the KGC's primary concern throughout both matters was to ensure that affected players were fully reimbursed and that corrective measures were implemented to prevent against any further incidents of cheating. Both of these objectives have been accomplished – as evidenced by the fact that the recent concerns that have been raised about the Absolute Poker and Ultimate Bet matters are not being driven by affected players.

Murray Marshall
Senior Advisor
Kahnawá:ke Gaming Commission

D'Amato Agrees Poker Cheating Calls For Online Casino Regulation

2008-07-23T20:05:00.000-07:00

D'AMATO UPSET WITH LACK OF ONLINE POKER REGULATION

What the Kahnawake did not do was charge anyone with a crime, or open their operation for inspection, so as to verify the claims that the games could now be trusted...So says the chairman of the Poker Players Alliance

The recent poker scandals at Absolute Poker and UltimateBet have drawn the ire of former U.S. Senator Alfonse D'Amato and the organization he chairs, the Poker Players Alliance. The cheating which occurred at the online casinos has been attributed to a lack of regulation and transparency at the online gambling sites run by the Kahnawake Tribe outside Montreal.

Both sites were found to have software running which allowed certain poker players to see not only their own cards, but all the cards dealt at the table. The Kahnawake blamed employees who had worked under previous owners of the poker sites, promised to refund money lost to any participants in shady games, and said the employees had been fired and the software corrected.

What the Kahnawake did not do was charge anyone with a crime, or open their operation for inspection, so as to verify the claims that the games could now be trusted.

D'Amato released a statement condemning online cheating, and taking the Kahnawake to task for not providing access and visibility which would allow the return of trust to sites owned by the tribe.

Most importantly, D'Amato used the situation to call once again for federal regulation of the online casino industry, asserting that the government has abandoned its citizens in its misguided zeal to ban online gambling.

Basic consumer protection requires the government to step in and provide a safe, regulated environment for poker players and other online gamblers, D'Amato also noted.

Sherman Bradley, gaming analyst at Online Casino Advisory, said in response to the scandals, "The truth is that, as shocking as the cheating was, the reaction of the ownership group to basically act as if they could now be trusted because they said so was even more absurd. Only proper government regulation can prevent this scam from occurring again. Note that Absolute Poker and UltimateBet are not accepted as advertisers by the United Kingdom regulatory group. British citizens are served by their government informing them as to which site is trustworthy, while Americans get to play Russian roulette."

Poker Players Alliance Speaks Out On Online Cheating Scandals

2008-07-23T19:59:00.000-07:00

Former Senator Alfonse D’Amato, chairman of the Poker Players Alliance (PPA), the leading poker grassroots advocacy group with over one million members nationwide, today issued the following statement in response to recent online poker cheating scandals:

“The Poker Players Alliance (PPA) is the political and public policy voice for poker players in America. Central to our mission are advocacy efforts in Washington D.C. and around the country to protect poker players from misguided and vague laws and to establish licensed and regulated Internet poker in the U.S. To be clear, the PPA is not a regulatory body for poker players or the poker industry, nor do we seek to be. We are, however, compelled to speak out when our public policy mission is potentially undermined by actions which present Internet poker in a negative light. “Trust is paramount in poker. Sadly, this foundation has been undercut by admissions from two well-known online poker companies, Absolute Poker and Ultimate Bet, that cheating has occurred on their poker sites. The Poker Players Alliance condemns any and all cheating in poker no matter the forum in which it is played. Because of the current legal uncertainties and the lack of federal regulation and oversight, it is especially troubling when cheating occurs in online poker. This has created an untenable atmosphere and has denied the proper means to investigate allegations, administer due process and then apply appropriate penalties for the wrongdoers. We urge these companies and their regulating authority, the Kahnawake Gaming Commission, to provide a full and transparent accounting of these breaches of the public trust to help lift the black cloud that has been placed over the industry. “The recent cheating scandals underscore the need for U.S. licensing and regulation of online poker to help protect consumers. While even the most highly regulated industries are susceptible to fraud and abuse, regulation does provide assurances that when consumers are harmed they have recourse. Further, it is abundantly clear that regulation will also address other consumer concerns by successfully providing ways to bar access by children to gambling Web sites and providing the necessary services for problem gamblers. “The federal government cannot continue to abdicate this basic responsibility to millions of its citizens who choose to play poker on the Internet. The attempt to enforce an outright prohibition of online poker is deeply flawed and unworkable, not to mention it invades upon the personal freedoms of law-abiding adults who wish to engage in a game of skill. “Remaining consistent with our organization’s mission, we will continue our efforts on Capitol Hill to ensure lawmakers are well educated about the benefits of regulation to protect consumers and enable the rights of poker playing adults. These scandals will not and should not be the demise of a responsible government approach to Internet poker. Instead, this can be the pathway to understanding that regulation is the key to protecting citizens and the future of America’s card game.”