Thursday, November 10, 2016

Oh, Yeah... Online Poker

Was asked yesterday about what the election of Donald Trump as the next U.S. president might mean as far as online poker in the United States is concerned.

It’s a good question, although as I thought about it I quickly realized that if I were to make a list of issues to be concerned about regarding Trump’s taking over, there are probably 70 or 80 others I’d rank higher importance than online poker. Then again, it is an issue I am at least attentive to, given how much of my life is affected by the vagaries of poker’s place in the culture.

My first instinct was to say it probably didn’t matter much at all who won on Tuesday, as neither Trump nor Hillary Clinton were going to be huge proponents of any sort of federal regulation permitting online gambling and/or poker in the U.S.

I remember my shuttle ride from Atlantic City to the Philly airport last weekend. My loquacious driver was a Trump supporter, and even had a little Trump/Pence sign he held up and shook at me when making one of several points about the current state of his state and of the nation as a whole.

Thanks to the event from which he was driving me -- the inaugural PokerStars Festival New Jersey series -- we’d gotten onto the topic of online poker in the U.S. He was insistent Trump was the candidate to support for those wanting online poker up and running again. I expressed doubt, though, saying I wasn’t sure either candidate was going to be all that excited about such a cause.

I was thinking in part of the possibility of someone like Sheldon Adelson, the deep-pocketed Trump supporter and anti-online gambling lobbyist, perhaps influencing a Trump regime in a certain unpleasant direction. Then again, there’s New Jersey governor Chris Christie now standing by Trump’s side who signed NJ’s online gambling bill into law three years ago. Meanwhile VP Mike Pence has openly supported the Adelson-backed Restoration of America’s Wire Act (RAWA), if that might be said to tip the balance.

In any event, the Obama administration obviously has not viewed online gambling a cause to support, and if you think about certain measures like the surreptitious “Operation Choke Point” that targeted online gambling (in part), the evidence suggests an outward (if not so evident) antagonism toward it. I wouldn’t imagine a Clinton administration would have been so excited to adopt an alternate position than the current one allowing for the slow, slow trickle of state-by-state legislation with no federal push.

Like I say, it probably doesn’t matter much. The Unlawful Internet Gambling Enforcement Act -- the 10-year anniversary of which just recently passed -- has effectively reduced online poker in the U.S. to the point of near-insignificance, at least on the federal level. That could change one day, but just as I felt a week ago, there’s no more reason to think that it will anytime soon.

Even so, there’s a whole lot else to worry about first.

Image: “poker-online-logo” (adapted), texasholdempoker. CC BY 2.0.

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Thursday, October 13, 2016

The UIGEA: 10 Years Ago Today

Ten years? Ten? Hmm... can we even remember that far back?

A couple of weeks’ worth of dread preceded the president signing the bill into law. There’d been a few months of less specific fretting, too, as I recall, although few seemed genuinely concerned.

In July 2006 this blog was only three months old. A lot of my posts to that point had been about playing poker -- online poker, that is. Not unlike many of the other hundreds of poker blogs at the time. Occasionally I’d write about other things -- hard-boiled novels, for instance -- as well as other poker-related topics emanating from “the rumble.”

I did notice that month the passage of a bill in the U.S. House, something called the “Unlawful Internet Gambling Enforcement Act,” and wrote a post here at the time about it titled “Raising a Glass to the Return of Prohibition.” I can’t honestly say that when writing that post I was all that concerned about my ability to play online poker being curbed at all, though.

One reason why I wasn’t so worried was the fact that the bill the House had passed wasn’t the much harsher seeming “Internet Gambling Prohibition Act,” the one certain legislators had been working over for the previous decade or so. Rather the “UIGEA” -- the acronym some of us would become very familiar with (and others consistently screw up) -- was only focused on credit card companies and financial transaction providers, meaning playing online poker wasn’t a problem. And, well, getting money to and from the sites didn’t seem like it would be a problem, either, or at least all that seemed too abstract at the time to bother us.

Besides, the sucker still had be passed by the Senate, then signed by the president. And pretty much everyone in the poker world who’d actually been following these attempts at legislating online gambling were predicting that wouldn’t happen.

We made it to the end of September 2006, then woke up one Saturday morning to realize the unthinkable had happened. The UIGEA had been snuck onto another piece of legislation and passed through the Senate with hardly any resistance at all. I wrote a post that morning titled “Deals in the Dead of Night” remarking on the event, still naively occupying a position of only moderate concern.

I noted at the time how it was already a given that then-president George W. Bush would sign the bill into law, but could only muster the opinion that “then things should get more interesting” once he did.

I’m remembering the following two weeks. It was that Monday, October 2nd, that PartyPoker (now styled “partypoker”) announced it would be cutting off the Americans. Somewhere mid-week I remember having a phone conversation with Party support and having it confirmed that yes, indeed, I would have to withdraw my funds as I wouldn’t be able to play on the site once the bill became law.

Like everyone else I began to wonder if all the other sites would follow suit, but both PokerStars and Full Tilt Poker were quick to confirm they wouldn’t be pulling out of the U.S. It all seemed a lot more uncertain, then, as we got the news that week that the UIGEA would be signed by Bush the following Friday the 13th, a suitably ominous-seeming day for the event.

We got to October 13, 2006, and while sitting at a desk with a banner reading “Securing the Homeland” Bush indeed signed the “SAFE Port Act” into law. In his comments Bush spoke of how the law “will make this nation more prepared, more prosperous, and more secure.” He went on to thank various legislators, reiterate the importance of protecting Americans from terrorism and making our borders and seaports secure, and winning the “war on terror.”

In his comments Bush didn’t mention the internet at all, nor the UIGEA which had been sneakily appended to the bill before its passage. It seemed almost like he might not even be aware of it.

Some of us were aware of it, though. And gradually more and more of us would become aware of it, especially four-and-a-half years later when Black Friday suddenly occurred as a kind of a belated next step in the UIGEA’s “long game.”

And now, exactly one decade after the UIGEA was signed into law, all of us here in the United States who’d like to play poker online (as they do in much of the rest of the world) are necessarily aware of its consequences -- even if we don’t know the reason why.

Photo: georgewbush-whitehouse.archives.gov

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Tuesday, August 09, 2016

Making the Case for Online Poker: Somerville On CNBC

A post to share this clip of Twitch star, Team PokerStars Pro member, and ambassador of the game Jason Somerville appearing on today’s episode of Power Lunch on CNBC to “debate” the topic of legalizing and regulating online poker in the United States with Rev. James Butler of the California Coalition Against Gambling Expansion.

The scare quotes are deliberately included there, as we’ve become well accustomed to the these versions of “debate” that mass media presents us that aren’t really debates at all, but dim parodies of actual dialogue and reasoned discourse.

If you’ve watched any CNN or other cable news networks lately -- or any time, really -- you know what I’m describing. Every single news item is accompanied by a shouting match between two commentators taking “sides” even in cases when the issue isn’t even especially “debatable.” Sad! (As one of the subjects often discussed such contests would tweet.)

It reminds me of an funny track from The Credibility Gap’s Bronze Age of Radio album (from 1977) titled “Editorial Reply.” A news station allows a citizen to come on the air and offer an opposing view to an editorial calling for an increase in safe driving. The commentator is introduced as Dr. Lewis de Longpra, Executive Secretary of the de Longpra Institute of Editorial Reply.

The editorial -- delivered by David L. Lander (best known as Squiggy from Laverne & Shirley) -- begins with the observation that the argument in favor of safe driving “completely ignores the documented value of reckless driving as a form of self-expression.”

From there he lists several complaints sounding the theme of unwanted governmental intrusions.

“There is no area of modern life more highly regimented and controlled by the government than life behind the wheel,” he complains. “Between speed limits, mandatory headlights, and divided highways, today’s driver is encased in a web of womb-like precaution. We believe he should once again be able to enjoy driving in reverse down a mountain road -- that driving should once again stand for freedom, dignity, and grisly death.”

Harry Shearer, playing the part of the station’s spokesperson, frames the bit with an intro and follow-up, reminding the audience at the end that while the station may allow such demented commentary, they obviously don’t endorse it.

“It is the position of the management that Mr. de Longpra is brain damaged,” he concludes.

Then comes a short commercial for “Credibility Gap Potato Chips,” subtly underscoring the larger, cynical point being made about commercial news.

To be fair, the short six-minute segment on CNBC was at least well moderated, and there was some dialogue between Somerville and Butler, at least in the form of each refuting points made by the other. (Often in these spots it doesn’t even seem as though the sparring speakers are even aware of anything the other is saying.)

Both Somerville and Butler manage to get across their main points quickly and succinctly in the short time each is given as well. Butler overdoes the moral objection to gambling, although doesn't sound as crazed as Mr. de Longpra or other online gambling opponents from whom we’ve heard over the years. That said, his arguments aren’t really specific to online gambling (though still apply, from his perspective at least).

Meanwhile Somerville did well, I thought. I believe he’s only actually on camera and talking for a minute-and-a-half or so (total), but still communicates several points, including the most persuasive ones that (1) the rest of the world (practically) does license and regulate online poker; (2) Americans are already playing in high numbers on unregulated sites; and (3) other forms of gambling like betting on horse races and lotteries are legal in the U.S.

If you haven’t seen the clip, you can click over to PokerNews and watch it here:

  • WATCH: Jason Somerville Discusses the Need for Regulation of Online Poker in the U.S. on CNBC
  • On a related note, I didn’t write anything here about Jason Mercier’s appearance on “The Dan Le Batard Show” last week, a show I listen to regularly. I thought Mercier did well representing poker in that forum as well, although I was a little disheartened that Le Batard and Jon “Stugotz” Weiner seemed less inspired with their questions and general fun-seeking as they often are.

    Click here for a summary of Mercier’s appearance over on PokerNews, including a link to the show.

    Images: CNBC; The Bronze Age of Radio (1977), The Credibility Gap, Amazon.

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    Friday, April 15, 2016

    Five Years Later, Just Another Friday

    Five years ago today I was in Lima, Peru helping cover the Latin American Poker Tour event there for the PokerStars blog. There we are to the left behind our laptops (the day before, I believe). It was my second trip to Lima, and the first and only time I’d partner up with my friend Dr. Pauly for such an adventure.

    That fact alone might have helped make the trip stand out from the many others tourney journeys I’ve taken over the years. But something else happened that caused me to remember those days many times over the years since.

    Was just another Friday. We all rolled into the Atlantic City casino late that morning, and had set up shop and were already reporting on Day 2 when the news reached us around 1 p.m. Lima time (if I remember correctly).

    I don’t quite remember, actually, when the phrase “Black Friday” began to be used, although looking back through my travel reports here on the blog I can see the phrase already starting to appear in posts by Sunday. That means by the time Pauly, F-Train, Reinaldo, Carlos, and the rest of us left Peru it had already become the shorthand signifier for the end of online poker in U.S. as we knew it. And (so we thought then) the probable end of a lot of other things, too, including such trips to South America.

    It turned out not to be quite as catastrophic as it seemed then, thankfully. Those reports from Lima share a kind of rapidly-told story arc reflecting the before, during, and after of the news hitting us and our efforts to absorb and understand it:

  • Travel Report: 2011 LAPT Lima, Arrival
  • Travel Report: 2011 LAPT Lima, Pregame
  • Travel Report: 2011 LAPT Lima, Day 1
  • Thunderstruck: The Day It All Changed for Online Poker
  • Travel Report: 2011 LAPT Lima, Day 2
  • Travel Report: 2011 LAPT Lima, Day 3
  • Travel Report: 2011 LAPT Lima, Day 4
  • Travel Report: 2011 LAPT Lima, Departure
  • Another one written about three weeks after getting home is actually my favorite “Black Friday” post, the one describing the game of Big Deuce our group played our final night in Lima, a.k.a. the Last Game:
  • 2011 LAPT Lima Postscript: Plotting in Peru
  • And for more looking back, earlier this week I wrote up a more clinical, less personal rundown of what poker life was like before April 15, 2011, the events of that day, and the long, frustrating aftermath in an article for PokerNews. If you haven’t seen it you might take a look as it likely will trigger some “oh-yeah-I-forgot-about-that”-type memories:
  • Black Friday: Reliving Poker’s Darkest Day Five Years Later
  • Now it all seems oddly unremarkable, as though (in hindsight) there was something inevitable or even predictable about what happened on April 15, 2011 and everything that followed. Of course the DOJ was going to unseal the indictments and civil complaint that day -- it was just a matter of time before they did. And certainly the targeted sites would then depart the U.S. in short order. And surely we could’ve (should’ve?) seen the funds-related troubles following, too. Right?

    Even the long, dreary, battle-with-inertia marking individal states’ efforts to reintroduce online poker -- successful so far in only three, and with desperately modest results -- seems from today’s perspective to have been an inexorable consequence of it all. As do the still dim prospects for online poker in this country going forward (if we’re going to be realistic).

    You’d think all of that might make it less easy to remember the shock of the day itself, with the dot-coms going offline, Twitter exploding and “#pokerpanic” becoming a favorite hashtag, Two Plus Two crippling and flatlining under the weight of traffic, and so on. But the surprise was so pure and fresh -- even if it shouldn’t have been -- the impression remains lasting, even today.

    Five years plus a couple of leap days makes April 15th a Friday once again. The symmetry has an effect, and the time removed now enough to suggest some kind of finality. It’s a period of time once considered adequate to accommodate Soviet planning, or to help illustrate a David Bowie-imagined apocalypse. Like we’re now even more fully sealed off from what it was all like before.

    As though finally, we’re all of the way back, and it’s just another Friday.

    Photo: courtesy Carlos MontiPokerStars blog.

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    Thursday, March 03, 2016

    Six Paradoxes of Poker

    Continuing yesterday’s discussion of what poker is -- or, rather, those elements that are essential to the game (cards, money, and bluffing) -- today I want to talk about some of the game’s more interesting contradictions. What follows is a discussion of six such “paradoxes of poker,” all of which add to the game’s complexity and, in some cases, popularity.

    Obvious to most is the competitive nature of poker, a “zero sum” game in which no one can win without someone else losing. A rake being taken from a cash game or tournament fees actually make it not quite “zero sum,” but the point still holds -- there are no winners in poker without there also being losers.

    That money is being won and lost adds further incentive to players’ desire to best one another, with even the smallest-stakes games sometimes encouraging antagonism given the fundamental need for each player to pursue his or her self-interest. Yet cooperation among adversaries is also needed for game play, and while many rules are unalterable, mutual agreement often must be reached regarding various particulars in order for games to proceed.

    There’s one paradox of poker, then -- it’s a game that at once promotes self-interest and community. (For more on that one, see an earlier post titled “Poker, the Antisocial Social Game.”)

    Furthermore, poker is often heralded for its promotion of egalitarian ideals -- “a truly democratic activity,” as Al Alvarez once described the game. “Race, color, creed, what you look like, where you come from, and what you do for a living are of no interest at all,” he argues in Poker: Bets, Bluffs, and Bad Beats. “A little green man from a distant galaxy could sit down and play without anyone blinking, provided he had the necessary amount of chips in front of him and anted up on time.”

    Charles A. Murray’s New York Times op-ed from about three years ago titled “Poker Is America” (discussed here) anecdotally reinforces such a position, noting how the “occupational and income mix” and variety of races and ethnicities he routinely encounters while playing suggests “a poker table is America the way television commercials portray it but it seldom is.”

    Even if the political scientist’s account of never having “experienced a moment of tension arising from anything involving race, class, or gender” while regularly playing poker in a West Virginia casino was met by many with counter-examples of less utopian scenes around his idyllic baize, his point that the game itself does not discriminate remains valid.

    Such is one reason why a succession of poker-playing presidents would be inspired to describe their domestic programs in poker terms, with Theodore Roosevelt’s “Square Deal,” FDR’s “New Deal,” and Harry Truman’s “Fair Deal” all aimed at resetting the game of economic opportunity according to poker’s inclusive impartiality. A similar view has been voiced by Barack Obama -- another poker player -- during his time in office, who has often reiterated “I believe that this country succeeds when everyone gets a fair shot, when everyone does their fair share, when everyone plays by the same rules.”

    However, as soon as the cards are dealt and the first pot is pushed to a winner, a problem becomes evident. In a game that necessitates cooperation and promotes parity, chips are exchanged with every hand played. In other words, if all are really are equal at the start, the goal of everyone involved thereafter is literally to better him or herself at others’ expense, or make things as unequal as they can.

    As Garry Wills wrote in Nixon Agonistes when describing mid-century administrations’ economic efforts, “to protect the game, the government would give everyone a new deal, making sure it was a fair deal,” but “each time the cards have been newly dealt, we must collect and reshuffle them to allow for new players who have drifted up to the table; we are endlessly ‘dealing,’ never getting to the game.” (“The metaphor is a mess,” Wills concludes.)

    I would suggest this paradox of poker is in fact a central part of the game’s appeal, with the game (in a way) providing what society or government cannot. Every hand really is a new beginning, a chance to start over and get it right, to reinvent oneself and others and reimagine one’s place at the table -- or in the world.

    Other contradictions characterize poker as well, including the related one that finds poker promoting individualism and self-reliance while also necessitating the kind of collectivism or interdependence described above. Poker is not a team sport, yet it cannot be played alone.

    A third paradox of poker is borne from the disparate approaches taken to the game by that great variety of players it attracts, with the so-called “professional” motivated more by profit than pleasure sometimes seated directly across from the “recreational” opponent for whom time spent at the table is viewed a vacation from genuine labor.

    From the time of the Civil War and even before, those making a living off of cards adjudged their activity as work, not play, a group that would come to include those 19th-century card sharps for whom the occupation of “gambler” included an understanding of and willingness to cheat and sometimes literally fight for their livelihood. Even the ill-fated Wild Bill Hickok’s last ride to Deadwood was primarily motivated by a desire to earn an income from the poker tables such as the one at Saloon No. 10 where he’d be dealt his final hand.

    The subsequent growth of the game in the later 20th century later fashioned new types of poker pros, such as those inhabiting the California card rooms categorized by anthropologist David Hayano in Poker Faces (discussed here) according to their degrees of financial commitment (the “worker professional,” the “outside-supported professional,” the “subsistence professional,” the “career professional”). Las Vegas card rooms would likewise come to be populated by “regs” showing up daily to earn livings off the succession of tourists whose participation in the games were of much shorter duration.

    The later rise of tournament poker then created a new class of “circuit grinders,” among them a subsection of “sponsored pros” whose monetary investment would be lessened by the online sites they represented. Tours criss-crossing the United States and several other continents would feature tournament series in which amateurs routinely took on the pros, with the World Series of Poker in Vegas each summer attracting tens of thousands of home game heroes to compete directly with the game’s elite.

    That poker can be viewed at once as both work and play is a direct consequence of yet another of poker’s paradoxes -- the fourth in our list -- namely the complicated way the game rewards skillful play yet also does not deny luck as a factor affecting outcomes.

    A sound grasp of odds and probabilities has always provided an edge to some, as has being equipped to suss out the significance of opponents’ game-related actions, words, and other non-verbal “tells” while successfully masking the meaning of one’s own. Yet as all who have played poker well know, a hand perfectly played does not guarantee a positive result. “Suckouts,” “bad beats,” and “coolers” frequently occur, the many ways players lose despite outplaying opponents reflected by the variety of terms indicating different types of misfortune.

    The relative weight of skill and luck in poker has been the subject of numerous legal arguments dating back to the 19th century, with proponents wishing to distinguish poker from other types of gambling by emphasizing skill, those wanting to forbid the game rather motivated to argue for luck’s role, and judges having ruled for either side many times over.

    That poker involves both skill and luck also has encouraged some to argue further for its close connection to American history and the country’s development and character. Defining what he calls the “American DNA,” James McManus has written of “two strands in particular that have always stood out in high contrast: the risk-averse Puritan work ethic and the entrepreneur’s urge to seize the main chance,” noting how poker uniquely satisfies both urges. Here McManus echoes others linking poker to the “frontier spirit” that at once values hard work yielding legitimately gotten gains while embracing risk in the name of seeking even greater rewards.

    That a lucky card can help an amateur win a hand against a pro provides encouragement to the former to take a seat against the latter. But an understanding of luck’s role and that skillful play generally wins out in the long term likewise encourages the pro to endure. As Jesse May’s poker-playing protagonist in his novel Shut Up and Deal explains, “Poker is a combination of luck and skill. People think mastering the skill part is hard, but they’re wrong. The trick to poker is mastering the luck.”

    A fifth paradox of poker that like others might be said to have added further to the game’s popularity is the way poker alternately -- or simultaneously -- satisfies desires for both realism and romance (an idea I’ve explored here before). As evidenced by a river one-outer denying a 98% favorite to win a pot in Texas hold’em, the cards force upon players an occasionally cold reality that must be accepted. So, too, must players hopeful to win at poker on a regular basis understand and accept their own limitations as a prerequisite to improve.

    “There can be no self-deception for a poker player,” pro player Mickey Appleman once lucidly explained to Alvarez (as reported in The Biggest Game in Town). “You have to be a realist to be successful. You can’t think you’ve played well if you lose consistently. Unless you can judge how well you play relative to the others, you have no chance.”

    It’s a position well supported by others, including Anthony Holden who in Big Deal once articulated one of the more often quoted pronouncements regarding poker’s unflinching requirement of players to be realistic about themselves: “Whether he likes it or not, a man’s character is stripped bare at the poker table; if other players read him better than he does, he has only himself to blame. Unless he is both able and prepared to see himself as others do, flaws and all, he will be a loser in cards, as in life.”

    But even a poker realist like Appleman recognizes how the game can likewise provide an inviting exit ramp to carry one away from reality.

    “I’m a romantic,” Appleman continues, with nary a trace of irony, “and for me gambling is a romance.... That’s what I enjoy; the rest is by the way. I play and I play and I play; then I pick up the pieces and see how I did. It’s only at that moment that I realize I was playing for real money.”

    Like other favorite pastimes, poker provides many a similar kind of “escape” into a more interesting, consistently gratifying world whose pleasures are precisely related to their distance from the tedious redundancy of the everyday. It’s a game so absorbing it can create a world unto its own, a place where players can be themselves or something else entirely, as though they were not just playing a game, but playing a role as well.

    For some, that role might resemble the one forged by many of poker’s most famous players, individuals who by the strength of their card sense managed to enjoy success outside the “system” -- or perhaps fashioned systems of their own.

    Real life poker heroes may serve as templates, with examples going back to Doc Holliday and Poker Alice and extending forward through players like Tex Dolly, Kid Poker, and a man named Moneymaker. So, too, might fictional poker players like the Cincinnati Kid or his nemesis “the Man,” Bret Maverick, or Mike McDermott provide notions of the type.

    All of these many contrasts add depth and richness to poker, while also complicating significantly the task of presenting a straightforward history of the game. Because poker is a game of bluffing, the line between truth and fiction is frequently challenged by it, with omissions and embellishments often compromising the veracity of even the most straightforward chronicle of a hand or session as conflicting accounts of what took place exhibit Rashomon-like contradictions and hopelessly blinkered subjectivity.

    Meanwhile fictional representations of poker necessarily involve creative enhancements that have helped affect understandings of the game and how it has actually been played over the decades whether on steamboats or trains, in saloons and gambling dens, on military bases and encampments, or in card rooms, casinos, and private homes.

    One might argue the story of poker as told in popular culture -- in both history and fiction -- is itself one long-running bluff, the game having been shaped into a romantic version of its historical reality by all of the many letters, memoirs, biographies, articles, guide books, paintings, radio programs, songs, films, television shows, stories, and novels describing poker and its players.

    We’ll call that yet another paradox of poker -- a sixth and last in the list -- that is, how the game as it is actually played and the fictional renderings of it exist together in simultaneity, overlapping each other even as hands are dealt, bets are made, and narratives about the cards, the money, and the bluffing are constructed.

    Images: “Dealer Button - Poker,” Poker Photos. CC BY 2.0 (top); “A Misdeal” (1897), Frederic Remington, public domain (bottom).

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    Friday, February 26, 2016

    Spring in the Garden State for PokerStars

    At long last, PokerStars is returning to the United States. Or at least to part of the United States. One of the states. It’s a start.

    We first started hearing about New Jersey as a possible initial post-Black Friday reentry point into the U.S. for the world’s largest poker site way, way back in late 2012, even before New Jersey finally had an online gambling bill get signed into law in late February 2013.

    You might remember how Governor Chris Christie kind of surprised us with his non-veto of the bill back then, deciding at last to change his tune on the issue. (Perhaps it shouldn’t have been a surprise to see Christie abruptly changing his mind regarding another subject earlier today.)

    It was a couple of months before that PokerStars had been talking to the Atlantic Club in Atlantic City, negotiating to buy the failing casino as a prelude to getting an NJ license to offer online games. That deal fell through, and the Atlantic Club stopped just failing and failed altogether in January 2014.

    In mid-2013 PokerStars partnered up with the Resorts Casino Hotel, and after New Jersey held up their application for a license later that year the Amaya purchase in July 2014 helped change things in a positive way for Stars’ prospects in the Garden State. After many months of back-and-forthing including tentative launch dates being frequently bandied about, the NJ license finally got preliminary approval last September.

    Then yesterday came the news of a concrete date for PokerStars NJ to go online -- March 21, 2016, the first day of spring. PokerNews summarizes the announcement, while the Online Poker Report offers a comprehensive discussion of what happens next, including some speculative thoughts about both the near-term and long-term.

    From the latter, I’m most intrigued by the prospect of a PokerStars-branded live poker room being constructed at the Resorts (the plan for which was announced some time back), as well as the possibility of live PS-sponsored festivals happening there down the road. In the meantime it’ll be interesting to see how the NJ-only site fares, knowing of course that in relative terms it’ll be super-small change like every other U.S. regulated site has necessarily been.

    Image: PokerStarsNJ.

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    Monday, November 16, 2015

    Poker’s “Non-Level Playing Field”

    Saw early Friday that news about DraftKings and FanDuel both filing lawsuits against the New York Attorney General Eric Schneiderman following his declaration earlier in the week that both sites would need to skeddaddle from the Empire State.

    Can’t say I’ve studied both lawsuits too closely (you can find both here at The Boston Globe). Unlike in past years when proposed bills and legal action regarding online poker would provoke several hours of reading and link-chasing in an effort to get a handle on every last detail, the DFS saga can’t really capture my attention as thoroughly.

    I did read both, though, as well as several articles surrounding this new development in New York. Both lawsuits seek injuctions against Schneiderman to stop him from stopping them from operating in his state, and both sites make similar points to support their arguments. The tone is more strident in the DraftKings one, I think, or at least that’s my impression. And there’s one other item unique to the DraftKings suit that kind of stands out for poker players bothering to sort through these DFS defenses.

    In his declaration last week, Schneiderman announced that a review by his office “conclude[d] that DraftKings’/FanDuel’s operations constitute illegal gambling under New York law.” (Last month the Nevada Gaming Commission likewise ruled DFS to be gambling and thus subject to that state’s licensing procedures.) Schneiderman also highlighted other objections to allowing DFS in NY -- “not on my watch,” he writes -- including describing DFS as “neither victimless nor harmless” in its effects and charging that the sites “consistently use deceptive advertising.”

    Responding to the characterization of dailiy fantasy sports as gambling, DraftKings in its lawsuit goes down the road of trying to emphasize DFS’s skill component. FanDuel does this as well in its lawsuit, but in a more general way that doesn’t overstate their position or introduce too many non sequiturs (as far as I can tell).

    But get this from DK...

    “DFS is... fundamentally different than other games about which the issue of skill versus chance has been previously debated, such as poker,” notes DraftKings. “Unlike poker, where players start each hand on a non-level playing field based on the cards they are randomly dealt, in DFS, each user starts in the exact same position and has complete and total control over the lineup the user chooses, within the consistent constraint of the salary cap.”

    Set aside for the moment what is being said in the second half of that sentence about DFS and how everyone starts similarly with the same player base from which to choose, the same salary cap, and the same “complete and total control” over their entries. Look at the first half and how poker is being described. Is that not one of the strangest ways of highlighting the chance element of poker (and minimizing its skill component) anyone has ever tried before?

    A hand of hold’em does certainly begin with the deal, and it cannot be denied that each player’s hand is going to be unique, thus creating what might be called a “non-level playing field.” You could also talk about the players’ different positions and uneven stack sizes making the playing field “non-level,” too. But to do so absurdly reduces the game of poker down to a single hand, ignoring the fact that the game is almost never actually played that way.

    Over the course of many hands, the chance element introduced by “the cards they are randomly dealt” more or less evens out (more so with the more hands played, of course). Inequalities of position are also removed with the rotation of the dealer button. And if we want to talk about stack sizes, in a tournament players start with the same number of chips, and in a cash game there’s always the option to buy in for the maximum.

    The playing field in poker is entirely level. The cards can introduce an element of chance that make it possible for the more skilled player to lose to the lesser skilled one. I think it’s safe to say something similar happens in daily fantasy sports every single night. After all, even if DFS players have “complete and total control” over who they select when completing their line-ups, they hardly have control over how those players perform.

    In fact, if we really wanted to pursue a comparison here, DFS is essentially the reverse of poker. In poker you cannot dictate what cards you are dealt, but from there you do have “complete and total control” over your actions, with those actions necessarily affecting whether (and how much) you win or lose. Meanwhile in daily fantasy sports you do get to choose your “hand” or the line-up you set, but once the games begin there’s nothing you can further do to improve your chance of success (or to lessen your chance of failure).

    Both involve skill (differently). Both involve luck (also differently). And both are gambling.

    Not going to go further into the details of the lawsuits nor the many other ways DFS and poker are both similar and different. Was just struck by that one errant characterization of poker by DraftKings, seemingly out of place within the larger argument for DFS’s skill component.

    There is one way, though, that poker has definitely suffered from having to be played on a “non-level playing field.”

    Legally.

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    Friday, October 30, 2015

    Ryan In, But Don’t Get Hoppe Up

    There’s a new Speaker of the House, the 45-year-old Paul Ryan who was Mitt Romney’s vice-presidential candidate in 2012. He takes over for John Boehner who held the position for nearly five years before recently announcing his decision to step down.

    Boehner made his announcement in late September, engendering a few weeks’ worth of speculation and a bit of jockeying among the Republicans over who would be the successor. For a few days in there young Jason Chaffetz of Utah was expressing his desire to be the new Speaker, but his mini-campaign didn’t gain a lot of momentum and eventually Ryan became the chosen one.

    Those of us with an interest in online poker recognize Chaffetz as one of the members of Congress responsible for advancing that draconian bill misleadingly called the Restoration of America’s Wire Act (or RAWA). I say “misleadingly” because RAWA isn’t really “restoring” the 1961 federal law but rather rewriting it altogether, this time to prohibit nearly all forms of online gambling.

    Chaffetz sponsored the current version of RAWA in the House (Lindsey Graham of SC sponsored it in the Senate). I’ve written about the bill some here, including after a hearing back in March where Chaffetz made an obnoxious (and brief) appearance in which he dismissed out of hand the idea that geolocation could enable a state to restrict those outside of its borders to gamble on an online site (i.e., technology that has already been shown to work reasonably well).

    By sponsoring RAWA, both Graham and Chaffetz are working directly for Las Vegas Sands CEO Sheldon Adelson, the billionaire who has been campaigning against online gambling ever since his own attempts to get in the game for several years during the 2000s failed. Indeed, The Hill has said an Adelson lobbyist authored an early draft of RAWA.

    But Chaffetz is out and Ryan is in. Still, that doesn’t necessarily mean good news for those who would oppose RAWA or anything else Adelson might get his big bucks behind.

    That’s because earlier this week Ryan hired J. David Hoppe to be his chief of staff. In the past Hoppe has served as an adviser to various Republican congressmen while also working as a lobbyist in D.C. Also from Wisconsin, Hoppe has been friends with Ryan for more than two decades as he’s lobbied for a number of different conservative groups.

    Among those Hoppe has been lobbying for lately is the Coalition to Stop Internet Gambling -- that’s right, the group launched by Adelson in early 2014. ThinkProgress reports that Hoppe has received $180,000 from the coaltion since July.

    All of which is not to say RAWA necessarily has any greater chance of gaining momentum thanks to Ryan’s new position and his connection with Hoppe. But it seems safe to assume Ryan isn’t necessarily any better than Chaffetz would have been for those harboring hope for the online gambling cause, federally-speaking.

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    Thursday, October 01, 2015

    PS Gets the OK from NJ

    My first thought last night upon hearing the New Jersey Division of Gaming Enforcement had authorized Amaya to begin operating both PokerStars and Full Tilt in the Garden State was “finally.”

    That such an announcement would be coming is something we began hearing not that long after New Jersey governor Chris Christie signed the state’s online gambling bill in late February 2013. Since then the likelihood of PokerStars’ return to the U.S. via Jersey has swung back and forth between just-around-the-corner to not-bloody-likely a few times before several hints over the summer punctuated by the phrase “end of the 3Q” made late September seem a real possibility again.

    My second thought was that when news finally did arrive it coincidentally did so on the anniversary of the Unlawful Internet Gambling Enforcement Act of 2006 being passed by the House and Senate (as noted in yesterday’s post). Something oddly symmetrical there, I suppose, given how the UIGEA’s history and that of PokerStars (and Full Tilt) have been intertwined over the last nine years.

    After that I found myself less specifically thinking in generally positive terms about the news, not necessarily because of what will immediately come of it but rather how longer term the story of “U.S. Online Poker 2.0” will surely be a lot more interesting than it would have been otherwise. Felt like there was very little to look forward to before; now, perhaps, there are at least more possibilities, including more good ones for U.S. players wanting to play online.

    That said, it’s been so long since U.S. Online Poker 1.0 -- an era that ended mid-April 2011 -- it is hard to think all that concretely about how last night’s news might conceivably lead to the reintroduction of the game online in more than just a few states here and there.

    But it does feel a little like after enduring several orbits of garbage cards while sitting behind a dwindling stack, a hand with some potential has finally arrived. The attention is newly engaged, but the hand still has to be played skillfully. And luck still matters, too, going forward.

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    Wednesday, September 30, 2015

    Positions and Juxtapositions: Nine Years Later, the UIGEA Then and Now

    I’m just going to juxtapose a few items here today, inspired both by an anniversary and some items I’ve read and heard this week.

    On this date nine years ago -- just a few months after I started the Hard-Boiled Poker blog -- I wrote a post here called “Deals in the Dead of Night” noting how the night before, after midnight in fact, a federal bill had passed through both houses that thereafter change the course of online poker in the United States once it was signed into law by then-president George W. Bush a couple of weeks later.

    As it happened, that same bill -- the Unlawful Internet Gambling Enforcement Act of 2006 -- helped pave the way for the birth of a new online industry, fantasty sports.

    1. “Senate Passes Bill on Building Border Fence” (The New York Times, Sept. 29, 2006)

    “At the urging of conservative groups and the National Football League, among other interests, the port security measure carried legislation cracking down on Internet gambling by prohibiting credit card companies and other financial institutions from processing the exchange of money between bettors and Web sites. The prohibition, which exempts some horse-racing operations, has previously passed the House and Senate at different times but has never cleared Congress.”

    2. “Frist Statement on Passage of Internet Gambling Legislation” (Sept. 29, 2006)

    “U.S. Senate Majority Leader Bill Frist, M.D., (R-Tenn.) made the following statement after the Senate passed the Unlawful Internet Gambling Enforcement Act:

    ‘Gambling is a serious addiction that undermines the family, dashes dreams, and frays the fabric of society. Congress has grappled with this issue for 10 years, and during that time we’ve watched this shadow industry explode. For me as majority leader, the bottom line is simple: Internet gambling is illegal. Although we can’t monitor every online gambler or regulate offshore gambling, we can police the financial institutions that disregard our laws.’”

    3. “Unlawful Internet Gambling Enforcement Act of 2006” (Oct. 13, 2006)

    “The term ‘bet or wager’... does not include... participation in any fantasy or simulation sports game or educational game or contest in which (if the game or contest involves a team or teams) no fantasy or simulation sports team is based on the current membership of an actual team that is a member of an amateur or professional sports organization....”

    4. “NFLPA Adds DraftKings to Partnership Lineup” (Sept. 25, 2015)

    “The NFL Players Association (NFLPA), via its licensing and marketing arm NFL Players Inc., and DraftKings, a leading destination for daily fantasy sports (DFS), today announced a group licensing partnership that will allow some of the NFL’s top-rated players to participate in DraftKings’ marketing efforts this season.... The NFLPA licensing partnership will provide DraftKings the right to employ active NFL players for in-product and promotional campaigns across broadcast, print, social media, digital and mobile properties, as well as via experiential, memorabilia and content activations....

    As the popularity of fantasy sports continues to grow with more than 56 million players in 2015, a nearly 40-percent year-to-year increase according to global market research company Ipsos, the deal provides DraftKings with a new degree of connectivity by directly involving a group of active NFL players in the marketing and promotion of its daily fantasy sports experience to fans.”

    5. “Fantasy Sports Sites DraftKings, FanDuel September Spend Tops $100 Million” (Advertising Age, Sept. 30, 2015).

    “According to iSpot.tv estimates, DraftKings and FanDuel together have funneled $107 million into the networks' coffers since Sept. 1. Nearly half ($50.3 million) of that outlay was spent on national NFL broadcasts on CBS, Fox, NBC, ESPN and NFL Network....

    DraftKings ads have aired a skull-clutching 16,259 times over the course of the month, which works out to 135 hours and 25 minutes of 30-second spots. That's more than five-and-a-half days, or a full work week, of commercial messaging that's been hammered out in the span of a 29-day period.... By iSpot's reckoning, FanDuel ads have aired 9,463 times since Sept. 1. That translates to nearly 79 hours of total airtime, or a little north of three days.”

    6. Dan LeBatard and Jon Weiner (Stugotz), The Dan LeBatard Show with Stugotz (ESPN, Sept. 29, 2015)

    LeBatard: “DraftKings is spilling money all over the place, and now they have made an allegiance with the NFL Players Union where they are able to put players in their advertising. And I’m trying to find exactly the right analogy here, because what DraftKings and FanDuel and what the fantasy phenomenon has captured here is, it’s not quite legalized cocaine... because cocaine has a stigma with it.... But we are in an area right now where DraftKings and FanDuel... and their ilk have found this place.... They’ve found a place where it’s gambling -- it’s obviously gambling -- [and] they’re able to spill and sponsor everything in sports and everyone is taking their money.... People want it.”

    Stugotz: “I agree with you about the stigma, but wasn’t online poker... didn’t they ban that?”

    LeBatard: “Yes... but online poker is a little sketchier, not nearly as popular as this is....”

    Stugotz: “I agree, but I’m just trying to figure out the difference between the two.”

    LeBatard: “Oh, there is no difference. One’s legal and one’s not.... One is legal because it’s a game of skill, the other is illegal because, poker players will tell you, it, too, is a game of skill, but it’s the same thing.... It’s amazing to watch the arbitrary moralities that we have with this.”

    LeBatard: “I just think it’s weird that we are always applying arbitrary moralities, and in this case we are doing it with our legal system and we’re doing it with our government. It doesn’t make any sense to me that this is legal and online poker isn’t.”

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    Thursday, April 23, 2015

    On Jon Stewart and Online Poker; or, For Every Action There Is an Indignant and Opposite Overreaction

    Seeing references the last couple of days from poker people responding to something Jon Stewart said on The Daily Show earlier this week regarding online gambling in New Jersey.

    The Poker Players Alliance and others are mildly up in arms about what they’re saying was an unfair characterization of online poker by Stewart. However, looking back at the clip and statement, that itself sounds like an unfair characterization of what Stewart actually said.

    It came up as a short postscript to a segment not about online gambling or online poker, but rather about the issue of legalizing marijuana (on the April 20 show, natch) -- one you can watch on the Comedy Central site here. Amid that discussion, reference was made to New Jersey Governor and potential presidential candidate Chris Christie saying he is opposed to pot being legal, noting also how states allowing its sale are in conflict with federal law.

    “Marijuana is a gateway drug,” Christie says in a clip played on The Daily Show from a recent appearance by Christie on The Hugh Hewitt Show, a syndicated radio show. “We have an enormous addiction problem in this country.... Marijuana is an illegal drug in this country under federal law, and the states should not be permitted to sell it and profit from it.”

    Stewart’s response to that position is to bring up Christie having signed into law the online gambling bill back in February 2013 that opened up poker and other casino games to online players in New Jersey. Actually Stewart doesn’t bring it up specifically, but rather plays another clip from another news show reporting that.

    “There is a difference though, to be fair,” concludes Stewart via his usual deadpan. “If you smoke too much pot, no one comes to break your f*cking knees.”

    It’s obvious that while Stewart did evoke a long legacy of gambling being associated with other criminal activity -- including violence -- to get a laugh, he hardly “attacked online poker” as Rich Muny of the PPA has tweeted out (and which others are also saying).

    The point of the observation by Stewart is entirely muted by that response, actually. Rather than “attack” online gambling directly, Stewart is showing what appears to be an inconsistent position by Christie regarding the ability of states to pass laws that aren’t in accord with federal laws. Christie allowed legislation in New Jersey that goes against the feds’ legal stance on online gambling, Stewart and The Daily Show are pointing out, which seems to contradict what he is now saying about individual states legalizing the sale of pot despite federal laws making it illegal.

    Those responding to this tangential reference to online gambling (and online poker) as though it were an “attack” are building it up into something it is not, thereby making it seem as though Stewart -- someone with a fair amount of influence -- is some kind of threat to the cause when he clearly isn’t.

    Anyone remember way back in 2006 -- before even the Unlawful Internet Gambling Enforcement Act was passed into law -- when Stewart joked about members of Congress arguing about legislating against online poker (and other forms of gambling) while permitting wagering over the internet on lotteries and horse racing? Again, there was an inconsistency worth highlighting and a source of some ready grins. (Here’s that clip on the Comedy Central site.)

    In order to reflect on the absurdity of allowing some forms of online gambling and not others, Stewart evoked Alaska senator Ted Stevens’ much-derided characterization of the internet as “a series of tubes.” Aided by some hilarious animation, Stewart explained how poker chips clog up the tubes whereas horses can run through them easily and lottery balls blow through them without a problem.

    When making that point about the inconsistency present in the bill being proposed (that would eventually become the UIGEA), was Stewart attacking gambling over the internet on horse racing and lotteries? Well, he wasn’t promoting those things, but he was hardly attacking them, either. In truth the observation implied support for online poker, although there, too, that would be reading something definite into the segment that was only implied at best.

    Stewart didn’t “attack” online poker this week. I don’t think it makes sense to attack him as though he did.

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    Monday, April 20, 2015

    Lock Down

    Among the weekend poker news was the report that Lock Poker, for a good while one of the more conspicuous “rogue” online poker sites continuing to serve U.S. players post-Black Friday, went offline sometime last Friday.

    John Mehaffey first reported for U.S. Poker that the site had gone down on Saturday, although over the last few weeks it had become something of a ghost site with only a handful of players at a time. Others reported on the shutdown as well, which appears also to include that “SuperWins” site that popped up about a year ago as a surreptitious skin of Lock.

    While there hasn’t been a lot of activity on Lock of late, the site has remained well within the poker community’s consciousness thanks to the site having become increasingly unreliable with processing withdrawals, then finally becoming altogether unresponsive to all withdrawal requests. Mehaffey notes how troubles withdrawing date back to late 2012, with the site not having processed any withdrawal requests at all since April 2014.

    He lists “$10-$15 million” as an estimate of how much sits in Lock Poker accounts, although I’ve seen some guessing the total to be even higher. Or should I say nominally sits in those accounts, as the money surely is long gone, having been either spent or otherwise purloined by the site’s owners. (And some percentage of it probably never was anything more than “phantom” funds to start with, thinking of alleged payouts in freerolls, overlays being allegedly covered, and so on.)

    Never has a site been more appropriately named, a fact I’ve already exploited more than once here in posts from 2013 punningly titled “Put Your Funds on Lock Poker (And Throw Away the Key)” and “Lock’s Stock in Peril.”

    Those posts were written two years ago, and it’s amazing to think the site continued to function for so long afterwards with players continuing to deposit as the ability to withdrawal gradually diminished and then ceased altogether. There was a regulator for Lock -- Curaçao eGaming -- although they obviously weren’t acting legitimately in any way to ensure against the ongoing thievery. (In fact, Mehaffey notes the license with Curaçao is still valid.)

    When I peeked over on Twitter earlier tonight it was interesting to see some back-and-forthing among some whom I follow regarding how much sympathy should be given to those losing money on Lock, with some taking the position players foolish enough to risk playing there -- especially after the troubles began in earnest -- got what they deserved.

    Others are pointing out how some affiliates continued to advertise for Lock, with Card Player being the most conspicuous culprit after having continued to host banners and direct players to sign up and deposit up until May 2014. The assorted Lock Poker “pros” who continued to be associated with the site well after it became apparent to many it was not trustworthy are catching some heat again as well as they did before.

    Some were surely encouraged to play on the site by Card Player and other affiliates, and perhaps by the pros, too, although their influence was likely less extensive. Anyhow, enough of the unwitting were hoodwinked to keep things going over there, even if only barely, up until Friday.

    It’ll amount to a sad, belated postscript to all of the other scandals and disappointments that form the narrative of the fall of U.S. Online Poker 1.0. That story still continues with a few more lingering sites and Bovada (formerly Bodog) having gathered momentum of late as the currently most popular “rogue” site. According to PokerScout, Bovada (whose traffic has to be estimated) is now more popular than Full Tilt and PartyPoker, even, in terms of the number of active cash players.

    With the story of U.S. Online Poker 2.0 starting so sluggishly and without much inspiration, the finish of the prequel continues to be more interesting, even if anticlimactic.

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    Wednesday, March 25, 2015

    Will Someone Please Give Me Back My Freedom Not to Gamble!

    Like some who read this blog, I dialed into that House hearing that took place during the late afternoon and early evening today, the one held by the House Judiciary Subcommittee on Crime, Terrorism, Homeland Security and Investigations to discuss that proposed Restoration of America’s Wire Act.

    The hearing had been scheduled earlier in the month then delayed. I wrote something here at the time about it, in particular regarding the rumored list of witnesses almost all of whom were virulently anti-gambling in pretty much all forms, with the online version considered especially grievous. (Also wrote about RAWA during last December’s lame duck session when its proponents were hoping it might sneak through.)

    Had the sucker on while working in the kitchen preparing dinner, an Irish pot pie with lentils, carrots, and turnips that turned out nicely. Thankfully the hearing ended before we sat down to eat, as much of the testimony and answers from the witnesses was sadly stomach-turning.

    The hearing -- like most on the Hill -- was obviously primarily a bit of theater that allowed most involved to pretend to engage in a “dialogue” about the idea represented by RAWA, namely, to prohibit all forms of online gambling in the United States. It’s a truly radical idea, the consequences of which would not be insignificant should the bill become law. And so John Kindt (a business prof. with a long history of raving testimony comparing gambling to drugs), Les Bernal (director of the Stop Predatory Gambling Foundation), and Michael Fagan (not the guy who broke into Buckingham Palace back in the 1980s, but an adjunct law prof. with experience prosecuting money-launderers and racketeers) were there voicing fairly radical views about the widespread harms of gambling and the need for government to protect us from ourselves.

    The testimony of these three was often so out-to-lunch it was hard not to crack wise in response. Bernal in particular went on a rant about “government-sponsored internet gambling” (even pounding the desk and repeating phrases as he did) that seemed to want to suggest that by not prohibiting gambling, governments were somehow requiring people to gamble.

    For example, Bernal characterizes those who argue in favor of “states rights” on the issue of online gambling as adopting a position that “state governments should be allowed to force casino gambling and lottery games into every bedroom, dorm room and smart phone in their communities, even though a strong majority of individuals in states don’t want it.” Such is part of his larger characterization of a “predatory” government looking for ways to exploit its citizens.

    Of course, what Bernal is saying is patently absurd. States that have passed laws allowing their citizens to gamble online in a regulated environment (as in a licensed casino) are obviously not “forcing” these games into citizens’ lives.

    At one point Bernal tossed out a statistic that 5% of the population has had their lives “turned upside down by gambling,” a stat gleaned, incidentally, from an NIH study speculating (without supporting data) that both “pathological and problem gambling may affect up to 5% of Americans” (italics added). But of course he turns the idea of prohibition upside down when he weirdly suggests that government should enact a law to take away a freedom in order to give citizens the freedom not to do something.

    Kindt meanwhile maintained regulation to be simply an entirely impossible goal, utterly ignoring the evidence of states having successfully managed to do just that and instead citing sources dating back to the 1990s as support. Fagan likewise looked not at regulated online gambling but unregulated examples as providing evidence of online gambling having financed terrorism.

    Not everyone testifying was as crazed-sounding or illogical as these three often were. Parry Aftab of Wired Safety was again a balanced witness who suggested regulation a much preferable alternative to prohibition, while the R Street Institute’s Andrew Moylan pointed out how federal bill like RAWA would wrongly usurp states’ rights.

    Most distasteful was the bill’s sponsor, Jason Chaffetz (pictured above), appearing to ignore what everyone was saying while maintaining it to be a “fiction for anyone to believe” states can in fact keep citizens from gambling online on sites maintained outside the state’s borders. Chaffetz delivered that point hastily, then left the hearing before it was over. Didn’t see him drop a mic before leaving, although it felt like he should have.

    I trust some members of the subcommittee did learn something yesterday, although like I say, the hearing itself often seemed more about deception than instruction. If you’re curious, check out others’ more detailed rundowns of the hearing, among them Matthew Kredell’s for PokerNews and Steve Ruddock’s for BLUFF. If you can stomach them, that is.

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    Tuesday, March 03, 2015

    RAWA Hearing Nearing

    This Restoration of America’s Wire Act (RAWA) has reared its head again, with the bill having been introduced here in the new Congress. I was just reading about the hearing for the House Subcommittee on Crime, Terrorism, Homeland Security, and Investigations to discuss it that had been scheduled for Thursday morning, although it appears that has now been postponed to a later date.

    RAWA is the Sheldon Adelson-backed bill proposing to rewrite (not really “restore”) the Federal Wire Act of 1961 to prohibit most forms of online gambling. That would include current state-regulated online gambling (and poker) such as we have in Nevada, New Jersey, and Delaware, although horse racing and fantasy sports would be excepted.

    The bill got some notice last December during the “lame duck” session with some thinking it could get added to the big omnibus spending bill passed then, but that didn’t happen. So RAWA got reintroduced this year in both the House and the Senate, and now it is sounding like it is getting more attention early on in the Congressional cycle this time around.

    The fact that it’s the Subcommittee on Crime, Terrorism, Homeland Security, and Investigations gives you an idea where the focus will be when it comes to this impending discussion of possibly prohibiting online gambling. The list of folks slated to appear as witnesses at the postponed hearing also suggests we should be ready for a mostly one-sided discussion of how some believe online gambling fits into one or more of those categories.

    There’s John Kindt who teaches business at the University of Illinois and has been out there comparing online gambling to crack cocaine ever since the internet first became a thing. Les Bernal, the National Director of a group called Stop Predatory Gambling is another on the list. So is Michael K. Fagan, another whom I recall turned up once before as a “Law Enforcement and Anti-Terrorism Consultant” before to express reservations about one of Barney Frank’s online gambling bills in the past (back in 2010).

    The only witness who won’t be opposed to regulating online gambling is Parry Aftab, a lawyer who is the Executive Director of WiredSafety.org, a group whose purpose is to increase safety online. She’s also been a witness at previous House hearings regarding such as one in which she spoke in favor of one of Frank’s bills (in 2009) and another where “internet gaming” was discussed (in 2011).

    Folks have been opining lately about the prospects for RAWA, with Nolan Dalla not long ago giving 10 reasons why he thinks it could be passed and Steve Ruddock responding with 10 reasons why it hasn’t got a chance. Tend to lean toward the latter view, at least at present.

    Am glad, actually, the hearing got postponed, as I’m going to be traveling and thus wouldn’t have been able to follow on Thursday. Still want to see it, even if it’s easy enough to guess how it will go. What happens thereafter with RAWA is less clear.

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    Wednesday, December 10, 2014

    Railbirding RAWA

    A few months after I started this blog -- more than eight-and-a-half years ago, if you can believe that -- the Unlawful Internet Gambling Enforcement Act of 2006 was passed into law. Suddenly I found myself writing about a host of other topics besides simply playing poker, among them legal matters affecting my ability to play the game online.

    As we’ve been reminding each other over and over again since the UIGEA was passed -- kind of like repeatedly relieving a bad beat -- that bill was snuck onto another one in the dead of night just before that Congress adjourned for the final push of campaigning prior to the ’06 elections. Thus did it become law without going through what many would rate a legitimate process of thoughtful debate and decision-making -- that is to say, via a process other than one in which our elected representatives would appear unequivocally to be representing the wishes of those who voted them into office (not that such an ideal is so often realized).

    From there followed several years of mixing in posts in which I’d write about various legal developments that followed the UIGEA, including the long, drawn-out process of the regulations getting finalized by late 2008, as well as the many rival federal bills introduced by Barney Frank and others hoping to legalize and regulate online gambling in the U.S.

    Then came Black Friday, which I might call a game-changer but in truth more or less stopped the game altogether, at least for most online poker players in the U.S. Before then, though, I remember somewhere along the way finding an analogy between poker and legal machinations surrounding the online game, the parallel having to do with both involving a combination of luck and skill.

    That’s a generalization, but the point was that when it came to legislation regarding online poker, the process was in some respects controlled by the “players” (i.e., legislators, judges, lobbying groups, plaintiffs and defendants and those representing them, and so on) and also -- seemingly -- by what often appeared “chance” elements insofar as the combination of individuals and circumstances would result in lots of unpredictable outcomes.

    Some “players” in the legislative game -- like in poker -- have a lot more influence than others, with money often making the difference in both contexts. Such is what we’ve been seeing happening over the last couple of years with Sheldon Adelson’s ongoing efforts to curb online gambling of all kinds. The CEO of Las Vegas Sands (parent company of the Venetian Macao Limited) is purportedly the 10th richest person in the world (as of this past summer), thus it hasn’t been difficult at all for him to toss chips various legislators’ way in order to lean on them to play his way.

    The most recent orbit of this game has involved Adelson backing this new Restoration of America’s Wire Act (RAWA) first introduced in both houses back in March of this year. This federal law would rewrite the Federal Wire Act of 1961 (which the DOJ opined in late 2011 only applied to sports betting) to prohibit most forms of online gambling in the U.S., including making current state-regulated online gambling (in Nevada, New Jersey, and Delaware) illegal. (Horse racing and fantasy sports would still get a pass.)

    RAWA has gotten some co-sponsors but not huge traction this year, but during this “lame duck” session some surmised it could be tossed into this huge $1.1 trillion omnibus spending bill, with a lot of talk about how the Senate Majority Leader Harry Reid (NV) was being goaded by Adelson (and his money) into sneaking it in there in UIGEA-like fashion. You’ll recall how during an earlier lame duck session (in 2010), Reid was introducing a federal bill to license and regulate online poker while curbing other forms of online gambling. Well, now he apparently is sitting behind someone else’s stack.

    During the day yesterday I noticed Rich Muny, Vice President of Player Relations for the Poker Players Alliance, noting how on his most recent webcast a former member of the House, Jon Porter, said it was “50-50” the RAWA would get added to the spending bill. The bill finally dropped last night without RAWA, and as one commentator in a Two Plus Two thread about the situation noted, “we went from about a 50% chance of being safe, to about... 85%.”

    Again, just following the story makes it hard not to think of poker analogies. In this latest hand, those not wanting to see a federal bill outlawing online gambling across the U.S. were all in preflop with Q-Q versus an opponent’s A-K-suited, and now have faded both the flop and turn to have a big edge with one card to come.

    The problem with those analogies, though, is that most who oppose RAWA aren’t even sitting at the table, never mind making decisions about pushing their stack in behind a premium hand. They’re on the rail, watching others with big stacks keep buying back in and playing the game on their own.

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    Wednesday, December 03, 2014

    On What Happened

    “What happened?”

    So read the subject line of an email I received a little earlier today. Not the kind of subject line you like to see, especially if your life is complicated by various deadlines and assignments -- like mine, and like that of just about everyone else, too, who’s checking email regularly.

    Looking closer, the sender’s name was vaguely familiar, then after I opened it I realized it was one of those regular mailings the Poker Players Alliance send out, I think on a weekly basis. The letter explained how I’d been sent a note recently asking me to contribute to the PPA. As I had not done so, now I was being chastised for not responding to the request to help “protect poker from DC politicians seeking to ban our game” by sending in some cabbage for the cause.

    Have to say I didn’t like that feeling the subject line gave me, namely to think for a moment I might’ve lost track of some important assignment or other obligation. Not appreciating that, I found the link to unsubscribe from the mailing list, and did so.

    I thought a little afterwards about both the “cause” -- that is, the fight to “protect poker” from those who wish to prohibit the game from being played (online or elsewhere) -- and the extent to which I am obligated to fight for it.

    I obviously feel strongly that I should be allowed to play poker when and where I wish, and thus I am also obviously especially dissatisfied that is far from the case at present. I also appreciate the efforts of those who are working to change the current status quo.

    That said, when it comes to online poker here in the U.S., it is impossible for me to be at all hopeful about that particular cause either in the near future or long term.

    I was mentioning yesterday listening to that poker podcast from seven years ago. So strange to go back like that and hear the discussions and ads all reflecting a time when online poker was mostly taken for granted, with the associated issues (the first big cheating scandal and “ghosting” concerns) seeming like relatively minor problems that could be fairly easily endured while the games continued unabated.

    A different world, that. What happened? I guess I more or less know what happened. And knowing that, it’s hard to be optimistic about anything that might happen next.

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    Friday, November 28, 2014

    Hitting Home Runs, Moving the Goal Posts, Putting on the Full Court Press, and Other Legal Maneuvers

    Today while searching around I happened upon an interesting new article appearing in the Journal of Sports & Entertainment Law. The journal is published by the Harvard Law School, and the article by Megan E. Boyd is called “Riding the Bench -- A Look at Sports Metaphors in Judicial Opinions.”

    For various reasons, not the least of which being my teaching a class called “Poker in American Film and Culture,” my ears always prick up whenever I hear poker metaphors employed in non-poker contexts. And it happens a lot, with poker terms and phrases popping up on a regular basis all over, especially in politics, sports, entertainment, and business.

    As the title of Boyd’s article suggests, the use of sports lingo in legal matters is the focus of her article. She begins by noting how “the adversarial nature of the court system in this country mirrors the very nature of competitive sports,” thus making it unsurprising that sports analogies should be frequently employed in the courtroom.

    Just wading into such a discussion makes it hard not to think about how legal matters are often covered by the media today -- that is to say, as if they were sports contests. In any case, Boyd makes some interesting observations about how ubiquitous sports-related metaphors are in legal arguments, with some of the most common phrases such as calls for “fair play” or to “level the playing field” evoking at once ideas of legal justice and rules for ensuring games’ integrity.

    The article discusses metaphors drawn from boxing, baseball, football, basketball, golf, hockey, billiards, rugby, track and field, wrestling, cricket, and car racing. And there’s even a section covering poker, too. “ESPN considers card playing to be a sport,” Boyd explains in a footnote, “and because of the interesting poker-influenced metaphors found in judicial opinions, I have included it here.”

    In that section she runs through several examples including plaintiffs having to “reveal their hand,” attorneys using an “ace in the hole” to launch suits, or parties “sandbagging” by withholding evidence until more opportune moment.

    Boyd also mentions how lyrics from “The Gambler” often get quoted in the courtroom, citing a couple of instances. She doesn’t mention there another reference to the song in a legal context from about three years ago when a couple of the Black Friday defendants, John Campos and Chad Elie, were still fighting to have their cases dismissed. (You know what I mean -- that Black Friday, not today.)

    Amid that battle, federal prosecutors filed a response to the pair’s motion that spelled out the many reasons why the host of charges against them should stand, a statement that reaffirmed poker to be gambling and thus covered by the Illegal Gambling Business Act.

    In a totally superfluous aside, the feds also included a reference to “The Gambler” identifying it as “Willie Nelson’s classic poker song.” We know Willie plays poker -- and can perform a good card trick, if you ask him -- but obviously they meant to refer to Kenny Rogers there.

    Some gaffe, that, although I didn’t really matter much to the argument. Sort of like missing a fly ball with two outs with the two-base error not resulting in any runs scored.

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    Tuesday, November 25, 2014

    Poker and Other Gambling Games

    Recent developments with online poker have inspired conversations (again) about poker’s relationship to other gambling games, especially other casino games.

    When I first became serious about poker and broadened my knowledge enough to appreciate first-hand its strategic complexity, it wasn’t long before I found myself becoming similarly serious about wanting to distinguish poker from other types of gambling which I was much less inspired to pursue. Most who come to poker not via those other gambling games but by other routes (as I did) probably experience something similar, if they become at all serious about the game.

    I have to admit I feel differently today, though -- still convinced of why poker is distinct from those games, but much less energized by any special need to point out the significance of that difference.

    When the Unlawful Internet Gambling Enforcement Act was suddenly sprung upon us a little over eight years ago, responses from the poker community included a lot of hopeful talk about “carve outs” and how poker somehow shouldn’t be considered “a game subject to chance” (to quote the UIGEA) -- even if, of course, it is. That “skill argument” continues to invigorate some including the Poker Players Alliance, the lobbying group created in response to the UIGEA, despite the fact that legally speaking the argument that poker isn’t entirely “subject to chance” hasn’t really had any major influence.

    Sure, there have been occasional rulings by judges sympathetic to poker’s skill component, including that one from August 2012 in which a federal judge maintained poker “is not predominantly a game of chance” while throwing out a conviction for illegal gambling of someone who’d run a poker game out of a Staten Island warehouse. But a year later the ruling in that case was reversed, and it doesn’t seem any occasional declarations in courts acknowledging that it takes a little more know-how to win a hand of poker than to hit your number in roulette has ever mattered all that much as far as the law is concerned.

    Meanwhile in Nevada, New Jersey, and Delaware came the passage of online gambling laws that have made it possible for players within those states to play poker against each other (“intrastate”) while allowing for casino games, too. We in the poker community focus more on the poker side of things, but just like in live casinos, online poker is operating right alongside online slots, online craps, online blackjack, and so on. And relatively speaking -- also like in live casinos -- those other games are earning significantly more revenue than poker, to no one’s surprise.

    Other recent developments with regard to online poker sites operating outside the U.S. have perhaps served to emphasize further poker’s connection to other gambling games, and I’m not just alluding to PokerStars recently following other poker sites to offer other casino games.

    Games like the Jackpot Sit & Go tournaments on Full Tilt Poker and the Spin & Gos on Stars are still poker, of course, though incorporate elements from elsewhere in the casino like slots or the “wheel of fortune.” (Wrote a little about Spin & Gos here last month.) There are plenty of examples of video poker available online, too, a game that might be considered even more of a hybrid of poker and slots. Meanwhile something like live dealer casino holdem at Paddy Power actually changes poker into more of a blackjack-type game -- still incorporating some strategy, though it’s a game fairly distinct from traditional poker.

    Makes me think a little of how you’ll often find dice wedged in there next to decks of cards inside a poker chip set. What are they doing there? Well, for one thing, they’re reminding you of traditional notions of poker being just another gambling game.

    I still think it’s worth pointing out (when relevant) that poker is different from most gambling games, especially those in which you’re playing against the house rather than other players. But the game’s place in various cultures -- in the U.S., in other countries, and online -- has always been very closely aligned with other forms of gambling. And whenever poker gets pulled away from those games, it seems like it can never be for long before it gravitates back toward them again.

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