Online Poker Cheating Costly, Unpoliceable

Over the past two years, the largely unregulated business of online poker has seen two major cheating scandals, according to a joint report by '60 Minutes' and the Washington Post.
Players on the poker site Absolute Poker uncovered the first of the two scandals in August of 2007, when one apparently novice player, known as "Grey Cat," began consistently winning high-stakes games. After pressing the site administrators for information, the amateur investigators finally discovered that the too-lucky player was, in fact, a former employee of the Web site who had cracked Absolute Poker's software code. Although administrators conceded this fact, and instituted $1.6 million worth of refunds to its players, they refused to make public the cheater's identity.
Because online poker is illegal in the United States, and because Absolute Poker is headquartered in Costa Rica, there is no course of legal action available to the complainants. The tin-star sheriff of the online poker world, the Mohawk Indian-owned Kahnawake Gaming Commission, did nothing more than fine the company $500,000, allowing its owners to keep their license.
Probably emboldened by the lawlessness exposed in this first scandal, a player or group of players on the site UltimateBet.com launched a similar cheating campaign in early 2008. Suspicious, players again launched their own investigation. This investigation lead to UltimateBet.com's admission of cheating and refunding players $6.1 million. But, as did Absolute Poker, UltimateBet.com refused to identify the cheater, or cheaters.
This scandal, and the site's refusal to name the culprit, lead the Kahnawake Gaming Commission to hire Frank Catania, a former New Jersey gaming official, to investigate. This past September, Catania delivered his findings: cheaters took their prey for close to $20 million over the course of several years. The Gaming Commission fined the site $1.5 million and found former World Series of Poker champion Russ Hamilton to be the primary culprit.
Despite these findings, little can be done to address the problem outside of these fines and censures.
We'll just take the conservative tack and stay off the Web sites; If you don't play, you won't pay. [From: 60 Minutes via Cnet and Washington Post]





Disney World Scammers Scored Four Years of Free Vacations
Stranger's Kiss Keeps 16-Year-Old From Committing Suicide
Rookie Cop Reportedly Berated, Called 'A Rat' For Arresting Off-Duty Officer
Walmart Ending Membership in Conservative Group
How I Went Bankrupt at 23
Can a New Guy Save Best Buy?
Woman Claims Kangaroo Stalked Her for 2 Days, Then Attacked
Pete Cosey Dead: Chicago Guitar Great and Miles Davis Collaborator Dies at 68
Facebook, Week Two: Fortunes Made and Fortunes Lost (Mostly Lost)
A Journey To The Hottest Place On Earth: Dallol Ethiopia














Comments
34
Subscribe to commentsDrKiIIemDec 1st 2008 4:57PM
Read the article...it is illegal in the US...
Because online poker is illegal in the United States, and because Absolute Poker is headquartered in Costa Rica, there is no course of legal action available to the complainants.
DickDec 1st 2008 5:22PM
The internet is ripe for cheaters. So this comes as no surprise.
SharonDec 1st 2008 6:08PM
I would like to see online legalized again in the US where it can be regulated and taxed. My daughter used to play bingo online and won a ton of stuff including over $2,000 in one cash pot, a 42 inch HDTV, a laptop and even an all-expense paid cruise to Central American - I got to go as her guest! If you are not playing with money you can't afford to lose, it is OK. It was wonderful for shut-ins and disabled persons who couldn't go to a casino. Too bad the right-wing waco's decided they were going to save us all from the demon gambling and shut down the US sites. Many gamble on out of country sites, but they are prone to dishonesty. I live in Ohio and we have to go to Michigan, Indiana, or Canada to go to a casino because the anti-gambling sect is too powerful in Ohio. The state loses a LOT of tax $ because those people must run everyone's life.
carmenDec 1st 2008 6:12PM
First of all online poker is NOT illegal in the United States, the state of Washington is the only place in America where it is illegal. Online sportsbooks and casino games ie-craps, blackjack are illegal. Also the electronic transfer of money to and from these sites is illegal. This story was known in the online poker industry almost as soon as it happened, 1 1/2 years ago. There are safeguards at most sites so superaccounts do not exist. If you google the story, you will get the real version of what was going on AND find out that it was the poker players themselves who figured this out. If this were LEGAL to base these companies in the US and copllect taxes on the receipts, this would NEVER happen. Let's go Congress, do what's right,base the operations in America and make it so everyone can play in the comfort of their own homes.
BrendaDec 1st 2008 6:23PM
I Have played on PokerStars for 3 years, I have won many times, and was paid promptly. If you play responsably, .10 cent , 25 cent tournaments,or $1.00 , you get alot of action and entertainment for your money.( 5-7 HRS. ) You and you only are responsable for your actions. I want to play poker. If you do not, DO NOT ENTER THE SITE. But leave the rest of us alone. Poker is a game of skill, not just luck. Tired of being told what I can and cannot do in the PRIVACY of my own home. I paid for my computer, I pay my bills, my taxes, and I want to be left alone to sit in my underwear and play some poker.
Dick FitzDec 1st 2008 6:48PM
Players lost $20 million to cheaters. The company paid back just $1.6 to the players who lost money. Something wrong with this picture. I would not be surprised if the company did not get back some of this money from the cheaters. I was a computer programmer at one time. I could write a program so you would NEVER win. So that is why I never play on-line. To much risk.
MelissaDec 1st 2008 6:58PM
I had no idea that online poker was illegal. Well, it's their money if they want to give-up their rent money, and money that was to pay bills, what can we say. you can't very well tell someone not to play poker. If they are determined, they will do it anyway.
MischiefDec 1st 2008 7:43PM
The ONLY reason this story saw the light of day or generates any interest is the fact that gaming lobbyists put a bunch of money in the pockets of the Washington Post and CBS to produce the story.
You see, when billions of dollars are spent offshore instead of in legally run casinos - the Indians and the big conglomerates are losing $$$. They want you playing in THEIR casinos - not online.
Buyer beware - if you are dumb enough to lose your money to an un-regulated online poker game - where you have no idea if you are getting fleeced...then you DESERVE to get taken. You are a dumbass...
Doctor Amad NojokerDec 1st 2008 7:42PM
Could it be the "amateur investigators" were actually tools of the "legitimized" gaming world?
Could it be the fraud perpetrators were extensions of the "legitimate" gaming world with full intent of expose' of the fraudulent activity so as to sully "legitimate" gaming worlds competition?
Dr. Nojoker
papagunnzDec 1st 2008 8:14PM
well first off....personally i really dont give a crap as to weither or not poker is legal in the US... its a stupid law ...just like the majority of laws in this country... the only reason why its against the law is cuz the government cant get there greedy paws on the money...ill still play for the joy of the game...and i dont give a damn what the government says about it....however its much more rough online then in a casino....sites are overloaded with pocket pair set ups...any online player will tell you at LEAST 75% of the time u have a PP...someone else does also...and on sites like pokerstars...a straight or flush draw is almost as good as a set..lol...its designed for action!....playing poker in the u.s isnt illegal...only the depositing of money is...and these sites ARENT run in the u.s..unless its a vegas online casino...which is mostly for horse racing...some people need to get there story straight...besides ..sports betting is way more exciting then poker..lol...happy gaming..and fck the government!!!
brian9194xDec 1st 2008 9:43PM
action flop etc just simply isnt true. you see more stuff because you see so many more hands online than live. ive played live and online and seen equal. these accusations are as old as time and its just an excuse. shoot people accuse the stock market of being rigged.. come on guys quit being so dumb. not everything you dont do well in is rigged against you.
Some GuiyDec 3rd 2008 12:13AM
Gambling for cash is illegal? True. Paying cash for chips and then gambling is illegal? False. Get a clue people, if there is money involved, there will be cheaters. Don't stick your heads in the sand thinking this is something new. Remember, there is ALWAYS someone out there waiting to prey on your money. If you think anything different, you are a fool!
calmac68Dec 3rd 2008 5:28PM
I have been playing poker for the last few years, at casinos and online, and I have had my good days and bad days. I have played for free and for low stakes. While people do win and lose money when playing poker, it's all part of the game. However, they don't deserve to be cheated out of it. Unfortunately, in this business, it is highly unlikely that cheating will be abolished completely from the scene. We can only hope that the sites will do a better job to combat this. And I personally feel that the US would be better off with regulating poker so they can collect taxes on this. But no, a few narrow minded individuals, trying to "save us" with their misguided morality make things this way for all our sake. Remember Prohibition? That was a great success, wasn't it?
d pDec 22nd 2008 7:34AM
Iplayed on ultimatebet before reading this and lost only a hondo but the hole time I could swear I was being cheated.I dont know if u ever played stud high low but it usually a high beting game well i watched before entering table and every one in the game were only checking THE WHOLE HAND.well I entered thinking maybe new players.I went along with yhe checking for about two hands and started betting allof a sudden they all started beting and raising I would get four of the same suit or ace,2,4,5 onthe first four cards several times.I not only either did not get a matching card or when i did they would have a higher hand and when i was dealt a winning hand they would fold so i won only little.I say we send them some virus or worm or what ever it called. i know its illigal in the states but they cant do anything about it because they arnt in the states