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]
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Reader Comments (Page 1 of 2)
Pamela said 2:13PM on 12-01-2008
I didn't even know online poker was illegal in the US. Guess I wouldn't because I don't play those types of games online. But if someone is cheating though, I think their names should be know to the people they took the money from. But I guess since they gave the people back their money, then they felt it was no need for them to know the cheaters names. Sometimes this is a sick world we live in. Glad I don't use money or credit cards at all online, except for stores I trust, too scary for me.
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robert said 4:56PM on 12-01-2008
well im one who didnt get their money back...while im quite sure it wasnt that same site...i lost 3200.00 dollars over about 3 months playing online poker...i hate to think i was cheated...i dont gamble online anymore...
steven said 2:14PM on 12-01-2008
what more evidence do people require to STOP gambling online? Anyone who is STUPID enough to place their hard-earned money in the hands of heartless cheats is a TOTAL moron. I only pray for their family members who may be hurt by their reckless foolishness.
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freetoafault said 2:28PM on 12-01-2008
Someone stole my debit card information and used my money to play on Absolute Poker. Absolute Poker staff gave me the runaround and refused to cooperate, even after I sent them a police report (I wanted the IP address of the player using my card, which they said they would give me upon receipt of the report). Their business is completely corrupt.
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Harmy G said 2:33PM on 12-01-2008
First of all, it isn't illegal to play poker online.
Second, the guy didn't get away with it. Everyone who lost money to him got it back.
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Anne said 4:35PM on 12-01-2008
It may not be illegal to play online in the US but it is illegal to RUN such a site from within the states. Not everyone got their money back, but gambling is ridiculous anyway.
Serves em right to lose their money. Serves the cheaters right to get caught. Now someone revoke the sites' licenses!
wendygoerl said 2:36PM on 12-01-2008
Yet another example of the Government making things worse (causing people to go outside the U.S. where they have little or no recourse for poor seller practices) by trying to make things better (outlaw "dangerous" business so they can get more tax revenue somewhere else). When is the Government going to learn that banning a thing people want only makes them do more dangerous things to get it? If people could televacation in Vegas, this wouldn't even be an issue.
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wendygoerl said 2:44PM on 12-01-2008
First of all, it isn't illegal to play poker online.
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It's illegal to play poker for cash anywhere it's illegal to have a brick-and-mortar casino, and in some Indian casinos that don't have non-blackjack table games in their state gaming contracts.
Second, the guy didn't get away with it. Everyone who lost money to him got it back.
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Did you READ the article, or just the headline? Two people got caught (resulting in $7.1M in refunds) out of "close to $20 million" (that experts know of). That is not "everyone"!
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Andre said 3:51PM on 12-01-2008
Wendy,
Before trying to make others look stupid, take a closer look at your own mirror.
It's illegal to play poker for cash anywhere
No honey. Should I explain why or you will reach out and put your thinking cap on so you can answer that yourself.
Two people got caught (resulting in $7.1M in refunds) out of "close to $20 million" (that experts know of)
WoW you can quote the article. Too bad you dont read as good as you quote. Allow me:
"Player or group of players on the site UltimateBet.com launched a similar cheating campaign in early 2008"
"Catania delivered his findings: cheaters took their prey for close to $20 million over the course of several years"
Now player and group of players are different things. Also 20 million over several years and 6.1 million since early 2008 are two different things.
I understand that the basement where you were raised does not offer an education suitable for understanding by imbreed such as yourself so i offer you an advice. Get off the computer. I am still amazed you were allowed to make a comment.
dodgeman725 said 6:10PM on 12-01-2008
it is totally legal to play poker for cash
it is illegal to profit from gambling and poker is not considered gambling but a skill game
steve said 3:24PM on 12-01-2008
Playing poker IS NOT illegal, the us Gov. trys to stop the flow of money to these sites and wire funds tranfer to these sites is illegal BUT PLAYING ONLINE POKER IS NOT ILLEGAL!!!! I have won hundereds of thousands playing on pokerstars, they have had no reports of cheats and appears to be an up and up business. They would be crazy to not stop cheaters due to the fact that I estimate they make 300-500 thousand dollars PER HOUR 24 hours a day 365 days a year. Lets allow them to operate in the US and Tax them and us winning players. maybe we could use the revenue to pay for the Theifs on wallstreet who stole BILLIONS! with a B.
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KK said 12:38PM on 12-07-2008
Not true about Pokerstars... My husband played on Pokerstars and they caught someone cheating and he was refunded "some" money, very little in comparison to what I BELIEVE was lost due to cheating.
ngsp2008 said 3:39PM on 12-01-2008
I have played online poker for over 3 years and have never had a problem. I also play only on the two (2) largest and most secure sites, that being Full Tilt and PokerStars. I wouldn't pplay on any others. Also, this site does not have all of the correct information. ALL players that played these cheating users, were reimbursed in FULL...period.
and steven...your comment is completley "idiotic".
Lastly, Poker is NOT gambling to educate those of you who do not know a thing about poker.
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SarafinaYvette said 3:50PM on 12-01-2008
If ya don't know when to fold, don't play...losers always crying when they get senseless and bet everything but the kitchen sink...that too if it weren't full of dishes. Lord help the losers families, cause they got their money back and went to find another game.
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Honest Player said 3:53PM on 12-01-2008
Be interesting to see if the spokespeople Phil Helmuth / Annie Duke withdraw their endorsements from these shadow gaming organizations.
Wanna gamble, go to Vegas and do it right !
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DoverPro said 4:01PM on 12-01-2008
Cheating at online poker? Goodness, what a suprise!
Many people think it is rigged anyway, there is some speculation called the Poker Action Flop Theory. The idea is that the online poker rooms deliberately set up hands to create large pots, with outcomes that favor the risk taking players. This is done to level the playing field, giving the average players a chance against the top players on the site.
Here is a link to the article. http://www.thedoverpro.com/poker-action-flop.htm
This of course is not to mention player collusion, players who use multiple accounts, and players teaming at the tables.
Most online poker sites have no true regulation compared with USA legal casino poker operations, just another reason it should be legalized in the USA, then it could be regulated and taxed.
Here is a link to a group trying to do just that: http://pokerplayersalliance.org/
Good luck!
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Loren Blumenfeld said 5:25PM on 12-01-2008
It is illegal to play poker for money online from the U.S. TH
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scottyj said 5:53PM on 12-01-2008
Its is not illegal to play poker for money in the us. It is illegal for the site to deposit money into a us bank account. State laws govern whether or not their constituents can play poker online not federal laws
marvn webster said 4:26PM on 12-01-2008
A FOOL AND HIS MONEY SOON PART"
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Dave said 4:57PM on 12-01-2008
60 Minutes filmed this show last summer. Since then, the company that owns Ultimate Bet sued the former owners ie. the cheaters, and received $15 million, which they used to refund ALL the players (15M +6.1m=$21M in refunds. people should do some research before making idiot comments, and 60 minutes should have updated their story. just another case of poor American reporting.
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