Online Poker

by David “The Maven” Chicotsky

 How we approach tournaments will have an affect on the way we play. We’re aware going in that there will be ups and downs - that we’ll need to make many correct decisions if we want to have a chance at getting to the final table. When bad things happen while we’re playing, we need to be able to hit the proverbial reset button. Tournaments are long poker marathons where it is necessary to make many correct decisions, and it only takes one mistake to knock you out.

 There are many things that set off poker players and make them lose their mind. When a player loses a big hand, they’re all of a sudden more likely to play in a polarized fashion: go into a shell and play extremely tight, or go on tilt and spew their chips off. Recognizing this, we must be very precise with how we play after we (or our opponent) lose a big hand. These are the times at the table where there is a strong connection between the last hand and the present hand.

Time to go public. My behind the- scenes campaign to protect Internet poker has failed.

LAS VEGAS, NV - On Sunday, May 5, amateur poker player Daniel Healey of  Las Vegas, NV came in first place at Ultimate Poker’s first $10,000 SundayTournament at UltimatePoker.com, making history as the winner of the first legal, real money online poker tournament to be held in the United States.

The historic $10,000 Sunday Tournament capped at 200 players, with Healey taking home a first place prize of $4,173. 

“It is really exciting to be a part of history, winning the first tournament,” Healey remarked.  “I have been keeping up with the news updates and poker blogs ever since BlackFriday hit and was extremely excited to hear that legal online poker is here.  I am excited to be living in Nevada and playing my favorite game.”

“Since going live on April 30, there has been no downtime whatsoever, and demand to play in our first $10,000 Sunday Tournament exceeded our expectations,” remarked Joe Versaci, Ultimate Gaming Chief Marketing Officer.  “We ended up reaching our 200 player cap 45 minutes before the tournament opened.”

By Wendeen H. Eolis

The surprise move in the gambits of gaming companies seeking to position themselves for future fortunes in the online and commercial gaming market came last week from an unlikely source, the Atlantic Club Casino and Hotel (ACC) in Atlantic City New Jersey. The casino insulted Rational Group  U.S. Holdings (PokerStars), dismissing its friendly bid and preliminary agreement to buy the property, suddenly, as too little too late.

PokerStars did not take the insult or the alleged injury to its plans lying down. On May 5, PokerStars responded with a lawsuit and yesterday  the online poker behemoth followed up, marching into court to obtain a temporary restraining order against the casino company [Read the Court Filing]. It was granted a preliminary injunction that prevents a fast sale to any other suitor while PokerStars makes it case to complete the purchase if it can obtain an Interim Casino Authority from New Jersey regulators.  

For the moment, PokerStars claims in scathing allegations of bad faith on the part of the ACC, its continued intentions to proceed toward completion of the purchase, noting the considerable investment it has already made in the property.

by Wendeen H. Eolis

PokerStars' purchase agreement for the Atlantic Club Casino and Hotel in Atlantic City has expired. In a public statement, this morning ,Michael Frawley, COO of Atlantic Club Casino and Hotel has confirmed that the purchase agreement is terminated.  Nevertheless, it is too early to jump to conclusions.
 
There is nothing said thus far to suggest that the two companies cannot re-cement an updated agreement. If necessary, PokerStars could update its completed application which has been submitted to the New Jersey Casino Control Commission.
 
When it comes to online poker, machinations, twists, turns, and outcomes unfathomable at one moment have been known to become stark reality the next.

PokerStars May Still be Valued in New Jersey

Governor Chris Christie, a proponent of a full court press to revive Atlantic City, faces massive pressure to find the means to recovery from Hurricane Sandy. PokerStars' promise to bring jobs, civic commitment and 40 million dollars to the project cannot so easily be dismissed.
 

by Wendeen H. Eolis

The battle for supremacy in the emerging online poker market, stateside, is in full swing with a series of gambits by the American Gaming Association (AGA). The AGA has effectively delayed PokerStars’ anticipated acquisition of the Atlantic Club Casino & Hotel in Atlantic City by its letter and legal brief in opposition.

PokerStars is perceived as a white knight among poker players but as a black sheep by members of the AGA.

The various bones of contention are coming into sharper focus but some relevant matters of fact are becoming more murky. Lawyers supportive of the AGA stance and of AGA members most likely to be affected sooner than later have become increasingly vocal in response to this reporter’s request for help in dissecting the issues—in plain English.

Questions and Answers

More than a dozen lawyers representing both sides of the issues contributed questions and comments last week. This week the AGA supporters (on condition of personal anonymity)  reviewed their position and various documentation in an effort to flesh out the general consensus among them. One of the participants stepped up to provide  a voice on behalf of the prevailing views of AGA supporters interviewed.    PokerStars supporters in the group are expected to provide enhanced responses with references to legal documents, shortly. In the interim some of their initial comments are repeated to remind readers there are two sides —if not more— in this evolving story.

Note: For the avoidance of doubt, readers are advised that both PokerStars and the AGA declined to comment   on the Q & A  for this article  through their respective communications offices and none of the responses reflect authorized comment by either organization.  

 1. Why did Poker Stars conclude affirmatively that their online poker fare was legal in America after enactment of UIGEA?

AGA PETITIONS NEW JERSEY REGULATORS TO BAR POKERSTARS, ONLINE GIANT FIGHTS BACK

 In an unprecedented move, the American Gaming Association (AGA) filed a brief with the New Jersey Casino Control Commission in an attempt to convince the state’s gambling regulators that PokerStars is a “criminal enterprise,” operating in violation of US law, and that the state should thus rule against the application of Stars-related entity Rational Holdings US to operate the recently purchased Atlantic Club casino in Atlantic City. Lawyers for Stars responded immediately with a brief of their own, alleging that the AGA had no legal standing from which to petition, and was engaging in blatant market protectionism. New Jersey regulators postponed a scheduled hearing on the AGA petition to consider the matter in greater detail.

DEPARTMENT OF JUSTICE ANNOUNCES CLAIMS ADMINISTRATOR FOR FULL TILT REMISSION PROCESS

by Wendeen H. Eolis

Over the past two weeks the American Gaming Association and PokerStars have sparred over the future of the online gaming company’s activities in Atlantic City. There is no end in sight for a battle that has AGA pressing the New Jersey Division of Gaming Enforcement (DGE) on behalf of its members into a long methodical examination of the merits of PokerStars’ entry into the United States casino market.  

While the plot thickens and the legal issues unfold, more than a dozen lawyers are responding to my call for help to dissect in plain English what is happening. Lawyer sources for this article have intimate knowledge of the online and live casino industry. Many have represented one or more of the following: PokerStars, MGM, Caesars, other brick and mortar casinos and online gaming companies and/or the AGA. They weigh in today on a few of the questions they have brought to the table for discussion. 

Author's disclosures: The  writer is a a legal consultant but not a lawyer and therefore does not offer legal advice and  does not express any legal conclusions in the matters presented in this article.This acknowledges without specific reference that the writer and/or EOLIS companies have had business dealings at one time or another with most of the businesses mentioned in this article and necessarily, have retained confidences provided in the context of those relationships.

Please also note: For the avoidance of doubt, readers are advised that no spokesperson for either PokerStars or the AGA was solicited for comment with regard to this article and none of the responses reflect authorized comment by either organization

The questions and the summarized answers provided as a result of consulting with a wide variety of gaming law experts and white collar crime specialists follow:

1. Why did Poker Stars conclude affirmatively that their online poker fare was legal in America after enactment of UIGEA?

By Wendeen H. Eolis

 A complicated relationship between Rational Group (PokerStars) and Caesars Entertainment has begun to reveal itself in earnest in recent weeks with an eclectic crowd of movers and shakers surrounding the players at the top of their respective pyramids.

 The two companies, with assistance from empowered supporters, have been known to deliver understated slaps back and forth over the years, but lately the protagonists are exchanging more powerful blows.

 Members of the Scheinberg family and top executives in the corporate empire of Caesars Entertainment are in the mix. So are the likes of American Gaming Association president, Frank Fahrenkopf, who will soon take his leave from his longtime position there.

 The cast of characters in recent machinations between the two companies has also included Scott Wilson, a business consultant/professional gambler with powerful connections. He was the spark that ignited a telephone call between Caesars and PokerStars -- the call that was heard around the world last week in a report by Nathan Vardi in Forbes  Magazine.

Mark Scheinberg and Mitch Garber are the key players in the sandbox

 Poker Player Newspaper has learned the identities of the "two high level officials" that were referenced without attribution in the Forbes article. They were Mitch Garber, CEO of Caesars Interactive and Mark Scheinberg, CEO of PokerStars.