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Online Poker Perspective: An Absolute Mess, Part 5

As has been detailed in the first four parts of this series, the Absolute Poker superuser cheating scandal has been in the news since September 2007. Though the Kahnawake Gaming Commission, which holds the gaming license of Absolute Poker, had initiated an investigation, a final report was due from the auditors, Gaming Associates, in early December. Until the second week of January, there had been no further word.

While most media outlets let the story slip from their front pages, a select few continued to demand answers. Poker Player Newspaper allowed me to continue these columns, for which this writer is grateful. And when Chuck Barnett, a member of Mohawk Internet Technologies Board of Supervisors heard Keep Flopping Aces , Lou Krieger's radio show-with yours truly as a guest, and an intense focus on the Absolute Poker scandal-he called in. Barnett shed some light on the connections between the Kahnawake Gaming Commission (KGC) and Absolute Poker, which I will detail in the next column. He also informed us that a decision was forthcoming.

In less than 24 hours, a decision was rendered and published by the KGC. Dated January 11, 2008, the decision confirmed that cheating occurred on Absolute Poker for six weeks beginning on August 14, 2007 and involved nine different user ID names.

Those responsible for the cheating are no longer connected with AP, and AP as a corporate entity did not sanction or initiate the activities. The decision confirmed that all players known to have been cheated were reimbursed, and anyone not included in that reimbursement of monies can contact the KGC within 60 days for consideration.

The KGC decision noted that AP had "taken the appropriate actions to address the vulnerability in its systems." In addition, some new information came to light. AP failed to contact the KGC within 24 hours after they became aware that cheating occurred, which violates the Commission's regulations. And person(s) associated with AP's operations deleted certain gaming logs and records that hampered-but did not prevent-the investigation.

As a result of the violations and breaches, sanctions were imposed on Absolute Poker by the KGC as follows:

  • AP's Client Provider Authorization was amended to subject AP to random audits of logs and records for the next two years, the cost of which will be absorbed by AP. The company must also implement a compliance program.
  • AP was ordered to pay a fine of $500,000 within 60 days of the decision.
  • AP must pay a security deposit of an unspecified amount to be held by the KGC for two years to offset the cost of any further breaches in the gaming laws.
  • AP was ordered to pay all costs associated with the investigation, audit, and any follow-up matters that may occur as a result.
  • Within hours of the release of the KGC's decision, Absolute Poker released a statement. The company recognized the completeness and accuracy of the decision, adding that it appointed a team of internal and external members to improve controls and install safeguards on the site. In addition, a series of "poker security summits" with "respected and independent members of the poker community" will be held to further improve AP's security.

    AP noted that it "regrets the inadvertent deletion of certain gaming logs and records during the course of the investigation," though it is unclear how records are ever inadvertently deleted. Most striking about the AP statement was its several mentions of relief to have this experience over. It was a "most distressing and regrettable experience," and it is glad to "close the book on this sordid affair." Clearly, this was an attempt at an apology.

    The next (and possibly final) column in this series will look at the ownership of Absolute Poker and the subsequent connections to the Mohawk Territory .

    http://www.pokerplayernewspaper.com/back-issues/pp080204S.pdf
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