EGamingPulse - Poker News

The Taxman Playeth

info@egamingpulse.com (news manager) — Thu, 04 Oct 2007 00:00:00 -0700

In what is being hailed as a victory for both sides, the Internal Revenue Service (IRS) and the casino industry has reached an agreement on the taxation of poker tournament winners.

Last month, the IRS had initially told casinos that they were responsible for withholding 25% of poker tournament winnings over $5,000, a move many industry insiders feared would drive poker players to play only at offshore internet poker rooms. After negotiations with the casino lobby, the IRS will now require casinos to report winnings on a W-2G form, while players will be responsible for registering their winnings at tax time as of March 4.

The American Gaming Association, which represents thousands of bettors and industry members, has applauded the compromise, while lobbyist Wally Chambers said the IRS was appreciative of our efforts to ensure the flow of these tournaments, adding, Were very happy with this procedure.

While the World Series of Poker, the worlds premier poker tournament, reports winnings to the IRS, many casinos neglect to fill out the W-2Gs, and the players who would be taxed rarely, if ever, insist upon it. With the new agreement then, the IRS is able to create a paper trail of poker gambling winnings. If a casino does not withhold tax, the IRS can simply hold that casino liable.

Many poker players are slow to report winnings come tax time, however with the corresponding forms from the casinos, if they forget this time around they will be caught.

For Anthony Curtis, the publisher for the gambler-aimed Las Vegas Advisor, this will probably make more poker players aware of their responsibilities, [players] do everything off the books. Theyre walking around with big wads of cash like you wouldnt believe. They dont have records and wouldnt know what to do to report taxes. They just know that theyve got to get to the next game.

By not changing the withholding rules, tax-paying players get the benefit of not having their cash bankrolls impacted.

Although some critics see this move by the IRS as another piecemeal solution by basically treating each particular game with different tax solutions, instead of an industry-wide taxing legislation, the gaming association sees it as an important step for the still-growing industry.

At least 1.8 million of the estimated 134 million tax returns filed in 2005 reported some form of gambling earnings, with an overall total of roughly $24.9 billion or 413,800 per person.

The Only League in Town (For Now)

info@egamingpulse.com (news manager) — Tue, 07 Aug 2007 00:00:00 -0700

Michael Clebnik, a self-professed computer guy, may be the potential savior of poker playing in America.

After the Unlawful Internet Gambling Act (UIGA) was put into place last year and effectively cut off the worlds largest customer stream for online gaming, many analysts feared for the health of the online poker industry. Well known sites such as Partypoker.net and PokerStars.com retreated from the U.S. market. Clebnik however, believed he found the perfect loophole to escape the wide-ranging legislation.

Clebnik created the Framingham-based National League of Poker, which can be based in the U.S. as he established it not as a gambling site, but as an organization that falls under the guise of sweepstake and lottery law.

Several years ago, Clebnik was simply a sports fan, having created five start-ups, including a fantasy sports company. We were looking for expansion, and we were starting to play online poker. Noting its huge growth potential, Clebnik realized that all the sites were based offshore.

We felt there was a different way to offer poker to U.S. markets, and there was a lot of legislative buzz going on which eventually led to the passage of UIGA.

Over 16 months, Clebnik and his staff developed the National League of Poker style: a membership based site, with advertisers and sponsors, the NLOP doesnt require people to put money down on games and instead awards $25,000 in prizes each month.

The attention the NLOP is garnering is impressive to say the least. In just over a year it has gained 142,000 members, secured a title sponsor in Milwaukees Best beer and given away a seat at the World Series of Poker in Las Vegas.

Despite his success, Clebnik realizes that other companies will eventually catch onto his model, noting I definitely assume theres an industry being created here. Were definitely the first, but we believe there will be some competition that comes out.

Well Known Poker Player Has Run In With the Law

info@egamingpulse.com (news manager) — Fri, 03 Aug 2007 12:54:39 -0700

When Safford Police officer Brian Avila pulled over a 2007 BMW G-6 sportscar for reckless driving last week he had no idea what he would find inside over $51,500 in cold hard cash.

Aurangzeb M. Sheikh, an online poker player from Texas was pulled over after an officer spotted him driving erratically and at high speeds. He was given a citation for speeding and performing an unsafe lane change. When Avila was given permission to do a car search he found inside a marijuana joint, a marijuana grinder, a driving permit from the Republic of Pakistan and the bag of cash.

Sheikh told Avila that he had won the money playing poker in Las Vegas casinos and was simply returning home to Houston after a successful week of poker.

After his car was towed to the police station, Sheikh consented to a urine sample, which tested positive for THC the active ingredient in marijuana. While Sheikh denied the drugs were his, he did confess to having a fraudulent document, stating that the Pakistani drivers permit was given to him by his brother who lives there. He said he only used the document to get into casinos to play poker.

The FBI confirmed that Sheikh was indeed a well-known on-line poker player and also confirmed that he had recently won $200,000 in the Bahamas.

Sheikh was cited for Driving Under the Influence of drugs, possession of marijuana, drug paraphernalia and forgery. With no prior criminal history, he spent the night in the Graham County Jail and was released the following day.

SuperComputer to Take on Poker Pro Ali Eslami

info@egamingpulse.com (news manager) — Fri, 20 Jul 2007 00:00:00 -0700

Does a computer bluff well? Can you read a computers reaction to his/her/its cards?

These are a few of the questions that will be facing two poker professionals on Monday in Vancouver, British Columbia as they face a poker-playing computer in a showdown for $50,000.

Professional players Phil Laak, who recently won NBCs Poker After Dark, and Ali Eslami, an elite ranked poker player each have the opportunity to win $25,000 if they win all four games against the super computer during the Association for the Advancement of Artificial Intelligence conference being held at Vancouvers Hyatt Regency Hotel.

The computer, named Polaris by its creators from the University of Alberta, can simulate actual poker players, allowing it to aggressively bluff or remain cautious and under-bet. Jonathan Schaeffer, one of the lead researchers on the Polaris project, says that the goal of the computer is to be unpredictable for human bettors.

"With poker, the key thing is unpredictability," said Jonathan Schaeffer, one of the lead artificial intelligence researchers on the Polaris project. "A computer is very good at predicting odds . . . it can do that very quickly."

Although past projects have proven successful against human opponents in games such as checkers and chess, researchers wonder whether the sheer luck involved in poker may be the determining factor.

"I'm not at all sure that the computer is going to win this thing, precisely because it is so difficult to learn about the style of your opponent," said Oliver Schulte, an SFU cognitive scientist who once worked with the Polaris creators.

Rookie poker player scoops £614,000

info@egamingpulse.com (news manager) — Wed, 20 Dec 2006 00:00:00 -0700

Rajesh Modha is a 44 year old father of three who only started playing poker 18 months ago.

He says that he was taught to play by his brother and today he battled to the very to win the Ladbrokes Poker Million tournament in London.

Modha, a nuclear engineer from Northampton, gained entry into the tournament via a qualifying tournament that cost just a couple of pounds to enter.

Ladbrokes, the high street bookmaker even offered in-running betting on the outcome of the Poker Million final.

The green felt revolution rolls on.

info@egamingpulse.com (news manager) — Mon, 04 Dec 2006 00:00:00 -0700

They like to think of it as the green felt revolution - the upset defeat of Iowa Rep. Jim Leach, father of the Internet gambling ban, in last month's congressional election.

Leach had been in online gamblers' sights ever since Congress passed the ban as one of its final acts before the Nov. 7 election. Stunned by the new law, the Poker Players Alliance rallied members to take their outrage to the polls and cast ballots against those who voted for the ban.

Now, the group plans to use Leach's experience as an example.

A postelection poll commissioned by the poker players suggests that gambling may have helped do in the 15-term Republican congressman. The poll of 1,000 voters by RT Strategies showed that, among voters for whom the gambling subject was a pivotal issue, Leach's Democratic challenger, David Loebsack, enjoyed a 5 percentage point edge. Leach lost by 3 percentage points.

As the group starts introducing itself to the new Congress that takes over in January, the poker players plan to highlight the poll as part of its lobbying effort.

The group wants Congress to exempt poker players from the ban and study ways of legalizing online play as a legitimate licensed and taxed business.

"It's not a warning," said Michael Bolcerek, president of the group that counts 125,000 members. "It's that people care strongly about this issue and will consider that in their voting decisions."

Online poker playing, he said, is an issue that members of Congress "need to deal with."

Bolcerek said the group also urged its members to support poker-friendly members of Congress, including Nevada's Republican Rep. Jon Porter and Democratic Rep. Shelley Berkley, who authored legislation to study regulating online gaming.

Berkley was re-elected by a landslide in which the online issue likely was relatively inconsequential. And though Porter won by a narrow margin, the group did not poll to see whether the green felt revolution helped sweep them to victory.

Las Vegas Sun

Doyles to return to Dobrosoft?

info@egamingpulse.com (news manager) — Fri, 01 Dec 2006 00:00:00 -0700

Poker site Doylesroom.com was built on the reputation and legend that is Doyle Brunson. The man is often referred to as godfather of poker, he has published several books and won many high-profile poker tournaments. His endorsement, along with several highly successful marketing campaigns, including allowing new customers to transfer VIP points earned with competitors to Doylesroom.com, made the brand one of the most high profile in the industry. But Doyles was left in damage control after Tribeca Tables, its software provider, announced it would no longer take US players. This demographic is critical to Doyles, as it represents over 95% of its player base.

Now, according to an insider at Doyles, the Poker site is considering going back to poker provider Dobrosoft. Leaving Dobrosoft for Tribeca was a good move at the time. Tribeca offered a better product and a rapidly growing Network. The source said. We are Tribecas biggest skin. After (Tribecas) announcement that they would not take US players, we started to examine other providers.

It was reported earlier that Doylesroom.com was in talks to buy the Tribeca source code, but that the interest was quickly rejected. Insiders feel that the move to Dobrosoft could make sense for Doylesroom.com and would strengthen Dobrosofts position and attractiveness to other poker skins who need to switch to a US player friendly provider.

Full Contact Poker.com re-launched on the Dobrosoft software platform after Ongame Network's announcement that is would halt all US online poker action.

Tribeca shed customer support and IT staff

info@egamingpulse.com (news manager) — Thu, 30 Nov 2006 00:00:00 -0700

A source at Tribeca Tables has said that the company has laid off almost 30% of its first and second tier support staff. The firings were from UK and North American locations. The source said that The remaining support staff is very busy. We are still servicing an unchanged level of poker players. The source went on to say that some development and IT staff were shed as part of the merger with Scandinavian poker provider TAIN earlier this year. Tribeca Tables recently announced that they will no longer accept customers from the United States. High profile US facing clients of Tribeca include Doyles Room and Golden Palace.

Doyles Room wanted Tribeca source code

info@egamingpulse.com (news manager) — Mon, 13 Nov 2006 00:00:00 -0700

An insider at Doyles Room said that they were in discussions with Tribeca Tables to acquire the network provider's online poker software source code. Last week Tribeca announced that it would no longer take US players. Doyles Room is one of Tribeca's larger skins and is scrambling to find a suitable replacement.

According to the insider, Tribeca quickly rejected the idea and Doyle's Room is apparently examining a partnership with Ongame. If they do broker an agreement with Ongame, they will join US facing poker brands Hollywood poker and PokerRoom.com, along with European focused Bwin.com

Tribeca Tables recently merged with Scandinavian poker provider TAIN. Sentiment within Tribeca is that their new found euro connections will allow them to not only ride out the loss of their US business income, but help them to grow quickly in Europe and other emerging poker markets. Online Gaming software provider and network operator Playtech announced today that it struck a deal to buy part of Tribeca Tables Europe for US$75 million.

Tribeca tables to shed US players update

info@egamingpulse.com (news manager) — Fri, 10 Nov 2006 00:00:00 -0700

After discussions with its attorneys on the foreseen impacts of the Unlawful Internet Gambling Enforcement Act, Tribeca Tables has announced that it will no longer take US based players.

We are now initiating this policy and will work closely with our customers to ensure as little harm as possible to their overall business. Commented Erik Ahlberg, president of Tribeca Tables

European managing director Steve Cook said that (it has)taken a considerable amount of time to weigh up all the options and sought a great deal of legal and market advice. Sadly we have no alternative. We have concluded that it is the best way forward for the company.

Tribeca also said it will now focus on non-US markets; however it would not be taking bets from Israel and Hong Kong players.

Tribeca table to shed US players.

info@egamingpulse.com (news manager) — Thu, 09 Nov 2006 00:00:00 -0700

A source at Tribeca Tables has indicated that they will no longer accept customers from the United States. High profile US facing clients of Tribeca include Doyles Room, Golden Palace and Bowmans. Tribeca does have a large European customer base and counts Paddy Power, Victor Chandler and Blue Square amongst their largest European focused skins.

Tribeca Tables recently merged with Scandinavian poker provider TAIN, and appointed Erik Ahlberg, TAINs ex CEO as its new President.

Recent study shows online poker on the rise

info@egamingpulse.com (news manager) — Wed, 08 Nov 2006 00:00:00 -0700

A poll conducted by Ipsos-Reid for the Responsible Gambling Council on Ontario has shown that more people under the age of 34 are playing poker for money online. The poll surveyed 1,000 people in spring of 2006 and is considered accurate to within plus or minus three percentage points, when conducted 19 times out of 20. A little over one-third of poll participants under the age 34 responded they play poker for money. Half of respondents said they are playing more today than they were 24 months ago. Close to 25% of those participants indicated they play at least once a week.To Jon Kelly, CEO of the Responsible Gambling Council of Ontario, there is a clear link that can be made to this increase in poker playing. "Frequency matters - the more you gamble, the more you are at risk"

The Ontarian Liberal government recently introduced legislation that would ban online gaming ads. Gerry Phillips, Minister for Government Services made a comparison between online gaming sites and crack houses, arguing online gaming is illegal and shouldn't be advertised. He said that "(the new legislation) would help to protect vulnerable groups."

What is interesting to some observers is that the legislation provides exceptions for government sanctioned lotteries and horse racing. Mr. Phillips did not comment when asked to compare offshore poker sites and the Ontario government run lottery.

Poker site targeting Indian players to be launched - press release

info@egamingpulse.com (news manager) — Wed, 01 Nov 2006 00:00:00 -0700

MaharajahClub.com, the first online poker gaming site specifically targeting the Asian market in Europe and Southeast Asia, is launching a play-for-fun only gaming site in India.

With the launch of MaharajahClub.net, the Asian-owned Maharajah Gaming is set to further widen its reach in Asia, a company press release stated.

With a new US law making online gambling illegal coming into effect, the industry worldwide is expected to be affected and, as such, the focus is on switching to new markets.

Through the new site, Maharajah Club will use its strong cultural relevancy and team of experts to make its mark in Asia, according to the release.

"This is the first time an online gaming company has targeted an audience based on ethnicity," Sachin Pawa, CEO of Maharajah Gaming stated.

"It happens in land-based casino around the world. By targeting ethnically, we can cater to the culturally specific needs of our clients in a way that no other casino on the net can."

The idea behind MaharajahClub.net is to bring the fun side of poker gaming to India. The site is expected to help grow the game on the continent by teaching first-timers how to play and increase poker's widespread appeal among beginners and seasoned players alike.

Maharajah Club is licensed by the Gaming Commission of Curacao, Netherlands Antilles.

source : http://www.teluguportal.net

Online poker plays its last hand

info@egamingpulse.com (news manager) — Wed, 01 Nov 2006 00:00:00 -0700

If Congress has its way, playing online poker may no longer be a way for students to pay off loans or buy new cars. A new federal law against Internet gambling is stifling online poker rooms, though its effectiveness in stopping the online gambling craze is not yet clear.

Some of the more popular online gambling sites, including PartyPoker.net and PokerRoom.com, have already announced that they will stop serving U.S. customers.

We will have implemented the technical solution to restrict all customers within the U.S. from accessing our real money games starting Monday, Nov. 6, said PokerRoom.com in an email to its clients. The company will continue allowing U.S. players to access its play money games.

Other online poker rooms, meanwhile, are flouting the new rule and continue to allow U.S. customers to play with real money. Full Tilt Poker and Pokerstars are two that have seen more players, including Stanford students, flock to their sites since the new regulations.

Despite the new restrictions, Stanfords cyber poker sharks dont expect to stop betting big anytime soon.

I suppose theyll just switch to whichever sites are still operational, said senior and Daily columnist Nate Solon about other online players. Though that itself is somewhat troubling, since only the least law-respecting sites will keep running.

Other students confirmed that they plan to continue playing online, even if it means taking their business to more difficult tables.

The games are much tougher, as people who take the trouble to redeposit onto other sites are probably good regulars anyway, said one Stanford student, who wished to remain anonymous because they plan to break the new law. However, Ive still found it profitable and will continue to play online poker.

While several online poker venues remain open, it is not clear if there will still be a way to transfer funds online to these Web sites. Most sites depend on third-party escrow services to get money from their customers. Players deposit money into these third parties before transferring those funds again to the gambling site of their choice.

However, Neteller, the biggest and most popular of these fund transfer services, has already announced that it will obey the law.

Neteller, a company registered outside the U.S., will comply with the act and its related regulations as if it were subject to the acts jurisdiction, the Canadian company said in a press release.

Using credit cards is generally not an alternative. Since 2001, Visa and MasterCard have not allowed direct transfer of funds from credit card accounts to online gambling Web sites.

Some students dismissed the impact of Netellers decision, saying that there will likely be another substitute that comes along.

While the reactions of the $12 billion gambling industry have been as mixed as those of online poker Web sites, there is a consensus that the law will not be as effective as some of its sponsors may have hoped.

The one thing that the senators and the president fail to see is that gamblers want action, and by passing this law, the action has gotten a bit more dark and scary and local and a black-and-white version of illegal, said Jim Quinn, a spokesman for the Off-Shore Gaming Association.

Others were a bit more reserved.

The American Gaming Association does support the creation of a study commission to look into how the U.S. can best address the entire issue of online gambling, said Holly Thomsen, a spokeswoman for one industry lobbying group.

The law, known as the Unlawful Internet Gambling Enforcement Act, was attached at the last minute as an amendment to the SAFE Port Act. Congress passed the bill on Sept. 30, and President Bush signed it into law on Oct. 13.

source : http://daily.stanford.edu/article/2006/11/1/onlinePokerPlaysItsLastHand

Oshawa factory worker wins $1.35 million WTP pot

info@egamingpulse.com (news manager) — Tue, 31 Oct 2006 00:00:00 -0700

NIAGARA FALLS, Ont. A pair of twos turned out to be enough to win a 27-year-old Oshawa man $1.35 million early Monday morning in the final hand of the World Poker Tour's North American Championship.

Soren Turkewitsch, a factory worker living with his girlfriend of six years in her parents' basement won a marathon final table in the $4.8-million tournament, held at Niagara Fallsview Casino Resort.

Five Canadians and one American started playing the final table at 5 p.m. Sunday and it wasn't until Turkewitsch's opponent Jason Sagle went all-in at 12:50 a.m. Monday that the tournament finally came to an end.

Sagle, convinced his ace-five combination would hold up, put all his chips on the line, only to have a two come up on the flop that gave Turkewitsch a tournament-winning pair.

Turkewitsch ran over to his girlfriend Michelle Markov, who was in tears and gave her a hug, as if to say `life just got better.'

For all intents and purposes, Turkewitsch didn't enter the World Poker Tour thinking he would walk away with more money than some people make in a lifetime.

Why would he? He had never even played in a major poker tournament before.

"Never did I think I could win. It was just a chance to play poker," he said.

The avid recreational player came to Fallsview Casino Aug. 14 for a qualifying tournament, which cost him $90 to enter. He won that and then won the second round a few weeks later to make it into the full WPT tournament that started Wednesday with 497 players.

He nearly lost all his chips in the second-to-last day here Saturday, but survived and came into the final table sitting in a close third.

One by one he and Sagle knocked off their opponents, until they were the last men standing in a heads-up battle.

It took 26 hands before Turkewitsch outwitted Sagle, who still earned $676,000 for second.

"For the longest time I wasn't thinking about No. 1 because I didn't have enough chips. Just making it through Day 1 was something. Then, when I got into the money, I was just grinding hard to try and get a little more," Turkewitsch said.

The player knows his life will change a bit now, but he's hoping not too much.

"I have no idea what I'm going to be doing now. It doesn't even feel like I've won," he said. "I won't be going back to work, that's for sure."

What likely won't happen is Turkewitsch heading south of the border to play in other World Poker Tour events.

"You're not going to see me playing against the top dogs. That's just not me," he said.

His girlfriend Markov has only one request.

"I hope we'll be moving out of my parents' basement," she said. ``It's crazy, crazy, crazy. I can't believe it."

The tournament marked the first time the WPT had ventured into Canada for one of its events, the first in a five-year contract for the WPT to host events at the Fallsview Casino.

source : http://www.thestar.com