GPWA Times Magazine - Issue 4 - April 2008

GPWA TIMES | Webmaster News QUOTABLES Webmaster News . . . . . . . . . . . . . . . . . . . . . . . . . The Canadian government an- nounced in March that it was considering a move to restrict banks and credit card compa- nies from conducting finan- cial transactions with Internet gaming operators in the coun- try, much like what the U.S. at- tempted to accomplish with the Unlawful Internet Gambling En- forcement Act (UIGEA) that was introduced in October, 2006. But if history has anything to do with it, the days of regulated Internet gambling in Canada are not so far off in the distant future, says Michael Lipton, a gaming law expert and the se- nior partner at Elkind & Lipton in Toronto. “History demonstrates that over the past 50 or 60 years the trend in [Canada] is to regulate, not prohibit,”says Lipton.“If the pub- lic wants something regulated, and the regulation benefits the country, it usually happens.” Nearly 500 Internet gaming sites hold a permit issued by the Kahnawake Gaming Com- mission, which is based in the Kahnawake Mohawk Territory near Montreal. The Commis- sion, which was established in 1996, claims that it is empow- ered to regulate and control gaming and related activities within and from its territory since it is a sovereign nation. But according to Lipton, the Kahnawake isn’t sovereign, but it is protected by Section 35 of the constitution that says the government must recognize and respect traditions and cus- toms that are integral to their culture. Whether or not gaming would fall under that category is up for debate, but Lipton does not envision a scenario where the government would test it by moving into Kahnawake territory. “Practically speaking, I don’t think the government is look- ing to move on this because it could lead to violence,” Lipton said. “This is all about Woodbine trying to protect their monopoly. Woodbine’s argument is that these sites are hurting their business but I don’t follow that logic. Are they trying to say that if Inter- net gambling is shut down, all of a sudden people are going to flood the race track to bet the horses? That just doesn’t make sense.” —Gary Trask Expert: Canada not likely to ban online gaming UltimateBet charged with unfair play For the second time in a span of less than six months, a popu- lar online poker site has been charged with allegations of un- fair play. According to a press release issued by UltimateBet, the site was alerted to suspicions of a player exhibiting “abnormally high winnings statistics” and “having an unfair advantage during play”on Jan. 12. The allegations were made by concerned players and were di- rected to UltimateBet and to its licensing authority, the Kahn- awake Gaming Commission. “We immediately launched an extensive inquiry involving an independent third-party expert to review hundreds of thousands of hand his- tories, all of which were promptly locked down and made available to this expert,” UltimateBet said in its state- ment. “The initial findings of our third-party expert confirm that the NioNio account’s win- ning statistics were indeed ab- normal, and we have expanded the investigation to look into whether an unfair advantage existed, how such a scheme might have been perpetrated, and whether additional ac- counts beyond those of NioNio were involved. “UltimateBet is in regular com- munications and contact with its regulatory authority, The Kahnawake Gaming Commis- sion (KGC), and will continue to cooperate fully with that body.” The scandal brings back mem- ories of last October when Absolute Poker was mired in a cheating scandal that prompt- ed the KGC to audit the site. The controversy ignited after complaints began to surface that there were “superuser” ac- counts that could see the hole cards of all the players at a table. In January, KGC fined Ab- solute Poker $500,000 follow- ing an investigation into these allegations. Both UltimateBet and Absolute Poker are owned by Tokwiro Enterprises ENRG, which is headed by the former Grand Chief of the Mohawk Territory of Kahnawake, Joe Norton, who did not respond to requests to be interviewed for this story. Tokwiro Enterprises ENRG is located in Kahnawake and also owns Vegas Poker 247 and AP Lady. UltimateBet’s statement went on to say that it “is determined to complete a full and thorough investigation.” —Gary Trask "I've never seen so much praying on a Good Friday." —Walthamstow Dog Track patron Drew Mannion reacting to the controversial move to allow betting shops and race tracks to open for business this year on one of the most cherished Catholic holidays. "In every regard, the Latin American Poker Tour is going to put Latin America on the map as the newest hotspot to play high-stakes international poker" — LAPT President Glenn Cademartor after PokerStars announced the launch of Latin America's first major poker tour, beginning in May. "The banks have a lot of other things to worry about right now. I don't think poker should be one of them." — U.S.House Financial Services Committee Chairman Barney Frank (D- Mass.) while arguing that the UIGEA places burdensome requirements on financial institutions. "They've shown us that the marijuana culture runs deep with many poker players. We expect affiliates to find a whole new crowd to convert." — Canadian Affiliate Management Company President Gian Perroni on the response he has seen since the launch of Reefer Poker, the first poker site to act as a gathering place for marijuana enthusiasts.