60 Minutes Story

[pokeraddict]

To correct my earlier statement Todd was a victim of the theft but had zero to do with any of the investigation. He has tried to play damage control with some of his comments but it isn't working.

[Simmo!]

I watched the first minute or so but when they said it was an industry that "operates outside US law", I gave up. No clarification of the fact that was only in a few States indicated to me it was going to be "sensationalist" journalism.

[jetset]

To correct my earlier statement Todd was a victim of the theft but had zero to do with any of the investigation. He has tried to play damage control with some of his comments but it isn't working.

The perception given in the television program and the Washington Post is that he was part of the investigation.

Both made it sound as if he was actively involved, but perhaps he was indulging in a little self promotion - his name certainly made it up there with real investigation participants like Serge Ravitch, Nat Arem, Mike Josem etc.

I found the two Washington Post articles on the debacle more informative than the television production. Although most of it was old news it was an interesting recap of events with a few new twists and statements thrown in.

Opinions on the Sixty Minutes program seem to vary, but many appear to feel it was rather superficial, somewhat negatively biased and in places inaccurate and overlooking important elements in the story.

One can't get away from the fact that this massive cheating debacle occurred and it was only the tenacious determination of the player-detectives that pressured the owners and the 'regulators' into some sort of enquiry, even though it lacked (as the Washington Post opines) aggression and drive. Had it not been for Ravitch, Arem, Josem et al I'm pretty sure it would have been blown off - as the original denials by the owner illustrates.

The Catania enquiry made one comment I found shocking - that there was no technical due diligence done on the software when it was acquired from Excapsa. That also throws into question the efficacy of the software checks at that time by the KGC imo.

Quote: The company told The Post that it performed full financial and operational due diligence before the sale but that it did not find the unauthorised software. However, Catania, the outside investigator, said that UltimateBet officials did "no due diligence on the technical part. None." At the same time, he said he did not think Norton was aware of the cheating. Unquote.

Hopefully there's a positive bottom line here - the capability of the player community to root out and expose bad practice and cheating will have shaken up the industry and perhaps resulted in a more thorough approach and future focus on the danger spots that have been revealed.

[jetset]

Here's an interesting "clarification" from the KGC on the 60 Minutes and Washington Post stories.

Note especially point 4, which advises that even if Tokwiro is not going after the cheaters, the KGC is:

The Kahnawake Gaming Commission, regulator of the UltimateBet and Absolute Poker websites involved in the major cheating scandals covered by the Washington Post and 60 Minutes publicity, was critical of some elements ommitted from the reports by the two news organisations, and issued the following 'clarification':

"The Kahnawá:ke Gaming Commission (“KGC”) and its agents, having viewed the CBS News item entitled, “The Cheaters” extends the following clarification and information which, although provided to the show’s producers, had been left out of the storyline.

"1. The Ultimate Bet (“UB”) cheating was initiated while UB was owned and operated by Excapsa (a public company whose Board of Directors included several high-profile Canadians). Pursant to a settlement agreement finalized in November, 2008, Excapsa agreed to pay Tokwiro ENRG US$15M.

"2. All players that were adversely affected by cheating (both AP and UB) were fully reimbursed. In the case of UB, these refunds amounted to over US$20M. The reimbursement of UB players was affected within days after the Excapsa settlement. The KGC played a key role in facilitating and monitoring reimbursements.

"3. The KGC and its agents have reviewed AP/UB operations and systems and have confirmed that all necessary steps have been implemented to prevent against cheating in future. Migration to the CEREUS software platform was approved and closely monitored by KGC.

"4. Contrary to claims made in the 60 Minutes story, in addition to significant penalties levied under its Regulations (eg. fines totaling US$2M), the KGC has initiated a criminal complaint against at least one cheater (Russ Hamilton) and is cooperating with law enforcement authorities. Other such complaints may follow."

Point 4 of the Kahawake clarification will be well received by the player community, which has expressed outrage at the apparent immunity from prosecution implied by Tokwiro group statements that it had not pursued the cheaters in return for cooperation in finding and plugging the software flaws and identifying prejudiced players.

[silcnlayc]

60 Minutes' and Washington Post Coverage Highlights Why Congress Should Regulate Internet Gambling and Protect Consumers
PRNewsWire News ReleasesPublished: 12/01/08 11:45 AM CSTRating:

NewsvineCommentCurrent prohibition leaves Americans unprotected

WASHINGTON, Dec. 1 /PRNewswire-USNewswire/ -- Jeffrey Sandman, spokesperson for the Safe and Secure Internet Gambling Initiative, today issued the following statement in regards to recent coverage on CBS News' "60 Minutes" and in The Washington Post on the dangers Americans face when they gamble online.


"The 60 Minutes and Washington Post stories demonstrate unambiguously that the existing government prohibition on Internet gambling is a failure and a mistake.

The millions of Americans who continue to gamble online are vulnerable to being defrauded by offshore operators who exploit U.S. prohibition policies, leaving U.S. consumers without legal protections when they make a bet or play poker online. It is clear that a different approach is necessary to protect consumers, as well as to recapture the billions of tax dollars currently lost to offshore gambling operators and out of the U.S. economy. Now more than ever, Congress should understand why it should step in and regulate the industry to protect the public. We are hopeful that increased attention in the media about the issue will lead to increased movement in Congress.


Left out from the 60 Minutes and Post coverage were details about the specific benefits achieved through regulation.

Legislation introduced last year by Rep. Barney Frank, the Internet Gambling Regulation and Enforcement Act of 2007, would establish an enforcement framework for licensed gambling operators to accept bets and wagers from individuals in the U.S. It includes a number of built-in consumer protections, including safeguards against all of the types of improper activity identified in the recent news coverage. These safeguards include protections to combat compulsive and underage gambling, money laundering, fraud and identity theft. Moreover, as the coverage reveals, the structure of the Internet allows for greater protections since there is a complete audit trail of all Internet gambling activity and transactions. A companion piece of legislation would ensure the collection of taxes on regulated Internet gambling activities. Revenues from regulated Internet gambling are estimated to be between $8.7 billion and $42.8 billion over 10 years, according to a tax revenue analysis prepared by PricewaterhouseCoopers."


About Safe and Secure Internet Gambling Initiative

The Safe and Secure Internet Gambling Initiative promotes the freedom of individuals to gamble online with the proper safeguards to protect consumers and ensure the integrity of financial transactions. For more information on the Initiative, please visit www.safeandsecureig.org. The Web site provides a means by which individuals can register support for regulated Internet gambling with their elected representatives.




SOURCE Safe and Secure Internet Gambling Initiative

http://markets.chron.com/chron?GUID=...ChannelID=3197

[megan isla]

Its a bit an old issue but im glad CBS took action with it although cheating is prominent in all gambling and been part of the poker world.