ABSOLUTE ONLINE POKER ACCEPTS KGC FINDINGS

18 January 2008

Damage control on steroids as online poker site tries to regain credibility


Absolute Poker was perhaps predictably in full damage control mode in responding over the weekend to the Kahnawake Gaming Commission findings on its cheating scandal (see previous InfoPowa reports) In a statement released to carefully selected media, the troubled site acknowledged "...the completeness and accuracy of the KGC conclusions."

Judging by initial reactions on player message boards there are many that will argue that statement. Numerous posts have been made criticising the KGC for the lack of detail in its published findings regarding those responsible, how the scam worked and what action has been taken against the fraudsters.

The main penalty imposed by the Commission requires Absolute Poker to pay a fine of US$ 500 000 within 60 days, and the firm has to foot the bill for the investigation by Gaming Associates triggered by the Commission. It will also be required to place a deposit, the value of which is not disclosed, with the Commission for 2 years against future conduct, and will be randomly audited at its expense. Other more precautionary restraints include a requirement to implement a "continuance compliance program" which is not detailed, remove permanently from office those responsible for the debacle, and activate a remedial program.

The Absolute Poker statement accepting the KGC findings and penalties says: "After reviewing the published report, we recognize the completeness and accuracy of the KGC conclusions, and we accept without reservation the KGC’s findings and sanctions. Most importantly, we are pleased, after these many months, that Absolute Poker can finally put behind it a most distressing and regrettable experience for the Company, its employees, and its customers."

The company goes on to use the opportunity to reiterate that it has paid off those players prejudiced by the cheating, repaired the vulnerability in its systems which it claims made the scam possible and has appointed a team "to improve controls and install safeguards."

The statement lays emphasis on the findings that "there is no evidence to indicate that the impugned activities were initiated or sanctioned by AP…or were intended to benefit AP, as a corporate entity" and the "inadvertent deletion of certain gaming logs and records during the course of the investigation."

Absolute Poker also uses the statement as a platform to announce that it is to introduce a series of "poker security summits" starting January 18 to which "respected and independent members of the poker community" will be invited in order to "focus on innovative and cutting-edge ways to further improve AP’s security and enhance its transparency."

Concluding with a general apology, Absolute Poker's statement says it regrets the damage done to its players and to its reputation by the incident.

"We acknowledge that the Company did not act with sufficient speed to uncover the fraud; however, once we were convinced of the veracity of the allegations, we moved quickly to inform the KGC and to reimburse affected players. While AP is paying a severe penalty for the fraud perpetrated upon the Company and its customers, we are gratified that we can now close the book on this sordid affair.”

The KGC findings released Friday included the following:

* From August 14 2007 over a period of 6 weeks certain player accounts were used to cheat other players in live games at Absolute Poker using software that enabled the cheaters to view the hole cards of their opponents, resulting in unfair play.

* The accounts responsible for the cheating are named as Graycat, Payup, Steamroller, Potripper, XXCashmoneyXX aka SupercardM55, Doubledrag and RonfalcoXXB aka Romnaldo. AP has been directed to remove the individuals behind these account names from playing any role in future AP affairs.

* Persons "associated with Absolute Poker's operations" deleted certain key gaming logs after the cheating, a move which hampered but did not preclude a finding being reached. Other than this, AP cooperated during the investigation.

* Gaming Associates found no evidence that AP as a corporate entity was involved in the cheating either at director or "principal ownership" level.

* However, the unidentified principals behind Absolute Poker failed to contact the KGC within 24 hours of discovering the incident as required by licensing regulations.

* Gaming Associates found that AP made "expeditious efforts" to appropriately reimburse those players prejudiced, with interest. KGC urges any aggrieved player not yet paid to contact the Commission, which will ensure the complaint is addressed by AP. There is a 60 day window for this, commencing 11 January 2008.

* The finding certifies that Absolute Poker has taken appropriate but unspecified action to address the vulnerability in its systems.

Online Casino News courtesy of InfoPowa