March 9th, 2008
The Canadian federal government said yesterday it is considering new measures to stamp out Internet gaming sites based on a native reserve in Quebec, in a move that could spark conflict between Ottawa and Canada’s First Nations ahead of a second national “day of action” this summer.
The government deems the 400 or so poker and sports-betting sites operating from the Kahnawake reserve near Montreal to be illegal, but neither federal not provincial governments have attempted to enforce the law. Now Ottawa is reviewing that position.
“Following recent concerns surrounding Internet gambling in Canada, the Minister of Justice [Rob Nicholson] has asked his officials to examine whether the enforcement of the Criminal Code provisions could be assisted with other measures,” said Genevieve Breton, Mr. Nicholson’s director of communications.
The “other measures” are understood to be moves to restrict banks and credit card companies from conducting financial transactions with illegal Internet operators. Similar legislation was enacted in the United States two years ago.
The Mohawks of Kahnawake say these laws do not apply to them since they are a sovereign nation. They also cite section 35 of the Constitution, which was inserted to protect native culture. The Mohawks say that gaming has been central to their culture as a means of settling disputes through competition, not violence. Other native groups, such as the Alexander First Nation in Alberta, have said they plan to emulate Kahnawake.
Owners of horse-racing tracks, such as Great Canadian Gaming Corp., say they pay $1-billion in tax receipts every year to various levels of governments and incur huge expenses putting on the races. “These offshore operations just poach horse-racing and no one can do anything about it. They’re parasites on the butt of Canada,” said Ross McLeod, chief executive of Great Canadian Gaming, which owns four tracks in Canada.
The track owners have also suggested that governments force Internet service providers to block the sites from Canadian bandwidth. “I expect the government to do the right thing and protect our country’s interests,” Mr. McLeod said.
Chuck Barnett, who is a member of the board of supervisors for Mohawk Internet Technologies, a utility company that provides connectivity services for the site owners at Kahnawake, sees Ottawa as a foreign government that has no business regulating activity on Mohawk territory. “However, if I were a Canadian, I might instead be more interested in how explicit legislation could serve as the catalyst for a potential source of economic development, employment and revenue through taxation,” he said.
This view was echoed by Michael Lipton, a Toronto lawyer who specializes in gaming law. He said the horse-racing industry has had a monopoly on gambling in Canada for years, with Woodbine Entertainment currently holding a lock on government-sanctioned online horse betting.
“I guess if I had a monopoly, I wouldn’t want anyone to compete against me either,” Mr. Lipton said.
He said the United States has faced serious technical difficulties implementing restrictions on the payment system. “They are completely bogged down on how to block this system.”
He acknowledged the Mohawks have had some problems with fraud. The Kahnawake Gaming Commission, which regulates Web sites operating from the reserve, fined one popular Web site — Absolute Poker –$500,000 after players complained of irregular betting that was traced back to someone associated with the site. But he said most operations are transparent and credible.
Rather than attempting prohibition, Mr. Lipton said the government should bring the Kahnawake sites into the system and regulate them. He said this would protect the vulnerable, guard against money laundering, bring in tax revenue and provide a competitive edge in the gaming software market in terms of international trade.
“I think [Ottawa] should embrace this and recognize that people don’t want to be in a position where the government tells them what they can or can’t do in the peace of their own home,” he said.
January 5th, 2008
Absolute Poker released a statement today that they no doubt hope will be the final chapter in the largest (reported) cheating scandal in online poker. In the statement, Absolute responded to the findings of a Kahnawake Gaming Commission Report published earlier this week that detailed the nature and level of Absolute’s involvement in a security breach that allowed players on several accounts to see their opponent’s hole cards.
The most interesting angle on this story to many is that so few people seem to care about it anymore. Developments in the scandal, which initially generated a massive groundswell of backlash from the community, now seem to result in barely a flicker of interest on forums and poker news sites.
The full text of the statement is reprinted at the end of this post. Below are a few links to various sources reporting on the KGC report and Absolute’s ensuing statement.
- Wicked Chops accurately highlights the collective shrug that’s been the general response to the story.
- Pokerati is suitably outraged (and has a nice archive of editorialized coverage of the scandal).
- PokerBlog doesn’t understand why people are still playing on Absolute. We’re with them on that one.
- A related 2+2 thread in NVG generates all of 11 posts.
Text of Absolute statement:
ABSOLUTE POKER RESPONDS TO KGC FINDINGS
(JANUARY 11, 2008) — Absolute Poker (AP) issued the following statement today in response to the Kahnawake Gaming Commission’s (KGC) release of its report “In the Matter of Absolute Poker Investigation Regarding Complaints of Cheating.”
“When Absolute Poker notified the KGC of the security breach in our system, we had every expectation that the Commission would undertake a comprehensive and fair investigation. 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 KGC points out that ‘AP has taken the appropriate actions to address the vulnerability in its systems…and to prevent its systems from being compromised again…’ AP has appointed a team of both internal and external members to improve controls and install safeguards, and accepts the audit findings as an opportunity to improve our internal practices and guarantee the safest playing environment in the industry.
“We are pleased that the KGC’s findings of fact point out 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.’ The report also states that ‘AP made expeditious efforts to appropriately reimburse all players…with interest’ who were affected by the cheating.
“The Company also regrets the inadvertent deletion of certain gaming logs and records during the course of the investigation, although AP is relieved that these deletions did not, according to the KGC, ‘prevent the Commission from obtaining sufficient information…’
“Having experienced first-hand the devastating impact of a security breach, we fully appreciate the importance of trust and security for AP itself and the broader industry. A secure site goes to the heart of player confidence, and we are more committed than ever to ensuring that confidence. To that end, we have taken it upon ourselves to convene on January 18, 2008 the first of a series of ‘poker security summits’. AP will invite respected and independent members of the poker community to focus on innovative and cutting-edge ways to further improve AP’s security and enhance its transparency.
“As AP has repeatedly stated in the past, we regret the damage done to our players and to our own reputation by this 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 and return our full focus to providing the safest, most secure, and most eenjoyable poker playing experience in the industry.”
Source: http://news.parttimepoker.com/2008/01/13/absolute-poker-responds-to-kahnawake-gaming-commission-report/
Tags (casino, absolute poker, poker, online poker)
