October 9th, 2009
Sometimes ago, we all heard about the UltimateBet Scandal. Finally, the Kahnawake Gaming Commission (KGC) issued an 11-page report documenting the findings of their extensive investigation into the cheating that took place on the on line poker room UltimateBet.
The report found out what many people already believed to be true and also offered some new information about how many people and screen names were involved in the scandal and how much money was stolen from UltimateBet customers.
UltimateBet has been around since 1999. Recently they merged with Absolute Poker to form the Cereus Network. All new graphics, bigger tournaments, better cash game table selection, and improved security has players coming back to UltimateBet to check out this overhauled poker room.
Their famous 111% deposit bonus is still part of their room.
So what happened with the scandal ?
Mostly, many people found out through the end of 2007 and the first part of 2008, players had noticed certain user names winning improbable hands to the point of several statistical deviations. The cheating ran from June 2003 until December 2007 and involved 3 accounts and 117 different user names used both for playing poker with illicit hole card information and transferring money.
Keeping track of hands that seemed suspicious eventually led to the exposure of a software glitch that allowed certain players the ability to see all cards dealt at a table.
The owner of the Ultimate Bet site, Tokowiro Enterprises, was fined $1.5 million, as well as forced to pay restitution of over $22 million to players whose poker outcomes were determined to be involved in compromised hands.
The report pointed out the individual who ultimately bears responsibility for that cheating is 1994 WSOP Main Event winner Russ Hamilton. The available evidence shows that Russell Hamilton, an individual previously associated with the eWorid Holdings Group, was primarily responsible for and benefited from the multiple cheating incidences. The vast majority of the computer devices and IP addresses used by the cheating accounts were directly associated with Russell Hamilton. The vast majority of the cheating accounts transferred money through Russell Hamiltons player accounts.
They, Tokwiro Enterprises, has reportedly refunded the $22 million cheated from players, and Paul Leggett, the Chief Operating Officer, stated, ‘A lot of our players have been patiently awaiting the release of the full list of user names involved in the cheating incidences, and we can now answer any of their outstanding inquiries related to their refunds’.
A lot of the frustration amongst others players is directed at Kahnawake’s refusal to submit the other 31 names involved in the scandal, and why if Russ Hamilton can be named and shamed, the others can’t.
Although not publicly disclosed, the KGC says it has provided extensive information to law enforcement authorities, including the names of those 31 individuals who were associated, to varying degrees, with Russell Hamilton, the cheating accounts and/or transactions related to the cheating accounts.
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)
