July 23, 2010

Happy Birthday Berkeley!

Yup, my cute little sweetheart puppy officially became a bad-azz dog as of midnight.  Time for him to get a job!

Relaxing after a long walk.


Hanging with buddy Oliver, a/k/a "The Snapping Westie".


How dare you interrupt my nap time?!?


I like football, long walks, and destroying my sworn enemy, the peace lily.


Seriously?  Who do you think runs this show?


Still blogging?  How about a treat before bed?  Please?

Friday Fun (v. 1.9)—
Antique Dildos? Inconceivable!

The Volokh Conspiracy is an interesting legal blog with libertarian leanings.  This week, there were a couple of posts discussing a ruling by a court in India that declared that Hindu gods cannot have finance accounts to allow them to make trades on the stock exchange.  Apparently Hindu gods have trouble creating their own property out of nothing like most of your run of the mill supernatural folk.  Guess the down economy is hurting even deities, making day trading a nice way to make some cash for weekend clubbing.

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Speaking of the economy, a 17-year old boy used Craigslist to initiate a serious of swaps, and ended up turning a used cell phone into a Porsche Boxter.  Makes me wonder why I bothered with law school.  (Hat tip to Neatorama).

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It was a great week in Swedish archaeology.  Also, in good news for traditional males everywhere, the Swedish bikini team probably has low expectations.

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The Princess Bride is an all-time classic comedy, full of funny scenes and great quotes.  But would it have made a great horror film as well?  Inconceivable!  (posted at Miss Cellenia):



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Via The Daily What, our silly dog video of the week from I Has a Hot Dog:

July 22, 2010

Reheating the Sh*t Sandwich from the Online Poker Hearing

"The review for 'Shark Sandwich' was merely a two word review, which simply read 'Shit Sandwich'."

—This Is Spinal Tap

The poker world has been busily digesting yesterday's Congressional hearing regarding online gaming legalization.  The reviews are rolling in, with fairly standard pro-Poker Players Alliance (PPA) and pro-Annie Duke reactions from Poker News Daily, Bluff, Card Player, Pocket Fives, and the PPA itself (the self-annointed "leading grassroots poker advocacy group").  Kevin Mathers at Pokerati noted that a markup of the bill (an amending process prior to a final committee vote) may be scheduled as early as next week.  Matthew Kradell at Poker News noted an important development—the U.S. Chamber of Commerce, which is a very influential lobbying group on business (read: Republican) issues, has endorsed Rep. Frank's online gaming legalization bill.

I have also run across some interesting additional information and commentary about some of the issues I addressed in my initial post about the hearing.  First off, Politico is reporting that some Republicans in the House are dissatisfied with Rep. Bachus, the outspoken critic of the online gaming bill at the hearing.  Apparently, some Republicans view Bachus as a weak leader, and want to strip him of his ranking member status on the Financial Services Committee.  This has major implications for online poker legalization, as the ranking member position generally moves into the committee chair position if his party gains a majority in the House, which may occur in the upcoming elections.  Also, the ranking member has a great deal of influence on legislation even while in the minority.  So, anything that reduces the influence of Rep. Bachus is a win for online gaming supporters.

I previously questioned why Annie Duke would be chosen to represent the PPA at the hearing, particularly in light of her involvement with Ultimate Bet, and the taint of the Russ Hamilton "super user" scandal.  Turns out, some folks over at 2+2 had similar concerns.  What is interesting is the response from a PPA yo-yo master and 2+2 poster "The Engineer":

PPA did not this time, nor have we ever had any role in the choosing of witnesses for hearings in the House of Representatives.  Invitations to testify are made by the committee staffs and are rarely done with any input from those involved lobbying on those issues.  Annie Duke was invited by the committee staff, we were informed of that, and we work with what we are given.  While I understand your distaste for what you may perceive as her role in the UB/AP scandal, her presence today was not of our choosing, but she will again be an excellent witness on our behalf and the behalf of poker players, and we will support her with vital information and preparation so that she will be effective in that role.

Now, I'm not certain how much truth there is to this response.  The committee certainly picks its witnesses, but when Congressmen are dealing with friendly lobbying groups that support their bill, you can bet they and their staff coordinate with those lobbying groups to get a solid witness with no hidden issues that might blow up while testifying.  You can bet the committee didn't get Annie Duke's name from watching WSOP highlights on ESPN late at night.  In fact, based on an old 2+2 forum post by PPA executive director John Pappas, it appears Annie Duke first appeared on the Congressional radar back in 2007 when she testified in front of a different committee (the Judiciary Committee) chaired by Rep. Conyers.  Although Conyers requested Duke's testimony, Duke was introduced to Conyers by the PPA during a "fly-in" lobbying event.  The criticisms against Duke at that time were related to accusations of unethical conduct as a poker player, rather than the UB scandal, which had yet to break.  In any event, it seems pretty clear that the PPA could have made some effort to suggest a better spokesperson to the committee, or suggested to Duke that she politely decline the committee's invitation to testify (this wasn't a high profile investigation where the committee would compel testimony from a reluctant witness, plus Duke was called as a "friendly" witness in support of the bill).  The excuse that the committee didn't consult with the PPA regarding witnesses is either a lie or a cop-out.

While we're on the Annie Duke / Ultimate Bet topic, today I went back and reviewed Duke's written statement submitted to the committee (prepared by the PPA).  It echoed the answers Duke gave when confronted with the Ultimate Bet scandal during the hearing:

For me, the most critical component of regulation is player protections.  As some of you know, I play at a site called Ultimate Bet.  Under previous management, an associate of the website developed a breach in the software that allowed for players to be cheated out of a great deal of money.  I agreed to continue to endorse the site only after I was sure that new management had addressed the problems, took voluntary steps to refund the cheated players and ensured tighter control over their site security.  Nonetheless, an important benefit of regulation would be to ensure, through source code-based testing and outcome-based testing, that the games are fair and those players cannot be defrauded by the sites and that players cannot cheat others at the table.  Further, under a U.S. regulated system players would have legal recourse should they feel they are harmed and regulators would be able to penalize licensed companies that breach the regulatory standards.  Today, the best non-U.S. licensing regimes already do this, but, U.S. players deserve the protections and assurances of their own government.

I find it interesting that Duke essentially argues that poker should be legalized so that, if scandals like UB occur, then companies could be forced to take corrective action. Ummm, didn't Duke just tell us that UB was the paragon of virtue and cleaned up its mess without anyone holding its feet to the fire?  That's just a really curious argument to make—"Please legalize poker, otherwise we may cheat our customers again!"

(The argument that legalization and regulation is needed to protect U.S. online poker players from fraud and to provide jurisdiction for civil and criminal remedies is a strong point for the pro-legalization side.  I just find it a bit rich that Ultimate Bet, of all sites, is the advocate for online poker regulation in the U.S. when it has been anything but forthcoming about the details of the "super user" scandal as well as how it investigated and remedied the fraud, with major questions still unanswered even now, more than two years later).

Finally, there was an interesting "real time" discussion thread on 2+2 which ran contemporaneously with the televised hearing.  One of the most intriguing posts was by PPA muckety-muck Patrick "Skallagrim" Fleming, an attorney and poker player who posts under the same nickname at 2+2, in response to another post questioning the PPA's motivations and goals:
Sadly, you don't know anything about the PPA.

One of the major reasons the PPA wants a US regulatory scheme is to ensure that US players have full legal recourse for disputes and that sites that fail to provide a fair game are accountable in a US court of law.

The PPA also supports full and open competition under appropriate regulations, as that is what ultimately provides the best deal for the players.

The vast majority of PPA members want to be able to continue to play poker on the sites they have come to know and, to one extent or another, trust.  The PPA does prefer that these sites also be allowed to compete in a future market.  But only with some clear restrictions regarding fairness of the game and players' economic and informational security and site accountability (and that may well exclude some current sites from being able to obtain clear US legal status).

Furthermore, the PPA is not concerned with protecting the interests of existing poker sites against future competition—if a law passes that otherwise provides a good deal for US players but is somehow unfavorable to existing sites, so be it.  That is a site issue, not a PPA issue, and the PPA would still support the law.

Skallagrim
PPA Litigation Support Director

Now, I also have strong concerns about the PPA's motivations and the looming conflict of interest between the PPA's membership, which presumably wants legalized online poker, and its leadership, which is dominated by individuals who own or are affiliated with established online poker sites which may be shut out of the U.S. online poker market as a necessary compromise if Rep. Frank's bill is to have a shot at moving forward.  Now it's nice that Skallagrim asserts that the PPA is willing to throw established online poker sites under the bus if necessary to advance the cause of legalization.  But it seems to me to be something easier said than done.  Let's look at one of Skallagrim's early PPA forum posts:

On May 7, 2008 the first meeting of the PPA's Litigation Support "Team" took place at the offices of the PPA in Washington, DC. Attending were John Pappas (PPA Executive Director), Myself (Patrick "Skallagrim' Fleming, PPA Litigation Support Director), my fellow attorneys Tom Goldstein and Ken Adams, both of Washington, Andrew Woods (another attorney and Director of the Global Poker Strategic Thinking Society at Harvard Law), and Poker Professionals and authors Howard Lederer, Andy Block, Chris Ferguson, and William Chen.  Also present was Mr. Lederer's wife Suzie.  Everyone present contributed substantially and the meeting was, IMHO, extremely productive.

Lederer and Ferguson, two of the founders and owners of Full Tilt, also remain two of the seven directors of the PPA, along with PokerStars-affiliated Greg Raymer.  Clearly Lederer and Ferguson have been key figures in the PPA since its inception, and have played significant roles in developing the PPA's litigation and lobbying strategies.  If and when—and the "when" is looking increasingly like "sooner rather than later"—the online poker legalization bill is amended to include "poison pill" provisions to prevent current online sites from becoming approved to do business in the U.S. market, how easy will it really be for the PPA to look Lederer and Ferguson in the eye and tell them that the PPA wants to support a death sentence for Full Tilt, at least in the United States?  Does anyone really expect Lederer and Ferguson to approve a PPA lobbying strategy that is a death warrant for their own business?

"Life is a shit sandwich.  But if you've got enough bread, you don't taste the shit."

—Jonathan Winters
Why do I get the feeling the PPA is just feeding us a bunch of bread to hide all the bullshit they're serving?


(Image from _okat at flickr).

July 21, 2010

PPA Provides Cheese for the Sh*t Sandwich at Online Poker Hearing

"It's a huge shit sandwich, and we're all gonna have to take a bite."

—Full Metal Jacket

Today was supposed to be a big day for online poker, with Rep. Barney Frank holding a House Financial Services committee hearing on his bill to legalize and regulate online gaming (HR 2267).  On the panel testifying for the Poker Players Alliance (PPA) was Annie Duke.  The PPA has posted video footage online for the hearing; it clocks in at over two hours total, but with a 30-40 minute intermission in the middle, the actual hearing time is a much more reasonable length.

As I feared, questions were raised about Duke's connection to Ultimate Bet and the "superuser" scandal (video ~ 53:00 mark).   Duke did parry the question and used it as a pivot to explain the need for legalization of online poker to provide better regulatory oversight of online poker, as well as effective legal remedies for players who feel they have been wronged by an online poker site, and even criminal prosecutions in appropriate cases where cheating or fraud are discovered.  However, it seems that the PPA could have made the same arguments with a spokesperson unconnected to the Ultimate Bet scandal, who would have had more credibility.

Duke didn't help her credibility when she stretched the truth, if not outright misrepresented, a couple of facts.  First, when questioned about her connection to Ultimate Bet, Duke quickly cut in to clarify that her connection was to "UltimateBet.net" which she characterized as a free, non-gambling site.  Although her description of the ".net" site was correct, it takes little effort to see that Duke is also a member of "Team UB" over on the real money ".com" site.  Duke also testified that "most courts" who have considered the "game of skill vs. game of chance" argument have ruled that poker is a game of skill.  Unfortunately, there is currently no state where an appellate court has issued a decision adopting the "game of skill" argument; in fact, the appellate courts which have ruled to this point on the issue have all held that poker is a game of chance governed by state gambling laws.  I am baffled by why Duke would make these kinds of misrepresentations to the committee.

Now, in fairness to Duke, I do feel she made strong points about the advantages of having online poker regulated in the United States to better protect Americans from fraud and cheating, and to better control access by minors, problem gamblers, and criminal elements.  But those same points could have been made by any number of other possible spokespeople without the credibility baggage Duke added to the mix.  However, the person raising the Ultimate Bet scandal, Republican Rep. Spencer Bachus of Alabama, likely would have found an opening to discuss the issue in any event.  So, in the grand scheme of things, Duke probably did no real harm to the legalization cause.  But the PPA still looks a bit like an ad hoc amateur hour outfit in failing to find a better spokesperson.

While on the topic of Ultimate Bet, Duke testified forcefully that the superuser fraud was committed by "one person", presumably Russ Hamilton.  If Duke knows this for certain, then why is Ultimate Bet so slow in revealing all it knows about the scandal?  Alternatively, if more than one person were involved in the scandal, then either Duke was not fully honest with the committee, or Ultimate Bet was not fully honest with Duke.  It might have been interesting if the committee had pressed Duke for additional information about the scandal while under oath.  Regrettably, the online poker community will have to continue waiting for those answers.

Frankly, though, I found other aspects of the hearing much more interesting than Duke's PPA talking points.  It is fairly clear now that many industry forces are in favor of legalizing gaming, but are also in favor of barring companies that are currently violating state or federal laws by offering online gaming or online poker in the United States.  Gaming industry rumors long-reported by Bill Rini and Pokerati's Dan Michalski suggest there is a strategy being pursued by leading brick-and-mortar casinos to legalize online gambling in a manner that clears the field of competition from established online poker sites, notably sites like Full Tilt, PokerStars, Ultimate Bet, and Bodog.  From the committee's questioning, it seems that some of the representatives are inclined to support this approach, voicing opinions that companies that are violating the law should not be rewarded by legalization of online gaming.  This again raises concerns that the PPA, dominated by directors associated with established online poker sites, might face a serious conflict of interest between the interests of its membership and the interests of its leadership.

Of more immediate concern to the online poker legalization efforts was the palpable hostility toward the bill from Rep. Bachus, who is the ranking minority member on the panel.  Rep. Bachus is not only opposed to legalization, he openly supports the UIGEA and expressed frustration that its implementation was delayed for two years!  This is not necessarily a deal breaker at this stage of matters, as the House operates in a manner where a majority can push through virtually any legislation it deems a priority, particularly when the bill is supported by a powerful committe chairman like Rep. Frank.  But, there is no indication that the current legalization bill is a priority, and there is precious little time for any real progress towards a vote between now and the fast-approaching reelection campaign season.  Of even greater concern is the real possibility that the Republicans will take control of the House after this fall's elections, which would flip chairmanship of the Financial Services Committee from Rep. Frank to Rep. Bachus.  Under such a scenario, Rep. Bachus would be able to singlehandedly kill any online gaming legalization bills.  To be blunt, if Republicans take control of the House, online poker legalization will stall for at least two more years.

So, the real lesson of the day for online poker legalization proponents is to support Democrats in the upcoming Congressional elections.  Time for the PPA to organize some "money bomb" fundraisers for key Democratic campaigns.

Kill the Dealer!

Walter Sobchak:  Over the line!

Smokey:  Huh?

Walter Sobchak:  I'm sorry, Smokey.  You were over the line, that's a foul.

Smokey:  Bullshit.  Mark it 8, Dude.

Walter Sobchak:  Uh, excuse me.  Mark it zero.  Next frame.

Smokey:  Bullshit, Walter.  Mark it 8, Dude.

Walter Sobchak:  Smokey, this is not 'Nam.  This is bowling.  There are rules.

The Dude:  Walter, ya know, it's Smokey, so his toe slipped over the line a little, big deal. It's just a game, man.

Walter Sobchak:  Dude, this is a league game, this determines who enters the next round robin.  Am I wrong?  Am I wrong?

Smokey:  Yeah, but I wasn't over.  Gimme the marker Dude, I'm marking it 8.

Walter Sobchak:  [pulls out a gun]  Smokey, my friend, you are entering a world of pain.

The Dude:  Walter ...

Walter Sobchak:  You mark that frame an 8, and you're entering a world of pain.

Smokey:  I'm not ...

Walter Sobchak:  A world of pain.

Smokey:  Dude, he's your partner ...

Walter Sobchak:  [shouting]  Has the whole world gone crazy?  Am I the only one around here who gives a shit about the rules?  Mark it zero!

—The Big Lebowski

Today, the sports talk world is abuzz with discussion of the odd ending to yesterday's Dodgers game.  The Dodgers held a 5-4 lead in the 9th inning, with the Giants having loaded the bases.  Acting Dodgers manager Don Mattingly came out for a conference on the mound.  So far, pretty standard baseball.  Then, after the conference, Mattingly took a step or two off the mound to answer a question from first baseman James Loney, then stepped back on the mound for a last word to pitcher Jonathon Broxton before exiting the field.  Giants manager Bruce Bochy immediately called for the umpires to rule that Mattingly had made a second trip to the mound in one inning.  The umpires conferred, agreed with Bochy, and ruled that Mattingly was required to remove Broxton from the game because of the "second" visit to the mound.  The relief pitcher, George Sherrill, came in essentially cold, and promptly gave up three runs, giving the Giants a 7-5 victory.

(Interesting historical note—The umpire crew chief for the game was Tim McClelland, who almost 27 years ago was the then-rookie home plate umpire who ejected George Brett in the infamous pine tar game, and more recently was home plate umpire and crew chief during the Sammy Sosa corked bat incident.  McClelland lives in the Des Moines area, and I ran into him on several occasions years ago when he was coaching his sons' AAU basketball teams and I was a referee.  McClelland is a towering man with a booming voice, but he was always a complete gentleman as a coach, respectful of referees, players, coaches, and parents.  Truly a class act.)

Now, the applicable rule does define a visit to the mound as ending when the manager steps off the mound (which is equivalent to the 18 foot circle referenced in the rule itself).  The rule has an important purpose, which is to speed up the game by limiting the number of conferences a manager can have per inning.  But the application in this case might strike some as being hyper-technical, a violation of the letter but not the spirit of the rule.  On the other hand, if an umpire doesn't strictly enforce the rule, where does he draw the line?  What if a manager took 5 or 6 steps, then came back to the mound?  Ten steps?  All the way up to the foul line?  Given that this occurred in a Major League game, I really don't have a problem with a strict enforcement of the rule; coaches and managers are paid hundreds of thousands of dollars to know the details of the rulebook.  In a Little League or high school game, I would expect the umpires to be a little more relaxed about this type of rule.

After reffing basketball for nearly twenty years, and with some random officiating of a number of other sports, I have come to regard dealers and floors as being the "referees" of poker.  Just like sports officials, dealers and floors have to know the rules of the game (including varying sets of rules), they need experience to discern rules violations and apply the rules properly, they need the ability to explain their rulings to players, and they need to use good judgment in situations where they are able to exercise some degree of discretion.  And, just like sports officials, dealers and floors often have to take a certain amount of abuse from players after rendering a decision.

Now complaints about poker rules and rulings are commonplace enough to generate intense discussions on most poker forums and blogs.  Not suprisingly, poker rules maven Poker Grump has collected a vast menagerie of rules issues, some where a dealer or floor ruled in error, but most where a dealer enforced a rule and took some grief because of it.  Just this week, the Grump has written about a situation where a player tried to correct a mistaken wager, and defended a dealer who enforced the one player to a hand rule, despite some player grumbling. 

Nearly every poker player will complain on occasion about poker rules or rulings, but truth be told, we all rely on dealers and floors to make correct and fair rules decisions.  Players violate rules, inadvertantly and intentionally.  Strange situations arise that depart from normal play.  Disputes arise between players as to whether someone has acted improperly, or a particular action is permitted.  What exactly should poker players reasonably expect from their dealers and floors when it comes to rules enforcement?

First off, poker players need to realize that there are rules, and then there are rules.  Not all rules are created equal.  Some rules are absolute, some rules are flexible, and some rules are more like customs or guidelines.  Rules can be roughly broken down into four categories:
  • Fundamental rules—Rules that define the essential nature of a game.  Poker requires a 52-card deck, has betting/raising/calling/checking/folding actions, and has hand ranks.  If you can't bet, or if a flush beats a full house, it isn't poker.  Similarly, hold 'em has two hole cards and five community cards.  Give a player four hole cards, and it isn't hold 'em.
  • Structural rules—Rules that establish the parameters for a particular game.  Poker can be played with fixed limit, pot limit, or no limit betting; as a cash game or a tournament; heads up, full ring, or six-max; and one game, two games, or multiple games.
  • Procedural rules—Rules that govern the actual competition part of the game.  These rules cover dealing and handling cards, order of play, manner of betting, and player conduct.
  • Administrative rules—Rules that are peripheral to the competition part of the game.  These rules do not directly impact the game, but enable the game to be run in a smoother fashion.  These rules cover issues such as buy-ins, seat and table changes, and cell phone use.
Essentially, the fundamental and structural rules are fixed and not subject to any alterations or exceptions by the dealers or floors, and players expect no such variances.  The procedural and administrative rules, however, are the ones most subject to confusion and violation, and the ones which require the most enforcement and interpretation by dealers and floors.  These rules also are ones which may require a degree of flexibility in enforcement.

Second, players must accept that some rules are arbitrary, and may vary from game to game, room to room, tournament to tournament.  Don't like the button straddle?  Perturbed about a tournament structure?  Hate having to post in, or being unable to buy the button?  Mad that you can't talk on your cell phone?  Tough luck.  Don't whine to the dealer or floor about how much better it would be if different rules were used, you know, like the ones at Shangri-La Poker, where there is no rake and every player sets his own rules.  Instead, direct your complaints to a manager, and either suck it up and play, or move along to another room.   (Of course, you can and should whine about bad rules in your blog!). 

Third, players should expect strict enforcement of rules which relate to the integrity of the game.  A player should not need to prompt a dealer to enforce the "English only" or "one player to a hand" rules.

Fourth, players should expect consistent enforcement of rules.  The regular, the high roller, and the good tipper should not be given favorable rulings or preferential treatment merely because of who they are.  Likewise, the grumps, grouches, whiners, and jerks deserve a fair ruling, although abusive conduct need not be tolerated.

Fifth, players must accept that there will be judgment calls, and those judgment calls may not be consistent from game to game, dealer to dealer, floor to floor, shift to shift, day to day, room to room, tournament to tournament.  The toughest rules decisions occur when a situation arises where two conflicting rules may apply, or where strict application of a rule may have an unfair result or unintended negative effect on the game.  Those tough rules decisions are necessarily dependent on the unique factors presented by the situation, including the experience level of the players, the type of game, how the situation arose, what can be discerned as to the relative "fault" or "motives" of the players involved, and the potential consequences of various rulings.  To analogize to my basketball reffing days, a minor travel or other violation might be an automatic whistle in a high school varsity game, but might be ignored or only get a warning in a junior high game.  Or, contact that might need to be called a foul in one game might be perfectly acceptable contact in another game.  In these types of rules situations, poker players need to recognize that dealers and floors may reasonably come to different decisions at different times, and it is irrational and unhelpful for poker players to insist that these kinds of rulings be consistent with a ruling from a similar situation in a different game or another poker room.

"Rules are not necessarily sacred, principles are."

—Franklin D. Roosevelt
Sixth, poker players must accept that some rulings may go against them, or might seem unfair.  But those decisions are much like bad calls in sports; they are going to happen, so there is no point in getting upset when they occur.  No dealer or floor is perfect, but the truly incompetent ones eventually tend to find themselves in other lines of work.  However, no dealer or floor intentionally screws up, so when they do err, it is better to accept it and move on than to dwell on it and let it distract you from your play.

Seventh, and finally, poker players must remember that dealer and floor rulings are only a small part of their success or failure.  Dealers and floors don't overplay weak hands, make stupid bluffs or silly hero calls, play above their bankroll, succumb to fancy play syndrome, or play while drunk or on tilt.  Only those poker players who can honestly say they are playing perfectly should ever even think about blaming a dealer or floor for their poor results.

Let's all try to cut our dealers and floors a little slack.

"Young men know the rules, but old men know the exceptions."

—Oliver Wendell Holmes