The opinions in this editorial do not reflect the positions of the ownership or management of Poker News Daily.
The online poker industry – even though it doesn’t seem this way – is still in its infancy in the gambling world. In its short decade-plus existence, however, there have been a litany of persons who have, at the minimum, violated the trust of the gaming public or have, at the maximum, outright stolen money from their customers. While some of these people may have seen the errors of their ways and reformed, there are still those out there from the online gaming industry that have free access to live casinos throughout the world.
The actions of the former leaders of Full Tilt Poker, as well as other online poker sites, are what bring some thoughts to mind. Over the last weekend and into this week, reports have surfaced regarding former Full Tilt board member Howard Lederer’s “return to the ring,” so to speak, as he stepped into Bobby’s Room at the Bellagio and, lately, at the Aria poker room to play high stakes poker. This is something that not only the live poker world but also the regulatory bodies of Nevada should take a look at, potentially putting Lederer’s name (and others) in the dreaded “Black Book.”
For those that don’t know about it, the Nevada Gaming Control Board has what is called its “Excluded Persons List” (better known as the “Black Book”) which details people that have violated laws regarding gaming or involvement in organized crime that make them “undesirable” to be in a casino in Nevada. What may be surprising about that “book” is the number of people that are actively on it. A quick look at the NGCB website shows that it isn’t as extensive as many might think.
As of today, there are 37 people (only one woman is on the roster) listed on the “Excluded Persons List,” including Ronald Harris (a former NGCB investigator who defrauded Keno games), Timothy Childs (a notorious slot cheat) and several members of organized crime for their various legal infractions. As the state of Nevada begins to enter into the online gaming regulatory arena, it may be time for them to start looking at some of the more notorious figures in online gaming and potentially add them to the 37 members of the “Black Book.”
The most recent scandal in the online poker world, the Full Tilt Poker debacle, is what the NGCB should take a look at first. While former Full Tilt CEO Ray Bitar is currently the only person who is under criminal indictment for his activities with the company, several other members including Lederer, former World Champion Chris Ferguson and Rafe Furst have come under civil complaint for allegedly accepting $443 million while running the company (although not facing court action, others involved in Full Tilt also could fall under this umbrella). All of these men currently are embroiled in their legal actions at this time.
Without a conviction or a civil decision against them, the men behind the Full Tilt Poker operation currently can go about their business in a casino (holding to the “innocent until proven guilty” idea). If the courts find against them, however, they should be added to the “Black Book” and denied entry into any casino in Nevada. If they are smart, other locales that offer poker and casino gaming around the world would follow suit.
The same would hold true for other members of the “Black Friday” indictments. The men who have already pled guilty to their charges should have been immediately placed in the “Black Book” by the NGCB as they have violated what the NGCB looks to provide – a clean game without the potential for fraudulent activity. Although the violations by many of the men who have pled guilty have been for banking fraud and conspiracy, there are names on the “Black Book” who have committed similar fraudulent activity not involved with the actual games.
The lack of regulation over the industry would prevent such action against others who have broken the trust with the online poker community, however. Although many believe that former World Champion Russ Hamilton was behind the Ultimate Bet scandal, the lack of a legal decision on the case would allow him to walk away unscathed from any “Black Book” addition. Others who have allegedly “cheated” online (add in your favorite name here) also would get a walk because there isn’t a documentable case of their infractions in a court of law.
If the state of Nevada is to bring the same strict level of regulation to online poker as it brings to the “live” gaming throughout the state, then the NGCB has to start looking at the actions of those involved in the online gaming world and treat them the same as someone who has committed a serious crime in their casinos. By doing such, the NGCB would immediately send a message that, under no circumstances, will online gaming cheats or thieves be allowed to enter into a live establishment, although there are significant differences between the two, as well as enter into the online gaming industry in the state.
This is a subject that will eventually play out over the coming year (or years) as the courts make their decisions regarding several cases in their jurisdictions. But it is up to the NGCB, if they are a viable enforcement arm for gaming in Nevada, to make a stand against those that have introduced scandal to the online poker and gaming world through their actions. It can start with those involved in the “Black Friday” scandal and the Full Tilt Poker fiasco to find their way into the NGCB’s “Black Book.”
What do you think? Should those who have committed egregious acts in the online poker community be banned from Nevada (and the world’s) casinos?
You asked: “Should those who have committed egregious acts in the online poker community be banned from Nevada (and the world’s) casinos?”
I would say yes, except, in the article you mention a couple of folks that “alledgedly” committed acts or “many believe” was behind a scandal. That isn’t enough, there needs to be proof, not just a lot of speculation.
Also with our litigious society, it also isn’t enough to black list someone who is the subject of a civil complaint. Proof of an egregious act should be required before ruining someone’s livelihood.
Hey Scot,
Completely agree, there has to be some sort of conviction, either criminal or civil, before any action can take place. The federal government in the “Black Friday” case (as well as the civil suit against Lederer, et. al.) has bandied about the term “Ponzi scheme” and invoked the RICO Act on several of the counts. Those are items that are usually reserved for organized crime figures.
As I pointed out in the piece, it is probably unlikely that anything can be done with those who have “allegedly” or are “believed to have” done things.
On another note, the poker world has done a decent job of policing itself in the past. This is one of the few circumstances that action by someone other than the poker world might be necessary, however.
Well, lets not forget that in most cases there was no legal action taken just couse of the boarders issue, even though we all know a few names atleast who are guilty of online fraud.