The Kahnawake Gaming Commission (KGC) is the main licensing and regulatory body for just about every online poker site you can name: Absolute Poker, PokerStars, Action Poker, Bodog, Full Tilt, Everest Poker, Ultimate Bet, Hollywood Poker, and PokerRoom, just to rattle off a few. The KGC has come under fire recently for its handling of the UltimateBet super user scandal. This week, the organization released a statement concerning the improper conduct on the tables of two of its permit holders, Absolute Poker and UltimateBet. It was the first public statement outlining its investigation of UB despite the scandal being revealed in January.
The KGC’s statement begins by addressing its results from an investigation of Absolute Poker. The KGC released its decision on January 11, 2008. The summary of it, in case you haven’t read it before, is as follows: “The cheating that took place was not initiated, nor did it benefit, Absolute Poker as a corporate entity, or its directors or principal owners.” The Kahnawake Gaming Commission wrote up a list of 24 directives that Absolute Poker must follow in the future. Refunds were given to affected Absolute Poker players.
Its investigation into the recently-revealed wrongdoing at Ultimate Bet is currently ongoing. The KGC updates the online poker world on its status: “The KGC’s investigation into the Ultimate Bet matter has yielded a number of key findings which, within the next several days, will enable KGC to issue its decision on the appropriate steps to be taken.” The goal of these and other comments in the statement was to quell the rumor that the KGC was sitting idly by, not trying to forge an investigation into UB’s practices.
The KGC’s legal counsel, Murray Marshall, explained to PokerNewsDaily.com what specific challenges the organization faces in regulating this nascent industry: “There are a number of reasons that the regulation of online gaming is particularly challenging. It is a relatively new industry without much history or precedent to assist the regulator. There is no consistency in the regulatory models used by various jurisdictions around the world and it is difficult to keep pace with constantly changing technologies which often impact effective regulation.”
Although Marshall could not elaborate on what specific sanctions or actions will be taken against Ultimate Bet, he stated, “Given the frequent changes in the technology that drives the online industry, preventing cheating and other abuses is always a moving target. In general, the most effective means to avoid this sort of conduct is for the regulator to ensure that an operator’s systems and personnel are thoroughly checked before licenses are granted and then monitored on a regular basis to ensure the operator is continuously in compliance with regulatory requirements.”
Ironically, the statement from the KGC comes at the same time that the parent company of Absolute Poker and Ultimate Bet has announced plans to merge the player bases of the two sites to form CEREUS, the third largest poker network in existence. The merger is expected to occur during the first week of August. The impact on UB and AP will be revealed shortly, but each site is expected to retain its own brand.
We’ll have a full update on what the KGC has determined in the UB scandal as soon as we’re informed.