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Now that Amaya Gaming has completed its purchase of PokerStars, Isai Scheinberg and his son Mark, for whom he founded the company, are totally out. Daniel, Baazov Chairman and CEO of Amaya, and the architect of the PokerStars deal, is totally in.  And today, U.S. gaming companies are better positioned to compete against the online behemoth, than ever before.

Not coincidentally, the management change has put PokerStars  back in line for prompt licensing consideration by regulators in New Jersey. Less expected, however, are the kind words a Caesars executive bestows on the Amaya CEO. But, before a relationship between Amaya Gaming and American poker players moves forward in earnest, with plans to hook up online gaming in America from shore to shore, the Company will need to go through more than a few hoops.

PokerStars Train Rolling Across America

Things are  looking up  in New Jersey as PokerStars prepares to settle down, “suitably,” in  Atlantic City. The PokerStars partnership with Resorts is the talk of the town. New Jersey regulators are reportedly convinced that Poker Stars now deserves a welcome mat and are all but drooling over $$$ projected for the State. Wise casino executives, from the marina to the boardwalk are past their frustration over the anticipated competition; looking instead for the silver lining.  Only die-hard naysayers are still warning, “It ain’t over till the fat lady sings!”

In contrast, California is an unending battleground in the igaming world. Should PokerStars be admitted to the gaming party or should Poker Stars be excluded by a “bad actor clause;” that is the ongoing question. Casino industry lobbyists and legal experts at opposite ends of the pole have been opining on how to proceed with online gambling legislation. One side of the legal argument revolves around the Constitution. The other side invokes states’ rights that may effectively trump the Constitution. For lawmakers it is a classic case of Fiorello’s song, “Politics and Poker.” One online poker bill has just died on the vine. A second one threatens to face a similar fate, likely to push the debate down the road into 2015.

California, here we come—maybe

Earlier this month, longtime Whittier law professor and gambling law expert I. Nelson Rose took on Constitutional scholar and Harvard Professor, Lawrence Tribe. Rose rebutted Tribe’s legal opinion concerning the two online poker bills pending in the California legislature. Tribe challenges the “bad actor” clause in proposed legislation. Rose defends it. Tribe is advocating for a client. Rose is engaged in  an intellectual exercise .

Tribe relies on the Constitution to assail the “bad actor clause.” He says it is a pointed effort to cut out his client, PokerStars, from the re-emerging industry in the U.S. Proponents of the California-based bills, generally, make no bones about seeking to bar Poker Stars from entering the U.S market, anytime soon. And California lawmakers seem to have plenty of like-minded company from Nevada to Pennsylvania. But Rose’s article sidesteps pointing fingers. He looks at the subject matter academically. He zeroes in on states’ rights, and police powers that provide for a state to protect its citizens, to make  his argument that the bad actor clause is legally justified.

Rose’s Grandstanding Makes Sense!

Rose opens his article, recently published by Gaming Law Review and Economics (July/August 2014) with the words, “Larry Tribe is wrong!” At first blush, it sounds like mere showmanship against one of the most erudite and acclaimed U.S. constitutional scholars. Rose’s initial self-aggrandizement may tempt the reader to toss the article aside, immediately. And, online poker players, faithful to Poker Stars can only hope that Rose has little between his ears. But Rose’s article is hard to dismiss.

Rose’s analysis is thoughtful, and well explained, even for lay persons. He asserts, “Gambling comes under the state’s police power… to protect the health, safety, welfare, and morality of its citizens.” He  cites one case after another to show that the Courts repeatedly confirm nearly unrestrained power of the individual states. A State’s right to suppress gambling is a well-worn tradition!

Several other lawyers, queried for this article point out that state laws and public policy treat gambling as illegal in this country, except where states license and regulate it. They say that limiting this activity is a generally acceptable principle. Therefore, a state’s requirements for a license are less likely to appear unfairly onerous.

The Tenth Amendment Stirs Rose’s view of States’ Rights 

Now enter into the mix the Tenth Amendment. According to Wikipedia, “The Tenth Amendment to the United States Constitution, which is part of the Bill of Rights, states the Constitution’s principle of federalism by providing that powers not granted to the federal government by the Constitution, nor prohibited to the States, are reserved to the States or the people.” Stated another way, the Federal Government can pass laws on things the Constitution specifically gives it authority to do, and otherwise the individual states are empowered to legislate as they see fit. So it would seem that the Tenth Amendment supports Rose’s position on a state’s rights.

Judicial interpretation – if you care!

The United States Supreme Court, United States v. Sprague (1931), declared the Tenth Amendment “a truism.” Where did that get us? The lawyers consulted for this article generally agree that Courts rarely declare laws unconstitutional for violating the Tenth Amendment.

“Bad actor” clause stirs Tribe’s Constitutional Argument 

An active lobbyist for PokerStars, Tribe comes to his constitutional attack against online gambling legislation that would effectively excludes PokerStars, from another direction. He perceives the bills as incorporating punitive action without trial. He also complains about the bills’ arbitrary cutoff date for U.S. facing online gambling sites in America to cease operations here. PokerStars continued its operations  in America after enactment of the Unlawful Internet Gambling Enforcement Act of 2006. The law was intended to end online betting in America.

Rose Knows the Gambling Business!

Rose notes that in America, gambling is an activity that traditionally faces restraints—in the interests of society. And, he suggests as a practical matter, the individual state’s police powers trump the Tenth Amendment. Rose’s analysis is compelling, say several  gaming lawyers, echoing Rose’s position which inherently opposes PokerStars efforts to enter the California market. According to a lawyer formerly associated with PokerStars, the Company has previously consulted with Rose.

Most of the Indian tribes and commercial casinos across the country welcome Rose’s legal stance, if only because it is compatible with their resentment of PokerStars’ success in the States post UIGEA (2006) which  clearly barred processing of online gaming bets made by American-based players.

How Does Amaya Get Past  New Jersey

Unlike American-based casinos that stood down after UIGEA,  PokerStars profited handsomely, until shut down by the U.S. Department of Justice , in 2011. In the period of its operations from late 2006 – April 2011 Poker Stars  developed an astoundingly loyal American market base. Even if the Constitutional issue posed by Tribe proves to be nothing more than a distraction, the political questions live on in legislatures around the country and maybe in Congress as well.

Praise and Challenges for Amaya Chairman

While lawmakers sort out competing needs among their constituents, online gaming competitors and vendors will likely scrutinize  PokerStars’ business principles under Amaya management. Amaya  Chair Dan Baazov is no stranger to the American gaming industry. Mitch Garber, the CEO of Caesars Interactive Entertainment (CIE), which owns the World Series of Poker, tells me, “I like and respect Dan Baazov.” CIE’s executive offices in Montreal are a stone’s throw away from Amaya headquarters.

Thus the stage is set for the cold war between PokerStars and Caesars, of past years to begin to thaw. Will the rest of the casino industry soon put bygones into a new perspective?  Attorney Tribe supports that notion on legal grounds. Rose concedes in his article – after presenting his legal position – that Amaya will likely succeed in entering the online gaming market, one way or another. And American casinos have already gotten their way on one point, inadvertently – a more level playing field.

When push comes to shove, the banks are now PokerStars’ most elite players. It is up to the politicians and regulators to figure out how to license, regulate, and tax online gambling fare across America. It is up to Amaya to figure out how to bring home the beacon to service the debt and maintain the level of customer service that turned Isai Scheinberg into King Midas with the golden touch.

Author’s note: This article has been updated to provide additional information  particularly including the most recent action on the online poker bills by the California Legislature.

The bloom was still on the rose of the poker boom when James (Jimmy) Woods strolled into the Commerce Casino, just outside Los Angeles. We met up for coffee and then walked over to a no limit hold’em game with “open seating.”

Tobey Maguire was in the game. So were Leonardo (Leo) DiCaprio and David Schwimmer. The rest of the players were a mixture of local pros and other recognizable regulars. There was no fanfare – no handlers holding court, protectively, no velvet ropes to keep gawkers at bay, no caviar on the side tables for the celebrities.

Except for the cast of Hollywood characters at the table, it was a typical, no limit hold’em game in  the country’s biggest card room. The blinds ware relatively small. the buy-in was uncapped, and thousands — not hundreds of thousands – of dollars changed hands in the course of the night. Like the rest of the players at the table, the Hollywood pack seemed to care mostly about how people were playing their chips and the odds of a reversal of fortune on the turn of a card.

Way before Before Molly’s Game

In the mid 80s, when I first sidled up to a poker table, the WSOP was the one tournament that meant something to any poker player worth his salt. In that era, poker players were accustomed to seeing the likes of Gabe Kaplan and Telly Savalas at the World Series of Poker, but generally, movie stars were not aficionados of public poker rooms. Very few women took seats at the tables. During the three week World Series at Binion’s Horseshoe; blue language and vulgar comments were part of the game – except when a lady was at the table. Benny Binion, had no patience for such bad manners! Neither did Jack Binion. And good old Texans jumped right in if a guy got out of line when the fairer sex was present. But not so much in many other card rooms where  male players viewed women as intrusive on their boys’ nights out.

New York’s Mayfair Club did better than most. In the mid 80’s the Mayfair began its evolution into the hottest underground poker den in America. There was an egalitarian spirit at the table. Originally, a bridge and backgammon club, the Mayfair attracted some of the best and the brightest game players in the world; a slew of them were poker players; some  were women. Once poker was an option at the Club, word spread like wildfire among local game players and sports bettors.

In no time flat, the Mayfair’s ambience roped in low limit poker players from all walks of life. Pros, Wall Street whales, and a smattering of celebrities were part of the Club’s regular ebb and flow. There was one big no limit game; I decided to make high stakes no limit hold’em  my game. Few women dared to take a shot at pulling down a four or five figure pot. Most of the time I was the only woman at the table.

Needling fellow players and “coffee-housing” (harmless trash talk) were encouraged. Cursing was discouraged. The F bomb was never acceptable as a regular part of the conversation. Disparaging whispers about women and fish were routine but down and dirty abuse at the table was verboten.

And, Molly Bloom the poker hostess with the mostest, and author of a new book about high stakes poker games, in hotsy-totsy enclaves, was just a kid in Loveland, Colorado.

The 90s takes poker up a notch

In the 90s, screenplay writers Brian Koppelman and David Levien discovered New York’s Mayfair Club.  The Mayfair was the inspiration for their 1998 film,  Rounders, starring Matt Damon, Ed Norton, and John Malkovich. In the years that followed, increasingly, celebrities made their way into poker rooms. Damon took a fancy to the game. His close friend, Ben Affleck also got into poker; first at Foxwoods, in small no limit games, later in Atlantic City’s high stakes mixed limit games – with Jennifer Lopez at his side. After their break-up, more often alongside Maguire, and DiCaprio in California – the poker capital of the world. Woods, caught the poker bug, independently. He eagerly, made visits to tournaments and cash games on both coasts. and Schwimmer was a frequent player, too.

The movie stars generally behaved in poker rooms as they would in any other coed domain, where manners count and unwritten rules of basic etiquette frown on being disrespectful or making fun of women for sport. As to the rest of the poker players, across America, they were as orderly as required by the game runners and poker parlors personnel; few public card rooms muzzled provocative commentary.

The Poker Boom Years in the Oughts

With the advent of online poker, the average age and social skills of poker players dropped, dramatically, during the next decade of the “oughts.” A small influx of never-seen-before women of varying ages  began to take seats at casino card room tables. If they wanted to play poker, they wee forced to adapt to a new lexicon of acceptable curse words and more table chatter that portrayed women as nuts and sl—s .

Of course, some women in the poker world never have looked upon a poker table as a place to be a prim and proper lady! One-time poker star and runner-up contestant on Celebrity Apprentice, Annie Duke was among them. At one Ante Up for Africa charity poker event, the  outspoken Duke, came running to our table where Matt Damon was the center of the universe. Mugging for the cameras, she said to him in earshot of the well-heeled crowd, “You are such an attention w—re!”

The golden era of Molly Bloom’s poker games was on the horizon.

Molly’s Game: Beyond Imagination

The poker festivities described in the new blockbuster book, “Molly’s Game,” by Molly Bloom became the hottest tickets in town in the latter years of the oughts. Business titans mixed it up with movie stars and the occasional well-known poker pro.

Dubbed the “Poker Princess,” of Hollywood and New York, Bloom operated  private, exclusive, high-stakes poker games until the Government shut them down. Her game got hit by a sting operation that targeted big fish in sports betting businesses and organized crime.

This past spring Bloom resolved the criminal case against her with one year of probation.

Ms. Bloom’s games were always carefully laced with celebrities the likes of Maguire, Schwimmer, Di Caprio, and Affleck. Movie icons attract billionaire businessmen into the fold, she explains. Bloom catered to Spiderman Maguire because he was a regular who encouraged other A-listers to join the fun. And for a good while, Maguire helped to keep Bloom’s business a captivating affair.

According to Bloom, Maguire was a big winner and a poor tipper who messed big-time with her sense of dignity. Showing him as a cad toward women, she cited an incident in which Spiderman insisted she bark like a seal for the reward of a $1,000 tip. She found it in herself to decline. She got the tip anyway. It was not the first example of Maguire’s penchant for humor at a woman’s expense, in a poker room, nor the last.

Maguire is part of a sizable demographic of men who push the boundaries of “arguably acceptable” conduct outside brothels, male locker rooms, and bedrooms – by mutual consent.

“Mike the Mouth” Reflects a Popular Mindset

In recent years, at the World Series of Poker, women have learned that many floor people and most dealers are inclined to turn a blind eye toward foul language, vulgarity, and disregard for the presence of women — as if it is disruptive of the fun of the predominantly male customer base.

This past summer, at the WSOP, poker pro, Mike Matusow (Mike-the-Mouth) was apparently a poster boy for spewed epithets and vulgar comments, at no one in particular. He reportedly insisted to tournament officials, that his verbal assaults were not directed toward anyone, and therefore were well within the rules of proper decorum — at least for a poker star who has established himself as “The Mouth.” One might say he was just being true to his brand!

Matusow reportedly ranted, raged, and celebrated, pounding his fists on the table as part of his act, periodically, over a couple of hours, before the WSOP issued a 20 minute time out, conduct penalty.

Allyn Jaffrey Shulman, a lawyer and a WSOP bracelet winner, was a witness to the antics. She served up her version of the facts in an article for CardPlayer Magazine. She wrote dispassionately, but she did not mince words. And,  the unpleasantness, of Matusow’s monologues came through loud and clear. So did the implicit sexism that is rampant  in poker–one of the last bastions of scratch and spit and take-your-political-correctness-and-shove-it-arena of rugged male individualism.

Underground Games: Women Usually Take Insults in Stride

Women who find sexism an issue in a public card room, may well find underground games tougher challenges. Molly Bloom’s book is instructive. Her posh poker parties were about money, power, and raunchy storytelling about women. The all-male table of players bragged about “hand jobs” and bedding broads – in front of Bloom and her female assistants.

The environment is much the same today in many underground card rooms in New York. Few of the  women, present, as players or house employees, take exception. Colorful profanities – and gritty words that disparage women – are treated as fair game. Most of the women try to tune out the contempt, at least until it gets totally out of hand.

Women Recreational Players Revolt — Quietly!
Recreational players are the key to growth of the poker economy. Women are a significant part of that demographic but they have been notably slow to venture into public card rooms. There are indications that only a low percentage who try their luck there, return very often – if ever.

A dozen women – avid recreational  players – talked  to me about their public card room experience for this article. The report card left a massive opportunity for improvement. The top gripe was that men insult women’s poker abilities – at the table. Raunchy conversation came in second. Cursing was the third most stated complaint. The specifics of the conduct that keeps women away from public card rooms and big tournaments is not entirely clear – from this small sample. But, the interviews suggest that by-and-large, women fear putting themselves in an abusive environment and hold the card room operators, not the players, responsible for their plight.

Among the several hundred players in the WSOP tournaments held in the mid 80s, women accounted for an estimated 2% of the field. This summer, the WSOP attracted 82,360 players. Women accounted for less than 5% of the participants. As the pre-eminent force in the poker world, the WSOP is positioned to take the lead in rethinking the boundaries of male fun at a poker table, and how to make poker equally hospitable to women. And maybe “the time hath come” for all poker rooms to put this mind sport and game of skill on a faster track to making women feel more genuinely welcome. Women can wish!

Until moments after the 2009 WSOP final table proceedings in the fall, Jeffrey Pollack was the public face of the WSOP. And then, suddenly, he announced his resignation and rushed off to take interviews that controlled the immediate spin on his departure. He said he was ready to survey opportunities in new pastures and pleased to have contributed to the growth of the WSOP brand.

Despite the happy state of affairs effectuated by the Pollack-Stewart collaboration, the collegiality between the two men had begun to wane at least a year earlier. A corporate reorganization of CIE was also afoot. Although Pollack had recommended a strong initiative in the online gaming market, and sought to add this responsibility to his portfolio, Caesars Entertainment CEO Gary Loveman was zooming in on Mitch Garber, the recently departed CEO of Party Gaming, to lead such an effort.

Mitch Garber Steps up to Bat

Pollack’s unveiled opposition to Garber as his potential boss made for an awkward situation once Garber was plainly in line to take the reins of CIE (initially Harrahs Interactive Entertainment), including Pollack’s most treasured domain, the WSOP.

In the spring of 2009, Garber became CEO of CIE. With Garber’s blessings, Pollack assumed the title of President of CIE, briefly. But, Garber was running the show and relying on others as he built his team. In the fall of 2009, Pollack resigned. Garber tapped Stewart as his replacement.

Stewart Shines Brighter under Garber

Initially, Stewart had brought in sponsorships and had arranged licensing deals with Caesars properties. Under Garber, he expanded the licensing distribution beyond Caesars’ properties. His portfolio was also enlarged to include oversight for all WSOP television productions and management of the tournament as a whole. He could have picked up the title of “Commissioner of the WSOP.” He chose to retire it instead.

If you listen to Ty — just for a few minutes – you find out that he does not suffer pretenses. He happily mocks them and the people that live by them. Unlike others, who bask in the glory of Wikipedia listings that burnish their image, Ty says, “No thanks,” to these ruffles and flourishes. He opted for the title of WSOP Executive Director. In fact, he reigns as the Grand Pooh Bah of the WSOP!

Today, under his stewardship, CIE distributes licenses for branded WSOP gaming events far beyond the annual WSOP at the Rio. There are circuit events at Caesars properties across the country and others that include the likes of the Crown Casino in Australia, The Bicycle Club, and Casino in California and FoxwoodsResort and Casino on the tribal lands of the Pequot Indians in Connecticut.

Players Depend on the WSOP Collaborators to Play Nicely in the Sandbox

Stewart concedes, “There is inherent tension between short-term profitability for operators and long-term protection of the brand.” He turns impish in admitting he needs to pick his fights judiciously. He acknowledges, “Finding the balance is art and science and ongoing negotiation in what is now 20 + licensees.”

While players are generally unaware of the internal turf wars, the outcomes of internal battles invariably affect them. For the most part, the interests of the players and the WSOP brand seem to be in alignment – even when Stewart makes some chancy judgment calls and presses hard to inject change and new ideas, others perceive as hair-brained.

In talking about the development of the schedule this year, Stewart says, “The modern era WSOP embraces having something for everyone. He has studied the WSOP’s history backwards and forwards. He looks to it with respect and for inspiration. He fought hard to make the “no limit hold’em” 1.5k buy-in “millionaire maker” the centerpiece for the first weekend against operator fears of depleted entries and a corresponding drop in revenues.

His challengers worried about the impact of the million dollar guarantee; the possibility of first place eating up too much of the prize pool to maintain the flattened payout structure to which everyone has become accustomed in recent years. With almost 8,000 runners, everyone is hailing this year’s “Milly Maker” as the belle of the ball. It is but one record-breaking event in a slew of them, and we have barely reached the second week in the tournament.

Late in the planning stages, the WSOP added a “Monster” tournament to provide another no limit hold’em 1.5k buy-in with a slow, super deep stack structure – a recreational player’s dream. This type of tournament attracts players who come to “stay” (last longer) as well as those who come to compete seriously for the coveted WSOP bracelet. Licensees, focused on immediate profits, have found a gold mine in the smaller buy-ins that are yielding monster fields – in no limit hold’em..

At the other end of the spectrum of buy-in options, is the return of multiple 10K world championship tournaments in diverse disciplines. For a few years after the recession of 2008, the WSOP accelerated the smaller buy-ins promoting more participation among non-pro enthusiasts.

Effel who serves two masters, the Rio and the WSOP, has a unique understanding of the issues. He acknowledges, “Ty is pushing the envelope in search of enhanced long-term value for the brand.” Stewart says, “10 K is a magic number for WSOP and has been since 1972, when the only prelim event was 5 card draw.”

Some players have questioned the reinstituted 10ks. The complainers say these events responded to pros in pursuit of bracelets with fewer competitors in the field. Stewart takes sharp exception to anyone who suggests that WSOP caters to particular players or special interests. He says, “I consider the 10ks to be part of a package deal with the 1500s – making it simultaneously harder and easier to pursue a mixed game bracelet.”

Stewart reacts strongly to further probing about the return of several 10K championship events. He justifies his decision thusly: “I am not apologizing for breaking with tradition and encouraging 8,000 entrant 1ks even though for most of our history the only thing you could play for 1k was a satellite, and I am certainly not apologizing for embracing tradition to spread buy-ins that only the most accomplished players can post.”

Stewart is a Senior Member of the CIE Executive Team

Stewart is flying high in a job that suits his personality to a tee. He lives and breathes with creative juices, persistence, and perseverance “for the good of the players, the game, the broadcast, and the success of the company,” says Garber, his direct boss. Greenbaum says of the WSOP team, “There is a lot of yin and a lot of yang, and genuine collaboration when unique issues arise.”

Effel says, “We call Ty the big idea man; he is a cool guy who always has the best interests of the players in mind.” Another Caesars colleague says of Stewart, affectionately, “His underlying vibe with the WSOP is one of a precocious kid with a baton—toiling seriously and enjoying, heartily, the fruits of loving labor.”

Greenbaum and Stewart Stand Side by Side

By all accounts of players queried for this article, Stewart has gained the respect of celebrity pros and tournament enthusiasts of all stripes. Stewart tells me I can quote him again, as I have before, on his guiding principle: “In my observation of tournament organizers, too often they present themselves as above the players, which is so far afield from my strategy of being in the foxhole with them.”

As Stewart prepared for the opening of the WSOP this summer, there were myriad details to finalize. He says the easiest one was selecting the person most deserving of a tip of the hat and a bow of thanks for all he has contributed to bringing the WSOP to life at the Rio. He tapped Howard Greenbaum, the old school gaming executive who played a pivotal role in preserving the WSOP and helping it to grow at the Rio.

Squabbles amid their collaborations aside, Greenbaum calls Stewart “an amazing partner” and Stewart returns the respect. They both tell me they have one overriding common goal – a positive experience for the player.

Update:The monster stack (single entry) tournament drew the largest number of starting players in one day at the WSOP — ever, seating 7,762 players in all.

Author’s Note and Disclosure: The author is personally acquainted with all of the parties referenced, and Eolis International Group has had occasional business dealings with Caesars and CIE.

Hours before the curtain rose on the 45th annual World Series of Poker, last minute wrangling amongst the collaborators was at a fever pitch. Behind the scenes, the organizers and the operator of the fabled tournament were still debating the planned theatrics to open the festivities. Time was running out to settle the latest tiff among the organizers. Players are rarely aware of the internal machinations, but they are often caught, unwittingly, in the cross hairs of the competing entities. In this case, a bit of free money was in the mix. The players were victorious!

Corporate Structure Creates Madness

Welcome to the world of complex corporate relationships that thrive on poker’s biggest stage. At the WSOP the customer is the buyer and the product. The corporate maze of Caesars Entertainment (Caesars) and its related businesses is even more complicated. Here, you cannot tell the players without a scorecard.

A thumbnail sketch of the inter-connected cast of characters that impact on your experience at the WSOP follows: the WSOP is owned by Caesars Interactive Entertainment (“CIE“), which is a subsidiary of Caesars Growth Partners, LLC, (“Caesars Growth”) which is a joint venture between Caesars Acquisition Company (“CAC”) and Caesars Entertainment Corporation (“Caesars”). The Rio All Suites Hotel which operates the WSOP is wholly owned by Caesars.

And — Caesars holds the controlling shares of Caesars Growth; 58%. 42% of the shares is owned by CAC. Mitch Garber is the CEO of Caesars Growth Partners, CAQ and CIE and has a notable equity interest in the businesses he oversees. Garber sums up for me a crucial point in these entangled connections: “The WSOPhas no economic interest in the Rio, but the Rio has an economic interest in the WSOP.”

For those who crave a more finite understanding of these relationships or further details that make more sense of the fancy structure, you are on your own! For the rest of us, suffice to say that the WSOP branding machine and the Rio operating team have natural reasons to lock horns as each seeks to pursue their own respective interests in the course of their collaborations.

Key Players on the WSOP Team: Stewart, Greenbaum, and Effel

Ty Stewart, the Grand Pooh Bah of the WSOP and Howard Greenbaum, the longtime Caesars (formerly Harrahs) executive who oversees the WSOP tournament operations from on high could not be more different personalities. Each has played a separate critical role in the development of the WSOP. They share a penchant for working their magic largely behind the scenes.

As to which team member has the last word in a WSOP-related matter, it depends. Stewart is the Executive Director of the WSOP and a founding investor and Senior Vice President of CIE—the highest ranking member on the business side. Howard Greenbaum, Regional Vice President Specialty Gaming at Caesars Entertainment and the ranking member of the Rio directly connected to the operation of the WSOP. But as a practical matter, Jack Effel, Director of the WSOP and Vice President of International Poker Operations is the man on the ground who makes the rules for the competitions. Jack is the ultimate “meeter and greeter” in the tournament rooms and the final decision-maker in the day-to day WSOP tournament operations.

One of his friends tells me to think of him as the “Mayor of the WSOP.” Jack warms up to this title. Stewart says, “Effel is The Man” in the tournament arena, noting that “Effel is the guy with the gaming license – not me.” Greenbaum says he relies on Jack to run the operation of the tournament, while making clear he is always ready to get in the trenches if Jack needs his help or support.

The Opening of the 2014 WSOP

Stewart, as the WSOP’s Grand Pooh Bah, and Greenbaum as the Rio’s top specialty gaming honcho represent two decidedly different styles. One executive on the scene explains in poker terms: “Greenbaum is a nit and Stewart is loose aggressive.”

The 11th hour deliberations before the opening of this year’s WSOP were exemplary of the sparring that is part of the ongoing heads-up battles that take place throughout the planning and execution of each annual WSOP. This time the duel centered on Stewart’s way out “big idea” of showering the Rio tournament arena with dollar bills spurting forth from cannons, allowing revelers to scramble for the free money.

Greenbaum, the Rio’s worrywart-in-chief, was more of a mind to pour water over the proposed 2014 WSOP New Year celebration. He contemplated one potential calamity after another that might come to pass – with the Rio holding the bag for potential liability. At the end of the day, Stewart and Greenbaum came to terms. The show made a splash with Stewart smiling like the Cheshire cat that swallowed the canary and Greenbaum satisfied that the Rio was prepared for any conceivable eventuality.

Howard Greenbaum — Special Friend to WSOP

While there are plenty of issues that crop up among the WSOP collaborators, there is no dispute as to the significant role Greenbaum has played in creating the backdrop and setting the stage for the WSOP as it has been modernized by CIE. And similarly, everyone who is anyone knows that Ty Stewart is the heart and soul of the WSOP brand as we know it today.

Greenbaum, knows the casino business inside out. He has been a fixture at the Rio during the WSOP ever since Harrahs acquired the brand and mad the Rio its operational home. Garber notes the Rio has been up for sale for an extended period and remains on the block – though not aggressively of late.

Greenbaum is lovingly protective of the Rio. He is also well-schooled in responding to “fix it” messages from the top. Such was the case to the benefit of every player who cherishes the yearly WSOP proceedings.

It was Greenbaum who stepped up to assume the leadership for the WSOP following Harrahs’ acquisition of Binion’s Horseshoe Casino in early 2004. The “Shoe” was in shambles at the time of the acquisition, but the gutsy Greenbaum rolled up his sleeves and became a key player in saving the tournament from disruption or demise.

The 2004 WSOP was the last one played in its entirety at the “Shoe.” Greenbaum was one of the chief advocates at Harrahs for taking the WSOP seriously and treating it as a potential gem for Harrahs’ crown. He has been intimately involved in the planning and collaborations that bring the WSOP to life at the Rio each year since, and a force to contend with when it comes to arrangements at its facilities.

WSOP Food Prices

As the operator Greenbaum focuses on revenue for the Rio—not only from the “rake” but also from all of the other revenue producing amenities including the poker kitchen and the other food and beverage outlets. Players are heard grumbling about food prices — especially in the poker kitchen. Effel pipes up on this subject that the Rio is only trying to break even on PK’s grab and go offerings. And Stewart suddenly comes out swinging on behalf of the Rio, too, explaining that the Rio regime allows players to order meals from outside facilities and trot into the Amazon room with their own food. He also points out that the WSOP made the case for healthier alternatives in the poker kitchen, this year. Stewart quite obviously pursued self-interest in this matter. He has lost 40 pounds, and won a weight loss bet with poker pro Gavin Smith this year. Stewart apparently intends to remain a perfectly fit specimen!

Stewart’s Winding Road to Caesars:

Stewart joined Caesars Entertainment (formerly Harrahs Entertainment) after a seven year stint in the marketing group of the NFL. He says he had the dream job at the NFL but he couldn’t resist the edgier world of poker and the intriguing opportunity to help the game grow globally.

Stewart was born in Eugene Oregon. He grew up in Pennsylvania. In high school he was a stand-out athlete and the lead scorer for his team with more than 1000 points to his credit during his high school basketball career. Stewart was graduated from Penn State University with a BA in 1995. No sooner than he exited his last final exam, he walked down the aisle to take his high school sweetheart as his wife. He then promptly swept her off her feet and carried her straight back to Oregon where he earned an MBA. His graduate degree from the University of Oregon’s prestigious sports marketing program was his ticket into the NFL’s marketing group.

Borgata is in Stewart’s Picture

A series of career broadening moves and promotions while part of the NFL marketing team put Stewart front and center on recruiter lists – way beyond football. Caesars was actually his second “interview” for a poker marketing job; his first was at the Borgata. Stewart liked what he heard in his all day visit with Borgata’s president and other high level executives. But, twenty four hours later he learned that longtime acquaintance, Jeffrey Pollack had just been appointed as vice president of sports and entertainment by Harrahs, with a top priority to grow the WSOP brand. He called Pollack. In a matter of a week they clinched a deal.

Stewart Connects with Jeffrey Pollack at Harrahs

Stewart joined Pollack at Caesars a month after Pollack’s arrival, in September 2005. Pollack also clinched a deal sweetener for himself, the title of Commissioner of the World Series of Poker. While Pollack was front and center in C-Suite meetings, as the creative genius of the WSOP marketing team and the WSOP’s top management honcho, Stewart was known inside the department to carry more than his fair share of the weight.

In the spring of 2008 Stewart was the architect and the principal mover behind the WSOP’s decision to adopt the November 9 final table concept, allowing the WSOP and the elite finalists plenty of time to hype their plans for the televised ultimate hand to hand combat.  TV ratings went through the roof. Pollack and Stewart closed an updated WSOP television deal with ESPN through 2017.

Note: in Part 2 of this article: WSOP Branding Machine: Changing of the Guard.

Author’s Note and Disclosure: All of the parties in this article are known to the author, personally and Eolis International Group has had business dealings with Caesars Entertainment and CIE.

In the days leading up to the opening of the 2014 World Series of Poker, Ty Stewart, the Grand Pooh Bah of the World Series of Poker, was beaming. A five day trip had taken the WSOP Executive Director from Las Vegas to Macau where he eyeballed poker action in the stratosphere. He then traveled onward to Atlantic City for the WSOP National Championship, and back to Las Vegas to open the 45th Annual World Series of Poker – with a bang.

WSOPChecking Out the Action in Macau

While in Macau, Stewart drooled over the possibilities for a future WSOP Macau-based event. He more than hints at his plan to nail down a deal that moves the WSOP APAP from Australia to Macau, in 2016.

WSOP Checking into Atlantic City: On Miss America’s Boardwalk

By the time Stewart arrived in Atlantic City, the WSOPChampionship was underway. It was his  concept to “reboot the Circuit competitions into a year-long platform, culminating in a nationally televised bracelet championship. And, Stewart took delight in seeing his idea — a final table competition on the legendary Atlantic City boardwalk — come to fruition.

German hotshot poker pro, 23-year old Dominik Nitsche, nabbed the bracelet along with $218,000. He also brought the Championship to a finish, hours earlier than expected. So, Stewart toyed with the idea of ditching his scheduled reservation for the next afternoon and taking a red-eye flight home to Las Vegas that night instead — to gain one extra day of preparation for the opening of the 2014 WSOP.

WSOP-Las Vegas is the Perennial Hub for the 45th Time

Mr. Stewart was holding close to the vest, plans to open the six-week WSOP summer festival with a blast of 10 cannons showering the tournament arena with thousands of dollar bills — like confetti. These hijinks were slated to take place as a prelude to the first “shuffle up and deal” command of the season by Howard Greenbaum, Regional VP Specialty Gaming at Caesars Entertainment Corporation.

Breaking Away from WSOP Duties

On the cusp of the WSOP action about to burst open, I figured it was pick’em as to whether Ty would be able to keep our dinner plans at the Borgata, last Saturday night, before heading home, but he did not disappoint.

A towering presence at nearly six feet five inches, Stewart’s arrival at the Borgata was a lock to get noticed. He showed up in red white and blue — that is red trousers, a natty blue and white checked shirt, and red shoes. His casual and colorful attire did more to highlight his playful personality than his formidable stature and position at Caesar’s Interactive Entertainment.

I suspected there might be added incentive beyond our our scheduled rendezvous that kept the WSOP Grand Pooh Bah in town for a few more hours.  And I was right! Mori Eskandani, his good friend and WSOP television production partner was on the calendar for a golf date at dawn the next morning – before Ty was scheduled to take off for Las Vegas. Ty looks upon Mori as a father figure. He he also relies on Mori for perspective on the history of poker and the progression from old school gambling to television fare for mainstream sports viewers. Their date would be business and pleasure. They got in seven holes of golf with a push, before Ty embarked on the last lap of the trip.

Stewart Makes Waves at the WSOP Opening

Stewart hit the tarmac in Las Vegas in plenty of time to fine tune his wardrobe decision for the opening blast at the WSOP. As the curtain rose on the festivities, he was in rare form; seersucker suit, orange shoes coordinated with an orange silk print tie from the House of Hermes.

The WSOP opening was a blast as planned. The theatrics of dollar bills raining down over the vast arena went off without a hitch to thunderous applause from the players. A few of Stewart’s more conservative colleagues sighed quietly, relieved that a gimmick malfunction was not the rain in the room, instead of Stewart’s planned downpour of dollar bills up for grabs.

2014 WSOP is Virtually Guaranteed to Produce Hair-Raising Stories

Thousands of poker players are making the pilgrimage to the WSOP in “Sin City” with dreams of making good this weekend, The “Millionaire Maker” beckons in a reprise of one of the most successful offerings from the Ty Stewart branding machine. The winner of this $1500 buy-in event is guaranteed a million dollar payday. Yours truly  intends to be in the hunt.

The beat will go on non-stop for six weeks, with the Main Event taking a hiatus once the final nine players are determined. The finalists will reconvene November 10th and 11th to play down to the winner.

Stewart observes, “Dreams are dealt every day at the WSOP.”  He notes that they provide the makings for stunning stories. He says, “We need more of these stories to be told – as they unfold.”  Recognizing that there are moments of frenzy, shock, and awe as winning and losing hands are exposed, Stewart urges media to be on the lookout. We agree; it is the trials and triumphs of players, from all walks of life and the four corners of the world, that makes the WSOP  one of the greatest shows on earth.

Ty Gives me the Big Story on Chase

Minutes into our three hour visit, however, Ty teased that he had a great story and a better show to share with me, explaining that poker would not be the centerpiece. I told him I was happy to take a break from poker patter. He backed up for a moment, saying “Don’t get me wrong. I love poker and I love my job.” Ty went on to wax poetic about the opportunity he has been given to put his imprint on the WSOP brand. Then came the revelation that “all of this pales in comparison” to the pride he takes in the life he has with his wife Sarah and his son Chase.

Sarah was his Ty’s high school sweetheart. They married the day after their college finals at Penn State, and eighteen years later they still cherish the decision. Ty looks upon his son as his most important accomplishment.  With iPhone in hand, he boasts exuberantly about Chase. He shows one video after another of the kindergartner playing basketball, football, and more — brilliantly. “Quite the little athlete,” Ty says, smiling ear to ear.

Ty does not stint on planned carve-outs from a super-charged work schedule to assure plenty of quality parenting time. He ticks off 10 big sporting event trips he shared with Chase this past year, including the Kentucky Derby, the Super Bowl and a round of golf at Pebble Beach. He shoots pictures and videos galore of father–son experiences. And take a look at Sarah at the Derby, front and center with Ty and their pride and joy.

Today Ty is back in the saddle, cooking up a few more surprises for home court delivery during this year’s WSOP summer festivities. He says, “Do you like money—cause if you do the WSOP is the place to be!”

Last week, Stanley Sludikoff, publisher of Poker Player Newspaper, addressed card room personnel in an open letter saying, “For the past 30 years PPN has faithfully served card rooms across the country with a print edition available every two weeks.” He continued, “Costs to provide this service have escalated past a point of feasibility in our current business model.” He announced, “Accordingly, effective immediately, we will be publishing Poker Player Newspaper exclusively on the Internet at pokerplayernewspaper.com.”

It was a painful step but also a potential winner for the MENSA man and member of the Seniors Poker Hall of Fame. Make no mistake, about it — at 78 Sludikoff is still going strong, fearlessly and immensely confident about Poker Player Newspaper’s future.

A businessman and one time blackjack enthusiast, Sludikoff published diverse gambling books for decades. Among them are a collection of stories by Doyle Brunson “According to Doyle,” the ultimate “Book of Tells” by Mike Caro, and the pre-eminent work of gaming law professor I. Nelson Rose, “Gambling and the Law.” Sludikoff  also brought blackjack expert Ken Uston’s tale of “Million Dollar Blackjack” to the public. A library of sixty five books have been published as part of his Gambling Times business.

As the publisher of Gambling Times Magazine and Poker Player Newspaper, Sludikoff has reveled in his position as “Panderer To No One.” For Poker Player Newspaper readers this has meant more valuable content because Sludikoff believes that his writers have the right to write about facts and express opinions in the context of legitimate facts without regard to his own personal views. He refrains from editing that smacks of manipulation to suit himself. As a publisher he respects the bread and butter advertisers provide, but editorial content is not stymied by advertiser relationships, as it is so often in trade print media.

PPN’s time sensitive content at pokerplayernewspaper.com has drawn a loyal customer base. A new level of concentration on this platform will make possible expanded subject matter to include the broadest and most timely editorial material.

Sludikoff says the PPN website is in the process of expanding its mandate to serve as a key focal point for breaking poker news and the place to go for poker strategy by experts who stand the test of time.

Profiles of players and feature stories on card rooms as well as more strategy articles for everyday players are planned. So are thoughtful takes on the business of poker and the executives that create and maintain our poker world.

The effectiveness of the transition is dependent not only on Sludikoff’s tough decision to cut the costs associated with print, but also on the commitment of card rooms, poker media advertisers, and readers to insure the continuation of robust circulation of Poker Player Newspaper.

So Stan asks each and all, “Please help us to inform poker players that the familiar Poker Player Newspaper has an exclusive home on the web here at pokerplayernewspaper.com.”

While the current changes were necessary to respond prudently to current financial pressures in the print media industry, Sludikoff says, “I am eager to continue PPN’s reliable longtime service as the ‘Players Voice’.”

He adds, “At this point in my life (of nearly 79 years), given my desire to pass the mantle as well as to work through the economic pressures as expeditiously as possible, I am looking for a working partner/investor or alternatively for a full buyout of my family–based Poker Player business which has operated since 1982.” There is an opportunity, here!

Sludikoff tells his partners and his customers, “I have to say, I appreciate the loyalty of our team, our advertisers and  all of our card room readers over the years, and am hopeful that a print publication will be part of Poker Player Newspaper’s future.”

For myself, let me say “Thank you” to Stan for insuring, as a writer, that I have enjoyed genuine freedom of the press for the past 12 years. I look forward to the continuing opportunity to share unique stories with my loyal readers.

During the past week, since the New Jersey Division of Gaming Enforcement issued its final order concerning the first event at the Borgata Winter Poker Open (“WPO”)last January, players have been arguing fiercely about the fairness or unfairness of the rulings. Chatter has turned into full on posturing. Tournament participants are  communicating with friends, Borgata representatives, the DGE, poker tournament directors around the country, media, and – lawyers. Movers and shakers far across the poker planet are also popping up with takes on the decision.

A Quick Review of the Borgata Counterfeit Chip Caper:
The opening event of the WPO was suspended and ultimately terminated by the DGE before the third day was to commence, after determining that counterfeit chips had been introduced into the tournament. The DGE order provides for the disbursement of the undistributed remaining prize pool (which was frozen during the DGE investigation), together with the revenues earned by Borgata in buy-in fees. The DGE determined that Borgata was a victim of criminal conduct, not negligent and not liable for any other payments, in this matter.

DGEOrder and Borgata Statement
One fuzzy issue in the order relates to the distribution of revenues earned by Borgata ($288,000+). They are referenced in a “whereas clause” as monies provided to players “in consultation” with the Borgata. The Borgata statement references the inclusion of the buy-in fees in player distributions as a voluntary contribution on the part of the Company.

The order can be seen here: http://www.nj.gov/oag/ge/2014news/BorgataWinterPokerOpenFinalOrder.pdf
The Borgata’s statement which clarifies details of the allocation of monies can also be seen here:
http://blog.theborgata.com/

Borgata Stands Its Ground
Sitting in the Borgata’s Sun Room Lounge at the Water Club, last Thursday, Joe Lupo, Borgata senior vice president for operations reiterated to this reporter, the Company’s steadfast top priorities; integrity in its gaming fare and unexcelled customer service.

Lupo is the quintessential company man. He is also the man behind the management decisions that have resulted, over the years, in Borgata making an enviable name for itself in the poker world. It fell to Lupo to brief top Borgata and Boyd executives on the fake chip debacle and to oversee discussions and implementation of new layers of security for poker tournaments. Lupo has neither flinched nor hidden from sight since the counterfeit chip “imbroglio.” He acknowledged, however that he was looking forward to a short restful vacation with his wife this week.

Disgruntled Players Look to Lawyers for Relief
Late Easter Sunday, while Lupo was presumably settled in a lounge chair, Bruce LiCausi was riding up the Garden State Parkway in Northern New Jersey, sharing the substance of a planned press release as part of an exclusive interview. LiCausi, is counsel for the plaintiffs in Mustarel v. Marina District Finance Company, Inc. et al. (Borgata), “a proposed class action lawsuit filed in Atlantic County on behalf of tournament participants.”  His opening salvo in the conversation made his position crystal clear: “The DGE’s Final Order of April 14, 2014 is not the final word for our clients.”

LiCausi is passionate about his cause; He says he wants to obtain justice for tournament players that were robbed of the purported opportunity that induced them to buy into Event 1 of the WPO — some of them multiple times.  LiCausi argues, “If the State of New Jersey is going to permit poker participants to be cheated out of games prematurely, so long as some nominal prize money is won, we may as well go back to the days when Atlantic City gambling was controlled by organized crime.”

LiCausi’s voice starts out calm and cool in our conversation, but it becomes fiery when challenged on the legal basis for his proposed class action lawsuit. On occasion he has faced down lawyers in big law firms, and he has shown the grit to take on unpopular cases in the name of justice for all. He counts his share of creditable winners against tough odds.

This matter is as high profile as any that he has ever handled, but he makes clear it is part of a busy canvas.  A  solo practitioner, LiCausi brings 30 + years of legal experience to the table. He looks upon the DGE decision as a well-thought out effort to mitigate damages and limit liability both for DGE and Borgata. He allows his outrage on behalf of players in the canceled Borgata tournament to become full blown. He claims, “There is little reason to trust the DGE’s and/or Borgata’s comprehensive analysis of the rigged tournament, given the obvious goal of limiting their liability,” And he notes, “The conflicts of interest here are obvious. The Borgata is seeking to absolve itself of liability at the same time it is proposing a method of compensation for players – goals that are inherently in conflict.”  He is aghast at the DGE, “for working closely with a casino it is supposed to be strictly regulating, to dispose of a matter that is deeply embarrassing to both of them.”

Poker Community is Divided on the Merits of DGE Decision
The DGE order has prompted a wide range of opinions within the poker community; both heated and low keyed discussions that sometimes even stir debate over the choice of words this reporter has used in describing the decision. Such was the case after PPN published a headline that called the decision “stunning.” Kevin Mathers, a prolific twitterer and poker forum moderator who places himself among the relegated who apparently was unable to get any concrete information to post about the coming decision ahead of others referred to information about the decision, “As a tournament player, I appreciate the blood, sweat and valuable time involved in reaching the final three tables of a tournament that featured 4810 buy-in entries. So, like many of the players consulted for this article, when I learned about the decision, I was stunned by the equal payouts to all of the players in the top 27 spots.”

From live poker rooms to cyberspace–based poker forums, the outcome of the DGE investigation has been supported by some and challenged by others and advocated accordingly. The backgrounds of the commentators are diverse. They include pros and enthusiasts, tournament directors, card-room personnel and poker forum participants. At the popular twoplustwo.com website, there are hundreds of pages of posts concerning the Borgata chip investigation. Various members of the forum have taken part, respectfully, on both sides of the decision debate, showing substantial thought behind their posts.

Post #4338 in a thread on the Borgata Chip Investigation
One of the most detailed posts in support of the DGE decision is noteworthy for its fearlessness toward others who seem to have too much time on their hands and use forums to snipe, petulantly, at people and events that annoy them. Fromaggio opined at unusual length; pertinent parts of his post are offered below in contrast to the position held by Attorney LiCausi:

“OK, here are my comments on the ruling: It seems to be reasonably fair, and well thought out – largely along the lines of what I anticipated. I did expect that there would be a slowly increasing payout according to stack size for the final 27, but instead they chose to pay everyone the same. I can’t really argue against that, however, since (a) the larger issue was dealt with: ensuring that all the affected players who busted out receive refunds, and (b) the nominal final 27 are making out pretty well compared to other players who are just as deserving.”

He continued, “Now, I understand why some in the final 27 would be unhappy, but it’s all based on an illusion…”  He followed up, suggesting, “One could make the argument that many of the lucky final 27 were unfairly advantaged in this settlement,” saying “I think that would be correct. All in all, it seems like a reasonable balance.”

Fromaggio apologized to those who might be angry with his post, and chastised “unaffected players,” who might be part of “a world where loudness and entitlement seem to win more often than not.” He called it “refreshing to see logic and fairness prevail for once and praised DGE and Borgata, “for not caving to the hordes of opportunistic profiteers.”

Gaming Law Experts Weigh In
Several gaming law experts interviewed for this piece have echoed similar sentiments to those expressed by Fromaggio. One lawyer conversant with some of the DGE’s deliberations has gone further, saying, “The extensive research behind the order will give lawyers eager to punch holes in the decision more than a bit of agita and it will give disgruntled players less of a chance to succeed than they may be led to believe.

Research concerning the ultimate tournament result histories statistics for players reaching 27th place was recently brought to the attention of this writer; if further validated, it could be a compelling foundation for the DGE decision that was rendered. For those who may not view the decision as stunning in its fairness, now, they may think again, if it reflects compatible research when the rubber meets the road.

How much defendants or plaintiffs will spring for an expert to conduct in-depth relevant research data and present his/her conclusions in court is anyone’s guess, but the gaming law pundits queried, express doubt as to Borgata’s openness to settle claims arising from the cancellation of the tournament, given the decision in hand — including the research reportedly completed already.

Borgata and Its Poker Players Move On
The Borgata, meanwhile, has established a hotline to respond to player queries as to how the DGE decision affects his/her rights (if any) with respect to payouts being made under the regulator’s final order which was disclosed publicly, last Monday.

Some 2100+ of the 2800+ players (for the 4800+ buy-ins) were eligible to obtain refunds of their buy-ins and those refunds have been sent out, according to a Borgata representative. Those deemed “unaffected” have received no refunds. Those who cashed from 450 down through 28th place have also been sent their allocated prize monies; they earned their awards prior to a determination of a compromised tournament.

Borgata is reportedly making overtures to sweeten the pot for a few of the top chip leaders, but it is likely that confidentiality requirements will keep actual deals, if any, under wraps – at least for a while. For players in the WPO Event 1 who remain aggrieved, it is yet to be seen if there will be any substantive fights or merely “words full of sound and fury signifying nothing.” Counsel for the plaintiffs in the proposed class action lawsuit now moves into the next phase of litigation.

Minutes ago, the New Jersey Division of Gaming Enforcement reported at its website its final order arising from its investigation of the Borgata counterfeit chip debacle in January of this year. Last Friday  PPN provided an overview of the outcome of the order which was in place then and has been disclosed to the public, today. To summarize: counterfeit chips were introduced into the BorgataWinter Open tournament’s first event. The DGE canceled the event upon determining it had been compromised and has scrutinized the entire matter coming up with the terse order that can be seen here:

http://www.nj.gov/oag/ge/2014news/BorgataWinterPokerOpenFinalOrder.pdf

The Borgata has issued a statement that fleshes out the order, providing details concerning disbursement of monies. It clarifies that players who did not cash, but may have been affected by the introduction of counterfeit chips will be refunded their relevant buy-ins; players who did not cash and were never exposed to the introduction of the counterfeit chips will not receive any refunds, whatsoever. Players who were awarded prize monies but didn’t pick up their pay will also get their monies. The full Borgata statement can be seen here:

http://blog.theborgata.com/

Borgata Senior VP, Joe Lupo, is quoted as explaining that the Company is distributing all of the unpaid prize pool money and also voluntarily disbursing to players the revenues earned from buy-in fees. While the DGE order includes the latter, a reading of the order confirms that the revenues earned by Borgata  that were included in the disbursements came about from consultation with Borgata and not from an independent order on the part of the DGE.

Predictions:This means some 2100+ of the 2800+ players (for the 4800+ buy-ins)  in the tournament will probably be pretty happy, presumably as will those who cashed down through 28th place who have been or will be paid per the advertised allocation of prize monies. They all earned their awards prior to a determination of a compromised tournament.   Additionally, those in the second and third tier of the top 27, will probably find the payout livable as the disbursement is equal or greater than  the original allocation for those spots. As to the top nine, sparks are sure to fly, but as to whether it will be sound and fury signifying nothing or a colossal headache for DGE and Borgata remains to be seen.

It should be noted  DGE’s delay in getting out its report after it allowed many people to learn that it had been completed resulted in massive leakage, and significant misinformation that circulated for days. This state of affairs did not help to soothe ruffled feathers of those who are unhappy.

Last Friday all eyes were on the DGE after the regulators sent up white smoke signals that resulted in alerting executives at multiple casinos of an imminent decision. By late afternoon the smoke turned gray—without explanation. No announcement materialized until today. DGE’s further delay was almost inevitable, given its history in this matter; over the past weeks there have been several false alarms of an imminent announcement sounded by DGE to many parties with close ties to the regulators.

No matter how well reasoned by DGE, the last bit of delay left Borgata personnel with their hands full – not only with new procedures but also with an onslaughtof queries by frustrated tournament players – the entire weekend.

Was the DGE miffed by news of their deliberations leaking out to the public (against their preference) slightly before they were to take the stage?

Did the DGE deliberately encourage the leak so as to the take the temperature in the tournament room at the Borgata before coming forward publicly with their pronouncements?

Or did they just bungle their own planned timetable by missing critical details that had to be put in place in their report?

These were the questions buzzing around the Borgata this past weekend as players became increasingly impatient over their inability to get clear cut answers.

To their credit, the DGE’s deliberations have reportedly included painstaking review of Borgata surveillance tapes and administrative documentation as well as broader investigation by crackerjack sleuths. Extensive research of other tournaments including the actual outcomes for players in the top 27 places has also been said to have been part of the process in considering the most appropriate resolution.

“The result of DGE and Borgata’s laborious effort to piece together as many relevant facts as possible has been a carefully considered resolution—regardless of whether or not one agrees with the DGE’s conclusions,” insists one  knowledgeable New Jersey admitted lawyer who has served  as a judge. Another lawyer, an AMLAW 100 litigator who had more than in inkling of the deliberations adds, “The results reflect an amazing amount of research which is why the matter has taken so long to consider.” He believes the decision takes into account relevant law, common sense and real practicalities in a very difficult situation.”

Based on conversations heard at the Borgata, this past weekend, it would seem likely that the decision  will guarantee a very long, loud debate among poker pros and tournament directors across the country.

Come back to PPN for commentary, analysis and plenty on the back story in the coming days.

After nearly 3 months of silence, the New Jersey Division of Gaming Enforcement (DGE) is poised to announce its decisions regarding distribution of the remaining prize pool that has been left in limbo following the cancelation of Event #1 in the Borgata Winter Poker Open last January.

Shortly before day 3 was to commence, the DGE suspended the event, ultimately canceling it altogether due to the introduction of counterfeit chips into the tournament.

The remaining unpaid prize pool was put into a trust pending the outcome of the DGE investigation of the matter. According to lawyers surrounding the DGE and others familiar with the DGE’s recent deliberations, the investigation has concluded. All that seems left is public disclosure of its report and related rulings.

All eyes are on the DGE as the first weekend of the Borgata Spring Open gets under way. Changes in tournament procedures are obvious, with far more personnel engaged in the coordination and supervision of the proceedings then ever before. And, bagging and tagging of chips at the end of play each day is taking considerably longer. It is apparently Borgata’s obligation to verify each players chip count. Previously, Borgata allowed independent chip counts annotated by players.

The DGE’s findings result in other specific procedural changes, as well, reportedly being implemented as part of a studious effort to enhance the security of poker tournaments in all of the casinos they regulate in New Jersey, according to casino executives in multiple AC poker rooms. The Borgata has also invested in high tech superior quality chips for tournaments; would be cheaters beware!

Meanwhile, poker professionals had best to brace themselves for a stunning decision with respect to allocations of the unpaid prize pool monies payable by the Borgata under the DGE’s orders.And, those champing at the bit for a decision by DGE that calls out Borgata as negligent or liable to return monies to players outside the unpaid prize pool would be well advised to think again before making a bet on it.

The regulators are expected to take into account thoughtful advice from the various lawyers on hand as to how best reduce their risk in the inevitable event of lawsuits that will test their reasoning from available facts.

It is certain that the DGE will favor players who could have been affected by the introduction of counterfeit chips over players who were not ever subjected to the contaminated chips, says one state official on condition of anonymity.

In addition, the top 27 players, many of whom have anticipated a pro rata chip chop of the undistributed prize pool allocated to those spots, will probably engage in much debate about the actual outcome, especially for those well above the middle of the pack, suggests another insider in the halls of government.

One prominent lawyer knowledgeable about the DGE’s “concerns” about fairness, points out that any player who benefited from the counterfeit chips was as much an issue to grapple with as those who played and could have lost their stack because of this.

So, don’t be surprised if the DGE knocks your socks off while striving to make its most cogent legally defensible case for a fair and equitable resolution to the Borgata counterfeit chip caper fiasco.

Look for more information and analysis here at Poker Player Newspaper following public announcements by the DGE and Borgata.

Author’s note: This post has been dictated but not read by WHE.