Breaking News in UltimateBet Scandal
Posted At : September 30, 2008 3:53 PM | Posted By : Administrator
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Online Gambling,Poker,Current
The Kahnawake Gaming Commission (KGC) has published a press release with further details into their investigation into the hole card cheating scandal on UltimateBet's online poker client that appears to have netted over $6 million. The press release specifically names Russell Hamilton as being the primary perpetrator.
Hamilton is a former WSOP main event champion and founder of the UBT blackjack tour of which I was the first champion. I have met and interacted with Russ a number of times. I don't have any personal comments to make with regard to Russ, but there usually are multiple sides to any story so I try to keep my opinions open. The fact that the KGC would publicly name Hamilton in a press release published to the World Wide Web without fear of a libel suit is not favorable for Hamilton's reputation, however.
The history behind how this cheating scandal became uncovered is an interesting one in that it wasn't the administrators of the Web site nor the KGC investigators who first found the possibility of cheating. Like an episode of Scooby Doo it was "the meddling kids." It was young people playing on the site using a poker program called PokerTracker which logs everyone's hands and results. The results for some of the user accounts were astronomical in terms of their immense winnings over significant sample sizes.
I don't have specific numbers in front of me, but let's assume that the world's best poker player playing in a $100/$200 no-limit hold 'em (NLHE) game could win $800 per 100 hands played. In PokerTracker abbreviations that would be 4 BB/100 (4 big blinds per 100 hands). That would be a phenomenal win rate especially at those stakes. These players were winning at 80 BB/100 to over 100 BB/100.
A few of these young people posted their concerns on the online poker forum at twoplustwo.com which is owned by a friend of mine, Mason Malmuth, as well as his business partner David Sklansky. The site is administrated by Conjelco's Chuck Weinstock. It's likely the busiest online poker forum on the Internet.
Once a few people read each other's messages and did their own number crunching they came to the conclusion that the odds of someone being able to consistently win at that rate was about the same as winning the state lottery 4 days in a row. In other words, impossible.
The scandal took on a life of its own as it grew. Threads over 1,000 messages long were growing daily on 2+2's news forum. I would refresh the page every 10 minutes simply to not get too far behind on the new information.
There were stories of extorting employees releasing information (false or truthful) simply because they didn't get paid off. There were stories of disgruntled employees who just wanted to make their brass look bad. Many felt that the young Internet posters were seeing monsters under the bed and were full of false conspiracy theories.
As information was leaked, more and more information pointed to Hamilton. There were multiple money transfers between his account and other accounts. Also, one of the identified cheating accounts was registered to a Las Vegas address owned by Hamilton. Prior to today's press release I think most people felt that Hamilton at least knew the cheating players if he was not directly culpable.
Now that Hamilton's name has been specifically identified publicly, I think that more and more names will surface quickly. This will likely snowball from here as we find out more and more details. I also imagine that UB and its sister site Absolute Poker (AP) are on their way to closing up shop. That's just a guess on my part.
While the cheating players are ultimately (no pun intended) responsible for their actions, I find major fault with the KGC who is supposed to be the governing regulatory body overseeing the online gambling sites under its umbrella. The way they've handled the scandal from the start would be worthy of a Bill Clinton, "I did not have sexual relations with that woman" or a George W. Bush Attorney General under oath.
When the scandal first broke with Absolute Poker, the poker site swore up and down, left and right, sideways, and every which way possible that there was no cheating whatsoever. It was simply a few players who were very very bad at poker and got extremely lucky. In fact they got something like 1-in-12,000,000,000,000 lucky, but they were lucky and that was it. The KGC concurred with that statement.
Soon thereafter an employee made the "mistake" of sending out the complete hand history for a sit-n-go tournament that was suspected of having a cheating player. Employees often will send you a hand history but it won't include the unseen cards of the other players. This hand history had all unseen cards. A study of this hand history showed how the cheating was undeniable. (If you notice my quotes around the word "mistake" early in this paragraph, they are to indicate that it's likely that the information release was intentional.)
The AP site and the KGC then went on to name several cheating accounts and then supposedly made restitution to players and paid a fine, and that was it.
On comes the UB scandal and the whole charade started over again. First they deny that there was any cheating at all; only very bad and very lucky players. After some conclusive evidence is shown and they can no longer deny the charges they admit to a number of cheating accounts, I think there were 9 of them, and they say that they fully investigated and found that it was these 9 accounts and these 9 accounts only that were guilty. There were no other cheating accounts absolutely, positively, undeniably. Only 9 accounts.
A couple days later a player on the 2+2 forum shows 3 or 4 other accounts which looked like cheating accounts. The discussion about these other accounts grew and then a few days later the KGC announces that these other accounts were involved.
The whole thing is hokey as can be. When the supposedly independent regulatory body charged with enforcing the fairness and security of your Web site is seemingly complicit in the cover-up then there's a problem. A big problem.
I refuse to play at any online gambling site affiliated with the KGC because I've seen how they handled this UB scandal and I don't trust them to maintain any fairness on the sites they "regulate." Also, who is to say that the online cheating at poker isn't still going on? Now the ones doing it will be on high alert to not make unusual plays. An expert could likely make $1 million a year, year after year, and completely stay under the radar.
Full Tilt Poker is regulated by the KGC. Most of my friends think I'm crazy but I won't play at Full Tilt because of that connection. Full Tilt should make a statement that says they won't be affiliated with any seemingly crooked agency like the KGC and are moving elsewhere. As long as they are with the KGC, I won't play there.
People say to me when I mention Full Tilt that Chris Ferguson, Phil Ivey, John Juanda, and many of the FT pros are very trustworthy people and they feel safe playing there. They may be very trustworthy people. In fact, I imagine they are, but the governing commission isn't, so I don't want to play there.
Word on the poker blog universe is that 60 Minutes, the weekly news segment on Sundays on CBS, will be doing an investigative report into the UB scandal. I have heard that it may air on October 26. That will be must-watch TV for me, and likely for you too if you're reading this article. Keep your Tivos ready.
For the KGC's press release with more information, click this link.
For the 150+ message thread on 2+2 started yesterday about the latest press release, click this link.








































