ESPN Poker Blog

Posted by Andrew Feldman

During a time when the poker industry focuses on who will become the next world champion, one former world champion is officially on the hook for being part of the Ultimate Bet cheating scandal from June 2003 until December 2007. After over a year of investigation, the Kahnawake Gaming Commission (KGC) released a report on Friday that Russ Hamilton, the 1994 WSOP champion, played a major part in the appropriately dubbed "Ultimate Bet Scandal." The KGC said in their report (here) that Hamilton and 31 other individuals used 117 user names to facilitate the cheating through 23 Ultimate Bet accounts.

In their release, the KGC explained that, "The cheating resulted from certain individuals manipulating the software then being used by UB's prior ownership and said manipulation was possible due to deficiencies in the control systems that were created, implemented and/or used by UB's prior ownership."

Tokwiro Enterprises ENRG, the current owners of Ultimate Bet, worked with the KGC during the investigation from January 2008 until July 2008. As documented in their report, their initial investigation stemmed from information provided by someone "within the online poker community" regarding the "NioNio" account whose statistics were "alarmingly improbable." Bottom line: he wasn't going to lose.

So how did it work? The report explains that the account used to cheat logged into the Ultimate Bet game client using an account ("AuditMonster1" and "AuditMonster2") that had access to the illicit software where hole cards would be revealed. Those that logged in with the aforementioned accounts didn't play in any game, but rather passed on the information to the actual player who was able to use the data to profit. The money was then sent via player-to-player transfer on the software and many account names were disabled while new ones were created to keep the scheme going.

Tokwiro and Ultimate Bet have been audited since the investigations began and will continue to be subject to audits for the near future. As a result of the investigation, Tokwiro refunded $22,054,351.91 to players that were affected by the cheating instances and paid a fine of $1.5 million (plus the costs of the investigation).

While many in the poker industry are fighting for legalization and regulation, this final report can do one of two things.

First, it can show lawmakers that the online poker players need some sort of protection. Create a licensing company to oversee operations in the United States and make sure that those that play online are dealing with sites that are as transparent as possible.

Second, it can show lawmakers that online poker isn't a good thing and the sooner it's gone, the better. Granted, this view is completely narrow-minded, but when something like this is released, it adds to the already negative impression many have of the game.

Hall of Fame nominees

After 10 players were listed for potential nomination into the Poker Hall of Fame in July, early last week Harrah's released the final list of nine, removing Tom Dwan from consideration.

"With all due respect to Mr. Dwan, one of the game's most exciting young players, he does not currently meet the criteria for Hall of Fame selection," said the Poker Hall of Fame Governing Council in a press release. "We wish him well and expect he will again be considered once he has 'stood the test of time.'"

Barry Greenstein, Dan Harrington, Phil Ivey, Tom McEvoy, Men Nguyen, Scott Nguyen, Daniel Negreanu, Erik Seidel and Mike Sexton are all on the ballot for the 15 living HOF members and the 15-member Media Panel to vote on. A player must get at least 75 percent of the vote to be inducted and will be judged on these characteristics:

• A player must have played poker against acknowledged top competition
• Played for high stakes
• Played consistently well, gaining the respect of peers
• Stood the test of time
• Or, for non-players, contributed to the overall growth and success of the game of poker, with indelible positive and lasting results.

I'll give you my thoughts on the nominees this week on ESPN Inside Deal. One of the nominees, Daniel Negreanu, will come on as a guest. Those selected for induction will be honored in a ceremony during the dinner break of the main event final table Nov. 7.

WSOP Europe's capacity issues?

Four bracelets are up for grabs in Europe from Sept. 17 until Oct. 2, but still a major concern is the capacity at the Casino at the Empire in London. Seating for the £1,000 no-limit hold 'em Event 1, £2,500 pot-limit hold 'em/pot-limit Omaha split Event 2 and £5,000 pot-limit Omaha have a maximum daily capacity of 252 players. Event 1 has two start days, but the fact that the maximum capacity of these events is so small will inevitably limit the growth of these events. The WSOPE main event, Event 4, has a maximum daily capacity of 216 players and offers two starting days for a cap of 432. John Juanda's victory in last year's WSOPE main event came in a field of 362 players.

Obviously capacity is a major concern after the debacle at the WSOP main event in Las Vegas, but I think the WSOP needs to take some larger steps to ensure that if the events can grow in numbers that it is, quite simply, possible.

Small blinds: Thomas Bichon defeated the 181-player field at the inaugural WPT Merit Cyprus Classic. … Tiffany Michelle and Maria Ho make their Amazing Race debut this season. … Four Planet Hollywood employees were arrested for embezzlement in their poker room. Apparently they really wanted to win the high-hand jackpot over and over again. … 20-year old Carter Phillips took down the European Poker Tour stop at Barcelona. It was almost destiny since Phillips won multiple seats to the event online. … Isabelle Mercier is no longer a member of Team PokerStars Pro. … ESPN Inside Deal will have an exclusive interview with Phil Ivey. … The WSOPE main event start time has been pushed back due to the Jewish holiday of Yom Kippur. Play will begin at 5:30 p.m. and will last only four levels instead of the initially scheduled six. … November Niner Joe Cada won a second-chance event at the World Championship of Online Poker for $128,000. … Even though "Face The Ace" hasn't been wildly acclaimed, TMZ.com is reporting that a man named Brandon McSmith is suing Poker PROductions for $85 million, saying the show was his idea. $85 million? Really? Yikes.