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Poker News: January 13, 2008

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HEADLINE: Kahnawake Issues Report on Absolute Poker’s Online Poker Scandal

In a small blurb back on December 12th 2007, the Kahnawake Gaming Commission had two sentences posted under their News category saying:

“The Kahnawake Gaming Commission has received a report from Gaming Associates which it is now in the process of reviewing. The Commission hopes to complete its review and render a decision in this matter within the next two weeks.”

Now, almost a month later, they have finally released the report and the penalty they will impose based on the findings by the Gaming Associates audit.

The Gaming Associates audit took approximately 10 weeks with the cooperation of Absolute Poker. The Kahnawake Gaming Commission then issued this report. Most who have followed this story will not find any new information provided in the report that the online poker community had not already found out on its own. In summary the report says:

That as of August 14th, 2207 and continuing for about 6 weeks AP systems were “compromised” by players using seven accounts. These players used software that “enabled the viewing of ‘hole cards’ of each of the other players”. The accounts were (taken from report):


The audit also revealed that “person(s) associated with AP’s operations deleted certain gaming logs and records” which resulted in the slow investigation but did add that Commission was “satisfied with the level of cooperation” that the Absolute Poker management and staff provided. It also added that it did not find any evidence that the “impugned activities” was initiated or approved by AP through its Board of Directors or principle owner and that no evidence was present to show it benefited or intended to benefit the cooperation or owner.

Although that they did not benefit from the security breach, they are not fault free and the online poker community has been screaming “cover up” since the story broke and AP did not immediately issue a statement. The Kahnawake report addresses those issues by exposing the fact that AP failed to even contact the Commission with 24 hours after they became aware of the breach.

The Commission also goes on the say that they are satisfied by the way AP reimbursed players affected but it was the way it was worded that stood out. It said that AP made “expeditious efforts” to reimburse all players, with interest, who participated in the games shortly after the “impugned activities” became publicly known. (Emphasis added)

Lastly, the Commission states that Absolute Poker has taken the necessary steps to prevent this from happening again.

The Commission found that Absolute Poker had breached four sections of the Commissions regulations and imposed the following sanctions on AP:

1) For the next two years AP will be subject to random audits at their expense. If the results of any of these audits find that AP has breached any provisions, Absolute Poker’s license may be suspended or revoked. The Commission will direct AP to “implement a continuous compliance program and other remedial measures” and all person(s) responsible will have to be permanently removed from “mind or management and/or operations and proof, satisfactory to the Commission.”

2) 60 days to pay in full a fine of $500.000.00

3) To post a security deposit set by the Kahnawake Gaming Commission to be held for two years to be used to off set any future expenses due to breaches of the Kahnawake Gaming Law or any other provisions.

4) Absolute Poker must pay all costs associated to the investigation

The report is signed by David Montour, Chairperson, Melanie Mayo, Commissioner and Kevin Kennedy, Commissioner.

For some in the poker community this reports lack of details may not satisfy them due to the fact that it did not address how the cheating was accomplished, names of those involved and if legal action is being sought against them.

Only time will tell if this report will have any impact of the trust that Absolute Poker lost due to the way they handled this situation.

View the Kahnawake Gaming Commission report. (.pdf)

Absolute Poker Bonus
Related: See U.S. Poker

Article downloaded from the World Wide Web on January 13th, 2007

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