The recent story that aired on 60 Minutes regarding the cheating incidents on online poker rooms Ultimate Bet and Absolute Poker caught the eye of a number of newspaper columnists around the world. In Canada, the Toronto Star’s Dave Perkins used the opportunity to call for legalization and regulation of the industry in a piece entitled “Online gambling a sure bet for Ottawa’s coffers.” Read the entire Toronto Star article.
The Mohawk Kahnawake Tribe, which runs the Gaming Commission of the same name that licenses the two online poker rooms that were the subjects of the CBS News piece, is based just outside of Montreal. In part because of bad blood stemming from a 1990 standoff in the town of Oka, which pitted the Mohawks against the country’s government over land rights, Perkins commented, “Our government stands by, terrified to intervene and enforce the law.” The standoff lasted two and a half months.
Perkins used the space in his column to call for regulation in Canada. He told Poker News Daily, “It’s better for the player. Who wouldn’t want to bet with a regulated company? Once you get over a certain size winning online, you have to go through leaps and bounds to get it.” Moreover, legalization and regulation would provide players with a recourse should any scandal erupt. Perkins pointed out in his piece, “Online poker fraud could be addressed and punished openly, instead of handled secretly.”
60 Minutes reporter Steve Kroft opened the show, which aired on November 30th, by explaining that the men responsible for duping players out of more than $20 million on the two Tokwiro-owned rooms were never brought to justice. In the case of Absolute Poker, the mastermind was not publicly named by the online poker room in exchange for the individual explaining how the cheating took place. Absolute Poker then closed the loophole in order to ensure that it would not happen again. Russ Hamilton, the architect behind the cheating on Ultimate Bet and 1994 World Series of Poker Main Event champion, still resides in his home in Las Vegas, according to 60 Minutes.
Besides the benefits for players to be able to compete in a regulated environment, Perkins added that the government of Canada will be able to reap financial gains at the same time. In his column, he explained, “Make it legal, set up the regulating framework, and watch the money pour in. In these economically turbulent times, it makes nothing but sense to profit legally from an activity that is both here to stay and is growing every year.”
The internet gambling industry is estimated to be an $18 billion business, according to the Washington Post. The newspaper added that the Kahnawakes receive “millions in fees annually” from the licensing of internet gambling and purchased 40% of Continent 8 Technologies, which is based in the Isle of Man and could help the tribe expand into Europe’s lucrative internet gambling market.
Perkins concludes his Toronto Star article by noting that “This decision is both so obvious and so far overdue that it should be a no-brainer. Even for Ottawa.” In 2006, at the same time as the Unlawful Internet Gambling Enforcement Act was being ushered through Congress in the United States, the Journal of Internet Law published a piece on the legality of internet gambling in Canada. It stated, “Although there is no express provision in the Canadian Criminal Code prohibiting Internet gambling, it appears to be clear that a company operating an Internet gambling Web site from a Canadian location offered to Canadians would, prima facie, be subject to criminal sanctions.” Perkins told Poker News Daily that a bill addressing the industry was introduced during the last Parliament, but will now have to be reintroduced after October’s elections.
