Cereus Poker Network was an online poker network comprising Absolute Poker and Ultimate Bet. The site is now insolvent and not processing player withdrawals. Cereus is owned by a private company, Blanca Games. Blanca Games bought all Network assets in August 2010 from Tokwiro Enterprises.[1] The Cereus network was one of the world's ten largest online pokercardrooms prior to losing the majority of its player base in the wake of the April 15, 2011 online poker indictments.[citation needed]
In September 2007, Absolute Poker began defending itself following accusations made by members of several Internet forums that the online poker room has a "superuser" account which allows one player to read the hole cards of another during a game.[2] By October, widespread Internet allegations of cheating led to the Kahnawake Gaming Commission beginning an investigation.[3][4]
Although allegations had been made about several accounts, one of the most remarkable pieces of evidence was a complete history of a tournament which was won by a player called "POTRIPPER". This history was far more complete than normal; it included all hidden hole cards for all of the players at the table, and the IP addresses of players and third-party observers who were watching the game via the Internet. It was sent out, perhaps by accident, when a player complained about suspicious play. Reviewing the data, mathematician and gaming expert Michael Shackleford said:
Hand after hand POTRIPPER’s play is consistent with that of a player who had knowledge of every player’s hole cards. The majority of hands show POTRIPPER bluffing at just the right times when his opponents were weak. Yet, when he was hopelessly outmatched, even with good cards, he laid them down.[5]
Shackleford subsequently blacklisted Absolute Poker on his gaming-related website.[6]
On October 19, an unofficial source within Absolute Poker claimed that an employee had hacked the system to "prove a point".[7] On October 21, Absolute released an official statement:
...it appears that the integrity of our poker system was compromised by a high-ranking trusted consultant employed by AP whose position gave him extraordinary access to certain security systems. As has been speculated in several online forums, this consultant devised a sophisticated scheme to manipulate internal systems to access third-party computers and accounts to view hole cards of other customers during play without their knowledge. [...] We will pay for all losses suffered by the affected players as soon as our audit is finished and the amounts are determined.[8]
In November 2007, Absolute issued an interim statement claiming the employee cheating had taken place over a period of forty days and that the cardroom was refunding $1.6 million to affected players.[9] The Kahnawake Gaming Commission issued its report on the incident in January 2008. Among other consequences, Absolute Poker was fined $500,000.[10]
The Quebec provincial police opened an investigation into the ongoing matter.[11]
UltimateBet hosted an annual live tournament, the Aruba Poker Classic, which was a World Poker Tour event for the first four seasons of the show. In 2005, Freddy Deeb won the event, claiming the $1,000,000 prize. Prior winners were Eric Brenes in 2004, Erick Lindgren in 2003, and Juha Helppi in 2002. The tournament in 2008 was a $5,000 buy-in event with a guaranteed $1 million top prize.
The company sponsored the poker television series Poker2Nite, hosted by professional poker player Joe Sebok and radio host Scott Huff.[12]
Prior to the passage of the Unlawful Internet Gambling Enforcement Act of 2006, the software parent company of the cardroom, Excapsa Software was traded on the London Stock Exchange as XCP.L. In October 2006, the company announced it was selling its assets to a private company and moving to delist itself from the stock exchange.[14] The legality of the deal was immediately questioned because most of the payment would take place after the act became law.[15]
2005–2007 cheating scandal
UltimateBet had a cheating scandal similar in nature to that of Absolute Poker.[16] In May 2008, the company released a statement about the scandal, claiming that cheating had taken place from March 2006 to December 2007. However, in a later statement they confirmed that the cheating had begun at the start of 2005:
We have also confirmed that the cheating dates back further than we initially believed. We can now confirm that the cheating began in January 2005, long before Tokwiro Enterprises ENRG acquired UltimateBet from the previous ownership.[17]
The company claimed the cheating was perpetrated by employees of the former owners, Excapsa Software.[18] According to the company, the fraudulent activity was traced to unauthorized software code that transferred hole-card information of other players to the perpetrators during play. UltimateBet stated it had removed the cheating software as of February 2008 and began issuing refunds to affected players.[19]
On September 29, 2008, the Kahnawake Gaming Commission stated it had found clear and convincing evidence to support a conclusion that between the approximate dates of May 2004 to January 2008, Russ Hamilton was the main person responsible for, and benefiting from, multiple cheating incidents at Ultimate Bet.[20][21]
Online poker was suspended on April 15 at the top three United States websites (In order, PokerStars, Full Tilt Poker and Cereus Poker Network) and continues to be suspended at the top two.
On April 15, the Department of Justice seized the .com internet addresses of the three online gambling sites, PokerStars, Full Tilt, and Absolute Poker.[22] The Cereus Poker Network continued operating until May 12, 2012 when players reported being unable to connect to game servers using the poker client software. At the time of its closure, it owed players an estimated $50 million, mostly to residents of the United States.[23]
Absolute Poker Claims Process
On April 10, 2017, the Acting United States Attorney for the Southern District of New York issued a press release explaining that former players at Absolute Poker would be eligible to file claims to regain the funds in their balances at the defunct poker site.[24] Money held in Ultimate Bet accounts is also eligible for reimbursement. The Garden City Group was retained as claims administrator. This is the same company that handled claims relating to Full Tilt Poker, which was also targeted in the 2011 indictments against online poker firms. After the Full Tilt Poker remissions process was completed, having returned more than $118 million to affected players, some of the money that had been set aside for it yet remained unclaimed. It is this leftover amount that will be distributed in compensation to the former customers of the Cereus Poker Network. The petition for remission deadline is set at Sept. 7, 2017 with payments to be processed shortly thereafter.[25]
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Texas hold 'em is one of the most popular variants of the card game of poker. Two cards, known as hole cards, are dealt face down to each player, and then five community cards are dealt face up in three stages. The stages consist of a series of three cards, later an additional single card, and a final card. Each player seeks the best five-card poker hand from any combination of the seven cards: the five community cards and their two hole cards. Players have betting options to check, call, raise, or fold. Rounds of betting take place before the flop is dealt and after each subsequent deal. The player who has the best hand and has not folded by the end of all betting rounds wins all of the money bet for the hand, known as the pot. In certain situations, a "split pot" or "tie" can occur when two players have hands of equivalent value. This is also called "chop the pot". Texas hold 'em is also the H game featured in HORSE and HOSE.
Cheating in poker is any behavior outside the rules of poker that is intended to give an unfair advantage to one or more players.
Video poker is a casino game based on five-card draw poker. It is played on a computerized console similar in size to a slot machine.
Online poker is the game of poker played over the Internet. It has been partly responsible for a huge increase in the number of poker players worldwide. Christiansen Capital Advisors stated online poker revenues grew from $82.7 million in 2001 to $2.4 billion in 2005, while a survey carried out by DrKW and Global Betting and Gaming Consultants asserted online poker revenues in 2004 were at $1.4 billion. In a testimony before the United States Senate regarding Internet Gaming, Grant Eve, a Certified Public Accountant representing the US Accounting Firm Joseph Eve, Certified Public Accountants, estimated that one in every four dollars gambled is gambled online.
Online casinos, also known as virtual casinos or Internet casinos, are online versions of traditional casinos. Online casinos enable gamblers to play and wager on casino games through the Internet. It is a prolific form of online gambling.
Russ Hamilton is an American poker player. He was the 1994 World Series of Poker main event champion, defeating Hugh Vincent in heads-up play to win $1 million in first-prize money as well as his body weight in silver. Following his World Series win, Hamilton served as a consultant for Ultimate Bet, an online poker server. In 2008, the Kahnawake Gaming Commission found Hamilton largely responsible for cheating players on Ultimate Bet out of $6.1 million through software that allowed access to opponents' hole cards. In 2009, Kahnawake increased the $6.1 million estimate to $22,100,000.
Three Card Poker is a casino table game based on poker. It was designed in 1994 by Derek Webb.
Cheating in casinos refers to actions by the player or the house which are prohibited by regional gambling control authorities. This may involve using suspect apparatus, interfering with apparatus, chip fraud or misrepresenting games. The formally prescribed sanctions for cheating depend on the circumstances and gravity of the cheating and the jurisdiction in which the casino operates. In Nevada, for a player to cheat in a casino is a felony under state law. In most other jurisdictions, specific statutes do not exist, and alleged instances of cheating are resolved by the gambling authority who may have more or less authority to enforce its verdict.
Bwin.Party Digital Entertainment was an online gambling company, formed by the March 2011 merger of PartyGaming plc and Bwin Interactive Entertainment AG. Formerly the world's largest publicly traded online gambling firm, it was best known for its online poker room PartyPoker, World Poker Tour and its sports betting brand Bwin.
Online gambling is any kind of gambling conducted on the internet. This includes virtual poker, casinos, and sports betting. The first online gambling venue opened to the general public was ticketing for the Liechtenstein International Lottery in October 1994. Today, the market is worth around $40 billion globally each year, according to various estimates.
PokerStars is an online poker cardroom. It is the largest real money online poker site in the world, controlling over two-thirds of the total online poker market, and can be accessed through downloadable poker clients for Windows, macOS, Android and iOS.
Todd Witteles is an American professional poker player.
The Kahnawake Gaming Commission is a gaming regulatory body that licenses and regulates a large number of online casinos, online poker rooms and online sportsbook sites, as well as three land-based poker rooms that are situated within the Mohawk Territory of Kahnawake.
Doyles Room was an online poker room created in 2004. The site was named after Doyle Brunson, a poker professional. In October 2011, Americas Cardroom acquired Doyles Room. Brunson had recently cut ties with Doyles Room following the domain seizures of PokerStars, Absolute Poker, Full Tilt Poker, and Ultimate Bet on April 15, 2011, by the Department of Justice, in United States v. Scheinberg.
Poker tools are a variety of software or web-based applications that allow the statistical analysis of poker players, games or tournaments.
Advantage gambling, or advantage play, refers to legal methods used to gain an advantage while gambling, in contrast to cheating. The term usually refers to house-banked casino games, but can also refer to games played against other players, such as poker. Someone who practices advantage gambling is often referred to as an advantage player, or AP. Unlike cheating, which is by definition illegal, advantage play exploits innate characteristics of a particular game to give the player an advantage relative to the house or other players. While not illegal, advantage play may result in players being banned by certain casinos.
United States v. Scheinberg, No. 1:10-cr-00336 (2011), is a United States federal criminal case against the founders of the three largest online poker companies, PokerStars, Full Tilt Poker and Cereus, and a handful of their associates, which alleges that the defendants violated the Unlawful Internet Gambling Enforcement Act (UIGEA) and engaged in bank fraud and money laundering to process transfers to and from their customers. A companion civil case, United States v. Pokerstars, et al., 11 Civ. 2564 (2011), included Full Tilt and Cereus, Ultimate Bet, Oldford Group, Rational Entertainment Enterprises, and many others as defendants and sought the recovery of forfeiture equalling approximately $3 billion in assets belonging to the companies. After the indictment was unsealed on April 15, 2011, a date quickly dubbed Black Friday by the online poker community, PokerStars and Full Tilt stopped offering real money play to their United States customers. Three years after the start of the poker boom in 2003, the U.S. Congress passed UIGEA to extend existing gambling laws into cyberspace. The law made processing payments for illegal online gambling a crime; however, the defendant companies remained in the U.S. market in the belief that the law did not cover poker. A former payment processor for the companies turned state's evidence after initially being charged with violating UIGEA himself. On September 20, the civil suit was amended claiming individual fraud by Howard Lederer, Chris Ferguson, and Rafael Furst.
Ultimate Texas Hold 'Em is registered trademark of Bally Gaming, Inc. and refers to a reinvented variant of the classic poker game Texas hold 'em. In this variation, the player does not compete against other players. Instead, they play only against the dealer. At any point during the course of the hand, the player is free to make one raise. In this poker-based game, the earlier the raise is made, the higher its value is.
ACR Poker is a US-themed online poker site founded in 2001 and headquartered in San José, Costa Rica. The company serves parts of the United States, Canada, Latin America, and several other countries. It is a subsidiary of the Winning Poker Network.
In late September 2019, Stones Gambling Hall, located in Citrus Heights, near Sacramento, California, came to prominence due to a cheating scandal that became known as Postlegate. Mike Postle was publicly accused of cheating in poker games he participated in during livestream events hosted at Stones Gambling Hall. "Stones Live" livestream poker games utilized playing cards with embedded RFID sensors that scanned the playing cards and transmitted identifying information into the livestream's technical control room and to play-by-play announcers and color commentators; casino management and livestream supervisors also had access to real-time identifying information of otherwise unknown, facedown, cards.
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