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In a release issued late on Monday afternoon, the Kahnawake Gaming Commission announced sanctions imposed as a result of the insider cheating scandal at UltimateBet. Named specifically in the announcement was UB official Russ Hamilton, described by KGC as an individual associated with UB's affiliate program. The KGC cited 'clear and convincing evidence' and stated that it is contact with the 'appropriate law enforcement agencies' regarding the prosecution of those involved with the cheating scandal.
In addition, the KGC announced that a $1.5 million fine has been levied against the company, and that further refunds of player funds stolen from other customers shall commence no later than November 3rd, 2008. In total, the KGC sanctions included six separate elements, which appear in the entirety of the release below.
Dozens of different screen names have been identified in connection with the cheating scandal, which covered an extended period of play on the site from May of 2004 to early in 2008.
Further inquiries to KGC confirmed that these are preliminary findings, and that a final determination will be released at a future date. Per a KGC source, the preliminary report produced by auditor Frank Catania and his team was sufficient for the Commission to take the necessary steps, as it was stated, to protect the online player community.
The complete text of the statement as issued by the Kahnawake Gaming Commission follows:
(MOHAWK TERRITORY OF KAHNAWAKE – September 29, 2008) Kahnawa:ke Gaming Commission ('KGC') Chairman Dean Montour today announced the initial findings of the audit conducted on licensee Ultimate Bet, as well as the sanctions to be imposed.
According to KGC Chairman Montour, the Commission has reviewed the information provided to it over the past months from Frank Catania of Catania Gaming Consultants of New Jersey; Gaming Associates, an Australian game testing company; and the permit holder. Chairman Montour said, 'The Commissioners have made several findings of fact with regard to the cheating that occurred on the Ultimate Bet web site that included the identification of some of the individuals responsible for these incidents as well other significant violations of the Kahnawa:ke Interactive Gaming Regulations.'
The Commission found clear and convincing evidence to support the conclusion that between the approximate dates of May 2004 to January 2008, Russell Hamilton, an individual associated with Ultimate Bet's affiliate program, was the main person responsible for and benefiting from the multiple cheating incidents. Furthermore, the KGC is currently in contact with the appropriate law enforcement agencies and intends to fully cooperate in the prosecution of all individuals involved in the UB cheating incidents.
Mr. Catania states, 'My intention is to provide further information as it is uncovered, although the information already submitted to the KGC relating to Ultimate Bet warrants the KGC taking the actions it has today. Any further evidence uncovered with regard to cheating, withholding or destroying records in our continuing investigation will be reported to the KGC and the proper agency for appropriate action.'
As a result of the KGC's findings of fact, the Commission called a special meeting, at which time it was unanimously decided to impose the following sanctions against Ultimate Bet:
1. Ultimate Bet is directed that by November 3, 2008 it shall, under the close supervision of the KGC, its employees and agents, commence refunding all players accounts found to have been adversely affected by the cheating of individuals under the control and supervision of the licensee. It is estimated that Ultimate Bet has to date reimbursed $6.1 million USD to players' accounts found to have been adversely impacted by the cheating activity
2. Ultimate Bet is directed that by November 3, 2008 it is to remove any and all persons deemed as 'unsuitable' by the KGC from all involvement with the company, which shall include all levels of ownership, management and operation. Ultimate Bet during that time period until November 3, 2008 is required to continue to provide complete details of all day-to-day operations of the company. These shall include financial as well as daily gaming records to Frank Catania and or his assigns. It is anticipated that this action will provide full disclosure and prevent any further improprieties or wrongdoing from occurring while ensuring that the public is being offered fair and honest games and all player monies will be protected.
3. Ultimate Bet's control system as defined in section 9 of the Kahnawa:ke Interactive Gaming Regulations has been modified to prevent any further incidents of cheating or related improprieties.
4. Ultimate Bet will not delete or modify any logs including but not limited to web logs and game logs as required by the Kahnawa:ke Interactive Gaming Regulations and will continue to have those logs immediately available for inspection by the KGC or its agents.
5. Ultimate Bet shall immediately pay a fine of $1.5 Million USD to the KGC for its failure to implement and enforce measures to prohibit and detect fraudulent activities.
6. Ultimate Bet's failure to comply fully with these measures will result in the immediate revocation of its KGC gaming permit.
Murray Marshall
Kahnawake Poker Tournaments Tournament
Senior Advisor
Kahnawa:ke Gaming Commission
Tags
KahnawakeUltimate Bet
Just days before the sale of the biggest unregulated U.S.-facing online poker site is finalized, a deal has been struck that will likely keep both Bovada and the new Ignition Casino poker offering out of the U.S.
Bovada announced in August it would discontinue its poker offering as of Sept. 30 and sell that part of its business to a company called Ignition Casino. Although poker would no longer be available through Bovada, the company said its customers would still have access to Bovada’s sportsbook, casino and racebook products. Poker clients were asked to migrate their accounts to Ignition Casino, which uses the same poker platform as Bovada, and promised to feature the same anonymous tables, Zone poker, mobile poker and guaranteed tournaments, including a weekly $100K that Bovada had previously.
Now, it appears a deal struck between Ignition and Bovada licensor Kahnawake Gaming Commission and The New Jersey Division of Gaming Enforcement will keep both entities from accepting U.S. customers as of Sept. 30.
'The Kahnawake Gaming Commission has directed that an applicant or existing licensee that accepts players from a U.S. State without being authorized by the U.S. State to do so, is engaged in an activity that adversely affects Kahnawake’s jurisdictional integrity or reputation,' reads a press release from the Kahnawake Gaming Commission issued Sept. 26. 'An application from an operator that engages in this activity will be denied. Existing licensees have been advised that, not later than September 30, 2016, they must modify their operations to conform to the Commission’s regulatory directive or their licenses will be terminated.'
According to a release from The New Jersey Division of Gaming Enforcement, discussions that led to the agreement began when the arm of the New Jersey Office of the Attorney General discovered one of it's licencees, Continent 8, LLC, an Internet technologies firm, had also partnered with certain Kahnawake Gaming Commission licencees.
'The Division was able to ensure that any such websites originating from Kahnawake will no longer be available to United States residents in jurisdictions where these companies are not authorized to operate, after September 30, 2016,' the press release reads. 'As a result, sites such as Bovada, a leading provider of illegal online sports wagering and other online gaming content, will no longer be operating out of the data center located in Kahnawake.'
New Jersey Division of Gaming Enforcement Director David Rebuck called this an important step towards ensuring the integrity of Internet gaming operations in New Jersey and ensuring local online gaming patrons can play on fair and regulated sites.
'The Division is pleased to have the KGC's assistance as a fellow regulator and looks forward to working together in the future,' he said. 'We were able to reach a series of agreements that are amenable to all of the parties involved and satisfy the Division's regulatory concerns. The Division appreciates the KGC's commitment and looks forward to its continued cooperation in the fight against unlicensed Internet gaming traffic.'
Kahnawake Gaming Commission Chairman Mark Jocks echoed those sentiments.
“The Council and the Commission have had a direct and productive dialogue with DGE over the past several months,” he said. “We understand the DGE’s concerns about online gaming sites operating in New Jersey and elsewhere in the US without being properly authorized by a regulatory body in those jurisdictions.”
Kahnawake Grand Chief Joseph Tokwiro Norton said meetings with The New Jersey Division of Gaming Enforcement left him feeling like the Kahnawake's rightful place in the online gaming industry was understood.
“The DGE understands and respects Kahnawake’s significant accomplishments in the online gaming industry over the past 17 years — grounded on the exercise of Mohawk jurisdiction,” he said. “We consider the strengthening of our working relationship with the DGE to be a positive development for our respective jurisdictions, and for the online gaming industry.”
EDIT: It's been brought to the attention of PokerNews that Lynton Limited is no longer under the jurisdiction and regulation of the Kahnawake Gaming Commission, effective Sept. 1, per a press release from the commission.
'As of the effective date, the Commission no longer licenses or regulates Salmon River Technologies Limited, Lynton Limited or any gaming site operated by either entity,' the release reads. 'The Commission is not responsible for complaints received after the effective date concerning these entities or the gaming sites they operate.'
Lynton Limited is the parent company of Ignition, which recently acquired Bovada's poker offering. It's unclear at this time what that means for U.S. players.
Kahnawake Poker Tournaments Poker
Be sure to complete your PokerNews experience by checking out an overview of our mobile and tablet apps here. Stay on top of the poker world from your phone with our mobile iOS and Android app, or fire up our iPad app on your tablet. You can also update your own chip counts from poker tournaments around the world with MyStack on both Android and iOS.
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Further inquiries to KGC confirmed that these are preliminary findings, and that a final determination will be released at a future date. Per a KGC source, the preliminary report produced by auditor Frank Catania and his team was sufficient for the Commission to take the necessary steps, as it was stated, to protect the online player community.
The complete text of the statement as issued by the Kahnawake Gaming Commission follows:
(MOHAWK TERRITORY OF KAHNAWAKE – September 29, 2008) Kahnawa:ke Gaming Commission ('KGC') Chairman Dean Montour today announced the initial findings of the audit conducted on licensee Ultimate Bet, as well as the sanctions to be imposed.
According to KGC Chairman Montour, the Commission has reviewed the information provided to it over the past months from Frank Catania of Catania Gaming Consultants of New Jersey; Gaming Associates, an Australian game testing company; and the permit holder. Chairman Montour said, 'The Commissioners have made several findings of fact with regard to the cheating that occurred on the Ultimate Bet web site that included the identification of some of the individuals responsible for these incidents as well other significant violations of the Kahnawa:ke Interactive Gaming Regulations.'
The Commission found clear and convincing evidence to support the conclusion that between the approximate dates of May 2004 to January 2008, Russell Hamilton, an individual associated with Ultimate Bet's affiliate program, was the main person responsible for and benefiting from the multiple cheating incidents. Furthermore, the KGC is currently in contact with the appropriate law enforcement agencies and intends to fully cooperate in the prosecution of all individuals involved in the UB cheating incidents.
Mr. Catania states, 'My intention is to provide further information as it is uncovered, although the information already submitted to the KGC relating to Ultimate Bet warrants the KGC taking the actions it has today. Any further evidence uncovered with regard to cheating, withholding or destroying records in our continuing investigation will be reported to the KGC and the proper agency for appropriate action.'
As a result of the KGC's findings of fact, the Commission called a special meeting, at which time it was unanimously decided to impose the following sanctions against Ultimate Bet:
1. Ultimate Bet is directed that by November 3, 2008 it shall, under the close supervision of the KGC, its employees and agents, commence refunding all players accounts found to have been adversely affected by the cheating of individuals under the control and supervision of the licensee. It is estimated that Ultimate Bet has to date reimbursed $6.1 million USD to players' accounts found to have been adversely impacted by the cheating activity
2. Ultimate Bet is directed that by November 3, 2008 it is to remove any and all persons deemed as 'unsuitable' by the KGC from all involvement with the company, which shall include all levels of ownership, management and operation. Ultimate Bet during that time period until November 3, 2008 is required to continue to provide complete details of all day-to-day operations of the company. These shall include financial as well as daily gaming records to Frank Catania and or his assigns. It is anticipated that this action will provide full disclosure and prevent any further improprieties or wrongdoing from occurring while ensuring that the public is being offered fair and honest games and all player monies will be protected.
3. Ultimate Bet's control system as defined in section 9 of the Kahnawa:ke Interactive Gaming Regulations has been modified to prevent any further incidents of cheating or related improprieties.
4. Ultimate Bet will not delete or modify any logs including but not limited to web logs and game logs as required by the Kahnawa:ke Interactive Gaming Regulations and will continue to have those logs immediately available for inspection by the KGC or its agents.
5. Ultimate Bet shall immediately pay a fine of $1.5 Million USD to the KGC for its failure to implement and enforce measures to prohibit and detect fraudulent activities.
6. Ultimate Bet's failure to comply fully with these measures will result in the immediate revocation of its KGC gaming permit.
Murray Marshall
Kahnawake Poker Tournaments Tournament
Senior Advisor
Kahnawa:ke Gaming Commission
Tags
KahnawakeUltimate Bet
Just days before the sale of the biggest unregulated U.S.-facing online poker site is finalized, a deal has been struck that will likely keep both Bovada and the new Ignition Casino poker offering out of the U.S.
Bovada announced in August it would discontinue its poker offering as of Sept. 30 and sell that part of its business to a company called Ignition Casino. Although poker would no longer be available through Bovada, the company said its customers would still have access to Bovada’s sportsbook, casino and racebook products. Poker clients were asked to migrate their accounts to Ignition Casino, which uses the same poker platform as Bovada, and promised to feature the same anonymous tables, Zone poker, mobile poker and guaranteed tournaments, including a weekly $100K that Bovada had previously.
Now, it appears a deal struck between Ignition and Bovada licensor Kahnawake Gaming Commission and The New Jersey Division of Gaming Enforcement will keep both entities from accepting U.S. customers as of Sept. 30.
'The Kahnawake Gaming Commission has directed that an applicant or existing licensee that accepts players from a U.S. State without being authorized by the U.S. State to do so, is engaged in an activity that adversely affects Kahnawake’s jurisdictional integrity or reputation,' reads a press release from the Kahnawake Gaming Commission issued Sept. 26. 'An application from an operator that engages in this activity will be denied. Existing licensees have been advised that, not later than September 30, 2016, they must modify their operations to conform to the Commission’s regulatory directive or their licenses will be terminated.'
According to a release from The New Jersey Division of Gaming Enforcement, discussions that led to the agreement began when the arm of the New Jersey Office of the Attorney General discovered one of it's licencees, Continent 8, LLC, an Internet technologies firm, had also partnered with certain Kahnawake Gaming Commission licencees.
'The Division was able to ensure that any such websites originating from Kahnawake will no longer be available to United States residents in jurisdictions where these companies are not authorized to operate, after September 30, 2016,' the press release reads. 'As a result, sites such as Bovada, a leading provider of illegal online sports wagering and other online gaming content, will no longer be operating out of the data center located in Kahnawake.'
New Jersey Division of Gaming Enforcement Director David Rebuck called this an important step towards ensuring the integrity of Internet gaming operations in New Jersey and ensuring local online gaming patrons can play on fair and regulated sites.
'The Division is pleased to have the KGC's assistance as a fellow regulator and looks forward to working together in the future,' he said. 'We were able to reach a series of agreements that are amenable to all of the parties involved and satisfy the Division's regulatory concerns. The Division appreciates the KGC's commitment and looks forward to its continued cooperation in the fight against unlicensed Internet gaming traffic.'
Kahnawake Gaming Commission Chairman Mark Jocks echoed those sentiments.
“The Council and the Commission have had a direct and productive dialogue with DGE over the past several months,” he said. “We understand the DGE’s concerns about online gaming sites operating in New Jersey and elsewhere in the US without being properly authorized by a regulatory body in those jurisdictions.”
Kahnawake Grand Chief Joseph Tokwiro Norton said meetings with The New Jersey Division of Gaming Enforcement left him feeling like the Kahnawake's rightful place in the online gaming industry was understood.
“The DGE understands and respects Kahnawake’s significant accomplishments in the online gaming industry over the past 17 years — grounded on the exercise of Mohawk jurisdiction,” he said. “We consider the strengthening of our working relationship with the DGE to be a positive development for our respective jurisdictions, and for the online gaming industry.”
EDIT: It's been brought to the attention of PokerNews that Lynton Limited is no longer under the jurisdiction and regulation of the Kahnawake Gaming Commission, effective Sept. 1, per a press release from the commission.
'As of the effective date, the Commission no longer licenses or regulates Salmon River Technologies Limited, Lynton Limited or any gaming site operated by either entity,' the release reads. 'The Commission is not responsible for complaints received after the effective date concerning these entities or the gaming sites they operate.'
Lynton Limited is the parent company of Ignition, which recently acquired Bovada's poker offering. It's unclear at this time what that means for U.S. players.
Kahnawake Poker Tournaments Poker
Be sure to complete your PokerNews experience by checking out an overview of our mobile and tablet apps here. Stay on top of the poker world from your phone with our mobile iOS and Android app, or fire up our iPad app on your tablet. You can also update your own chip counts from poker tournaments around the world with MyStack on both Android and iOS.
Kahnawake Poker Tournaments 2019
Kahnawake Poker Tournaments 2020
Tags
KahnawakeNew JerseyOnline PokerPoker Business
