The Law of Unintended Consequences as it Applies to the Full Tilt Poker Situation

As many people now know, Full Tilt was crediting player deposits without actually receiving funds. Many poker players knew this fact as every single person in online poker had at least one friend wondering why money wasn't drawn from their bank account by Full Tilt Poker yet they were still allowed to play. The new action today is summarized by The Feld on ESPN. What I want outsiders to understand before they just see the words Ponzi scheme and immediately move on is that this is just an unintended consequence of our corrupt/broken political system and one of it's laws, the Unlawful Internet Gambling Enforcement Act (UIGEA).

The UIGEA was passed in 2006 and was NOT DEBATED IN CONGRESS FOR ONE SECOND. It sent banks into a defensive mode where they would no longer consider transactions for online poker. Online poker wasn't specifically identified as illegal, but lumped into gambling, a category banks feared to process. This consequence removed liquidity in the online poker world. Poker players need access to their bankrolls to be made available online to play through the swings and now players were forced to get find another way. Some traded cash for online money in unfavorable circumstances or went through some other 3rd party processor that was or wasn't legit(how could you know) in order to keep playing. How to deposit online became a much bigger issue. Several sites left the US and few remained. Given fewer options of sites to play on for US players a few things happened. Serious players had an increased need to have more money sitting in an online account because of the inability to deposit. Poker has swings and you need money to earn in case you have none. Fewer sites and now an increased need for money to be kept into these accounts likely created a windfall amount of cash to be kept on sites like Full Tilt Poker and Pokerstars.

We may never know is how many excess dollars were held in the Full Tilt Poker system by players that feared the illiquidity, but it did happen because of the UIGEA. Did these excess funds in the system contribute to the wild bonuses/dividends/ownership payouts that we are now hearing about or an inflated value of the company? We may never know, but I like to think I kept 500% more money in my account than I would have ever kept if this law didn't remove the ability to deposit what I needed to play for that day. Why would anyone ever take 0% interest in an online poker account instead of using a pay as you go system? We all took our own individual risk in this scenario to earn money or play for fun or whatever your motive, but it would not have been there with proper regulation or even in absence of the UIGEA.

So now a law attached to a Port Security bill probably meant to get some corrupt politician re-elected has in some way contributed to this Ponzi scheme. I can call for more regulation of online poker in the United States, but it's far too late. Instead of doing their job, Washington was more concerned with getting elected and passing bad policy to do so. 5 years of tax revenue and regulation would have gone a long way to preventing the pain many poker players are now feeling.

Time for Reflection

Post online poker in the US has let me reflect. Let me make the first statement more accurate. The post US online poker world where US players could actually compete in a large enough player pool to matter and create enough value to make it worth it has disappeared. Online poker still goes on in the USA if someone wants to go through the avenues to play. Prohibition never works.

As for my reflection, there has always been a battle in my mind and spirit about what poker has meant to me. Sometimes I think about it more, on long plane and car rides, sometimes I think about it less. I've been consumed by the game at many points in the past 4 years to the point of playing 14-20 day series nearly every day and regularly playing 12-16 hours on a Sunday. That doesn't leave much time to reflect on the big picture. To be away now for almost 3 weeks without a chance to compete is tough. I can say without a doubt that I loved what I was doing. Online poker is a training grounds. It's the best value place to hone skills in many games. I believe the only way to be great is to practice. Online poker lets someone like me who deposited under $1k of my own money initially to work my way up. Along the way, I made enough that I could focus on it full time. Less than 2 months off my largest cash win (not online), my training grounds are gone. The repetition that online poker gives me is no more. I now must travel away from the comfort of my home, live in and around casinos, risk more of my money for less value, and most importantly, put a shirt on to go to work.

Practice is essential for the World Series of Poker coming up from June 1-July 20. Of the over 50 events, there are many different games and buy in levels not just the most popular No Limit Hold 'em. You can't play these games regularly aside from a few venues and very rarely in a tournament of a size that matters. This hurts US players against our competition from non-US players that continue to improve at this very moment through experience.

At this point, most online player's careers earning a living doing something they loved online. While nothing changes the fact that online poker probably won't be available to us, we are all still going to Vegas to play in the most meaningful events for poker players. Events that allow us to win a coveted World Series of Poker bracelet. A brand that was built from the inside out of America that should be the biggest brand in poker now pales in comparison to other international poker growth because of a law that was not once discussed by our "representatives." Many players win their way into the main event for $1-$1000 online and can compete for upwards of $7 million. That is now impossible for the majority of US players and will hurt attendance.

After the World Series of Poker, some of us will win and some of us will lose. We will all have to make a decision. At that point, I will have to decide if I want to leave the country to be able to play online and evaluate what that means I'm giving up in the US. These are not light life decisions and require the maturity of years to probably make correctly. Since I already know that the government doesn't believe we are mature enough to handle our own money against other players in an online poker game, I'm sure they will offer us assistance in making our decision.

I've read other blogs where most players talk about a gaping 5 year hole in their resume, but I see this as hopeless talk. I'll list below a few of the things I've learned.

I've learned to able to ignore money to make a profitable mathematical decision.
I've learned to control unwanted negative emotions.
I've learned to manage money.
I've learned to understand and respect the results that come with luck.
I've learned I don't feel right if I don't give something back when people are in need.
I've learned inside of me, I have the ability to become a champion and compete at the highest level.
I've learned how to not live outside of my means.
I've learned about human nature in pressure situations.
I've learned a lot about different cultures and their players.
I've learned how to take a risk.
I've learned how to survive out of the comfort zone of a steady job and income.
I've learned how to objectively examine and review plays in poker.
I've learned the value of hard work (but I was actually taught this my entire life, nothing changed in poker)
I've learned there are always people in life cheering for you and always people rooting against you. The people rooting against you are louder than the people cheering for you.


"Stay far from timid, only make moves when your hearts in it, and live the phrase sky's the limit."

Random Blurb Blog

Disclaimer--I will be writing about as many topics as I can think of without dedicating more than 2 minutes of my thoughts towards each individual topic. You are certainly allowed to skip topics that don't interest you.


My Poker Career Lately

It's been a lot of close but no cigars lately. I wish I had more exciting things to report about, but it's been a lot of the 7th-25th place column. On another fun note, I looked up my Online Player of the Year Ranking on Cardplayer yesterday and I was at 212th. I'm at kind of a disadvantage in this area because I don't play the 100 rebuy every day, which almost always qualifies for points. Maybe I can make a run and crack the top 100. It might take a big score. I'm basically winding down for the year as all the major online events are over until the Ultimate Bet events in January. I'll be pushing for a PCA seat so I can go to the Bahamas in January.

World Series of Poker Final Table

That was fun to watch, wasn't it? I much prefer as a spectator to watch it without knowing who wins. It's almost impossible to avoid spoilers as I received only one when I clicked through to PokerXFactor and saw who got 4th. I think when you put a final table into 2 hours, it's really tough to do the game any justice, but I understand that not every poker fan wants to watch 25 hours of boring poker footage. It is tough to examine hands though without knowing many of the variables leading up to the hands. That being said, I don't take much stock in some of the plays that we were shown. There were, however, some incredibly bad mistakes made throughout the 2 hour broadcast. It's probably nerves, and I won't bash anyone too much because I can't even begin to imagine what it's like.


Peter Eastgate

I survived an all in against the champ. Peter Eastgate raised on day 3 to about 2.7 big blinds, and I gave him my 19 bb pile with A10. He called and showed the same hand, and we split the pot. I was pulling for this kid the whole time because he impressed me tremendously in the 5 hours I played with him on day 3. He is absolutely fearless. Every player at the table probably was paying extra attention to this guy. That's the kind of player I want to be.


Cleveland Cavaliers

The best team in the NBA is led by King James. 8 games in a row and a team that Lebron calls his best squad since he's been there. Might this be the year that the King finally takes his throne? I think it will be. I've never felt confident in a Cleveland team since James has been here, but this team really has championship potential. We play great defense, have a lot of depth, and good coaching. Give Mike Brown credit for what he has done with this team early on in the year.


Cleveland Browns

In light of the current week, we need less players from Michigan. We need more players from Ohio State. Phil Dawson deserves that game on Monday Night Football. That guy has sure been through a lot in Cleveland and to punch a 56 yarder in for the lead must have felt great. Brady Quinn is hands down the better option for the Cleveland Browns at QB. He came up with the plays that we needed that Anderson has failed to bring all year. He did it last week, and he did it this week. Now if we only had more Buckeyes on defense, we might be something.


OSU vs. MeatChicken

Joke provided courtesy of Mike Z.

"Hey did you hear that Michigan canceled their travel plans to Ohio State this week?"

"No. Why?"

"Because they couldn't get past Toledo"

Zinggggggggggggggggg

Go Bucks! This one won't even be close. My prediction. Ohio State 72-Michigan 3


Books

I applied for a library card a couple of days ago, but haven't gone to the library. I'm finishing up the book Freakonomics. Reading is probably a hobby that I should pick up again. I've been reading real estate books and all, but I want to read some actual good novels. It's been awhile since I've read anything fiction. Leave good suggestions in the comments section please.

Shout out to my Dad

Every time my Dad tells me he has a feel, I seem to knock down a big tournament. Last time he told me and really meant it, I got 2nd in the 50 rebuy, 2nd in the 300 and 3rd in the 163 in a week. While it may be hard to fathom what this feel entails, I have learned to respect and use the momentum of the feel to my advantage. A little superstition never hurt anyone. The over/under for the shout out to my mom is 3.5 years.


Best Movies I've Seen Lately

In no particular order...

1. Michael Clayton
2. The Dark Knight
3. Capote
4. Saving Private Ryan



THE HOUR OF BAUER

Jack "God" Bauer returns to Fox on Sunday. Look out for several airplanes blowing up, people dying, and Jack Bauer generally saving the day. That is to assume he didn't jump off the cliff like a wuss at the end of last season.

That's all I got for now.

The Barack Obama is President-Elect Blog ......

and of course what I liked about election night.

Like the majority of the USA, I'm excited about Barack Obama being elected President. It's obviously huge progress for America when a man that wouldn't have been allowed to vote fifty years ago. On top of that, the Republicans have finally been held accountable for their failures in the last 8 years. On a personal note, online poker regulation in the US will never go anywhere with a Republican as President, so I'm also happy about that.


I really enjoyed thinking about this election for many different reasons. I basically realized that I am not too strongly in support of either party. I'm probably more moderate than I even care to believe. Whenever I argued with people about issues, I was able to take a deeper look into things and really think about them. Above all, I think I've accepted that personal freedom in the United States is the most important individual quality that should apply to government. I also think that a large government is inherently inefficient and bad (neither party appealed on this issue). Of course, we need some things done by government (national defense, roads, schools, social services, etc.) I firmly believe that when the government infringes upon individual freedoms, democracy loses. The goals of this Obama administration should be to restore individual freedoms and be fiscally responsible. I believe that if the Democrats do these two things in every way they can, the Republican party won't win in the United States for a long time.

On a sad election day note, I am upset in seeing several measures pass putting a ban on gay marriage. I firmly believe that our government was set forth to allow personal freedoms and personal choices be just that, personal. If a personal choice is made that does not harm society as a whole, it should be allowed. In terms of gay marriage, those individuals are seeking their right to pursue happiness. It's a basic tenant on which our country was founded upon. It's the civil rights issue of the next fifty years. When we look back at that point, it will be clear that we all made a mistake. I'm not surprised that these bans passed. Most people fear what they don't know and what they aren't. Most people are heterosexual. Our country is always supposed to protect the minorities. In this case, I feel that we are failing as a country.

Republicans booing John McCain's comments at his concession speech was really the highlight of my night. It summed up this party over the last 8 years as a divisive, intolerant, selfish entity of American government. You didn't see people booing at Kerry's concession speech despite severe displeasure with the administration. Democrats have impressed me in being able to be tolerant of both viewpoints when it matters. I hope they do the same when they are in control because that is what the US needs.


Alaska. Seriously?!? Come on!!! You reelected a Senator that was just charged with corruption in the form of 7 counts related to lying about gifts received. This guy deceived America and used his office for personal gain. His actions have no place in American democracy, but somehow, Alaska puts him back in office. Way to go Alaska! You seriously fail as a state and are embarrassing to the this country.


John McCain

I thank this man for his service and graceful, humble concession. If we had more of this real McCain in the election, it might have been closer. Republicans have always made him the sacrificial lamb when it's convenient. I hope he gets back to work in the Senate the way he has before. He's completely wrong about the war in basically every regard, but bless his heart.


Barack's Speech

I was almost brought to tears listening to his acceptance speech last night. It was what America is all about. I take him at his word as well as he enters an extremely tough time in American history.


Anyone else notice how attractive the four women (Palin, Biden, McCain, Obama) are? So much for having an ugly wife and running for President.

Been busy

I've been all over the USA it seems in the past few months with what I would like to call a mediocre focus on poker. I always remember staring at a sign in Mrs. Stuckey's 11th grade English class that had a quote about mediocrity. Whenever I think about doing something not full go, I get nightmares about that sign. It's time to step up again in poker. October is a month where I get to mix in the live play again here in Las Vegas. There are two big events. Caesar's and Bellagio both host a good variety of tournaments. I'll be playing more events at Caesar's because of the variety of games available that I want to play (HORSE, PLO), and the lower buy ins which generally have given a better value in the past in terms of structure. The Bellagio has done a lot of great things with the structure in the recent months.


I've been working on getting my computer updated again. I found myself deep in the World Championship of Online Poker Event #1 when my hard drive crashed. I missed a good 15 minutes while getting my other computer up and trying to figure out what was wrong. I ended up getting 39th out of 7200+ players which was devastating considering the 214,000 first place money. I haven't been this close to this kind of score online in a while. To have the outside factors get shoved in my face was a little unnerving. Since then, I've played a few other events with only one cash in Razz. I really haven't been able to maintain a bankroll on Pokerstars, so I've been limited in playing lots of events in this series. It's really frustrating being in the USA and having what I would like to call an annoyance of trouble in getting money online. It's not hard getting it on, but it's more of an annoyance to a serious player looking to play in the biggest series online in history. A player used to be able to transfer back and forth from sites with ease using Neteller or Firepay, but since some spotty legislation has been passed by 4 members of the government, we are all inconvenienced.

In an ounce of good news today, a bill introduced by Barney Frank was marked up and passed through committee which would limit enforcement of the UIGEA to those sites accepting sports bets. This would be a great compromise if all sites could start doing business with the USA again and free flow of capital from site to site would work again. I ultimately stand with the Poker Players Alliance in hoping for taxation and regulation of online poker because I believe it's best for the long term interest of the industry and for the United States to finally gain their hands into the revenues of these sites. With the impending collapse of our economy, I can only imagine another revenue source would be welcomed.


I want to start putting some more poker stuff here soon, so if I get into some sticky situations in tournaments, I might start posting on the blog more. I'll try to keep updating more often while I'm playing live. Sometimes though when playing multiple tournaments online, it's hard to track all the huge hands.

Oh Obama

I thought the Democratic National Convention was a big success for Democrats. I think we picked the right candidate and given the circumstances of the Republican's main attacking point (national security), I think we picked the right Vice-President in Biden. I don't really have that much to say on the convention other than the speeches were moving and watching this convention made me feel closer to the United States of America. We do all get bogged down in our daily lives to realize there is more out there than we are accustomed to in our everyday lives. Being a professional poker player probably distances me further from that reality in a lot of ways because working from home online limits contact with people other than friends or family. Going to tournaments and playing gives some contact to people, but not that often to people that struggle in the world. Not that often are there that many people that are even pleasant to be around. In fact, most of the people I enjoy being around in the poker world play online most of the time. Stories of soldiers in Iraq and Afghanistan serving the country and coming back to poor treatment is flat out wrong on so many moral and human levels its disturbing. I know that I am truly lucky after hearing a lot of this. I'm lucky enough to play a game and make good money doing it. Only professional athletes and people on stock exchanges can usually say the same thing. Either way, I'm looking forward to the election.

One more big mention is that if you care at all about online poker, the Democratic ticket is really the only way to go. McCain is a staunch opponent of online gambling most likely to please the conservative base. Several members of the PPA, democrats and republicans alike, demanded that the Republicans strike language from the RNC platform regarding the prohibition of online gambling. When the RNC agreed and removed it, it was put back up shortly after by the McCain train. The only sound argument that can be put forth by Republicans is that gambling is bad, immoral and ruins society. While we only hear about the extreme cases related to gambling, Republicans often forget that they support gambling on horse racing and state lotteries. You can't have it both ways. Please write your Senators and Congressmen. If you are too lazy, go to this website http://capwiz.com/pokerplayersalliance/home/. They have a letter all set for you and will even tell you all the representatives that matter. It takes two seconds, but politicians do eventually listen. The PPA has made good progress. They haven't made great progress until online poker is legalized and regulated.


As for me and poker, I came back to Vegas and have been pretty happy with how I'm doing so far. Since being back, I've had some good results including a $3000 win on Ultimate Bet in their 30 rebuy. I got 2nd in the Absolute Sunday tournament for $10k. I had another small second on Absolute. I also got ninth in the Pokerstars daily with a disappointing finish. To be honest, I've actually probably ran a little below average at these final tables as well. I've had consistent deep runs in tournaments, but I feel like my tournament game continues to improve. I know I have a long way to go until I become the best, but with hard work and more dedication, I believe I can get there. On a negative note, I had one poor high stakes cash session at $50/$100 HORSE. I played this game because of my success at lower limits in the past month. After playing for a while, I believed that I had a little edge over my opponents. Whether that was the case or not, the results didn't show for it. It will be a while before I try another experiment like that. Playing consistent multi-table tournament schedules with a lot of focus has been paying off this year, and I want to keep that going.

A poker article worth a read

http://www.reason.com/news/show/126022.html

I just read this entire article about the status of "online gambling" in the U.S. The article is fairly academic and a great summary of what has happened in the U.S. It's tough to see how trivial our rights really are when a few members of Congress promoting a Bible Christian Conservative agenda can be. I can't stand seeing how people sit back and let this happen without even a letter to Congress. I've been a member of the PPA (Poker Players Alliance) for a while now and see how hard they have been fighting to get online poker the respect it deserves. Furthermore, there are so many Ohioans that love playing poker, but have to go to Canada or New York or West Virginia to do it legally.

I can't vote for a single Republican until this issue is resolved, but at the same time, few Democrats have done much for the cause.