Cheat named, poker room fined $1.5m for three-year cheating scam

Posted on | September 30, 2008 |

Online poker company Ultimate Bet has been fined $1.5m (£830,000) and threatened with the loss of its gaming licence after it was confirmed that former World Series of Poker champion Russell Hamilton was the “superuser” behind a three-year cheating scam.

A statement from the Kahnawá:ke Gaming Commission, the body which regulates and controls gaming and gaming-related activities conducted within and from the Canadian Mohawk Territory of Kahnawá:ke, says an investigation found “clear and convincing evidence” to support the conclusion that between May 2004 and January 2008, Hamilton, “an individual associated with Ultimate Bet’s affiliate program”, was the main person responsible for, and benefiting from, multiple cheating incidents.

The original investigation was carried out by Frank Catania of Catania Gaming Consultants and Gaming Associates, an Australian-based game testing company. The KGC said it has already been in contact with law enforcement agencies and intended to fully cooperate in the prosecution of all individuals involved.

Yesterday Catania said he would provide further information “as it is uncovered”. He added: “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.”

The KGC also confirmed that as a result of the findings Ultimate Bet must:

Pay a $1.5m fine to the KGC for failing to implement and enforce anti-fraud measures.
Start refunds to all players adversely affected by the scam by November 3, 2008.
Sack everyone highlighted as “unsuitable” by the KGC, again by November 3.
Provide full disclosure of day-to-day company operations, include financial and daily gaming records to investigators.
Modify control systems to prevent any further cheating or related improprieties.
Maintain all gaming and internet logs for inspection at any time by the KGC or its agents.

Any failure by Ultimate Bet to comply fully with these measures will result in the immediate revocation of its KGC gaming permit, the Commission warned.

The final report on the Ultimate Bet investigation is expected to be published in November 2008.

Ultimate Bet has already reimbursed $6.1m (£3.37m) to players’ accounts found to have been adversely impacted by cheating.

Bookmark It