Slashdot Mirror
"Back Door" Cheating Scandal Rocks Online Poker
AcidAUS sends us the story of an online poker cheating ring that netted an estimated $10M for its perpetrators over almost 4 years. The article spotlights the role of an Australian player who first performed the statistical analyses that demonstrated that cheating had to be going on. "In two separate cases, Michael Josem, from Chatswood, analyzed detailed hand history data from Absolute Poker and UltimateBet and uncovered that certain player accounts won money at a rate too fast to be legitimate. His findings led to an internal investigation by the parent company that owns both sites. It found rogue employees had defrauded players over three years via a security hole that allowed the cheats to see other player's secret (or hole) cards." The (Mohawk) Kahnawake Gaming Commission, which licenses the two poker companies, has released its preliminary report. MSNBC reporting from a couple of weeks back gives deep background on the scandal.
This cheat required somebody on the 'inside' to perpetrate. As with most casino table games, if you have somebody on the inside, cheating is easy.
This is how I cheated at various online poker sites. Me and two buddies would join a table, and have a VNC connection setup to view each others hands. two of us would play dummy hands based on whom had the best hand of the bunch. We cleaned out every table we played at.
"The price good men pay for indifference to public affairs is to be ruled by evil men." ~Plato (427-347 BC)
For those who don't know, Kahnawake is Mohawk territory claimed by the aboriginals (aka Indians) in Canada.
The Mohawks claim to sovereignty over the land, and do not allow the provincial & national police to enter.
To avoid stirring up trouble, the Canadian government usually doesn't send police to Kahnawake, even though the Canadian government doesn't recognize the Mohawk claim to exclusive sovereignty.
Without any real police force, crime flourishes in Kahnawake. Drug smuggling, gun smuggling, people smuggling, cigarette smuggling, you name it.
Don't trust any business in Kahnawake, let alone a business attractive to crime, like gambling.
Not long ago, there was a Mohawk criminal driving at high speed (off-reserve) trying to get to the Mohawk territory before getting caught by the police chasing him. He made it on to the Mohawk territory, and the police abandoned their pursuit. Sadly, the Mohawk driver ran a stop sign and killed a Mohawk teenager.
For the people of Kahnawake, it seems that it is more important to be the victims of aboriginal criminals than to cooperate with non-aboriginal law enforcement. Sad.
There is only one way to make money gambling: Make sure you are "the house". In the long run, only the house wins.
Actually, I cleaned up last time I was in Vegas. My buddies did too - We developed a 'system'.
1) Fill your pocket with nickels.
2) Find a nickel-slot, sit down, and drop a nickel in.
3) Wait for the cocktail-girl to walk by and spin the slot.
4) Tell the girl, "Why yes, I would enjoy a Heineken on the house."
5) Accept your beer and walk off to find another nickel-slot. (Alternatively sit at the same one, but that will require tipping if you want regular service.)
Maybe you get your nickel back and maybe you don't. Who cares? It's a full night of nickel-Heineken. A buck goes a LONG way.
He's getting rather old, but he's a good mouse.
My wife doubted we would get comped at the nickel slots. Not only do you get comped, the drinks are stronger than the ones you pay for at the bar! Add to this the cheap rooms and cheap food, and you've saved enough to pay for some expensive entertainment while still vacationing on a budget.
- None can love freedom heartily, but good men; the rest love not freedom, but license. -- John Milton
This is false. It can take awhile to catch it (as is seen in the AP/UB story), but statistical analysis will always show if weird things are happening. People who play seriously online use tools like Poker Tracker, Hold'em Manager, Poker Office, etc to keep track of their own play, wins/losses and whatnot.
Someone noticed something odd about the win rate of a few players. They mentioned it to someone else; who looked and found the same thing. It kept going until the evidence was so great that it couldn't be a statistical anomaly.
The real difficulty is in getting sites to admit when something shady has been going on. AP and UB denied that anything had happened for ages. Until the bad press started showing up and it became too much for them to ignore.
The economy is not a zero sum game
Perhaps not, but it's a lot closer than the markets sometimes seem to think. There are all kinds of clever economic theories, but ultimately, there are only so many goods produced and useful services provided in the world, no matter how much money gets printed to pay for them, and the efficiency of production and service provision only increases so fast over time. As we've all been finding out rather painfully in recent weeks, economies that ignore this reality, based on funny money that is not backed by anything of any real value, are liable to collapse when someone knocks the bottom card out of the house.
For the first time ever, my investment portfolio has actually tipped over into an overall negative return recently. Several years of gains from investing in decent companies trading in useful markets with sound fundamentals, carefully avoiding madness like the dot-com bubble and the financial services industry that caused the current mess, have been wiped out in a matter of weeks. Sure, the market will recover in time, and if you're lucky enough to have a substantial sum of spare cash lying around to put in now then there are probably long-term bargains to be had. And sure, I know that objectively, given the various tax implications in my country, I am still better to be in my current position that I would have been if I had put the money in a bank and then bought in for the prices available now.
Even so, this makes it all too clear that stock market investing really is a long-term prospect: even something like a five-year plan, which is what a lot of the pros used to quote as a sensible minimum investment period, has brought little safety at all in the past 10–15 years. And how many people really have enough money that they can invest for 10+ years without wanting to spend any of it, yet still have little enough money that the return on investment matters? Maybe once you own the house and your kids are grown up, if you want to save for your retirement...?
If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.