By Bob Pajich
Jan 14, 2008
Absolute Poker Is Subject to Random Audits the Next Two Years
The Kahnawake Gaming Commission of Canada fined Absolute Poker $500,000
for the way it handled the online poker cheating scandal that rocked the
online poker world last fall. The KGC found that cheating did occur at
the site for approximately six weeks starting Aug. 14, 2007, and that
Absolute Poker attempted to cover it up.
The KGC released several startling details about the cheating scandal
and undressed Absolute Poker for not reporting that cheating had
occurred on the site to the KGC as soon as Absolute Poker knew cheating
had occurred. The KGC also discovered that Absolute Poker tried to cover
up the cheating scandal by deleting certain gaming logs and records and
that the site failed to report the security breach within 24 hours of
Those acts violate several portions of the KGCs Rules Concerning
Internet Gaming. In fact, of the four rules that the KGC determined
Absolute Poker broke in the wake of this cheating scandal, three of them
are in place to ensure that protocol is followed and that records are
kept to ensure the integrity of the game.
On top of the $500,000 fine, Absolute Poker is subject to random audits
of logs and records for the next two years. The company has to pay for
these audits and the KGC requires Absolute Poker to deposit a yet
undermined amount of money in a bank account to pay for these audits.
The KGC found no evidence that the activities of the seven users who
perpetuated this scam acted to benefit the company. It also found that
Absolute Poker took appropriate actions after the cheating was
discovered to prevent its system from again becoming compromised and in
reimbursing the players who were affected by the scandal.
During the six weeks that cheating occurred on the site, people playing
under seven different usernames wreaked havoc on Absolute Pokers players
because they had an unfair advantage: They knew what the other players
Through a flaw in the way that hand histories were recorded, a super
user with ties to Absolute Poker was able to see what everyone at the
table was holding while the hand was in play. He would then pass on this
information to his cohorts. But it didnt take long for the cheaters to
get sloppy and start making near-impossible calls during big-money
tournaments. Players became suspicious and found evidence of collusion
within the hard histories that were requested. Once pressed, the company
and the KGC acted.
The KGC also determined that although at least one of the cheaters was
associated with Absolute Poker, they were not part of the Board of
Directors or of principal ownership. The KGC requires Absolute Poker to
cut its ties with the unnamed players and associates.
Online gaming consultation company Gaming Associates was hired by the
KGC to conduct the investigation on Oct. 17. The report came out Friday,
Feb. 11, and can be found here . (Note: PDF file. Right-click and
"Save As" to save the file to your desktop.)
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