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The Absolute Poker Cheating Scandal Blown Wide Open
NY Times Freakonomics Blog ^ | 10/17/2007 | Steven D. Levitt

Posted on 10/18/2007 6:58:11 AM PDT by philsfan24

A few weeks back I blogged about allegations of cheating at an online poker site called Absolute Poker. While things looked awfully suspicious, there wasn’t quite a smoking gun, and it was unclear exactly how the cheater might have cheated.

A combination of some incredible detective work by some poker players and an accidental (?) data leak by Absolute Poker have blown the scandal wide open.

Some opponents became suspicious of how a certain player was playing. He seemed to know what the opponents’ hole cards were. The suspicious players provided examples of these hands, which were so outrageous that virtually all serious poker players were convinced that cheating had occurred. One of the players who’d been cheated requested that Absolute Poker provide hand histories from the tournament (which is standard practice for online sites). In this case, Absolute Poker “accidentally” did not send the usual hand histories, but instead sent a file that contained all sorts of private information that the poker site would never release. The file contained every player’s hole cards, observations of the tables, and even the IP addresses of every person playing.

Then the poker players went to work analyzing the data — not the hand histories themselves, but other, more subtle information contained in the file. What these players-turned-detectives noticed was that, starting with the third hand of the tournament, there was an observer who watched every subsequent hand played by the cheater. Interestingly, the cheater folded the first two hands before this observer showed up, then did not fold a single hand before the flop for the next 20 minutes, and then folded his hand pre-flop when another player had a pair of kings as hole cards! This sort of cheating went on throughout the tournament.

(Excerpt) Read more at freakonomics.blogs.nytimes.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: absolute; online; poker; scandal
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"So the poker detectives turned their attention to this observer. They traced the observer’s IP address and account name to the same set of servers that host Absolute Poker, and also, apparently, to a particular individual named Scott Tom, who seems to be a part-owner of Absolute Poker! If all of this is correct, it shows exactly how the cheating would have transpired: an insider at the Web site had real-time access to all of the hole cards (it is not hard to believe that this capability would exist) and was relaying this information to an outside accomplice.

If this is all true, I presume that the two cheaters are looking at potential prison time. I would also guess that if Absolute Poker continues to argue that nothing out of the ordinary happened, they will take an enormous hit to their profits. Online poker is a game of trust — players send their money to a site believing that they will be playing a fair game, and trusting that the site will send them their winnings. If there is even a little bit of uncertainty about either one of those factors, there is no good reason for a player to choose that site over the many close substitutes that exist. If I ran Absolute Poker, I would take a lesson from past corporate attempts at cover ups, sacrifice the cheaters, and institute safeguards to prevent this ever happening again."

The detail account of the story is here (http://forumserver.twoplustwo.com/showflat.php?Cat=0&Number=12523924&page=0&fpart=1&vc=1) at 2+2 Poker Forum

1 posted on 10/18/2007 6:58:14 AM PDT by philsfan24
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To: frogjerk

ping


2 posted on 10/18/2007 6:58:39 AM PDT by philsfan24
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To: frogjerk

PING!

PING!


3 posted on 10/18/2007 6:59:28 AM PDT by SubGeniusX (The People have UNENUMERATED RIGHTS ... the Govt. does NOT have UNENUMERATED POWERS)
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To: philsfan24

Cheating on an online poker site? I’m shocked, just shocked!


4 posted on 10/18/2007 7:01:08 AM PDT by dfwgator (The University of Florida - Still Championship U)
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To: philsfan24

And there are STILL some people that wonder why the liberal socialists are IN FAVOR OF ON-LINE VOTING.....who is kidding who???


5 posted on 10/18/2007 7:01:47 AM PDT by EagleUSA (W)
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To: Apple Blossom

ping


6 posted on 10/18/2007 7:02:58 AM PDT by bmwcyle (BOMB, BOMB, BOMB,.......BOMB, BOMB IRAN)
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To: philsfan24

This is no good...


7 posted on 10/18/2007 7:07:07 AM PDT by SubGeniusX (The People have UNENUMERATED RIGHTS ... the Govt. does NOT have UNENUMERATED POWERS)
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To: dfwgator

There’s lots of cheating that goes on...Think of this.. group of people enter one table. They’re on the phone..they talk to each other so everyone know what each other has. The odds are they are going to win the majority of the time. They take the money and split it. This is the most common form of cheating on online poker sites.

The best bet if you want to play is just play the low betting tables, or just practice. You’re a fool if you play the higher end tables.


8 posted on 10/18/2007 7:07:59 AM PDT by Hildy ("man's reach exceeds his grasp"? It's a lie: man's grasp exceeds his nerve.)
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To: philsfan24

What?! Gambling is just a scam to sucker people out of their money?! Nobody could’ve guessed that!!


9 posted on 10/18/2007 7:10:22 AM PDT by Excuse_My_Bellicosity (Oh, the huge manatee!!!)
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To: bmwcyle
If you gamble on-line you are a total idiot.

If you gamble at a casino {as I occasionally do} you are only recreationally retarded.

I've gambled for over 50 years, and in the long run, you cannot win. You can have fun, and you may win on occasion, but who do you think pays for the casinos?

10 posted on 10/18/2007 7:10:54 AM PDT by USS Alaska (Nuke the terrorist savages - In Honor of Standing Wolf)
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To: USS Alaska
You can have fun, and you may win on occasion, but who do you think pays for the casinos?

The people playing games of chance where the house has a distinct advantage that over time can not be overcome?

11 posted on 10/18/2007 7:12:05 AM PDT by Phantom Lord (Fall on to your knees for the Phantom Lord)
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To: USS Alaska

No, I like to watch it on TV.


12 posted on 10/18/2007 7:14:49 AM PDT by bmwcyle (BOMB, BOMB, BOMB,.......BOMB, BOMB IRAN)
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To: EagleUSA

“And there are STILL some people that wonder why the liberal socialists are IN FAVOR OF ON-LINE VOTING.....who is kidding who???”

Online voting could be fine, just as could electronic voting machine voting, if implemented properly (the electronic machines are also a problem now). There needs to be a public database where:

1) Every person can check their own vote as recorded, via an ‘anonymous token’ assigned when you vote (given via a slip of paper or a printable web page, ie you’re voter e5hv820802a622kl332)

2) any entity can download the entire database of votes and tally them, to double check the ‘official’ results.

Of course, some form of ID would need to be required to vote (DL number or equivalent - fewer dead and duplicate voters). All software should be open source so it can be checked transparently for backdoors or malicious code, and built and run by anyone.


13 posted on 10/18/2007 7:15:11 AM PDT by PreciousLiberty
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To: USS Alaska
I've gambled for over 50 years, and in the long run, you cannot win. You can have fun, and you may win on occasion, but who do you think pays for the casinos?

It is very easy to win at online poker. I doubled my initial stake at PartyPoker playing in the small stakes games. This was before the politicians saved me from myself with the port security bill. You do need to win more often than average to make money because the online casino takes a small cut from the winner's pot.

14 posted on 10/18/2007 7:17:31 AM PDT by Minipax
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To: philsfan24

I presume that the two cheaters are looking at potential prison time.”

Commenters at the site are saying, who is going to prosecute the cheaters? The Chilean Govt.?

At a $1000.00 a seat buy in, I imagine someone will be interested in having a chat with the cheaters.


15 posted on 10/18/2007 7:17:53 AM PDT by philetus (Keep doing what you always do and you'll keep getting what you always get.)
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To: philsfan24

I love to play Poker of all sorts.

I would never even for an instant consider playing cards with people that I do not already know.


16 posted on 10/18/2007 7:20:14 AM PDT by Radix (When I became a man, I put away childish things)
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To: USS Alaska
If you gamble on-line you are a total idiot.
If you gamble at a casino {as I occasionally do} you are only recreationally retarded.

Far better to just go to Vegas, drink, and flirt with the cocktail waitresses. Much more fun, and your chances are about the same.

17 posted on 10/18/2007 7:21:14 AM PDT by 1rudeboy
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To: PreciousLiberty

There was nothing wrong with paper ballots. When 10 % of the population has their ballot filled out for them, or is functionally illiterate, or votes again and again with no proof of identity or citizenship, you don’t need a computer to fix an election. Just ask Bob Dornan.


18 posted on 10/18/2007 7:22:19 AM PDT by steve8714
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To: Hildy
...There’s lots of cheating that goes on...Think of this.. group of people enter one table. They’re on the phone..they talk to each other so everyone know what each other has. ...

Happens in live games also. One of the poker magazines this month has an article on collusion. Shows how players can place their chips on top of their hole cards in a certain way to let their accomplices know what they have. Interesting.

19 posted on 10/18/2007 7:30:53 AM PDT by FReepaholic (A crowded elevator smells different to a midget.)
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To: USS Alaska
I've gambled for over 50 years, and in the long run, you cannot win. You can have fun, and you may win on occasion, but who do you think pays for the casinos?

You've done it now. Stand by to be flamed by the "poker is a skill, NOT gambling, and ranks up there with brain surgery" crowd.

BTW, I agree with you completely. Unless one is the house, gambling (especially lotteries) is just a tax on folks who can't do math. It may be fun in the short run, but don't expect to win in the long run.

20 posted on 10/18/2007 7:31:00 AM PDT by Martin Tell ("It is the right, good old way you are in: keep in it.")
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To: philsfan24

I just finished playing a tournament at this site 5 minutes ago!

I have since deleted AP from my system


21 posted on 10/18/2007 7:32:42 AM PDT by Beckwith (dhimmicrats and the liberal media have .chosen sides -- Islamofascism)
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To: Hildy

Why do you keep returning to FR, which you called a “circle jerk?”


22 posted on 10/18/2007 7:32:53 AM PDT by Petronski (Congratulations Tribe! AL Central Champs)
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To: Martin Tell
How do you account for all the professional poker players who have become millionaires playing the game?

Just luck?

Personally, I play because it is good exercise for my aged brain.

23 posted on 10/18/2007 7:34:35 AM PDT by Beckwith (dhimmicrats and the liberal media have .chosen sides -- Islamofascism)
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To: philsfan24

Has anyone found out how Jerry Yang cheated to win the WSoP in Texas Hold’em?


24 posted on 10/18/2007 7:39:45 AM PDT by Cletus.D.Yokel
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To: philsfan24
Online poker is a game of trust...

Which is the number one reason I would never play online poker. Poker and trust have nothing to do with each other. I want to see the cash in the pot and all hands above the table.

25 posted on 10/18/2007 7:40:25 AM PDT by Ditto (Global Warming: The 21st Century's Snake Oil)
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To: Martin Tell
You've done it now. Stand by to be flamed by the "poker is a skill, NOT gambling, and ranks up there with brain surgery" crowd.

I challenge you to find a single player of poker on FreeRepublic who has stated that "poker is skill, not gambling."

26 posted on 10/18/2007 7:42:59 AM PDT by Phantom Lord (Fall on to your knees for the Phantom Lord)
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To: Cletus.D.Yokel
Has anyone found out how Jerry Yang cheated to win the WSoP in Texas Hold’em?

Jesus hated the other players.

27 posted on 10/18/2007 7:43:51 AM PDT by Phantom Lord (Fall on to your knees for the Phantom Lord)
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To: Beckwith
Oh, I'll admit there is some skill involved, a good deal of which is in spotting hapless fish and avoiding stupid mistakes. Luck is also a factor.

I think the factors may be like in backgammon; there is a skill set involved, but a degree of luck is present - no one can control dice.

Do you think luck enters into games such as poker?

28 posted on 10/18/2007 7:45:01 AM PDT by Martin Tell ("It is the right, good old way you are in: keep in it.")
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To: Phantom Lord
Oh, I've seen plenty. Sorry I can't name one now, but I recall one thread in particular about a bust at a NYC poker club for gambling, where numerous Freepers stated quite forcefully that poker is not gambling.

I'm willing to bet you one dollar they show up on this thread.

29 posted on 10/18/2007 7:48:14 AM PDT by Martin Tell ("It is the right, good old way you are in: keep in it.")
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To: Martin Tell
Do you think luck enters into games such as poker?

Absolutely. But then I can't think of any competitive activity that luck is not a factor to some extent.

30 posted on 10/18/2007 7:48:28 AM PDT by Phantom Lord (Fall on to your knees for the Phantom Lord)
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To: Martin Tell

I will a similar dollar that they actually said that poker is a game of skill, not a game of chance.


31 posted on 10/18/2007 7:49:09 AM PDT by Phantom Lord (Fall on to your knees for the Phantom Lord)
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To: philsfan24

I have the Absolute Poker program on my computer, but I prefer playing Poker Stars.

What the article didn’t say is exactly how the observer communicated with the cheating player. I am guessing by phone. So, the observer (who would have to be an AP insider to view the table) is probably relaying the information via phone, right? Phone records are easily obtained by the authorities.

Has anyone reported this officially, rather than simply writing about it? This would be a easy thing to prove.


32 posted on 10/18/2007 7:49:19 AM PDT by i_dont_chat (Your choice if you take offense.)
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To: Martin Tell
Unless one is the house, gambling (especially lotteries) is just a tax on folks who can't do math. It may be fun in the short run, but don't expect to win in the long run.

You obviously don't understand the game of poker. It is very easy to be a winner when you play inferior competition. You actually have it backwards. Anyone can win in the short term, but in the long run, the best players will come out ahead, always.

33 posted on 10/18/2007 7:49:59 AM PDT by Minipax
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To: USS Alaska

“If you gamble at a casino {as I occasionally do} you are only recreationally retarded.”

Couple of times a year at the Conn. casinos is enough for me. You’re right about not winning in the long run regardless of occasional hits.

I tell friends that the real win in gambling is to simply break even. Dream chasers don’t want to hear that..


34 posted on 10/18/2007 7:50:57 AM PDT by vietvet67
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To: philsfan24

It never occurred to me that there was an HONEST poker game online. I thought they all were corrupt, off shore, and run by the same folks that want me to help them embezzle millions from the Ministry which they head in some far away African country.


35 posted on 10/18/2007 7:52:26 AM PDT by Portcall24
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To: Phantom Lord
I challenge you to find a single player of poker on FreeRepublic who has stated that "poker is skill, not gambling."

I'm willing to call poker a game of skill. Over time, luck will have less and less to do with winning, and the best players will come out winners eventually.

36 posted on 10/18/2007 7:53:20 AM PDT by Minipax
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To: i_dont_chat

the associated press is reporting that an investigation into ap poker is going on now.

i use pokerstars as well. interesting to see the winner of their main event was disqualified. i wonder what happened.

http://www.cardplayer.com/poker-news/article/9944/poker-stars-wcoop-main-event-winner-disqualified


37 posted on 10/18/2007 7:55:47 AM PDT by philsfan24
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To: Phantom Lord
Ah, you are changing the terms of the wager. See your post #24.

You know as well as I do they will say it's not gambling because their SUPERIOR SKILL and INTELLIGENCE makes it a sure thing over us lowly dummies who can't appreciate the wonderful intricacies of poker, blah, blah, blah.

Can I have my dollar now?

38 posted on 10/18/2007 7:58:04 AM PDT by Martin Tell ("It is the right, good old way you are in: keep in it.")
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To: vietvet67
Couple of times a year at the Conn. casinos is enough for me. You’re right about not winning in the long run regardless of occasional hits.

No, you're both wrong. It is wrong to compare poker to a game of pure chance like roulette. It is impossible for top poker players to lose in the long run when playing lousy competition.

39 posted on 10/18/2007 7:58:27 AM PDT by Minipax
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To: philsfan24

Internet poker: Absolute insanity!


40 posted on 10/18/2007 8:01:30 AM PDT by editor-surveyor (Turning the general election into a second Democrat primary is not a winning strategy.)
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To: philsfan24

Never forget you’re always playing against the house.

One time in Vegas I joined a late poker game and was going along breaking even as we used to say in California; my wife had been walking around playing slots that other people were just leaving and got pretty hot and went over to the roulette wheel and put a few chips on number 19, I think, well, she got luckier still and came over to where I was sitting on the best hand of the night and was bragging about all her chips.

I talked her out of about half of them and bet my hand right up to the old ace in the hole moment and lost her chips.

I played a couple more hands and it became obvious that I had pretty much shot my wad so the conversation around the table among the other players turned to events of the day they had.

After about four or five exchanges of snippets of odd things that happened between them it began to dawn on me that these guys were all known to each other.

A couple of less-guarded comments later while I was nursing my drink and my shrinking stash one them just happened to say that he had caught one player counting cards at his table and had to kick him out of the game.

That’s when it finally sank in — I had been playing for three hours with dealers from various casinos who probably met like this every day to fleece some out-of-towner like me.

Darn slick, but a little less than ethical.

I went over where my wife was and started feeding the now starving slots.


41 posted on 10/18/2007 8:04:46 AM PDT by Old Professer (The critic writes with rapier pen, dips it twice, and writes again.)
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To: Hildy
"Think of this.. group of people enter one table. They’re on the phone.."

They don't have to be on the phone, they could all be sitting at a picnic table in the park, using the local free wifi. They could be one person with several laptops...

42 posted on 10/18/2007 8:04:56 AM PDT by editor-surveyor (Turning the general election into a second Democrat primary is not a winning strategy.)
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To: Portcall24
It never occurred to me that there was an HONEST poker game online. I thought they all were corrupt, off shore, and run by the same folks that want me to help them embezzle millions from the Ministry which they head in some far away African country.

They are publicly traded companies on a variety of exchanges with tens of billions of dollars at stake.

43 posted on 10/18/2007 8:05:02 AM PDT by Phantom Lord (Fall on to your knees for the Phantom Lord)
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To: PreciousLiberty

illegals are starting to get DL’s and many have them already, how will that stop them from voting?


44 posted on 10/18/2007 8:05:57 AM PDT by GeronL
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To: Martin Tell

I have changed nothing. All poker players know poker is gambling. I know it, you know it, everyone knows it.


45 posted on 10/18/2007 8:08:20 AM PDT by Phantom Lord (Fall on to your knees for the Phantom Lord)
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To: EagleUSA

They aren’t for democracy. They are for the illusion of “support”. When they lose elections, they claim that (A) voters were suppressed, (B) votes were manufactured, (C) that voters were lied to, (D) that voters were manipulated by hatred and religious superstitions.

When they win, there is NO questioning the results. There are “no irregularities”.


46 posted on 10/18/2007 8:10:21 AM PDT by weegee (NO THIRD TERM. America does not need another unconstitutional Clinton co-presidency.)
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To: philsfan24

What’s that? Cheating at gambling? I’m shocked. Really.


47 posted on 10/18/2007 8:11:06 AM PDT by TChris (Cartels (oil, diamonds, labor) are bad. Free-market competition is good.)
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To: philsfan24

That’s why I don’t even bother with the “for fun only” sites — for all I know, there are Java applets out there that will give away my hole cards to someone. So why bother.


48 posted on 10/18/2007 8:12:31 AM PDT by Tanniker Smith ("I am the master.")
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To: Old Professer
Never forget you’re always playing against the house.

OK. What is the house advantage over the player in poker? How do they achieve this statistical advantage. And what can a player do to reduce this advantage.

I talked her out of about half of them and bet my hand right up to the old ace in the hole moment and lost her chips.

What casino lets you add chips to your stack mid hand?

A couple of less-guarded comments later while I was nursing my drink and my shrinking stash one them just happened to say that he had caught one player counting cards at his table and had to kick him out of the game.

There is NO SUCH THING as card counting in poker.

I have a strong feeling your entire post is complete BS.

49 posted on 10/18/2007 8:12:38 AM PDT by Phantom Lord (Fall on to your knees for the Phantom Lord)
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To: Old Professer

It’s always what you don’t know that’s important, isn’t it?


50 posted on 10/18/2007 8:13:11 AM PDT by editor-surveyor (Turning the general election into a second Democrat primary is not a winning strategy.)
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