The Kahnawake Gaming Commission, or KGC, released a report today outlining its sanctions levied against UltimateBet regarding the cheating scandal that was revealed earlier this year. In addition to imposing hard dates for its customers to be reimbursed for their losses, the report also names Russ Hamilton (pictured at right) as the main perpetrator. The site, which has paid out $6.1 million to its members so far, is subject to a $1.5 million fine. In addition to Hamilton, it’s expected that other names will become public as being behind the dubious activity. The report is published on the KGC’s website, Kahnawake.com. Let’s review the information revealed by the KGC today.
On July 25th, Tokwiro, which is the parent company of Ultimate Bet, turned the findings of its investigation over to the KGC, which is the organization that licenses and regulates UB and other online poker sites. On Tuesday, preliminary findings were revealed and sanctions were imposed. Among them is the confirmation that Russ Hamilton was the man behind the cheating scandal. The report states, “The Commission found clear and convincing evidence to support the conclusion that between the approximate dates of May 2004 to January 2008, Russell Hamilton, an individual associated with Ultimate Bet’s affiliate program, was the main person responsible for and benefiting from the multiple cheating incidents.”
The KGC states that it has been in contact with law enforcement agencies “and intends to fully cooperate in the prosecution of all individuals involved in the UB cheating incidents.” Frank Catania, who is a former gaming regulator in New Jersey and helped draft the initial regulations of the KGC, commented, “My intention is to provide further information as it is uncovered, although the information already submitted to the KGC relating to Ultimate Bet warrants the KGC taking the actions it has today.”
Whether Hamilton was actually involved in the scandal was not publicly confirmed until today. As posted on PocketFives.com back in July, a home at 1725 Glenview Drive in Las Vegas was linked to the Sleeplesss account, which was one of the screen names involved in the scandal. The name on the account belonged to “Lauren B. Makar,” but the home at that address was owned by Hamilton. Barry Greenstein and Joe Sebok spoke with Hamilton as part of a PokerRoad Radio segment. However, Greenstein was not convinced that Hamilton had been the man responsible.
In addition a variety of sanctions against Ultimate Bet were handed down. First, by November 3rd, Ultimate Bet must, “under the close supervision of the KGC, its employees, and agents, commence refunding all players’ accounts found to have been adversely affected by the cheating of individuals under the control and supervision of the licensee.” The report reveals that Ultimate Bet has refunded about $6.1 million so far.
Also by November 3rd, the online poker site “is to remove any and all persons deemed as ‘unsuitable’ by the KGC from all involvement with the company, which shall include all levels of ownership, management, and operation.” In the meantime, it is required to provide “day to day” operational details to ensure that “the public is being offered fair and honest games.”
Ultimate Bet was assessed a $1.5 million fine, which is due immediately. Moreover, “Ultimate Bet’s failure to comply with these measures will result in the immediate revocation of its KGC gaming permit.” The July report by UB stated that 19 accounts and 88 screen names were associated with the cheating. Hamilton and others involved were able to see the cards that each player at the table held, giving them an unfair advantage.
Tokwiro CEO Paul Leggett commented on that date, “We cannot over-emphasize the fact that Tokwiro and its entire management team had no knowledge of the illicit software until it was revealed by our investigation and no one associated with Tokwiro was involved in the cheating scheme at any point.”
The KGC’s investigation has been led by Catania, a former Assistant Attorney General, Director New Jersey Division of Gaming Enforcement. In addition, Gaming Associates, an Australian “game testing company,” has been involved. We’ll have more information for you as it unfolds.
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