We’re now one week removed from the story that appeared on CBS News program “60 Minutes” which profiled the cheating scandals on UltimateBet and Absolute Poker, both sites owned by Tokwiro Enterprises. As the leading lobbying group for the online poker industry, the Poker Players Alliance (PPA) has been charged with explaining the background and fallout of the story to its allies on Capitol Hill, including House Financial Services Committee Chairman Barney Frank (D-MA), Congressman Robert Wexler (D-FL), and Senator Robert Menendez (D-NJ). PocketFives.com sat down with PPA Executive Director John Pappas to solicit the organization’s feedback on the story, which aired on Sunday, November 30th.

On multiple occasions, 60 Minutes correspondent Steve Kroft labeled the online poker industry as illegal in the United States. A teaser video posted on the website of the popular weekly news magazine even opened with the line, “We should tell you that this $18 billion industry is illegal in the United States.” Pappas told PocketFives.com what his views of the episode were: “In its entirety, the 60 Minutes and Washington Post pieces showed exactly what the PPA and others have been calling for: regulation. However, I do believe that a blanket accusation that this is a rogue industry and illegal was way off base.”

An expert panel featuring tournament director Linda Johnson, World Poker Tour Host Mike Sexton, and 2004 World Series of Poker Champion Greg Raymer that profiled the positive side of poker was cut from the show in the days leading up to its airing. Pappas stated, “Because of that, the 60 Minutes piece on its own was harmful and not an accurate reflection of the industry. I don’t think that the players feel that the industry is full of cheats and crooks. People keep playing on Ultimate Bet and Absolute Poker.” The panel was organized by the PPA and filmed at the Rio during the 2008 World Series of Poker.

On the Tuesday before the show aired, the two aforementioned online poker rooms combined player bases to form the CEREUS network. According to poker traffic site PokerScout.com, CEREUS ranks as the seventh busiest network with a seven day average of 2,150 cash game players. The largest in the world is PokerStars, which has 20,000.

Despite its portrayal of the industry’s legality, the segment that appeared on CBS did not air opinions from those who are opposed to the legalization of online poker. Pappas explained, “They wanted to talk simply about the scandal rather than focusing on potential solutions. At the same time, they didn’t interview Senator John Kyl or Congressman Bob Goodlatte. They didn’t have someone from Focus on the Family. From that perspective, it was a balanced story.” Kyl and Goodlatte, along with former Senate Majority Leader Bill Frist, were instrumental in pushing through the Unlawful Internet Gambling Enforcement Act (UIGEA) two years ago.

Ahead of the story’s airing, the PPA was on Capitol Hill in an attempt to quell any second thoughts that Congressmen like Frank or Wexler would have after seeing the news story. After all, Frank has championed two bills to clarify the UIGEA and potentially help legalize online poker at the same time. His most recent attempt was HR 6870, the Payments System Protection Act, which called for the United States Treasury and Federal Reserve to work together with the Attorney General’s office to deduce what activities are legal under the law. Pappas commented about his meetings with Congressmen: “Their immediate response to us was that it was the exact reason why we were doing what we’re doing. Unilaterally, that was the response.” Menendez, Wexler, and Frank will all return to Capitol Hill when the new Congress convenes in January of 2009. Menendez, whose term runs for six years, was not up for election in 2008.

Concurrent with the 60 Minutes story was a series of articles in the Washington Post newspaper and on its website. The Post, which has one of the largest circulations in the world, covered several facets of the online poker scandals, including an exposé on the Kahnawake Tribe as well as a look at online poker and the law. Its content was much broader than that of the 60 Minutes story and was received with open arms by Pappas and the PPA: “I thought it was excellent. I think it would be hard for people to read the Post piece and think that the right public policy is to prohibit online poker. It’s going to continue to thrive whether you like it or not.”

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If you still haven’t had a chance to watch the 60 Minutes piece, it can be seen in its entirety below:


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