Poker Discussion Post

Please find Absolute Poker's official statement that was just released below...

October 21, 2007

Dear AP Player:

I am the former Grand Chief of the Mohawk Territory of Kahnawake and the owner of Tokwiro Enterprises ENRG, which holds a 100% interest in Absolute Poker.

As many of our players are aware, there has been a security breach in our system that allowed unlawful access to player information that resulted in unfair play.  I am writing to you today to let you know what we know so far in order to set the record straight, and to assure you of AP’s commitment to player security.  I am sure that this letter will not address all of the questions and concerns you may have, nor will it extinguish the heated discussion surrounding this issue.  At this point, our intention is to let you know all we can disclose and to assure you of our continued efforts to keep you informed as best we can as the investigations continue. 

We deeply regret this situation has occurred.   A breach in security in online poker is serious and of great concern to players and the industry worldwide, and this particular situation has been the subject of debate within the poker player community and in the media, giving rise to the creation of several websites and hundreds and hundreds of comments, opinions, and theories of what occurred – some of which are accurate, and some that are not. 

Like you, I have not been happy that during the initial stage of our investigation, AP has not been more forthcoming in providing a timely or comprehensive explanation on this matter, giving rise to anger, suspicion, and concern on the part of our valued customers.  I hope that our customers can appreciate that this remains an incredibly complex and sensitive issue, and I want to give you my strongest possible assurance that we will be as forthcoming as possible on how this breach occurred and what we are doing to remedy the situation.

What We Know and Actions We Have Taken

AP was notified by a customer that a possible cheating incident occurred during a recent tournament, and in response forwarded players’ hand logs.  This disclosure of the hand logs prompted our customers to determine that a more serious security breach had occurred.  We immediately launched an internal investigation and also requested a formal audit by Gaming Associates, an acknowledged world-wide expert in audits, interactive gaming tests, and information security.  

Based upon our preliminary findings, it appears that the integrity of our poker system was compromised by a high-ranking trusted consultant employed by AP whose position gave him extraordinary access to certain security systems.  As has been speculated in several online forums, this consultant devised a sophisticated scheme to manipulate internal systems to access third-party computers and accounts to view hole cards of other customers during play without their knowledge.  As this consultant was aware of the details of our fraud detection process, the likelihood that the scheme would be uncovered through our normal procedures was minimized.  We consider this security breach to be a horrendous and inexcusable offense.

We will pay for all losses suffered by the affected players as soon as our audit is finished and the amounts are determined.  Although we are in the process of attempting to recover all the winnings of this consultant, any unrecovered losses of affected players will be paid by Absolute Poker so that all affected persons will be made whole.

Next Steps

We are still investigating whether the consultant was acting alone or in concert with others, and it appears at this time that all account holders are innocent of collusion and were unaware of any wrong-doing by the consultant, who was immediately terminated.  We continue to investigate this matter aggressively, and all of these preliminary findings are subject to the audits currently underway.  We have recently uncovered additional accounts used by the consultant that have not been publicly reported.  So as to not compromise the investigation, we are not releasing the names of these additional accounts at this time, and will contact these affected customers individually. 

The specific allegations of unlawful activity are being investigated both by AP and by the authorized authorities, including the Kahnawake Gaming Commission.  We will continue to actively cooperate with these authorities in full compliance with the Regulations Concerning Interactive Gaming.  In addition to our own investigation and the audit by Gaming Associates, we have also submitted to an audit by the Kahnawake Gaming Commission.

Please be assured that we have corrected the problem that allowed the system to be unfairly manipulated.  We are working furiously to increase the safeguards within our systems.  While we are satisfied that our systems are secured, we realize that our security systems must be continuously monitored and enhanced. 

Without question, this incident has been unfortunate for all concerned, and we will emerge as a stronger company.  I realize it will take some time and much more information for AP to re-earn the trust and confidence of our customers who are in doubt of our commitment to the highest levels of security, privacy and integrity.  As we move to address and correct this situation, our valued customers have played a vital role in uncovering this scheme through various online forums and have become an active part of the solution. 

With my full sincerity, I thank you, and I promise to keep you updated as we bring this situation to a close.

Sincerely,

Joe Norton

They are also taking the following action and sending out the email below:

"We have started the process of refunds. All players will be refunded 100% - we are starting with the tournament players – who will all move up a place and also receive interest on their account. We will fully refund 100% of all ring and cash game players affected by the accounts in question too!"

Absolute Poker regrets to inform you that as a result of a security breach in our system, one player had access to an unfair advantage while playing the following poker tournament: ____________.

Absolute Poker has reimbursed to your poker account an amount to compensate you for potential losses resulting from this unfortunate incident.

Please be assured that we have corrected the problem that allowed the system to be unfairly manipulated.  We remain committed to the highest levels of security, privacy and integrity.

This breach was exploited in several other tournaments and during some ring game play.  We are in the process of auditing these records, and will pay for all losses suffered by the affected players in these other games as soon as these amounts are determined. 

The unfair player has been deleted from the tournament standings.  Accordingly, the amount that we have refunded to your account includes all of the following:

· The tournament buy-in;

· The tournament fee;

· Any additional prize amount that you are entitled to as a result of moving you up one tournament place if the unfair player finished in a spot higher than you; and

· Interest on the refund in the amount of 10% per annum.

We thank you for your continued support.