Absolute Poker have been fined $500,000 by the Kahnawake Gaming Commission (KGC) of Canada for the online poker cheating scandal that occurred last year. The KGC have discovered that cheating occurred on the site for a six week period from 14th August 2007 and that Absolute Poker tried to cover it up.
In addition to the $500,000 fine, the KGC has also ordered Absolute Poker to pay random audits by Kahnawake for the next two years and a security deposit in case the cheating is repeated.
The KGC has found out that Absolute Poker attempted to cover up the cheating scandal by deleting certain gaming logs and records. The site also failed to report the security breach within 24 hours of its discovery to the KGC.
By doing this, Absolute Poker were in breach of the KGC’s “Rules Concerning Internet Gaming.” It was found that Absolute Poker broke four of the rules by the KGC; three of which are designed to ensure protocol is followed and that records are kept to prove the integrity of the game.
The KGC did have some good things to say about Absolute Poker. They found no evidence to suggest that the seven players involved in the cheating scam did so to benefit the company. The KGC’s report also discovered that Absolute Poker did take appropriate actions after the cheating had being discovered. They did this by preventing their system from again being compromised and by reimbursing the players affected by the scandal.
Absolute Poker have made a statement that accepts the KGC findings and penalties that reads, “After reviewing the published report, we recognise the completeness and accuracy of the KGC conclusions, and we accept without reservation the KGC’s findings and sanctions. Most importantly, we are pleased, after these many months, that Absolute Poker can finally put behind it a most distressing and regrettable experience for the Company, its employees, and its customers.”
Absolute Poker go on to reiterate it has reimbursed the players prejudiced by the cheating, repaired the vulnerability in its system that made the cheating possible and has appointed a team “to improve controls and install safeguards.”
In the six weeks that the cheating scandal occurred, seven players had an unfair advantage over the other players as they knew what the other players’ cards were.
A “super user” with links to Absolute Poker was able to see the cards of everyone at the table while the hand was in play. He would then pass on this information to his accomplices. However, after a while the cheaters got sloppy and started making near-impossible calls in big-money tournaments. This aroused suspicion amongst players and they found proof of collusion within the hand histories that were requested. After this, Absolute Poker and the KGC acted to prevent this cheating.
The KGC have also found that although one of the cheaters had connections with Absolute Poker, he wasn’t part of the Board of Directors or of “principal ownership.” The KGC has ordered Absolute Poker to cut its ties with this individual.
