Josh Andrews

CoinPoker Responds to Poker Bot, Security Issues Allegations

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Just a few weeks ago, CoinPoker’s real money tables went live and the site is celebrating by running a number of generous promotions. However, according to PartTimepoker.com writer and GameIntel Managing Editor Alex Weldon, these generous promotions have been contributing to the cryptocurrency-based online poker site’s bot-driven player traffic. Weldon also believes that CoinPoker is struggling with security protocols on the site.

Alex Weldon first wrote about this on a March 17 PartTimePoker.com article title ‘CoinPoker’s Traffic is a Farce’ in which he detailed the findings from his research of the traffic numbers for GameIntel – the company that supplies data to PokerScout, an established website that tracks online poker traffic of nearly all online poker sites.

Weldon’s research was apparently prompted by what he describes as “abnormal traffic patterns.” For instance, he noticed that a number of players were simultaneously playing a number of tables for hours at a time. Furthermore, the said set group accounts dominated the huge volume of gameplay with a significantly small number of other players getting in on the action from time to time.

The players that caught Weldon’s eye all played at minimum stakes for each of the site’s leaderboard levels with each of the level of the leaderboard having nearly the same of player at the tables, though with different names. The wagering patterns of the massively multi-tabling players made Weldon even more suspicious as they seemed to be making programmed decisions.

CoinPoker’s initial response was the closure of three accounts as further investigations are carried out. The site’s officials also pointed out that “Malicious poker bots have not been a significant issue thus far, but we will continue to investigate the problematic accounts that pop up on our leaderboard.” Still, CoinPoker’s security protocols and the site as a whole have been subject to a number of questions.

To further prove their dedication to handling the issue as expected, the online poker operator decided to limit the number of simultaneously played tables to 8 per player. In addition to this, the site plans to integrate a verification tool called Civic to their platform.

“With these measures in place, we can, with a high degree of confidence, say that our final leaderboards reflect players who have played fairly and worked hard to win prizes in our current 5MM CHP Giveaway Promotion,” they wrote.

On the issue of security protocols that was a key concern for many of the stakeholders of the poker site, CoinPoker confirmed that the launch of its peer-to-peer security system was still scheduled for October this year. The new security system will be replacing the existing security system that runs on a hybrid platform that combines standard online gambling security measures and blockchain technology

Bitcoin Price Brushes Aside Child Abuse Report, Nears $9,000

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On Tuesday evening, bitcoin’s price rose above $9,000 for the first time in a week regardless of reports that its blockchain contains links to child abuse imagery. Researchers from the RWTH Aachen University, Germany discovered 1,600 files that were currently stored in the bitcoin blockchain. At least eight of the files contained sexual content including two with 274 links to child abuse imagery and one that looked like an image of the same. Also among these files were 142 that contained links to dark web services.

The blockchain, which is essentially a transaction ledger distributed and stored on many different computers was designed to be immutable so as to guarantee the integrity of information. This is how all decentralized digital currencies work. As such, the information cannot be altered – at least not yet. The only alternative to would be a consensus among the network’s users to use a new version – also called a “fork” – of the blockchain instead of the original one. However, bitcoin is yet to experience this.

The Implications

Some blockchains, such as the one powering bitcoin, which is probably the oldest, can contain all sorts of information fragments some of which may be illegal in certain jurisdictions. Since the information cannot be deleted, everyone that has a copy of the blockchain is essentially breaking the law.

It came as no surprise that the blockchain would undoubtedly cause trouble with laws in certain jurisdictions. The European data protection laws, for instance, say that people must be given the liberty of having their personal data amended or deleted regardless of where it is stored. Public cryptographic keys and transactions which are regularly stored on blockchains are basically personal data – and since the blockchain does not allow these to be altered, it is a breach of that particular law.

“Our analysis shows that certain content, e.g., illegal pornography, can render the mere possession of a blockchain illegal,” the German researchers explained. “Although court rulings do not yet exist, legislative texts from countries such as Germany, the UK, or the USA suggest that illegal content such as [child abuse imagery] can make the blockchain illegal to possess for all users. This especially endangers the multi-billion dollar markets powering cryptocurrencies such as bitcoin.”

This is quite serious, isn’t it? But, how is bitcoin braving it? Well, while the research report highlights the importance of addressing the possibility of unintended data insertion in future blockchain designs in order to protect users accordingly, it is also important to note that the existing bitcoin blockchain design troubles do not affect casual users of the cryptocurrency.

Jeff Garzik, a bitcoin core developer explains that the unintended information on the network is not even accessible directly since it has to be decoded first. This does not also apply to users who download fragments of the blockchain such as those who are just doing Bitcoin transactions.

Rivalry.gg Joins Esports Integrity Coalition (ESIC)

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Dedicated Esports betting operator Rivalry.gg has signed a Memorandum of Understanding with the Esports Integrity Coalition (ESIC) to become the coalition’s latest member with the goal of ‘supporting the application of best practice across the Esports betting industry’. Rivalry.gg which is a fairly new entrant into the Esports betting business is licensed in the Isle of Man and it will be joining a host of other outstanding ESIC members that include DreamHack, Betway, Sportradar, LVP, ESL, Intel, LVP and UKGC among many others.

The Esports Integrity Coalition (ESIC) was formed in July 2016 so as to clamp down on all forms of cheating in the professional Esports market. ESIC is currently considered to be one of the most reputable Esports regulatory authorities in the world especially due to its unambiguous endeavour to create an unequivocal Esports playing field for all the members of the Esports community.

“ESIC is pleased to welcome another specialist Esports betting operator into membership to extend our suspicious bet alert network and help us detect possible match-fixing as it happens and having a legitimate, licensed operator that supports Esports integrity and our vital education program helps lessen the influence of dodgy operators and betting fraudsters,” noted Ian Smith, the Integrity Commissioner at ESIC.

Rivalry.gg, being quite young in the industry has employed a steady approach towards a conquering the Esports market – they are focusing on original content and pre-match betting at the moment. But, there is definitely so much more to come.

“This is just the beginning for us. Next steps are implementing the minimum requisite of features from a traditional sportsbook perspective, such as live betting, followed by a much deeper offering. We spent the better part of 2017 curating and testing various bespoke feature sets that we believe the community will love and can’t wait to share them with everyone,” Rivalry Co-Founder, Steven Salz confirmed.

Salz also pointed out that while they just recently rolled their service offering, they have been members of the community long enough to notice that members of the Esports market were being frustrated by underage and unregulated betting that was growing rapidly with little to no intervention. He believes that this was partly due to the lack of viable alternatives for gamers as well as the lack of education on the importance of regulation in online gambling. As an ESIC member, Rivalry will be supporting the coalition’s goals by reporting any and all suspicious online betting activity.

“At Rivalry our foremost effort is to provide Esports enthusiasts with a legal, and safe way to bet on competitive play in the games they eat, breathe, and sleep. Our participation in ESIC is a cornerstone piece of this effort. Having a legitimate, licensed operator that supports Esports integrity and our vital education program helps lessen the influence of dodgy operators and betting fraudsters,” Salz added.

The Relationship Between Online Gambling and Match Fixing

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Sporting events are a big deal in all parts of the world even though there are variations on how a sporting activity appeals to members of given demographics. This is just the reality of human culture. However, despite the diversity and difference of the elements of different sports, there is a constant that plays a huge role in all of this – sports wagering.

The World Cup, for instance, draws nearer and being one of the most sporting events of the year, it is certainly drawing a lot of attention. This piece is however mostly interested in the examination of the financial stakes pertaining to online gambling. Thanks to the spread of internet and the proliferation of online gambling operators, the online gambling market has been on a roll for quite some time now. Global sporting events such as the World Cup are a huge boost to this particular market and this is the focal point of a number of discussions about match-fixing. Case in point, in 2016, the France UEFA European Championship and the Rio Olympics had online gambling profits go up 45 percent which summed up to €2 billion.

This is not a bad thing. In fact, it is great. However, the whole thing gets tainted by the looming threat of match-fixing where the outcome of games – including the big global ones – are known or determined by ill-intentioned and money-hungry people. In many cases, these individuals target lower division teams where player salaries are not that huge and they are thus more susceptible to being bribed. Generally speaking, match-fixing has been rather rampant in the last couple of years or so. It has even gotten so bad that it not only affects the poorly published matches but even grand ones such as the World Cup qualifiers.

This kind of fraud extends all the way to other sports as well; tennis, American football, baseball and even basketball. So, can this be fixed? If so, then how?

Online Gambling Is Not the Problem

Well, I was obviously going to lean towards this fact especially because this is a pro-gambling site, but come to think of it, it is actually a true sentiment. Online gambling is a multi-billion dollar industry with hundreds of thousands, if not millions of employees and in most part, it is legal and straightforward. Even if online gambling is banned due to its reputation for tempting individuals into match-fixing, people would still find workarounds, mostly illegal ones, to wager on sports.

Many things here boil down to ethical standards that have been put in place so as to ward off sports fraud. This has had very little success since it is dependent on willingness to adhere to laws and regulations. Apparently, getting rich quickly is far more tempting.

The takeaway here is that maybe we should look at online gambling from a different perspective in order to make match-fixing nothing more than a word in the dictionary. Efforts such as the formation of anti-match-fixing conventions could be useful. Still, there might be no definitive answer to the question about what the best solution for this would be but one thing remains clear – match-fixing certainly has the potential for ruining the global cohesiveness that sporting events foster.

Pro Sports Leagues Prepare For Legal Betting Ahead of Ruling

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Across the states of Arizona and Florida, professional baseball teams are getting ready for the inevitable surprises of a 162-game season. Players and coaches often use spring training so as to limit unknown variables and this year Major League Baseball is following suit.

By mid-season, baseball fans in some states might finally be able to place legal bets on baseball games and as such, Major League Baseball (MLB) officials are well aware that they cannot afford to wait till then to get things planned out. The league’s preparations have already begun with players from each and every team being given “enhanced education” this spring on sports betting. The same goes for both coaches and umpires.

The United States Supreme Court is expected to deliver a ruling that will certainly have a huge impact on sports gambling in the country. The most anticipated culmination would be the abolishment of the 25-year old federal law that outlawed sports betting in all but one state, Nevada. The other states have always had the liberty of allowing or prohibiting fans from wagering on sports but – not many have legalized sports betting and this is what makes the prospects of legalized sports betting so exciting to fans.

“We’re realistic that sports betting in all likelihood is going to expand in the United States,” MLB Commissioner Rob Manfred said on a conference call with reporters a week ago.

All the four major United States sport professional sports leagues have been buckling up in preparation for the ruling. In fact, some are even eager about what the new world could bring after the court’s decision. Furthermore, they have all been, to varying extents, offering their players some education that includes analytics that monitors betting data. In addition to this, the league have been working tirelessly towards researching the best possible partnerships and business opportunities that will definitely open up new revenue streams.

Russia’s New Online Gambling Laws Raises Stars Group Concern

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As part of 2017’s earnings reports, renowned gambling operator Stars Group pointed out that the Russian gambling market would be a potentially troublesome one in 2018. The earnings report also included what the online gambling operator is expecting to make this year with the figures further including assumptions that Russia would be introducing and implementing new online gambling rules that will essentially make it harder to process payments for Russian players.

There has been no official explanation from Russian officials in regards to the implementation of the new law that is likely to be enforced as from May 25. However, it is expected that the regulations will restrict banks from partnering with foreign payment processors or gambling operators that have been blacklisted by the Russian government.

While the new atmosphere will certainly not kill the Russian online gambling market, it undoubtedly has the potential of clamping down on the size of the gambling industry in the country. This is we put into consideration a similar scenario in the United States where the online gambling industry was clamped down after the Unlawful Internet Gambling Enforcement Act (UIGEA) was passed back in 2006. In the likely case that this occurs, the Stars Group will take quite a hit especially because the Russian online gambling market accounts for a huge chunk of its global market.

Stars Group Working on Contingencies

The effects of the changes that the Russian government is going to make is off-putting for investors but Stars Group is not giving up so easily. Rafi Ashkenazi, the Stars Group CEO said that he and his team are already working on contingencies that will help the company to deal with anything that the Russian government throws at them.

“We have plan As and plan Bs and plan Cs for every type of scenario that may happen in the market,” Ashkenazi told analysts. “We are monitoring, we are assessing, and we are ready.”

The concerns that were raised about the Russian gambling market were shared as part of an overall earnings reports which showed a steady 2017 for Stars Group – this encompassed both PokerStars as well as the group’s other online gambling sites. Total annual revenue went up 13.6 percent for fiscal 2017, summing up to over $1.3 billion. The same goes for other earnings as well – the net earnings rose by over 25 percent within the same period.

Bitcoin Mining Has Just Been Banned in Small New York Town

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Plattsburgh, a small lakeside town in northeastern New York has banned the establishment of new bitcoin mining firms for the next year and a half citing the fact that the miners have been exploiting its low-cost electricity. This comes at about the same time that the New York public utilities arm gave a ruling that allowed the municipal power authorities to charge higher electricity rates for cryptocurrency miners.

The town which is quite close to the Canadian border put the one and a half year moratorium on cryptocurrency mining in a bid to preserve its natural resources, the health of its residents as well as the “character and direction” of the city. Thus, for the next 18 months, the city will not be considering any new applications for commercial cryptocurrency mining. Breaking this rule will attract a fine amounting to $1,000 daily for the period that the moratorium is violated.

“It is the purpose of this Local Law to facilitate the adoption of land use and zoning and/or municipal lighting department regulations to protect and enhance the City’s natural, historic, cultural and electrical resources,” Plattsburgh officials said after holding a public hearing on the matter Thursday.

Cryptocurrency mining is the process by which mining firms or individuals get paid with cryptocurrencies for running complex mathematical equations on high-powered computers in order to confirm the validity of transactions. This process needs enormous computing power and thus is very energy-intensive hence miners will almost naturally be drawn to areas with significantly lower electricity costs. Thanks to its hydropower plants and the subsidies that some of the municipal power authorities allow on the electricity, some parts of New York are able to offer electricity rates that are as competitive as the Chinese bitcoin mining market. Furthermore, the naturally lower temperatures in the state also significantly reduce the cost of cooling facilities at the mining firms.

It Is a Positive Move, Some Agree

While this might not be a favourable ruling for cryptocurrency miners, one local bitcoin mining operation, Plattsburgh BTC, has expressed its support for the ruling. David Bowman, the founder and CEO of the bitcoin mining firm said in an email that the move was a positive one for both the city of Plattsburgh and crypto mining as a whole.

“We will be actively working with the city right away to find solutions that work in all of our interests, like possibly shutting off the machines if we are in danger of going over the city’s quota, looking into energy recapture as a way to heat buildings,” he added. “Anything is on the table.”

Two More Major Esports Player Associations Are in the Works

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Esports just keeps getting better and better in almost every way possible with the most recent development being the move to put together player associations to cater for professional video gamers who play Counter-Strike: Global Offensive and Overwatch. Counter-Strike: Global Offensive’s association will include players in the FACEIT ECS as well as the ESL Pro. It is led by attorney Michael Doi and Esports broadcaster Scott “SirScoots” Smith.

In an interview with Sports Business Journal, Scott Smith said that the Counter-Strike Professional Players Association (CSPPA) will not be looking to establish itself as a United States Union simply because Counter-Strike players originate from many different parts of the world. However, the association will be working towards signing all of the 255 professional players.

“Every day I sign another guy,” he said. “I would say 70 or so have signed an official membership document that they are for the players association, are behind the players association, they want to be in the players association.”

There has not been any official news regarding the Overwatch players association but the officials have confirmed that formal details on the same will be availed in around four months. The Overwatch player association efforts are being led by former player and Overwatch coach Thomas “Morte” Kerbusch and sports labour attorney Ellen Zavian. It is reported that the Overwatch association is likely to be modelled after existing U.S. unions like the National Football League (NFL) Players Association.

“I don’t see this [players association] as any different than any other PA just because it’s eSports,” Zavian said. “So this isn’t something that will be a lighthearted step. This will be a big step.”

If the two associations are formed successfully they will be joining the Riot Games’ League of Legends players association that is ran by Hal Biagas. Esports player associations are still in the very first stages of development but many agree that it is certainly a logical step for competitive video gaming as it draws nearer to being a mainstream activity, just like traditional professional sports.

Nevada’s Anti-Online Poker AG Running for Governor

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Nevada’s Attorney General Adama Laxal on Tuesday announced via his Twitter account that he had officially filed the necessary paperwork to run for the state’s Governor this fall. This particular move has caught the eye of the gambling community, especially poker enthusiasts since the lawmaker is extremely against online poker and he has been very vocal about it.

Laxalt’ stance with regard to online poker became known towards the end of 2015 when he confirmed that he would be signing a letter with some other state Attorney Generals in support of Sheldon Adelson’s Restoration of America’s Wire Act (RAWA) bill. Sheldon Adelson, the CEO of the renowned Las Vegas Sands Corp., is known for being a Republican donor and his passionate campaign towards having online gambling completely outlawed in the United States. This is despite the fact that online gambling is now legal in four states, a number that is likely to increase soon, and that a number of Las Vegas Sands Corp.’s competitors like Caesars Entertainment and MGM Resorts are backing online gaming.

The aspiring Governor reiterated his position in 2016 in a letter addressed to the then newly-elected Donald Trump Administration. In the letter, Laxalt, along with nine other state Attorney Generals asked for online poker to be banned. However, unfortunately for them, President Donald Trump, who happens to be a former casino owner and operator took a neutral stance in this case.

Furthermore, the online gambling ban at the federal level is rather unlikely owing to the vast bipartisan opposition. In fact, a decent number of stakeholders and interested parties have pointed out that a ban of such kind will violate states’ rights. Laxalt, who allegedly has other controversial ties to Adelson, has been strongly rebuked by fellow Republican, Sandoval, over this.

“I am very concerned that anyone representing the state’s legal interests would speak out against current state law in our leading industry,” Sandoval said. “At its core, this is a state’s rights issue and I disagree with the Attorney General that a federal government one-size-fits-all solution is in the best interest of Nevada.”

Sandoval is the former state regulator that signed Nevada’s online poker legislation. He also brokered the online poker liquidity sharing deals with Delaware and New Jersey. Both of these actions were an effort towards growing or nurturing the regulated online poker market.

Dafabet Closes UK-Facing Online Casino amid Regulatory Heat

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Renowned online gambling operator Dafabet has recently announced that it will be exiting the United Kingdom’s online gambling market, a move that is speculated to have been triggered by the ongoing regulatory pressure within that particular field.

Dafabet’s United Kingdom-facing online casino stopped accepting deposits from its customers last week on March 8. The players now have up to Tuesday, March 20, to withdraw their funds from the online betting site. Fortunately for the operator’s customers, their player balances will be automatically returned through the deposit methods they used to register if the will not have made withdrawals by the specified withdrawal deadline. Also, sports betting fans have nothing to worry about as Dafabet also assure their users that the sports betting operations will not be affected by the closure of their casino business.

As it stands, Dafabet is the most popular and the biggest brand of Philippine-based AsianBGE, its parent company. Its operation in the United Kingdom is backed by a license from the UK Gambling Commission but this is not the only place it excels at – the operator also sponsors Premier League’s Burnley F.C. Dafabet signed a £2.5-million sponsorship deal with the football club for the 2017-2018 football season which represents a £0.5 million increase from the previous soccer season.

UK’s Prevailing Storm Regulatory Atmosphere

The UK Gambling Commission recently discovered multiple violations by a number of its licensees and now, in conjunction with the Competition and Markets Authority (CMA), it has begun a regulatory crackdown that targets the erring operators as well as their affiliate partners.

The nature of the violations that the UK Gambling Commission range from breaches of advertising codes to inadequate anti-money laundering controls among a few others. The CMA has taken action with the most recent being in the form of a written warning that was addressed to a number of online gambling operators. The writing specifically pointed out the terms and practices that the operators have put in place to obstruct their customers from accessing their funds. These included the unreasonably low withdrawal limits, the short deadlines for players to verify their identities in order to be allowed to withdraw their funds as well as the so-called “dormancy” terms that allow the operators to confiscate customer funds after a given period of time when the customer accounts have had no activity.

The UK Gambling Commission will be working with other regulators in changing the rules and ensuring that both new and existing operators are probed more stringently to ascertain that they truly are capable of fully complying with all the laid out regulatory laws, terms and conditions.