Kahnawake Gaming Commission Completes Absolute Poker Investigation

The Kahnawake Gaming Commission has released a report on its findings from its investigation of Absolute Poker following the “superuser” cheating controversy in the fall of 2007.  It had been found that a high-ranking consultant with access to the inner workings of AP had used software which allowed him to see opponents’ hole cards in a variety of tournaments and cash games.  The Commission had a company named Gaming Associates conduct the investigation, which took approximately ten weeks.  Here is what the investigation uncovered.

1. The AP insider used several accounts starting on August 14, 2007 to “compromise” the AP games by using software that would allow him to see everybody’s hole cards.  This cheating lasted about six weeks.  AP was ordered to get rid of that person, which it had already done.
2. Someone at AP deleted gaming records having to do with the cheating.
3. No executives or principal owners had anything to do with the cheating, nor was the cheating mandated by AP.
4. AP did not contact the Commisson within 24 hours of discovering the issue, which it was supposed to do.
5. Shortly after AP discovered the problem, it did make every effort to reimburse victims with interest.  Victims who have not been identified now have 60 days to come forward if they determine they were cheated.
6. AP has addressed any security concerns.

When all was said and done, AP was found to have violated certain terms in the Commission’s Regulations.  In summary, it was found that someone used software to cheat other players, AP did not report the issue within 24 hours, AP did not keep the gaming records for five years, and, in doing so, obstructed the investigation.

As a result, the following sanctions were imposed by the Commission on Absolute Poker:

1. The Commission will randomly audit AP for two years, paid for by AP.  If AP is found to violated any more rules, its authorization may be suspended or revoked.
2. AP must implement a compliance program.
3. Those responsible for the cheating must not hold a position with AP.
4. AP must pay a fine of $500,000 within 60 days.
5. AP must pay a security deposit to the Commission, which will be held for two years.  It will be used to pay for any investigations into any further problems at AP.
6. AP must pay all costs for this investigation, plus any future investigations.