Party Gaming co-founder, Anurag Dikshit, pled guilty in NY federal court to a 2-year old charge of violating the 1961 Wire Act.  Rather than risk two years in prison he took one year probation and agreed to pay a $300 million fine.  The poker industry’s reactions are mixed:  everything from merriment (because PartyPoker may return to the U.S. eventually) to disgust (because Dikshit’s plea gives legitimacy to a bogus law).  Even the district judge on the matter expressed concern that the law is not being enforced equally because U.S.-based companies, such as FullTiltPoker, are not being prosecuted.  (The half-glass full people read this as the law should not be enforced at all; the glass half-empty people read this as a federal judge suggesting the Department of Justice should prosecute FullTilt and other sites.)  Whatever it is, I am sure Dikshit is happy.  Two years in prison, even a white collar Hilton, is not fun.  He now gets to move on with his life and spend the boatloads of money he has left.  From his perspective, can’t argue with that logic.  Sometimes folding on the turn is the best option.

Harrah’s is engaging in a massive PR campaign to publicize its free poker site.  But get this, the site is run by Dragonfish, which operates a real-money site in the UK.  This move comes hot on the heels of the positive House Committee vote on Rep. Frank’s bill to legalize/regulate online poker, the momentum gained since with additional Congresspeople voicing their support of the bill, and rumors that any bill that legalizes online poker will explicitly outlaw any site that operated in violation of U.S. law (i.e., FullTilt, PokerStars, and even possibly PartyPoker — a great comment to an earlier post by me notes that Party admitted guilt a while back to avoid serious sanctions).  Looks like Harrah’s is using the period before (crossing fingers) legalization to fine-tune its software and build a fan base.  They even soon will offer prizes, such as main event entries.  It may not be “gambling” — you are not putting up your on money — but it is mighty enticing.  Anyway, if I’m FTP, PS, or Party, I would be getting a wee bit nervous.  Harrah’s is a major casino player with a strong lobbying influence.  This shot over the bow is one that should be heeded.  How though, is an entirely different question.

Many a young poker player (and some not so old at this point), cut their teeth on PartyPoker.  The golden days if you will.  These same players were devastated when PartyPoker decided to pull out of the U.S. market in the wake of the passage of the UIGEA.  In came FullTilt and PokerStars, primarily.  The games were not he same, but still a nice alternative.  FTP and PS made a reputed windfall at PartyPoker’s expense.  They won the short-term.  But the recent legislative push in the U.S. appears to be moving toward prohibiting licensing sites that violated the UIGEA.  Read: FTP and PS will be prohibited from operating while PokerStars (and other sites not currently operating in the U.S.) could be licensed.  Assuming this path is the one that ultimately is approved by Congress, PartyPoker (primed with its recent merger with Bwin) is on the precipice of another fortune.  Basically, a monopoly in the U.S. until other sites catch up (or FTP and PS reorganize under other names).  As any good poker player knows, you should view poker as one long session.  All that matters is good decisions and winning in the end.  PartyPoker is teaching this to poker players on a mega scale.  PartyPoker made what could be the best decision of them all (a strategic withdrawal from the U.S. for many years) to secure the long-term win (getting licensed and profiting indefinitely, and legally).  Poker players take note.  “Instant” gratification is fleeting.