Ponzi Poker (Article Review #2)

Article Title:
Poker Web Site Cheated Users, U.S. Suit Says

Article Author:
Matt Richtel

Article Publication Date:
September 20, 2011

URL:
Poker Website Cheated Users, U.S. Suit Says

Article Summary:

Log in, add real cash to virtual accounts and poker gods battle for “real” cash.   Full Tilt Poker’s site is a Ponzi scheme.  Gaining good standing with professional poker players the site got free ambassadors and lured millions until shut down by the government.  Recover of nearly $390M is unlikely as funds were embezzled by site owners to their accounts.

Relevance to Class:

Cleverly planned, developed, built and maintained gaming websites can mirrors reality.  A web architect can create a user experience that lulls you into false comfort when spending real money in a virtual environment.  Understanding the psychology of gamblers and combining it with the growing capabilities of the web can make theft easy.

Key Quote:

“Prosecutors said they first exposed the scheme this spring while investigating other problems at Full Tilt Poker and two other poker sites, Poker Stars and Absolute Poker, all of which were based outside the United States. In April, the government shut down access to the sites for American players, arguing that they were violating fraud and money-laundering laws.

Before that, American players had wagered hundreds of millions of dollars on the sites. From their home computers, players would put money into accounts with the virtual poker clubs and then bet against one another.”