Poker and Investing: Dragons of Fortune

Last month, I wrote this article for StreetAuthority.com on casino and gambling stocks. Any way you cut it, gambling stocks are still under pressure. But I picked one B&M and one online company I thought had the edge. Both companies made the news last week, making me look smart.

Wynn Resorts received approval from Hong Kong regulators last week to launch an IPO, listing a percentage of its Macau assets on the Hong Kong stock exchange. According to sources, Wynn will raise $1 billion from the IPO for 20% of the company’s Wynn Macau Ltd. Read More »

Stardust Memories, Party On, and Laborless Day

Where does the answer lie?
Living from day to day
If it’s something we can’t buy
There must be another way

We are spirits in the material world
— The Police

We all know people who suffer from disposaphobia. When my Auntie Alice died, there were hundreds of National Geographics stacked in the attic — and that was just for starters.

I try not to be an accumulator, although I’m not as good as my buddy Wildbill. If it weren’t for books, I think the wild one could fit most of his belongings in a paper bag. And now that the Shrink (formerly the Poker Shrink) is a vagabond, homelessly traveling the country, he is also down to the bare bones. In his pre-trip disposal mode, he asked me if I wanted a poker chip he kept from the last poker game held at the Stardust. “Absolutely,” I said. Some things are worth the space.

In online gaming news: After the WPT received a buyout offer from the mysterious Gamynia Ltd, news broke of a second bidder. But days passed with no disclosure. I got an email from Change100, asking if I’d heard the rumor that PartyGaming was the comapny on the grassy knoll. (Btw, congrats on the new gig gf) I had assumed it was an online gaming company. But Party? Read More »

Amy’s Alt Regulatory Reading List

“In other words, it didn’t matter that the failing banks didn’t pee in the pool, other banks did. And in banking, like life, the notion of a peeing and a non-peeing section in a swimming pool is meaningless.”Paul Kedrosky

If you didn’t already know that Paul Kedrosky was NOT a graduate of the Chicago School of Economics, you’d know after reading the above quote. The Chicago School has never been known for its humor or sense of irony. It became not just a department but a school of thought – where free markets had all the right answers, equations trumped people, and regulations were for wussies. Read More »

William’s Hammer, Vicki’s Book, and More…

I thought you’d all enjoy the latest tattoo from my home game. That’s William’s arm sporting a brand new hammer. He didn’t name names (Torres), but it was apparently in honor of the “any two” strategy successfully employed by some of our members.

You might think I take the moral high ground when I’m behind the lens. But you’d be wrong. Sometimes an unflattering shot captures a moment that I can’t resist, like my picture of Mike Sexton and Vince Van Patton in my last post. For just a second, they evoked every bit of the long, hot, and humid Aruba final table.

And of course, catering to a mostly male viewing audience, I feel compelled to take the money shot. I could have taken many far more flattering pictures of Victoria Coren, but instead I opted for cleavage as she leaned over the table. To be fair, I try to be gender neutral. I also have an impressive shot of Erik Seidel’s butt crack. I just don’t know what to do with it.

Allthough 2+2ers may agrue the point, Coren’s talents extend past her physical attributes — and even her enviable game. She’s a helluva writer. She’s objective and honest, but still lets us view the world through her distinctly personal lens. It’s the kind of writing William Zinnser encourages in his classic book, On Writing Well, 30th Anniversary Edition: The Classic Guide to Writing Nonfiction, but that few people do well.

So while I was happy to read in her blog that Victoria was enjoying Mike Matusow: Check-Raising the Devil, I was thrilled to learn that her own book about the poker world, For Richer, For Poorer: A Love Affair with Poker, is scheduled to be released next month. Read More »

WPT Shareholders Lament

Poker players recognize that the World Poker Tour (WPT) played a key role in popularizing poker. In developing its televised tour, it introduced tournaments that got so popular as to begin to challenge the preeminence of the World Series of Poker. But while poker players may think of the WPT fondly, you will find few of the company’s stockholders who share that view.

The latest straw was the company’s sale of its poker assets to a private “investment” company. As part of the deal, founder Steve Lipscomb will receive 5% of the $9,075,000 sale price. (It’s probably no coincidence that back in February, Steve worked out this arrangement should the company sell its assets in 2009) The shareholders, however, will not receive any distribution. Instead, they get to wait and see what “non-poker” business Lyle, Steve, and Brad eventually start in WPT’s place. For investors hoping to profit from the potential change in US online gaming laws, this was not what they had hoped for.

The stock message boards were flooded with irate posts. This one was just the tip of the frustration iceberg:

“I wouldn’t mind this deal at all if the $1.35 per share was paid out as a dividend to shareholders. We’d basically be left with a risk-free option on the future online gaming revs of Gaminiyia. Instead, we’re left with $27M in cash in the hands of one of the most incompetent mgmt teams on the planet. ”

Five years ago, WPT went public at $8 per share. Today it trades for a buck – although the stock was as low as $0.15 in November 2008. Over the years, it went from a potentially profitable production enterprise to a company with an identity crisis, chasing blindly after unprofitable business models.

Frustration and envy appear to be the seeds of the series of missteps that sapped millions of dollars and focus away from the company’s core business. While the WPT helped create the poker boom, its television production business model only got a small piece of the obscene profits that were being generated by poker’s popularity.

Online poker companies and online media sites reaped the lion’s share. This infuriated the WPT; they felt they were owed. This overarching motivation – to profit madly from the industry they helped to create and to keep others from profiting from it – was behind every wild goose chase the company embarked on. And it also may have been responsible for the mysterious $700 million bid for the company, attributed to legendary poker player Doyle Brunson. Read More »

The Only Casino I Wouldn’t Play May Lose License

Over the years, I’ve played in a lot of casinos that were ill kept and past their primes. I played at the New Frontier in Vegas (since imploded) where the number of security guards outnumbered the patrons. And only a fool wouldn’t ask for an escort to their room — down a long corridor to a dark tower that looked like an abandoned Embassy Suites.

I played at Binion’s in Becky’s final year of ownership. Everything of value, including the employees’ health plan contributions, had long been siphoned out of the place. The felts were so warped, you couldn’t see the players’ chip stacks across the table. And if I haven’t told you the story about how I pulled down my pants at that session, you can read about here.

So you can understand just how bad a place had to be for me not to play. But after a brief walk through the President Casino in St Louis back in 2002, I ran for the exit.

Last week, the Missouri Gaming Commission recommended pulling the President’s gaming license, currently owned by Pinnacle Entertainment, and putting it out for bid. The Admiral, the 100 year old riverboat that houses President Casino, was in pretty sad shape when I was there. Apparently it has only been certified as safe until July 2010 — which is a stretch in my opinion. But the real problem with President Casino is that it has been losing money for the state, especially since Pinnacle erected the Lumiere Casino, seen jutting out of the skyline just behind the Admiral. Read More »

Poker’s Old School Still Rules

“Dear Amy, thanks for the kind words and I will see you at the Rio, Tom.”

Well actually Tom McEvoy probably won’t see me at the Rio – at least not this month. Like last year, I’m feeling the double-edged sword of not covering the WSOP. I’m glad I’m not the one putting in 14 hour days in the triple-digit heat of the desert. But I also find myself longing for those chance late-night encounters with Otis and Pauly at the hooker bar. I miss FlipChip’s wry humor in the wee hours of the tournament day. And of course, I miss seeing my friends make it deep into tournaments.

So like most of you, I play catch up each day on the web, surfing through what I’m missing by not being there. I lol’d when a poster on 2+2 called the WSOP Champions Invitational “a field full of has beens playing for a car.” Any time somebody calls someone else a “has been,” I automatically think it’s coming from a “never was or will be.” Online coverage of the event was a bit thin, but I knew I could count on FlipChip for a good pic of McEvoy in his new “old school” ride. He also is responsible for the 2005 pic above of Tom and me. In fact, if you’ve been following the WSOP for any length of time, you already know you can count on LasVegasVegas for the best photos of the WSOP. I also really like PokerRoad’s new Photo Blog this year. With BJ behind the lens and a large photo format, you really get a sense of the scene. Read More »

Nominate Andy Glazer for The Poker Hall of Fame

I will be nominating Andy Glazer for the Poker Hall of Fame. Public nominations open today and will remain open until July 2nd. If you are in the poker media and were inspired by his work, I ask you to join me. If you lived for his tournament reports as a fan of poker, as I did, I ask you to join me. If you were one of the many players he covered – long before other media came on the scene – I ask you to join me. Nominations can be made here.

Andy’s love of the game was profound. His integrety as a writer was boundless. His contributions were timeless. Andy set a benchmark for poker journalism that has yet to be challenged.

I wrote this on July 6, 2004: Read More »

Another Reason I’ll Never Be a Pro

I can take a win in stride. I’ve gotten to the point where a big loss doesn’t jar me. But I just can’t imagine being dependent on debt.

I’ve never bought stock on margin. I’ve never had a car loan. I didn’t borrow money to go to graduate school. I keep my credit card balance at a zero or minimum balance. I have a mortgage, but have never taken out a home equity loan. I can’t wait to pay it off. If I can’t afford it, I don’t buy it.

I hate borrowing or owing money. This is just another reason why I couldn’t be a professional player. That – and my game isn’t all that good.

I guess I’m thinking about money and poker because this is the high season for borrowing in the poker world. People are always quick to say that money is the yardstick for poker. People new to poker assume this means good players have money and bad players don’t. But that oversimplifies both the variance and lifestyle of poker. Poker’s variance can take its toll; it doesn’t take long for a “bad run” to cripple a healthy bankroll. Even when “running good,” it’s hard for professionals to come out ahead of a WSOP buy-in budget that tops 100 grand. Egos often trump bankroll management, preventing players from stepping down in levels or forgoing tournaments for satellites. And there are plenty of savvy poker players who lose hundreds of thousands of dollars each year betting sports, horses, craps and blackjack.

I was shocked the first time I saw a former bracelet winner hustling for buy-ins at a tournament. Eventually I came to know of a subset of well known players who were always looking for a backer or a loan.

But it probably wasn’t until I covered the WSOP in 2005 that I realized how systemic debt was at poker’s highest echelons. If you had beamed me to a remote village in Africa or a bustling Asian city, I don’t think I would have felt as foreign as I did watching the swirling sea of poker’s debt back then.

This is what I wrote as I watched on June 25, 2005: Read More »

Running in the Rain and Poker & Drugs

At about 9:00am on Saturday morning the sky grew dark and a cool wind started to blow through. By ten, the skies had opened up to a beautiful torrential rain. We’ve been battling a drought and I was already registered for the Run Good WSOP Seat Challenge, so I was content with nature’s whims. I was content, that is, until exactly 12:43pm, when I lost power. I evoked Katitude, and started cursing falling water.

Unfortunately I had just washed my hair, but I hadn’t dried or straightened it yet – which meant it was channeling Angela Davis. I threw on my hoodie (the one Grubby stole for me), packed up the laptop, and headed out into the rain. I drove until I saw working traffic lights, and then I scoured the strip malls for a coffee shop. With no time to spare, I ordered a $3.69 latte and booted.

I think I only missed a couple of hands by the time I got online. I hit the mother load of tables, one that was great for blogger company, but very bad for my chances. Pauly, Al Can’t Hang, Change, F-Train, and PokerListings’ host Matt Showell surrounded me. I had a couple of decent winning hands, but was having trouble getting an above-average stack. With 12 bloggers left, I woke up with pocket aces and my foe and I got it all in pre-flop. He had pocket jacks and caught his two-outer. I won’t name names, but he knows who he is. And besides, how bad could I feel when Iggy went out next when his pocket aces were cracked by a suited 4-2? The Poker Grump went on to claim the $1500 WSOP seat, and I am left to wait until next week for revenge. In the mean time, I’ll be thinking about drugs and poker.

When I walked into the Amazon Room for the first open event of the 2005 WSOP, the first words I heard were, “This is going to be tough for me today. I’m trying to play without Percocet and Red Bull.” During the 2003 WSOP, I sat at the Starbucks outside the Golden Nugget. It was crowded on the patio and a player asked to share my table. He wasn’t a full time pro, but he had played them all over the years. During our conversation I asked about a well known pro who had behaved erratically the night before. My companion responded, “Oh yeah. It’s been almost a year since he gave up coke and he’s still having a tough time adjusting.”

Drugs and poker are hardly strangers. Stuey Ungar might have been an unfortunate outlier, but within the six sigma of players, there are many that dabble or use. If we had to put an asterisk beside the names of drug using/abusing players, the page might start to look like a decent sized constellation.

In Des Wilson’s Ghosts at the Table, he talks about the 1979 Championship heads up match between Bobby Hoff and Hal Fowler. He quotes Bobby, “Oh yes, I was taking cocaine during that tournament and I probably played as well if not better on cocaine. I would put two lines of coke by the bed every night and take it when I woke up.” And Fowler? Crandall Addington recalls, “I sat right next to Hal and he had his pills out there on the table. Of course a lot of guys used to get up and go sniff and snort in the bathroom in those days, but he had some Valium and also some amphetamines, the real strong ones, and he actually put these on the table by his chips. I really believe that much of the time he didn’t have any clue what he was doing.”

Mike’s book had gotten a lot of nice coverage in 2+2’s Book forum. A number of posters admitted to reading it in the bookstore rather than buying it – but I can’t fault a poker player for freerolling. I had been waiting for a thread to pop up in the News, Views and Gossip forum. I suspected it would be about Mike’s illegal drug use during WSOPs past – or the scene with the porn star. But I was wrong. In this thread, the OP takes exception with Mike’s legal drug use, specifcially his ADHD medication. If he had an issue with Mike snorting meth during the 2001 Championship final table, he didn’t mention it. The OP suggested drug testing at the WSOP and banning players taking prescribed medications like Ritalin and Adderall.

The OP got soundly leveled. But I totally lol’d at this poster’s reply: “I have 2 degen friends who buy ritalin before playing the Thursday night $30 home game. Needless to say it’s hard to have a conversation with them since they are so focused. They are like dogs watching squirrels.”

I’ve heard a number of players talk about trying Ritalin for focus. But for the non-ADHD afflicted, its focusing ability might be a little too hard to control. I remember one player telling me that it did give him focus – but unfortunately he spent over an hour directing his focus to a piece of lint on the table felt.

And that’s before all the lovely side effects. Two points to the first person who knows what side effect Mike is most embarrassed by.

Half the field drinks Red Bull. Bill Edler averages seven cups of coffee during a tournament. Cyndy Violette swears by a macrobiotic diet for focus and energy. Banning prescription drugs like Ritalin would be a pretty random line to draw.

Artwork of Angela Davis by GUANOdesign