Kings for a Moment: The feds attack online poker, killing a $2.5 billion industry

Kings for a Moment: The feds attack online poker, killing a $2.5 billion industry

When you've turned nothing into something once already, you tend to feel you can do it again. There's faith your luck will turn. Perhaps it's delusion. But for a professional poker player, self-confidence is essential.

So it is for Walter Wright, who now finds himself in Costa Rica. He left his wife and two children behind to redeem their failing finances and faltering marriage by doing something that's now illegal in the U.S. — playing poker online.

Wright's life began to change in 2005 when he followed his then-girlfriend from New Orleans to Virginia, where she was beginning law school at Washington and Lee University. He'd played strategy and role-playing video games as a kid in Houston and later began to obsess over chess. That's when he noticed his chess buddies were becoming increasingly dedicated to online poker and raving about the returns. Wright became engrossed.

He started as most do, playing what's known as the "cash game." It's simple poker — win by pushing your advantage when the cards are good and bluffing when they're not. If you know the odds, bet wisely and seek out tables with lesser players, within a year or two you can be making a grand a week or more. Five to ten times more.

Wright started at low-stakes Texas hold 'em with table limits of just 25 and 50 cents. The beauty of playing online is that he could work eight tables at once. It wasn't the best of money; pokerstars.com was taking its own cut from the pots, generally capped at $2 to $3 a pot. But as a volume player, he also received rewards points redeemable for things such as Amazon.com gift certificates, which he used to buy food in bulk.

"I was grinding my face off," he recalls.

As he honed his feel for the odds and what his opponents were holding, he moved up to sit-n-go games, which are essentially small-scale tournaments that can be finished in an hour. It took time, but he began to see more money than he ever witnessed as a waiter in New Orleans.

He made $17,000 that first year and quit his job. He made $28,000 the next and $55,000 the year after.

Four years ago, when his wife got a job in the Las Vegas public defender's office, the Wrights shipped off to Nevada. Wright dabbled in casino poker, where the stakes are higher. But it also required a bigger bankroll and presented wider swings of fortune. He wasn't ready.

"I made some money to get some new tires on the car. Make some money and pay a bill...I was getting a little frustrated with that."

That's when he discovered multi-table tournaments online. They're like sit-n-go games but feature as many as 200,000 participants in a single tourney — and much bigger pots.

It was easier than playing head-to-head in cash games, since the competition was generally worse. His strategy was to play dozens of tournaments each night, primarily on PokerStars, moving conservatively through the early rounds as the lesser players fell away, then amping his aggressiveness as the field whittled down.

It was still a grinding way to make a living, sometimes requiring Wright to stare at a computer for 24 hours straight. But he'd spent his teens pulling World of Warcraft all-nighters. And now, instead of making bank with tiny pot after tiny pot, he could bring home as much as $15,000 in a single session.

The first year of online tournaments brought in $100,000. A year later, his earnings had doubled, thanks to more than $100,000 he won by reaching the final table at the World Series of Poker in the summer of 2009.

But the money was coming a bit too easily. "We never really learned to manage money, because nobody in our family has ever had any," he says. "So we didn't manage it well. My mindset became, 'How much money do you need? I'll make more.' Rather than, 'We need to cut down on expenses', it was, 'Don't worry, I'll shoot for this goal.'"

Wright found himself retreating more and more into the casinos, especially when he and his wife would fight. He was becoming a classic workaholic, and he didn't enjoy the soul-sapping casino atmosphere. He was equally worried about the effect of Las Vegas on their kids.

Last year he convinced his wife to move to Asheville, North Carolina, to be closer to her parents. The plan was for her to take the year off, care for their newborn daughter and study for the North Carolina bar. Wright would support them by playing online.

Most of their bank account was consumed by the move, but he had few worries. Why should he? He could always make more.

They moved April 1, 2011. Two weeks later, the federal government took his job.

In the poker world, April 15 is known as Black Friday. That's the day the U.S. Department of Justice seized the assets of and shut down the three biggest companies serving the American market — PokerStars, Full Tilt Poker and Absolute Poker (which also operated Ultimate Bet) — charging them with bank fraud, money laundering and illegal gambling.

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6 comments
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Terrycart
Terrycart

This is also a main proof for the fact that more people are becoming bored of the real life. They seek to relax in this way.

Gail S.
Gail S.

Great information. Thank you for shedding light on this story! I'm glad you are providing information on the tragedy that was our Black Friday. It is well past time to license and regulate this industry in the US. Most of the world is able to play this game of skill and strategy online and Americans, of all people, should be free to play as well.

Sheryl J
Sheryl J

- Thanks for this informative article about online poker and what the government did to it. An entire industry was destroyed last year. This is the first article that really illustrates the situation. We need federal legislation that licenses and regulates online poker in the U.S. and brings back an industry. -

anon guest
anon guest

As someone who played on PokerStars, I can tell you I got every dime I was owed when Black Friday happened, PokerStars was very open and up front and my account was paid out in a timely manner, so no complaints about that. It's a total shame that the U.S poker industry has come right out and said "tax us and regulate us", and yet the government can't seem to figure out a way to allow law-abiding U.S citizens a way to enjoy a favorite pasttime. Seems to me that the moral police are behind this.

Slaps
Slaps

I thought I was hearig that they were going to put in new legislation to make it legal.... I think some people use other poker sites in the USA to gamble like BODOG...I personally use betanysports.com for all my sports betting.

KITTY
KITTY

This is another example of the feds having their heads up their asses. Just like prostitution and drugs, gambling has been with us for eons and will never go away. The feds should legalize all these things and tax the revenues of each. Our debt problems would be solved in short order. As a person who is hooked on Texas Hold'Em, I wish I could play for real money instead of chips on AOL. People who watch the World Series of Poker know that some American poker pros maintain other residences in Canada so they can play online legally, raking in lots of big bux. Hmm, more good paying jobs leaving the USA....

 
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