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3 of 4 Deadwood Casinos Not Interested in Stopping Collusion

Hearing concerns about cheating by collusion at Deadwood's poker tables, the South Dakota Legislature this session passed House Bill 1084, which empowers the gaming commission to ban cheaters, felons, and perhaps whistleblowers from casinos.

Unfortunately, Deadwood casinos don't seem terribly interested in learning how to keep cheaters from spoiling everyone else's fun in the first place. The South Dakota Gaming Commission is bringing in an expert to help poker dealers spot cheating and collusion. However, Bob Mercer reports that only one of Deadwood's four big poker venues (The Lodge) has signed up to send staff to next week's seminar:

Letters were sent to all of the casinos in Deadwood, regardless of whether they currently have poker, Eliason said.

The commission's chairman, Chip Kemnitz of Philip, said the lack of interest "gives me pause" [Bob Mercer, "Despite Allegations of Cheating in Poker, Casinos Showed Little Interest in Seminar," Mitchell Daily Republic, 2014.03.19].

Also torqued is commission member Dennis Duncan, who I hear is a serious poker player:

Duncan wasn't happy about only one casino committing to the training.

"It shows to me somewhat of an intention to ignore this problem, in some people's mind a serious problem in your gaming industry out here," Duncan said.

He said it will generate continued discussion among the public and "one commissioner at least."

"I think there are going to be consequences for that," Duncan said [Mercer, 2014.03.19].

Whether those consequences will come from the gaming commission remains to be seen. Revenue numbers suggest that players aren't yet dealing out consequences for the casinos' apparent apathy. Gambling industry statistics show that while revenue from player-banked poker has been declining since 2007, revenue from house-banked poker has been growing.

But note that the gross revenue from both sorts of poker in 2013 totaled $4.946 million. Slot machines generated $92.7 million in 2013 (down a bit from a peak of $97.4 million in 2010). Deadwood's casino owners probably already feel like they spend too much paying dealers to run card games that don't produce nearly as much money as dumb machines. Why pay extra to make those dealers even smarter? Or so the thinking would go among short-term quick-buck thinkers who signal to players that they aren't really interested in protecting players from card sharks and keeping the table fair for all players.

19 Comments

  1. larry kurtz 2014.03.21

    This whole 'deal' started with Dave Omdahl whining about players chopping winnings after tournaments: it's doubtful that there is much nefarious behavior during cash games.

  2. Nick Nemec 2014.03.21

    What is "player-banked poker" and what is "house-banked poker"?

    Did the gambling industry ask for this bill? Maybe the real reason they wanted it is to be better able to kick out who they don't like.

  3. caheidelberger Post author | 2014.03.21

    If I understand it, Nick, player-banked means all the money is put up by players. House-banked would mean the casino has put a stake in the game, meaning you play against a house dealer as well? Any gamblers care to fill us in further?

  4. larry kurtz 2014.03.21

    Just got off the phone: house-banked poker is based on points to players with club membership and offers tax breaks to casinos.

  5. Jon Holmdal 2014.03.21

    House backed poker is Three Card Poker and some of the other pit poker games like Pai Gow Poker--these games the house has a big edge in.

    Holdem poker is player banked poker and the house makes its money by taking a rake or a % of the pot usually between 3-5 dollars.

    This is not about chopping tournaments. Marking cards, showing hands, chip dumping, bringing extra chips into play, soft play, having pre marked decks put into play, signaling each others hands. All the tricks of the trade are taking place in Deadwood. And no it is not just taking place in tournaments. The bigger cash games are just a set up.

  6. larry kurtz 2014.03.21

    How did you find this forum, Mr. Holmdal?

  7. larry kurtz 2014.03.21

    My apologies to Mr. Omdahl for misidentification.

  8. Jon Holmdal 2014.03.21

    Let me add this. Up until 5 years ago Deadwood had a vibrant poker community. It was one of the most fun poker experiences that anyone could have in the entire United States. At that time Deadwood didn't know what the word collusion was. About 5 years ago a group of wealthy good old boys came to Deadwood and formed a team that now has doubled in size. Millions of dollars have been stolen. People have been corrupted. It is a very sad situation that I hope gets rectified. You can expect a fair game at the #10 Saloon and the Silverado at least that was my experience back in may of last year. I have since discontinued playing in Deadwoodl

  9. larry kurtz 2014.03.21

    Yet you play professional poker?

  10. larry kurtz 2014.03.21

    A little context: I was in the game when Mikey named 10-8 offsuit the Deadwood Nuts.

  11. WestRiver 2014.03.22

    Nothing better to do with our money and time? Seriously? Let the casinos worry about it and if they are not, so be it.

  12. caheidelberger Post author | 2014.03.22

    I don't know if it's that simple, WestRiver. Gambling is a highly regulated industry, with the state deeply interested in its share of the proceeds. If businesses in that industry aren't taking steps to defend the integrity of their games, and if that inaction is causing revenue to drop, the state would seem to have reason to take action. Offering training is a pretty polite, non-intrusive action.

  13. G-Man 2014.03.25

    According to some, gay marriage is a huge (unrealistic) threat to society, but, for some odd reason most of us turn a blind eye to the real threat of gambling's negative effect on our society.

  14. Deadwood Optimist 2014.03.30

    After much negative publicity surrounding the state of poker in Deadwood the commission on gaming hired two experts to conduct a seminar to shed some light on poker collusion and cheating in Deadwood. I had the opportunity to attend this seminar and after about five hours came out of the seminar with no additional knowledge of what to look for or how to curb collusion. In fact there was no attempt to even define what collusion is.

    One of the experts, Mike Aponte, a former member of the MIT blackjack card counting team offered zero insight into the topic of discussion. In fact both experts told some stories, shared some laughs, and offered little advice on how to spot or prevent collusion.

    This particular session was poorly planned and didn't even graze the topic at hand. I hope future sessions will be more informational and that the speakers are screened on their knowledge of the subject.

  15. Nick Nemec 2014.03.30

    Did the State pay for these "experts" or did the casinos?

  16. Deadwood Optimist 2014.03.30

    The gaming commission booked and paid for the speakers.

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