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Gov't responds to Black Friday complaint Gov't responds to Black Friday complaint

11-11-2011 , 01:49 PM
Quote:
Originally Posted by Skallagrim
Sports betting undeniably requires substantial skill to be able to be a consistent winner.

Poker (though some still deny it) also requires substantial skill to be a consistent winner.

But sports bettors are betting on a game, not playing a game - the participants in the game (football, baseball, whatever) are the "players" not the bettors.

Poker players ARE the players in the game.

The DOJ sort of missed that point, don't you think?

Skallagrim

If I open a pool hall and require customers to post a bet to get a table and I rake a percentage from the winning players I have a feeling I wouldn't be in business very long, so I'm not sure what point the DOJ missed.

Betting is gambling except where specific exceptions (markets, insurance, etc) are made, we need to man up and ask for an exception for poker, and the more the public thinks poker has in common with the lottery the better.
Gov't responds to Black Friday complaint Quote
11-11-2011 , 01:55 PM
Quote:
Originally Posted by ike
You're a lawyer and I'm not, so I'm going to assume you know something I don't, but it seemed to me that the DOJ was saying that chance need only be present "to a material degree," and need not predominate over skill, at least in New York.
The exact wording of the NY statute is that a game is a game of chance if "the outcome depends in a material degree upon an element of chance." It does not say that if chance is present in any material degree the game is a game of chance, it says if the outcome depends on chance in any material degree the game is a game of chance. Let me suggest a single hand of poker: I am in early position, am a known tight player, and I have not played a hand in the last 30 minutes. The hand is dealt, and the UTG player folds to me. I raise all in. Everyone else folds and I scoop the pot. Do you even need to know what my cards were to know that the outcome of that hand/game did not depend to ANY material degree upon the element of chance (meaning the deal of the cards). Would it be clear if I told you the cards I held at that point were 2-7 offsuit? What happened there was that everyone concluded my most likely hand was AA, and the only other part the cards played was that no one else was also dealt AA. AA gets dealt 1/220 times. So the times the deal of the cards in that situation will defeat my bluff are 220 divided by the 7 or 8 remaining players. The cards defeat that bluff once out of every 27 or 28 times. Is once out of every 27 "material" ?

What exactly is meant by "outcome depends to a material degree upon an element of chance" is the subject of debate. The leading expert on NY gaming law, Professor Bennett Liebman, wrote a Law Review article in 2009 concluding that this test was essentially the same as the predominance test except that if the question is really to close to call or otherwise 50/50, the game is gambling under this test.

Quote:
The predominance argument is nonsense and by participating in it we stoop to the same level of willful ignorance as our opponents. Chance and skill do not have the sort of relationship in which it makes sense to discuss which predominates over the other. In any game with any element of skill at all, skill will be the predominant factor in determining the outcome, simply because luck evens out in the long run. More chance doesn't mean less skill. Less chance doesn't mean more skill. It is a stretch to even argue that either is a scalar quantity such that you could meaningfully compare "the amount of skill in poker" to "the amount of skill in chess" or "the amount of luck in backgammon" to "the amount of luck in deep stacked pot limit Omaha." Even if you can come up with some way of measuring things like that, it's just willfully ignorant to imagine that there exist quantifiable relationships between the two that allow a meaningful quantitative comparison of the proportion of luck to skill in two different games. Both are undoubtedly present in poker and there is nothing more to say about the matter.

It is as though we and our opponents are standing in front of a large gray rock shouting back and forth at each other:
"THE ROCK IS PREDOMINANTLY GRAY!"
"NO YOU IDIOT THE ROCK IS PREDOMINANTLY LARGE! LOOK AT MY STUDIES!"
"IT LOOKS PRETTY GRAY TO ME!"
"BUT IT IS LESS GRAY THAN MANY OTHER OBJECTS COMMONLY CONSIDERED TO BE QUITE LARGE!"

edit: I edited this post a bunch of times, sorry in advance if someone ends up quoting an older version.
I have no particular fondness for the predominance test. But it is the test that courts and statutes have used to determine whether playing a game fro money goes into the legal "skill" category (like chess) or the illegal "chance" category (like roulette).

And I also reject the idea that you cannot quantify the relationship between skill and chance in a game. It is in fact done all the time and there are many studies out there which do precisely that, it is not the same as "gray" and "large."

In poker, the distinction between the 2 elements is very clear: chance is the part of the game determined by the deal of the cards, skill is the part of the game determined by the actions of the players. To try and determine which of those two elements is more important in determining the outcome is clearly not easy, especially since to a certain extent it depends on what is meant by outcome, but it is not impossible.

Some hands are clearly more determined by chance than skill: a hand where the winner "sucks out" at showdown is clearly a "chance" hand; conversely, a hand where the winner has bluffed his opponent while holding the worse hand is clearly a "skill" hand.

Admittedly, most hands are not so clear cut. But that does not make it impossible. People review hands all the time not to see what cards were dealt or might have been dealt, but to see what different actions might have produced a different (and better) result. If a different action can produce a different result despite the cards remaining the same, that surely shows that the action is more important than the cards, does it not?

And maybe just as importantly, if you include "how much is won or lost" as part of the definition of outcome than the actions of the players becomes an even more important factor. How much is won or lost is (with the possible small exception of blinds and antes) never determined by the cards but always by the players' actions.

Put that all together (and show some math regarding the # of hands where different decisions would clearly produce different outcomes) and I think you have shown that the decisions of the players is the predominant element determining the outcome of poker games. I think it also shows that the outcome of poker is not dependent on chance to a material degree since the vast majority of outcomes are not dependent on the deal of the cards (in that the vast majority of the time the cards are not even consulted as part of determining the outcome).

Skallagrim

Last edited by Skallagrim; 11-11-2011 at 02:19 PM.
Gov't responds to Black Friday complaint Quote
11-11-2011 , 02:01 PM
Quote:
Originally Posted by tamiller866
If I open a pool hall and require customers to post a bet to get a table and I rake a percentage from the winning players I have a feeling I wouldn't be in business very long, so I'm not sure what point the DOJ missed.

Betting is gambling except where specific exceptions (markets, insurance, etc) are made, we need to man up and ask for an exception for poker, and the more the public thinks poker has in common with the lottery the better.
You are wrong, sorry. Except for your point about requiring a bet this activity goes on all the time and is not illegal: you pay the pool-hall operator for the right to use the table for a period of time and then you make bet with your opponent on the outcome. Assuming (as virtually everyone does) that pool is a game of skill this is not gambling as gambling is legally defined in any US state.

By your standards chess tournaments with an entry fee where part goes to the operater are gambling. So are fishing contests. So are Bridge tournaments. All of these have been held not to be gambling but (therefore) legitimate businesses in many, many court cases around the country.

Skallagrim
Gov't responds to Black Friday complaint Quote
11-11-2011 , 02:07 PM
Quote:
Originally Posted by Skallagrim

And I also reject the idea that you cannot quantify the relationship between skill and chance in a game. It is in fact done all the time and there are many studies out there which do precisely that, it is not the same as "gray" and "large."
Even if you can. Its pointless.

That relationship will only be true for whatever specific variant of poker you did the test for.

There is no overall correlation between skill and chance.

I think most would argue more chance is involved in PLO than NLHE, but winrates are much higher in PLO.

You can also have games with little chance and little skill. We can't win arguing under the presumption skill and chance are inversely proportional.
Gov't responds to Black Friday complaint Quote
11-11-2011 , 02:30 PM
Quote:
Originally Posted by TheJacob
Even if you can. Its pointless.

That relationship will only be true for whatever specific variant of poker you did the test for.

There is no overall correlation between skill and chance.

I think most would argue more chance is involved in PLO than NLHE, but winrates are much higher in PLO.

You can also have games with little chance and little skill. We can't win arguing under the presumption skill and chance are inversely proportional.
I am not sure why you say this. In games where there are elements other than skill or chance this would be true. But in poker (as in most card games) skill and chance are the only elements. What happens is due to either one or the other of these elements, or both these elements working together.

Granted that it is hard to quantify the degree of one or the other when they are working together, but hard is not the same as impossible.

Skallagrim
Gov't responds to Black Friday complaint Quote
11-11-2011 , 02:39 PM
If you make an argument under that presumption your argument is inherently flawed because you are making a presumption that is false.

It simply isn't true. They aren't inversely proportional.
Gov't responds to Black Friday complaint Quote
11-11-2011 , 02:45 PM
Quote:
Originally Posted by TheJacob
If you make an argument under that presumption your argument is inherently flawed because you are making a presumption that is false.

It simply isn't true. They aren't inversely proportional.
If you simply state a conclusion and then repeat the conclusion a second time you are neither engaging in a discussion nor advancing an argument.
Gov't responds to Black Friday complaint Quote
11-11-2011 , 02:46 PM
Is being a self employed poker player, and thus technically running a business, considered to be running an illegal gambling business?
Gov't responds to Black Friday complaint Quote
11-11-2011 , 02:54 PM
Not to sure on sports betting.People say it can be skilled base but Im not sure.If someone can prove that id listen.

Poker is undoubted skill based. There are thousands of poker pros in the world. I have no heard of a sports betting pro nor do i know anybody who is up money over a few years in sports betting.

To say sports betting has more skill that poker is laughable.

In poker we don't control the outcome but we can control how we get to the outcome.We are in control of our chips until we decide to put them in the middle then its up to a luck and generally if you put it in good you are a winner in the long run.

In sports betting you cans tick your money in good a lot of times but you are getting a bad prices all the time unless the bookies make a bad decision which is very unlikely. If i get 2-1 on a a football team to win.Its likely that the chance of them winning is about 2.1-1 and that in the long run it is a bad bet and the bookies are going to win.


Generally if you look at football matches and look at the prices.They do not make sense. The price given for the underdog sometimes is very bad.While in poker generally you are gettin a good price on your odds if you are a good player
Gov't responds to Black Friday complaint Quote
11-11-2011 , 02:56 PM
Quote:
Originally Posted by Skallagrim
How much is won or lost is (with the possible small exception of blinds and antes) never determined by the cards but always by the players' actions.
Skallagrim
This is probably the best skill vs. chance argument that I've seen. Everywhere else, people boil it down to whether a person won or lost a hand, or skillfully bluffed an opponent or went to showdown.

In reality, maximizing wins when we're ahead an minimizing losses when where behind is at least as big of a part of poker as bluffing.

If the "outcome of poker" is not whether you won or lost a hand, but how much you won or lost on a given hand, then chance has very little impact on the final outcome.
Gov't responds to Black Friday complaint Quote
11-11-2011 , 03:09 PM
Quick! Someone write a song about how poker is a game of skill! I nominate SrslySirius
Gov't responds to Black Friday complaint Quote
11-11-2011 , 03:22 PM
The skill/chance continuum is most certainly a false dichotomy since games can be low on both (tic-tac-toe) or high on both (PLO). The actual legal argument, while I agree is pointless, is a conditional one: given the skill/luck distribution of a game, which one is predominant between the two? It follows that games with any presence of skill disparity between players will converge entirely to skill, regardless of the amount of luck, as n → ∞. The paradox is that two evenly matched players--even hypothetical unexploitable experts playing a Nash strategy--will be engaging in a random walk.
Gov't responds to Black Friday complaint Quote
11-11-2011 , 03:35 PM
Do you think WSOP strengthens the false perception of poker being a game of luck? If you look at these donkaments from a 3rd person pov, I can understand someone who doesn't understand the game to think it's just a game of donks shoving all in pre or on the flop. Not to mention the lol commentary. And to some extent, I sympathize with the haters, the skill involved in a tournament is trivial compared to an ultra deep cash game. We need more poker and less shoving on popular cable channels.
Gov't responds to Black Friday complaint Quote
11-11-2011 , 03:39 PM
Na we just need to educate these dumb ****s
Gov't responds to Black Friday complaint Quote
11-11-2011 , 03:44 PM
There is skill in poker, skill in sports betting, skill in trading. There is strategy, reads, bet sizing, and money management in all these games. The 'legal' arguments are always a cover for control over money flows. Usually, the 95+% who lose in these games decide that the few long-term winners are just the lucky ones. Luck is a word used to dismiss outcomes for which the observer cannot ascribe meaningful causality. The presence of chance in any game does not preclude the more skillful players from tending to emerge ahead as the sample size grows.

re: sports betting in particular. If I wager on pointspreads at 11-10, and my odds are 50%, my expectation is to lose $1 for every $22 wagered. This is a -EV of -4.55%. To break even, I must have an 'edge' of 4.55% on every bet (i.e I must be right 52.4% of the time). Assuming I bet size the same on every game, If I am right more than 52.4% of the time, I win. Is it possible to be 4.55+% more perceptive than the general public, whether it be in sports or financial markets? Of course it is. But only the best get there. It takes dedication, focus, self-awareness, patience, and perception. Meanwhile, the mathematicians' efficient markets hypothesis screams 'impossible.' Soros and Dalio are dismissed as luckboxes by ignorant academics. It is those who can't trade or who can't beat the spread that are the first to dismiss the best as 'lucky' even after 30+ years of consistent positive results. I assure you, there are a select few who can and do beat the markets and the spread. The great sports bettors just have less public visibility than the great traders.
Gov't responds to Black Friday complaint Quote
11-11-2011 , 03:47 PM
sports books have many times more variables than a 52 card deck, so yes... it requires more skill
Gov't responds to Black Friday complaint Quote
11-11-2011 , 03:59 PM
Quote:
Originally Posted by ike
...On the other hand, they should probably be shutting down the stock exchange based on that definition...
They've got that covered. For example, here's the last paragraph of the "Commodity Futures Modernization Act of 2000"* (emphasis mine - sba):
(c) PREEMPTION.—This title shall supersede and pre-
5 empt the application of any State or local law that pro-
6 hibits or regulates gaming or the operation of bucket
7 shops (other than antifraud provisions of general applica-
8 bility) in the case of—
(1) a hybrid instrument that is predominantly
a banking product; or
(2) a covered swap agreement.
*The Commodity Futures Modernization Act of 2000 (CFMA) is United States federal legislation that officially ensured the deregulation of financial products known as over-the-counter derivatives...These derivatives, especially the credit default swap, would be at the heart of the financial crisis of 2008 and the subsequent Great Recession.
Gov't responds to Black Friday complaint Quote
11-11-2011 , 05:09 PM
I have said before that the luck vs skill argument is legally moot with regard to poker. Both are involved, luck evens out in the long run. I think it is indisputable that poker is gambling as practiced by the majority of participants. I don't care to put a number on that, but it is this overwhelming majority of gamblers that makes the skill aspect of poker possible for the top small percent. People trying to argue that poker is not gambling are trying to sell you something, probably poker.

Other things like stock trading are similar, but as noted they have legal exceptions carved out.
Gov't responds to Black Friday complaint Quote
11-11-2011 , 05:30 PM
^^^ So are you saying that winners are playing a skill-based game and the losers are not?
Gov't responds to Black Friday complaint Quote
11-11-2011 , 05:34 PM
NO MORE business loans, it is staking money on an uncertain event
Gov't responds to Black Friday complaint Quote
11-11-2011 , 05:38 PM
Quote:
Originally Posted by spacegod
^^^ So are you saying that winners are playing a skill-based game and the losers are not?
I'm saying you have to play for long time (play a large sample, not necessarily getting better by practice) for it to be a skill game. Most people do not play for a long time. Most people are gambling. Poker is gambling.

Try this:
If we play one hand of NLHE I'm even money v durrrr
If we play one hole of golf I'm <long shot> v Tiger Woods

If we play one HUSNG Hyperturbo HU I'm <reasonable%> v <insert name here>
If we play one chess match I'm statistically 0% v Gary Kasparov

If I play 10000BB LHE FO v. Phil Ivey I am statistically 0%
If I play 10000 chess games v Kasparov I never win one

Last edited by Aruj Reis; 11-11-2011 at 05:51 PM.
Gov't responds to Black Friday complaint Quote
11-11-2011 , 06:11 PM
Quote:
Originally Posted by Aruj Reis
Try this:
If we play one hand of NLHE I'm even money v durrrr
Play money I agree, 100k of your own cash i highly doubt you are even money
Gov't responds to Black Friday complaint Quote
11-11-2011 , 06:15 PM
Quote:
Originally Posted by the_dude911
Yep. Thats why poker AND sportsbetting should be legal. If anything, lotteries should be made ILLEGAL.
True this
Gov't responds to Black Friday complaint Quote
11-11-2011 , 06:20 PM
Quote:
Originally Posted by Aruj Reis
I have said before that the luck vs skill argument is legally moot with regard to poker. Both are involved, luck evens out in the long run. I think it is indisputable that poker is gambling as practiced by the majority of participants. I don't care to put a number on that, but it is this overwhelming majority of gamblers that makes the skill aspect of poker possible for the top small percent. People trying to argue that poker is not gambling are trying to sell you something, probably poker.

Other things like stock trading are similar, but as noted they have legal exceptions carved out.
Every day millions of people play golf and tennis. Most of them are terrible at it and for most of them whether they do better or worse than their equally amateurish opponents is a matter of luck ... but some folks are very good at it and rise to the top, become professionals and make a very good living at it.

Poker is no different.

So would you please explain to me why are these games are legally allowed to be played for money but poker is not?
Gov't responds to Black Friday complaint Quote
11-11-2011 , 06:23 PM
Quote:
Originally Posted by Aruj Reis
I'm saying you have to play for long time (play a large sample, not necessarily getting better by practice) for it to be a skill game. Most people do not play for a long time. Most people are gambling. Poker is gambling.

Try this:
If we play one hand of NLHE I'm even money v durrrr
If we play one hole of golf I'm <long shot> v Tiger Woods

....
How about 50 hands of $100/200 NL durr and you each put $10K of your own money?

Compare that to you and Tiger Woods each having to make a 75 foot put, closest to the hole gets $10K

.....

IOW, your examples are meaningless.
Gov't responds to Black Friday complaint Quote

      
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