Live from the Two Plus Two Studios, October 3rd 2012 - WSOP Europe Coverage & Lederer Interview Reviewed - This week on the Two Plus Two PokerCast Mike and Adam start things off by analyzing last weeks lengthy Howard Lederer interview discussing a new series of articles "The Distortion of Truth in the Lederer Files" by Diamond Flush. Next up they provide coverage of the World Series of Poker Europe including all completed events, the currently underway Main Event and some controversy involving Brandon Cantu and Jon Aguiar. The strategy minute is back featuring Mike "Schneids" Schneider of CardRunners.com providing some great Omaha 8 coaching. The guys get poker pro and second place finisher in the WCOOP Main Event Ryan “TheCart3r” Carter on the line to talk about his big score and how lightning struck twice at his house. Mike and Adam also wrap-up the 2012 World Championship of Online Poker and of course give away the password for the October 7th Poker Stars VIP Club Invitational for PokerCast listeners.



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friiist

Slow pony

DL: http://pokercast.s3.amazonaws.com/twoplustwo_240.mp3

Ben Lamb podium position

5st

About time

Buttchugging press conference:

http://www.youtube.com/watch?v=hlcbAqK-qTY

Bubbled the WPT TV Table.

Fearless prediction: Diamond Flush on next week's show.

Made it.

What's the link for, "Brow-ton, not Bro-ton."?

How long before a prop bet involving butt chugging?

Finally something to grind flash games to

Wasn't motivated today to get a top 10 finish

Following @johnjacobs1989 - done

this

When Steve D. said they spent lots of time on the interface and people get used to new things.

I thought of Microsoft's Ribbon and the AppleTV interface or the new iPad AppStore app. They're so bad yet the companies expressed an opinion and are now tied to forcing them on an unwilling public.

Don't make definitive statements.

For those who missed it, here is the Bill Rini response to the previous episode's interview. The guys mention it in the first segment of Ep. 240.

http://www.billrini.com/2012/10/01/h...2p2-pokercast/

Just finished this ep, pretty excited about Norman Chad next week always wanted you guys to have him on should produce some clasic laughs, and I cant wait to hear his take on Helmuths win.

Great show.

M&A had a bunch of really good follow up questions but is there any place to go for a formal rebuttal for Lederer's comments? eg 'Well he is clearly fos based upon this evidence ect ect?'

People do get used to new things!

I tried to be extremely clear that the software is still alpha and that many things may still change.

I'm not sticking up for Howard but every balance sheet I have seen (and I've seen plenty) always have the current cash position of the company. Whether it's in the bank or in receivables, every company that publishes a balance sheet must have the "cash on hand" itemized. So to say to that Howard requested a separate reporting to show there was an "extra" $20M sitting around is pure hog wash. Unless they did not operate their company on GAAP (Generally Acceptable Accounting Practice).

Guessing working out of dublin they would have used IFRS, which uses principles instead of rules. Full Tilt clearly lacked principles, so I have trouble trusting that their reporting was even close to representative. That said, Cash (cash in the bank [reconclied!]), Cash, (petty cash, etc), and there is AR (which is reported seperately). It would not take a rocket scientist to tell them how much cash was on hand at any given time, and what their net cash position was.

My understanding from Howards interviews is that the finance department was reporting
1) Phantom deposits not yet cleared
2) Money seized by the DOJ and money stolen by payment processors

all as cash on hand even though of course, the phantom deposits were never guaranteed to ever clear in the future, and the money lost to the DOJ/processors was certainly never to be seen again. They credited all of that as player money in the bank, rather than lost profit.

Clearly they should have diferntiated between Cash in transit and Cash on hand on their balance sheet (this might have saved some confusion). Also, Bad Debt and Seized Funds should be treated as Expenses, not contra revenue ("Lost Profit"?)

Correct. the money taken by DOJ and processors was cost of doing business and once it started to happen should have actually been budgeted for and incorporated into the decision of whether to leave the US. Expecting to ever see that money again from an accounting perspective is just criminal.

I though it was actually very telling in our interview that Howard admitted they discussed and considered leaving the US at times before Black Friday, due to seizures and processor theft. How could he claim on one hand that all of the financial documents looked strong enough to keep paying huge distributions but that he was aware enough of the effect seizures/processor issues were having to the point they thought about pulling out.

If you thought everything was fine, why would you ever consider pulling out of the US market?