KGC Issue Statement Following 60 Minutes Investigation

Dec 2, 2008 - 10:58:52 AM

The Kahnawake Gaming Commission (KGC) has issued a statement in response to 60 Minute's investigation into the cheating scandals at Absolute Poker and Ultimate Bet. The statement seeks to draw attention to elements of the Sunday night segment that it considered to be incorrect or misleading.

The Kahnawá:ke Gaming Commission ("KGC") and its agents, having viewed the CBS News item entitled "The Cheaters", extends the following clarification and information which, although provided to the show's producers, had been left out of the storyline.

1. The Ultimate Bet ("UB") cheating was initiated while UB was owned and operated by Excapsa (a public company whose Board of Directors included several high-profile Canadians). Pursant to a settlement agreement finalized in November, 2008, Excapsa agreed to pay Tokwiro ENRG US $15,000,000. [Author's Note: Among the 224 Excapsa shareholders, many of whom were identified during the firm's liquidation proceedings, were David Peterson and Norman Inkster. Peterson is the former Liberal Party Premier of Canada's Ontario province who at one time served as Excapsa's non-executive chairman, and Inkster was a former chairman of the Royal Canadian Mounted Police. Both held public roles with Excapsa and were identified with the company prior to its sale to Tokwiro ENRG in 2006.]

2. All players that were adversely affected by cheating (both AP and UB) were fully reimbursed. In the case of UB, these refunds amounted to over US $20,000,000. The reimbursement of UB players was affected within days after the Excapsa settlement. The KGC played a key role in facilitating and monitoring reimbursements.

3. The KGC and its agents have reviewed AP/UB operations and systems and have confirmed that all necessary steps have been implemented to prevent against cheating in future. Migration to the CEREUS software platform was approved and closely monitored by KGC.

4. Contrary to claims made in the 60 Minutes story, in addition to significant penalties levied under its Regulations (eg. fines totaling US $2,000,000), the KGC has initiated a criminal complaint against at least one cheater (Russ Hamilton) and is cooperating with law enforcement authorities. Other such complaints may follow.

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