Brief Of Professional And Amateur Poker Players As Amici Curiae In Support Of Petitioner (12/06/2013)

Embed Size (px)

Citation preview

  • 8/13/2019 Brief Of Professional And Amateur Poker Players As Amici Curiae In Support Of Petitioner (12/06/2013)

    1/21

    {00020564;v2}

    No. 13-564

    INTHE

    S upreme Court of the United S tates_________

    LAWRENCE DICRISTINA,

    Petitioner,v.

    UNITED STATES,

    Respondent._________

    On Petition for a Writ of Certiorarito the United States Court of Appeals

    for the Second Circuit_________

    BRIEF OF PROFESSIONALAND AMATEUR POKER PLAYERS AS AM I C I

    CUR IAEIN SUPPORT OF PETITIONER_________

    PATRICK W. FLEMI NG3201 Lafayette RoadPortsmouth, NH 03801(603) [email protected]

    KENNETH L . ADAMSCoun sel of Record

    ADAMS HOLCOMB LLP1875 Eye Street N.W.Washington, D.C. 20006(202) [email protected]

    Counsel for Amici

  • 8/13/2019 Brief Of Professional And Amateur Poker Players As Amici Curiae In Support Of Petitioner (12/06/2013)

    2/21

    i

    TABLE OF CONTENTS

    {00020564;v2}

    TABLE OF AUTHORITIES........................................ii

    STATEMENT OF INTEREST ....................................1

    SUMMARY OF ARGUMENT.....................................3

    ARGUMENT................................................................5

    I . THE RULES OF NO L IMIT TEXASHOLDEM POKER.........................................5

    II. POKER IS QUALITATIVELY MORESKILLED THAN GAMBLINGGAMES...........................................................8

    A. Math Skills..............................................11

    B. Observing Your Opponents....................11

    C. Manipulating Your Opponents ..............13

    D. Putting It All Together...........................14

    III . POKER IS A GAME OF SKILL FOREVERY PLAYER, INCLUDINGAMATEURS.................................................15

    CONCLUSION ..........................................................18

  • 8/13/2019 Brief Of Professional And Amateur Poker Players As Amici Curiae In Support Of Petitioner (12/06/2013)

    3/21

    ii

    TABLE OF AUTHORITI ES

    {00020564;v2}

    CASES:Commonwealth v. Laniewski, 98 A.2d 215

    (Pa. Super. 1953)...............................................16

    State v. Steever, 246 A.2d 743 (N.J . Super.App. Div. 1968)..................................................17

    Town of Mount Pleasant v. Chimento, 737S.E.2d 830(S.C. 2012).........................................1

    United States v. Frazier, No. 07-CR-10, 2007WL 1239206 (E.D. Tenn. Apr. 27, 2007)(unpublished disposition)..................................16

    STATUTE:18U.S.C. 1955...................................................3, 4

    RULE:S. Ct. R. 37.2.............................................................1

    OTHER AUTHORITY:ChiUng Song et al., The Comparative

    Accuracy of J udgmental & ModelForecasts of American Football Games,23 Intl J . Forecasting 405 (2007).....................17

  • 8/13/2019 Brief Of Professional And Amateur Poker Players As Amici Curiae In Support Of Petitioner (12/06/2013)

    4/21

    1

    {00020564;v2}

    \\DC - 040757/000001 - 5246225 v14

    STATEMENT OF INTEREST1Amici include four highly accomplished

    professional poker players, as well as ten amateurpoker players who reside in the Eastern District ofNew York where this case was originally decided.

    The professional-player amici have spent manydecades making a living from their poker skills.Amicus Michael Sexton has been a successfulprofessional poker player for 30 years and is amember of the Poker Hall of Fame. During the past11 years, in addition to playing professionally he hasserved as the lead commentator for nationallytelevised broadcasts of tournaments sponsored bythe World Poker Tour (WPT), one of the twoleading poker tournament series in the world. Hehas taught seminars on strategic thinking to lawstudents at Harvard Law School and to MBAstudents at Ohio State University. And he hasprovided expert testimony on the question whether

    skill predominates over chance in poker. See Townof Mount Pleasant v. Chimento, 737 S.E.2d 830 (S.C.2012) (testimony in trial court).

    Amicus Gregory Raymer is a 49-year-oldprofessional poker player. Before he played poker fora living, Mr. Raymer earned his masters degree inbiochemistry and a law degree from the University ofMinnesota and practiced patent law for 12 years,

    1 The parties have consented to the filing of this brief.

    Counsel of record for both parties received timely notice ofamicis intent to file this brief under this Courts Rule 37.2. Nocounsel for a party authored this brief in whole or in part, andno person other than amiciand their counsel made a monetarycontribution to the preparation or submission of this brief.

  • 8/13/2019 Brief Of Professional And Amateur Poker Players As Amici Curiae In Support Of Petitioner (12/06/2013)

    5/21

    2

    {00020564;v2}

    specializing in biotechnology and geneticengineering. In 2004 Mr. Raymer won theprestigious World Series of Poker Main Event,besting a field of 2,576 players and winning $5million. He has earned his living as a full-timeprofessional poker player since 2004. In addition tocompeting in both tournaments and cash games, Mr.Raymer teaches poker seminars and served for manyyears on the Board of Directors of the Poker PlayersAlliance, a non-profit organization that works to

    protect and advance the rights of poker players.Amicus J onathan Little is a 28-year-old

    professional poker player, who has earned his livingsince college playing cash games and tournamentpoker both online and in licensed poker rooms. Mr.Little was part of the vanguard of young, tech-savvyplayers who applied the tools of computer technologyin ways that revolutionized the game of poker andfueled the poker boomduring the first decade of the21st century. He earned Player of the Year honors

    from the World Poker Tour in 2008.Amicus Vanessa Selbst is a 29-year-old

    professional poker player. A graduate of YaleUniversity and Yale Law School, she earns her livingentirely from poker, in cash games and intournaments. In her young career to date Ms. Selbsthas won 12 tournament titles including two WorldSeries of Poker titles, and has made five WorldSeries final tables.

    The amateur amici are Noah Levenson, Anthony

    DelGigante, David Torchiano, Daniel Schwartz,Danile Guido, David Dilbert, Edward Ritter, MarioReyes, Martin Salberg, and Mark Spadaro. Theiroccupations include attorney, physician, engineer,

  • 8/13/2019 Brief Of Professional And Amateur Poker Players As Amici Curiae In Support Of Petitioner (12/06/2013)

    6/21

    3

    {00020564;v2}

    executive, information technology professional,salesman, and teacher. In their spare time they, likemillions of other Americans, enjoy playing poker andhoning their skills at the game.

    Amici have decades of collective experience, overthe course of millions of poker hands, and are expertson the issue of the relative roles of skill and chancein both tournament and cash game poker. Theprofessional amici have a strong and continuinginterest in the legal status of the activity on which

    they depend for their livelihood. And it is thecommon experience of all the amici thatas J udgeWeinstein held in the District Courtthepredominance of skill over chance in poker makes itfundamentally different from the gambling gameslisted in the I llegal Gambling Business Act, 18U.S.C. 1955. That categorical difference shouldhave informed the Court of Appeals conclusionsabout what the IGBA means. As DiCristina observesin the petition, the Second Circuit should have

    recognized that the examples Congress chose toenumerate in its definition of gambling are all of thesame kind: They are all games of chance. The wordgambling in the IGBA therefore embraces othergames of chance. Poker, by contrast, is a game ofskill. I t thus does not fall within the IGBA. Pet. 28.

    SUMMARY OF ARGUMENTThe four professional and ten amateur poker

    players filing this brief share a common belief thatthe game of poker, and players like themselves, have

    been unfairly treated by federal law enforcement.Amici, and indeed all regular poker players, knowfull well that poker is a game in which relative skillseparates winners from losers. In this regard poker

  • 8/13/2019 Brief Of Professional And Amateur Poker Players As Amici Curiae In Support Of Petitioner (12/06/2013)

    7/21

    4

    {00020564;v2}

    is similar to golf, bridge, Scrabble, and numerousother games of skill where players put up a monetarystake, compete against each other, and reward thewinning player. Unlike poker, competitionsinvolving those games have never been brandedfederal felonies.

    The premise underlying the IGBA prosecution ofPetitioner is that poker belongs in the same categoryas gambling games of chance such as roulette,lotteries, and slot machines, rather than games of

    skill l ike golf, bridge, and Scrabble . But as theamiciknow from experience, and as the District Courtfound from expert testimony, the governmentscategorization of poker is wrong and should becorrected. Poker requires a level of skill not presentin any of the games listed in the IGBA. Skilled pokerplayers draw upon a variety of disciplines, includingmathematics, game theory, pattern recognition andhuman psychology. They must weave thesedisciplines together in real time to produce favorableoutcomes, competing against others who areattempting to do the same. In each hand of poker,and over a typical session of poker, players exercise adiverse array of skills, and see their outcomesinfluenced by how well and how consistently theyexercise those skills.

    Petitioner was charged pursuant to 18 U.S.C. 1955, the I llegal Gambling Businesses Act (IGBA).Congress choice of name for the statute would seemto limit it to businesses that engage in gamblinggames, i.e., games of chance; and indeed, the list ofgames included in the statutes definition ofgambling are solely games of chance. Under anyreasonable interpretation of the IGBA, operating abusiness that routinely hosts Scrabble or golf

  • 8/13/2019 Brief Of Professional And Amateur Poker Players As Amici Curiae In Support Of Petitioner (12/06/2013)

    8/21

    5

    {00020564;v2}

    tournaments would therefore not be a federaloffense, regardless of what state law (if any) saysabout the matter. Because poker is no less acompetition of skill than Scrabble, it is also outsidethe IGBAs definition of gambling. The Court shouldgrant certiorari to correct the Second Circuitsmisinterpretation of this important federal statute.

    ARGUMENT

    I. THE RULES OF NO LIMIT TEXASHOLDEM POKER.

    No Limit Texas HoldEm is a poker game playedwith a standard deck of fifty-two playing cards, andchips that constitute tokens representing value,usually money. The gamecan be played with as fewas two players, but a typical game includes nine orten. Play proceeds in a series of hands. In eachhand, the players create five-card poker hands bycombining two personal concealed cards (holecards) with five shared community cards. Playersmay use one, both or none of their hole cards.

    A typical hand of No Limit HoldEm takes abouttwo minutes. The sequence of play is as follows.First, the two players to the left of the dealer eachpost small forced bets, known as the small blindand the big blind. Typically the big blind is twicethe amount of the small blind. The blinds are theonly compulsory bets, and the obligation to post themrotates clockwise around the table with the start ofeach new hand.

    Once the blinds are posted, each player is dealt twohole cards face down. A round of betting then takesplace, in which all players who wish to stay in thehand must at least match the size of the big blind.

  • 8/13/2019 Brief Of Professional And Amateur Poker Players As Amici Curiae In Support Of Petitioner (12/06/2013)

    9/21

    6

    {00020564;v2}

    When it is his turn to act, a player may call (matchthe previous bet), raise (increase the size of theprevious bet) or fold (discard his hand withoutputting any chips in the pot). The amount of eachraise must at least equal the amount of the previousbet or raise; the maximum amount is equal to thetotal number of chips in the raising players stack.The game is referred to as No Limit Texas HoldEmbecause a player is permitted to bet all of his chips ina single beta maneuver known as going all in.

    After the first round of betting, three communitycards (the flop) are dealt face up in the center of thetable. Those three cards can be used by each player,in combination with her two hole cards, to create afive-card poker hand. A second round of betting thentakes place among those who did not fold during thefirst betting round.

    After the second round of betting, a fourthcommunity card (the turn or fourth street) isdealt face up in the center of the table. The four

    community cards can be used by each player, incombination with his two hole cards, to create a five-card poker hand. A third round of betting then takesplace among those who did not fold during either thefirst or second betting round.

    Finally, after the third round of betting, a fifthcommunity card (the river or fifth street) is dealtface up in the center of the table. The fivecommunity cards can be used by each player, incombination with her two hole cards, to create a five-

    card poker hand. A fourth and final round of bettingthen takes place among those who did not foldduring the previous three betting rounds.

  • 8/13/2019 Brief Of Professional And Amateur Poker Players As Amici Curiae In Support Of Petitioner (12/06/2013)

    10/21

    7

    {00020564;v2}

    There are two ways to win a hand of TexasHoldEm. The first is to make a bet (during anyround of betting) that induces all of the other playersto fold. I f a player does so, he wins the pot withoutshowing his cards. The vast majority of poker handsend this way. When a player bets in order to inducean opponent to fold a better hand, that maneuver isknown as bluffing,and it is integral to the game ofpoker. The second way to win is at the end of thefourth round of betting; if two or more players are

    still active in the hand, the player who shows thebest five-card poker hand (by combining his two hole

    cards with the five community cards) wins the pot.2

    2The rank order of poker hands, from strongest to weakest, is

    as follows:

    Straight flush: five cards of consecutive rank in the samesuit. The highest possible straight flush is a royal flush,e.g.,

    T J Q K A.

    Four of a kind: all four cards of the same rank, and a

    fifth card known as a kicker,e.g., A A A A 5. Full house: three cards of one rank, and two of another,

    e.g., K K K 3 3.

    Flush: five non-consecutive cards of the same suit, e.g.,A Q T 6 5.

    Straight: five cards of consecutive rank, but differentsuits, e.g., 3 4 5 6 7.

    Three of a kind: three cards of the same rank, and twokicker cards.

    Two pairs: two separate pairs of cards of the same rank,

    and a kicker.One pair: a single pair of cards of the same rank, and three

    kickers.

    (continued on next page)

  • 8/13/2019 Brief Of Professional And Amateur Poker Players As Amici Curiae In Support Of Petitioner (12/06/2013)

    11/21

    8

    {00020564;v2}

    Once a hand ends, another hand beginsimmediately, with the obligation to pay the blindsrotating clockwise around the table. Play continuesindefinitely. Texas HoldEm games can also beorganized into tournaments, in which the chips donot represent cash. In tournaments, players playuntil they lose all of their chips, and the prizes aredistributed to the players who last the longest, inaccord with an agreed-upon payout structure.

    II . POKER IS QUALITATIVELY MORESKILL ED THAN GAMBLI NG GAMES.

    Poker is a game of skill in two senses. First, as theevidence below showed, the influence of skill isquantifiably greater than that of chance. Second,poker is qualitatively a game of skill in the sensethat poker players use a diverse array of skills toovercome the influence of chancea feat not possiblein a gambling game.

    Poker differs from gambling in two importantways. First, gamblers play the odds: the most

    skilled gamblers can make astute predictions aboutfuture events beyond their control. Poker players donot play the odds, they change them. They do notmerely analyze the likelihood that a given hand maywin the pot; they play the hand in a manner that isdesigned to shift the odds in their favor. The mostobvious example is bluffing, where a player, using

    High card: a hand that does not constitute any of theabove.

    If two players have the same kind of hand, the player holdingcards of a higher rank prevails; there is no priority of suits.Thus, if two players each have a pair of aces, then the playerwith the highest kickers wins. I f two players have hands ofidentical rank, they tie.

  • 8/13/2019 Brief Of Professional And Amateur Poker Players As Amici Curiae In Support Of Petitioner (12/06/2013)

    12/21

    9

    {00020564;v2}

    nothing more than his wits, bets and wins a handeven though he holds the worse cards.

    But bluffing is only one example. Every hand ofpoker requires multiple decisions whether to bet,fold, call or raise (and if so, how much). Skilledplayers like amicibring an array of diverse skills tobear on each decision. As a result, over the course ofa typical 4-8 hour session they are able to makehundreds of decisions better than less skilledplayers. Those decisions are the heart of poker.

    Second, success in poker turns on the relative skilllevels of the players. Gambling games are rigged todisfavor the players, such that gamblers must beatthe odds or get lucky in order to win. But a pokerplayer does not have to beat the oddshe only has tobeat his opponents. This point is important becauseit means that even an average poker player has thecapacity to attain long-term success. By improvingones skills, anybody can become a successful pokerplayer. But no matter how much somebody studies,

    he can never become a winning roulette or lotteryplayer. And in the realm of sports betting, consistentsuccess is reserved for an elite fewthose who are soskilled and who have such great resources that theycan best the predictive ability of professionaloddsmakers. The ordinary sports bettor doesntstand a chance of making a consistent profit againsta bookmaker.

    These principles are amply illustrated in real lifepoker hands, which show that what separates

    winning poker players from losing players is not thecards they are dealt but rather how skillfully theyplay their cards.

  • 8/13/2019 Brief Of Professional And Amateur Poker Players As Amici Curiae In Support Of Petitioner (12/06/2013)

    13/21

    10

    {00020564;v2}

    A pair of aces is the best possible starting hand inNo Limit HoldEm. It doesnt always win. But whenit wins it can win a small pot or a big pot, dependingon how skillfully it is played. Conversely, when itloses it can lose a big pot or only a small potdepending on how skillfully it is played.

    The following video demonstrates a hand in whichan expert player, poker professional DanielNegreanu, is dealt two aces. His opponent catches alucky flop which gives him a better handthree

    sevens. Most players would lose all their chips inNegreanus place, holding two aces and believing itto be the best hand. Instead, through the exercise ofhis considerable poker skills, Negreanu correctlydeduces that his pair of aces is not the best hand andhe folds, losing the minimum. Seehttp://www.youtube.com/watch?v=FkemHmyWGcw.

    Conversely, the next video demonstrates a typicalNo Limit HoldEm hand in which a skillful player(here, amicusLittle) earns the pot by playing his

    hand in a manner that is calculated to induce hisopponent to fold what would have been the winninghand had he called the final bet. A less skilledplayer would have played the hand more passivelyand would have lost the pot (or folded to a bet by hisopponent). Seehttp://youtu.be/gtAnAC6DXag.3

    The skills necessary to succeed consistently at thegame of poker can be grouped into a few broadcategories:

    3This video clip is part of a training video prepared by amicus

    Little for members of his online training site. I t is areconstruction of an actual hand played by amicusLittle duringa WPT championship tournament.

  • 8/13/2019 Brief Of Professional And Amateur Poker Players As Amici Curiae In Support Of Petitioner (12/06/2013)

    14/21

    11

    {00020564;v2}

    A. Math SkillsSkilled poker players engage in precise calculations

    on the fly using a variety of tools to weigh theprobable costs and benefits of each available move.

    Poker math is not limited to numerical calculationsand statistical probabilities. Poker players must alsodevelop a working knowledge of advancedmathematical concepts such as game theory in orderto make the best possible decisions when to fold, betor raise (and how much), taking into account howtheir opponent is likely to respond and recognizingthat each player can only estimate (and not know forcertain) what cards their opponent holds.

    Even more important, these math skills form only afoundation for the exercise of other skills. Unlikegamblers who simply play the odds, poker playersuse their understanding of mathematics as one ofmany inputs into complex decisions at the table.

    B. Observing Your OpponentsSkilled poker players are constantly looking for

    information they can use to reduce the inherentuncertainty about the cards held by their opponents,and thereby increase their own ability to determineaccurately whether they should bet, raise or fold.Highly skilled players like amici have the ability toput their opponent on a handi.e., correctly gaugethe type of hand their opponent holdswithprecision that often amazes onlookers.

    Reading players is a skill born of pattern

    recognitionobserving ones opponents constantly,and correlating their behaviors to the strength orweakness of the hands they show. Much of thatinformation is collected during hands in which you

  • 8/13/2019 Brief Of Professional And Amateur Poker Players As Amici Curiae In Support Of Petitioner (12/06/2013)

    15/21

    12

    {00020564;v2}

    have folded, when you are free to concentrate onobserving the other players who are contesting forthe pot. Over time, players learn to identify patternsof behavior that correlate to demonstrated handstrength (or weakness), and bring those correlationsto bear while contesting a pot.

    The following is a video clip of a hand in whichDaniel Negreanu tried unsuccessfully to induce hisopponent, fellow poker professional Freddie Deeb, tofold the better hand. As soon as Negreanu made his

    final bet Deeb wondered aloud why he chose to makesuch a large bet. In the end, Deeb reached thecorrect conclusion that the size of the bet made itmore likely that Negreanu was bluffing, and hecalled with a mediocre hand that was good enough towin the pot, eliciting admiring reactions from theother pros at the table (suggesting that most of themthought Negreanu had the better hand, and theywould have folded had they been in Deebs shoes.)See www.bing.com/videos/search?q=+freddy+deeb+calls+negreanu+bluff&mid=E1A60C15665EEEA11CE6E1A60C15665EEEA11CE6&view=detail&FORM=VIRE2.

    Another source of information about the strengthor weakness of an opponents hand comes fromobserving unconscious physical movements (oftenreferred to as tells). For example, every person hasa normal blink ratethe frequency with which hereyes blink. Most people blink faster than usualwhen they are lying. I f an unskilled player makes abig bet and starts blinking faster than usual, it is

    likely that she is bluffing. Of course you can onlytake advantage of that information if you haveobserved that opponent prior to the hand and noted

  • 8/13/2019 Brief Of Professional And Amateur Poker Players As Amici Curiae In Support Of Petitioner (12/06/2013)

    16/21

    13

    {00020564;v2}

    her normal blink rate while relaxed, and also observea change in blink rate when the big bet is made.

    Skilled players are constantly observing theiropponents and noticing a variety of body movements,in order to detect clues that the player is feelingstressed (which often correlates to misrepresentingthe strength of their hand). Changes in the positionof feet, legs, hands or posture; mouth and eyemovements; pulse rate as seen in the pulsing of thecarotid artery; respiration rate; dilation of pupils

    all can provide clues to a players stress level ifcarefully observed.

    The following video shows a hand in which DanielNegreanu correctly readshis opponent as holding aweak hand, and uses that to maximize his profit. Atthe conclusion of the hand, former FBI polygraphexpert J oseph Navarro points out the facial tellsthat tipped off Negreanu to his opponents weakness.See www.youtube.com/watch?v=bg31pA_aG8U&feature=youtube.

    C. Manipulating Your OpponentsThe flip side of observing opponents and

    identifying betting patterns or physical tells isgiving out disinformation to your opponents in orderto induce them to call when you have a strong handor fold when you are bluffing. Thus you mightdeliberately increase your blink rate, or lick yourlips, when you have a strong hand and want toinduce your opponent to call with the second-besthand. Or, if you have shown a winning hand after

    making a small bet that was called, you might induceyour opponent to fold the next time you run a bluff,by making a similarly small bet that he willmisinterpret as strength.

  • 8/13/2019 Brief Of Professional And Amateur Poker Players As Amici Curiae In Support Of Petitioner (12/06/2013)

    17/21

    14

    {00020564;v2}

    In the video referenced on page 10, supra, amicusLittle explains how he induced his opponent to foldthe better hand by employing a series of bets thatwere calculated to lead his opponent to the wrongconclusion about the strength of his hand. .

    D. Putting It All Together.Ultimately, the skill level of each poker player is

    determined by the extent to which he can (a) developthe variety of skills that contribute to making correctdecisions, (b) bring them to bear under stress in the

    short period of time available each time he mustmake a decision whether to bet, raise or fold, and (c)do that hundreds of times in a single 4-8 hoursession of play.

    The following video excerpt of a hand played bypoker professional Tom Dwan provides a glimpse ofthe array of skills he brings to bear in winning alarge pot with the worst hand, inducing two otherskilled professional players to fold. Seewww.youtube.com/watch?v=gxo1mAng090.

    Note that the success of Dwans play depended onthe accuracy of his judgment about the type of handshis opponents held (based on their betting) and abouthow his opponents would react to his moves, basedon his observation of his opponents over time.

    He correctly determined what his opponents had;he correctly calculated what they would think he hadif he bet his hand in a certain fashion; and hecorrectly judged that they were skilled enough to folda strong hand if they believed they were beaten. In

    the minutes it took to play that hand, and theseconds it took to make each decision, Dwan broughtto bear his history of observing these opponents aswell as many hours of experimenting with positional

  • 8/13/2019 Brief Of Professional And Amateur Poker Players As Amici Curiae In Support Of Petitioner (12/06/2013)

    18/21

    15

    {00020564;v2}

    plays of this sort. In the end, he had the confidenceand courage to make a winning play that would havebeen very costly if it had failed. In doing so hedemonstrated the kinds of skills that amici and allwinning players employ to achieve consistentlybetter results at the poker table than their lessskilled opponents.

    II I. POKER IS A GAME OF SKILL FOR EVERYPLAYER INCLUDING AMATEURS.The skills of an amateur player may not be as

    advanced as those of amici Sexton, Raymer, Littleand Selbst, but for all winning poker players at everylevel of skill poker is a game of skill, not chance.

    No matter what the stakes, or what the playerslevel of skill, poker players all strive to deploy theskills discussed in the previous Part to the best oftheir ability. Moreover, it is their ability to outplaythe people at the table with them that makes pokerplayers successful or not. This makes pokerfundamentally different from the gambling games

    listed in the IGBA. Those gamesby their verydesigninclude rules and mechanisms designed tomake it impossible for the vast majority of players toever succeed. For example, in the game of roulette,virtually every bet has an identical expected value.And no matter which bet a player makes, the playeris always at a disadvantage versus the house. Thesame is true, of course, of slot machines, crapsgames, and every other game traditionally regardedas gambling. These are games of chance in the

    sense that in order to win, the player must overcomeslanted odds and get lucky. Players who have a well-developed knowledge of probabilities can sometimesmake bets that are less badthan others, but they can

  • 8/13/2019 Brief Of Professional And Amateur Poker Players As Amici Curiae In Support Of Petitioner (12/06/2013)

    19/21

    16

    {00020564;v2}

    never make a play with a positive expected value.The vast majority of players, however, would do justas well by playing randomly as they would byapplying their best efforts; the games are built thatway.

    The same is true of gambling games that appear,on their face, to require skill, such as bookmaking.The amateur bettor simply cannot hope to makemoney betting at sports because the amateur bettorlacks the resources and knowledge to defeat

    professional oddsmakers. Courts have longrecognized this. See, e.g., United States v. Frazier,No. 07-CR-10, 2007 WL 1239206, at *4 (E.D. Tenn.Apr. 27, 2007) (unpublished disposition) (Theathletes themselves, who are competing in anyathletic event, are not gambling, even if they areprofessional athletes who are competing for avaluable purse . . . because, from their perspective,the outcome is based upon their skill and effort, notby mere chance. The same would be true of boxing,football, basketball, and any other sport one wouldcare to name. On the other hand, it undeniably isillegal for spectators to bet on the outcomes of thosesame sporting events because those outcomes, fromthe perspective of the spectators, [are] based purelyon chance.); Commonwealth v. Laniewski, 98 A.2d215, 249 (Pa. Super. 1953) (holding that even thoughfor an avid student of the sport of football thechance taken is not so great as for those who havelittle interest in the game . . . it is commonknowledge that the predictions even among these so-

    called experts are far from infallible. Any attempt toforecast the result of a single athletic contest, be itfootball, baseball, or whatever, is fraught withchance. This hazard is multiplied directly by the

  • 8/13/2019 Brief Of Professional And Amateur Poker Players As Amici Curiae In Support Of Petitioner (12/06/2013)

    20/21

    17

    {00020564;v2}

    number of predictions made.); State v. Steever, 246A.2d 743, 744 (N.J . Super. App. Div. 1968) (holdingthat football pools were dominated by chance). Andstudies have reached the same result. See, e.g.,ChiUng Song et al., The Comparative Accuracy ofJ udgmental & Model Forecasts of American FootballGames, 23 Intl J . Forecasting 405, 411 (2007)(considering a pool of 18,000 expert forecasts and12,000 forecasts from statistical systems on theoutcome of NFL games to determine that experts

    did slightly worse than the nave forecast, i.e.,flipping a coin, and that neither experts nor systemsachieved a profit when their predictions were pittedagainst the Las Vegas oddsmakers lines).

    Poker is different. At a poker table, a player doesnot have to defeat the office of a professionaloddsmaker, nor does he have to prevail against a setof rules designed to tilt the game against him.Instead, the poker player needs to outwit hisopponents at the table with himwho areindividuals, just like him. Thus, even an amateurpoker player can prevail by exercising skill at hishome poker game, his local card room, in an Internetgame, or a Las Vegas casino. I f that player findsopponents who play with less skill, he will prevail; ifhe takes on opponents who are better than he is, hewill lose. That is the essence of a game of skill, andit makes poker fundamentally different fromgambling.

    In sum, the games listed in the IGBAs definition ofgambling simply have none of the interpersonal

    jousting that makes poker a favorite pastime for somany Americans. They are qualitatively differentgames because they involve wagering on events thatare outside the players control, whereas in poker the

  • 8/13/2019 Brief Of Professional And Amateur Poker Players As Amici Curiae In Support Of Petitioner (12/06/2013)

    21/21

    18

    {00020564;v2}

    wagers themselves are the primary tool that theplayers use to control the outcome of the game. Thatis what makes the Second Circuits decisionclassifying poker as gambling so wrong. This Courtshould grant certiorari to establish that whenCongress sought to criminalize gamblingbusinesses, it did not intend to impose federalcriminal liability for games of skill like poker.

    CONCLUSIONAmici urge the Court to grant the petition for awrit of certiorari.

    Respectfully submitted,

    KENNETH L . ADAMSCounsel of Record

    ADAMS HOLCOMB LLP1875 Eye Street N.W.Washington, D.C. 20006(202) [email protected]

    PATRICK W. FLEMING3201 Lafayette RoadPortsmouth, NH 03801(603) [email protected]

    Counsel for Amici

    December 6, 2013