All In Poker's announced departure from the world
of online
poker sites
didn't come off quite the way it was announced, but one other factor
remains to be considered --- the possibility that Harrah's
Entertainment exercised some behind-the-scenes muscle in an attempt to
squelch what they interpreted as Federico Schiavio's leeching on the
World
Series of Poker's fame. While Harrah's could easily identify
all
the perceived-as-offensive elements of Schiavio's wsop.com site, they
may also have discovered that the references to "WSOP's All in Poker"
were to be found, amazingly, on the allinpoker.com website
itself.
Given
the timing of the lawsuits filed by Schiavio and Harrah's in the
summer of 2006, Harrah's may well have contacted Microgaming about the
WSOP
references on the All In Poker site, and Microgaming in turn may have
contacted All In Poker on the issue, with All In Poker's financial
difficulties also becoming more widely known. Other
Microgaming sites,
such
as Bet Hold'em Poker, were scheduled to have a presence at the World
Series of Poker itself, and most online sites tread carefully when it
comes to Harrah's Entertainment and the WSOP.
Still, that remains conjecture. There may have been
no involvement of Microgaming at all,
but it then would be likely that Harrah's served Schiavio with an
as-yet-unpublished restraining order of some sort, perhaps in July of
2006, about when the 2006 World Series of Poker hit the meat of its
six-week-long run. This could also explain why Schiavio's own
lawsuit against Harrah's was filed first, in August of 2006, with the
Harrah's action not officially filed until September.
[Late edit: Schiavio and
Harrah's continue to trade filings in this ongoing legal matter.]
Another thing that happened at Schiavio's wsop.com was the
taking down
of the existing front page and direct links to the "WSOP's All In
Poker" registration area, along with front-end links to the other
"WSOP"-tagged sections of the site. Most of the newer
replacement
pages, which visitors to the site can now view, feature a green color
theme, while older portions of the site were done in a navy
blue tone corresponding to All In Poker's own color scheme.
As of
this writing, the wsop.com home page contains a lengthy and impassioned
message from Schiavio, in essence a condemnation of Harrah's and a plea
for funds
to help finance his continuing legal battle.
It's interesting, though, that the wsop.com pages referring
to "WSOP's
All In Poker" weren't really gone --- they were just moved to other,
camouflaged directories, some of which were linked to from at least one
other site owned by Schiavio associate Harvey Makishima
of Biosoft Sports, who sells a poker biorythyms software
product
at
pokerbio.net. The Pokerbio software is also linked to from
the "Products" portion of the wsop.com site.
Only one of the pokerbio.net site's links hooks up to the
secreted
portion of Schiavio's site, but subsequent investigations of Schiavio's
site uncovered two
directories where the older wsop.com pages and the "WSOP's All In
Poker" promotional materials remained. The directories
uncovered were these:
http://www.wsop.com/text/
http://www.wsop.com/text/WSOP_html/innerpages/
[this directory was recently
removed]
Both included the promotional materials linking to the All In
Poker
site, even as the current wsop.com front page --- the one condemning
Harrah's --- offers a standard
affiliate-style link to a different, newer online room, PitBull Poker.
Are these pages still in use in a word-of-mouth way?
No one
can say for sure, but what's
interesting is that over on the All In Poker side of the relationship,
another set of hidden directories existed until the very end of 2006,
including a landing page
still tagged as "WSOP All In Poker." What's that?
Didn't All In Poker go out of business? It seems
not. On the very same day that the site was originally
scheduled to drop from view (September 22, 2006), a letter subsequently
went out to a few key affiliates that a new investor had been found.
This is true; a new investor, still a believer in this site's
MLM approach, gave All In Poker a new lease on life. Also, it
seems as though a lot of the preexisting pyramid structure --- along
with perhaps a back-owed rakeback payment or two --- were chopped away
from the structure in the process.
Meanwhile, Schiavio professed to others how he'd been as
scammed as
anyone else, but is it really true? The duplicated
directories on the All In Poker site indicate otherwise, and Schiavio's
own endorsement appears on the All In Poker signup page to this day.
The
standard player-registration page at All In Poker identifies the site
as just that: All In Poker. The other version, however, again
hidden in a parallel directory, attempted to sell to players
the
concept that the site was "WSOP All In Poker," and was the landing page
for any and all sign-up requests originating from Schaivio's wsop.com
pages, through the end of 2006. Here's how they appeared
during November of 2006, although
they have been changed again as of late...
...at https://www.allinpoker.com/registration/register0.jsp:
... and at
https://www.allinpoker.com/aip/registration/register0.jsp:
Note that both pages included a "Click Here" link regarding
information
about All In Poker's post-UIGEA stance --- "UIGEA" referring to the
Unlawful Internet Gambling Enforcement Act, which was signed into law
on October 13, 2006, well
after
Schiavio's disavowing of AIP boss Paul Barnes to other sub-affiliates
in his own downlines, and also well after All In Poker pulled off its
return from oblivion. The "WSOP All In Poker" signup page no
longer exists on the All In Poker site, but was archived by this writer
for posterity.
There were only two possible explanations for the second
page's
existence, prior to the later removal of the "WSOP" reference from the
secret All In Poker registration pages. Either Barnes was
ripping off Schiavio's "WSOP" connection in a manner ironically similar
to Schiavio's own plays on the World Series of Poker, or the two
remained
in cahoots, despite Schiavio's other disavowals. Both
Schiavio and Barnes stood to gain from whatever traffic funneled down
the existing wsop.com pipes, even if it's not quite as prominent as
before the battles with Harrah's reached the courts.
Also, the versions of the All In Poker front pages in
existence during late 2006 included that
endorsement from Schiavio, even if the text does seem outdated... or
curiously understated... for someone with Schiavio's deep ties to All
In Poker. The endorsement is one of twenty or so that
appeared
in rotation on the page, though one can cycle through the entire
endorsement selection at will.
(Late
note: All In Poker has
been editing some of these pages as this piece is being created; the
Schiavio endorsement remains embedded in the code but now seems to
appear only on some of the multiple versions of this page --- hh.)
Per this endorsement:
"People,
this is the best thing I've ever walked into. After only 3
months of
marketing the concept to people I know and meet, I have 166 members.
106 of them are directs so therefore I don't have to play any hands to
get my full commission which is averaging me $50 a day, and this is how
I do it. My standard message to individuals is as follows, We are
giving everyone the opportunity to start their own business, no money
down ever, and be in the black the first month. How? By playing poker
and referring players. When I target web businesses I add the following
line, By marketing my site to your existing customer base you will have
created yourself an additional income stream without investing a cent.
How do I go about recruiting new members? I started going to the card
rooms in my area playing $40 buy in tournaments and sitting down with 9
new prospects every time. After a few hands and some small talk I ask
one of them if they play poker online, if they say yes I give them my 1
minute talk above and my business card with the web site address.
Usually the product description is enough to arouse the person's
curiosity and I wind up giving 5 to 6 business cards at each table.
Soon, everyone in my downline who plays and refers will receive their
own personal website identical to www.wsop.com but with your Sponsor ID
embedded in the link so everyone who goes there and signs up will be in
your downline. There are of course lots of other places to recruit
people who love playing poker and want to earn extra income doing it -
in fact, anywhere that you met up with friends and colleagues. If you
have any questions Email me fxs@wsop.com."
No one's ever said that Schiavio hasn't put a lot
of effort into his
scheme, nor that the idea of a MLM-driven online poker room is destined
to fail. With the free-spending Barnes at the rudder, All In
Poker still seems a long shot at best, particularly if one of its
stocks in trade is to alienate its own network, as happened in
mid-2006.
But that brings us to one last little wrinkle in All In
Poker's
velvet-lined murk.
All In Poker advertises itself as offering "51% rakeback" to
its
players, but that's not strictly true. The commissions paid
also
depend on several other considerations, and only in the instance that
all conditions were perfectly met by all participants would the 51% ---
or anything close to it --- ever be paid.
The MLM portion of All In Poker after its rebirth consists of
"members" and "super
affiliates." A member must play a set number of raked AIP
bonus
hands, 750, during a given period (monthly) to qualify for full
repayment of generated rakeback, as generated by the other members in
his own downline. And if you sign up, play only for yourself
and
don't sign up other members, you get
zero
rakeback. The only way one can qualify to receive full
rakeback
without playing the 750 raked hands monthly is by doing 100
direct
player signup/referrals themselves, a rather sharp increase over the
five players one would have in the level immediately below his
own
part of the MLM pyramid. The 95 others are pushed down to
lower
spots in the pyramid based on the "waterfall" effect, as touted in All
In Poker's
online brochure and e-movie. Only then, having signed up 100
others, does one qualify for the 100% share without playing the 750
hands; otherwise, it quickly slides down a scale to just 25% for no
hands played, with the other 75% reverting to All In Poker.
One can do a combination of both raked hands and other-player
signups
to achieve full, 100% payment status, but the nature of the pyramid
itself then guarantees that every player at the bottom level, with no
players below them, gets nothing back at all. And there's
another
point as well, for those that do sign up other players and somehow
qualify for "100%." 100% of what? Of the 51% of
generated
rake targeted to be repatriated to the players, it has to be
distributed back across the levels above. Here's the
commission
table describing how the rake generated by a given player is
distributed to the players above:
Level # (Max. #
members) % Commission
Level 1 (5) 10%
Level 2 (25) 10%
Level 3 (125) 10%
Level 4 (625) 15%
Level 5 (3,125) 15%
Level 6 (15,625) 15%
Level 7 (78,125) 25%
Total (97,655)
100%
See the problem? It's only once the initial pyramid
begins to
fill up that a significant portion of the purported rakeback goes to
the players, and even then, due to the way the percentages are skewed,
it goes to those levels far above. Whereas the earlier
version of
the All In Poker payment pyramid may have rewarded players for their
own play, that self-generated portion disappeared in the reworked
scheme.
One would be hard-pressed to come up with a greater incentive
for
tearing down and rebuilding a cash-poor pyramid scheme than having a
few thousand of those Level 6 and 7 spots start to fill up,
necessitating that rake be paid to the players rather than
remain
in the All In Poker coffers. The greater the rake percentage
actually being paid to the players, the lower the relative percentage
available for operating costs, whatever those costs are designed to
include. But one thing is clear: The All In Poker
concept,
as with other MLM-designed pyramid schemes, is
really designed to
enrich the people at the top.
* *
* * * * *
* * * *
All In Poker continues its existence as an online
poker skin,
presumably a member in good standing in the Microgaming network.
Schiavio's own wsop.com site also makes use of an
extensive selection of pages describing the basics of poker,
online tournament structures and the like; these dozens of pages of
text come from an earlier version of a library of template pages that
Microgaming grants to
each of its skins as a way to educate their customers about poker
basics and the way the Microgaming network works. More
specifically, the
content of these pages themselves date from 2005, back when Microgaming
was still the Prima Poker Network; this contact has been replaced by
newer
versions on most, but not all, other Microgaming network sites.
It's odd though, that these support pages don't appear on the
All In
Poker site, but are instead found over at wsop.com --- perhaps
explained by Schiavio's need to have some content in place to
show
that this is a real
poker site in his pending lawsuit with Harrah's. The content,
though, represented either an explicit theft of intellectual property
by
Schiavio or a formal business agreement between Schiavio, All In Poker
and Microgaming. (Microgaming did not respond to an inquiry
about
the presence of its content on Schiavio's site, despite the fact that
Schiavio's wsop.com site is
not
the Microgaming member site; All In Poker is.) Despite the
fact
that the exact same Microgaming-created text can be found on a half
dozen other sites, note the ownership disclaimer at the bottom:
It once again demonstrates that Schiavio was far, far more than an All
In Poker affiliate, "super" or not.
The "LTD" tag, indicating U.K. incorporation, is noted, too.
Yes,
Schiavio thought out well his
plans to keep the wsop.com domain out of Harrah's hands or make its
obtainment as expensive as possible. Schiavio worked in Vegas
for
Becky Behnen and recently operated from California, but one report had
him back in his native Italy of late, making the ongoing civil
actions that much more difficult for Harrah's. Paul Barnes,
All
In Poker's chief executive, seems to have relocated as well.
Contact information for AIP in these post-UIGEA days now
heads to
an address in the British Virgin Islands.
A long, strange road indeed. No one can say for
sure the ultimate
fate of the wsop.com domain or Federico Schiavio's MLM dreams.
At
this juncture, no one is talking; it's a matter for the lawyers and the
courts.