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BGonline.org Forums
Punta Cana story
Posted By: Perry Gartner In Response To: Punta Cana story (Taper_Mike)
Date: Friday, 11 November 2011, at 12:05 p.m.
I think you put it very well. I have a few points.
It may be a burden to find out if a business is "well funded" at any point in time. Good examples are MF Global and the poker sites that allegedly co-mingled funds.
I am familiar with the instruments mentioned by Bill and the use of an Escrow account. Escrow accounts very possibly could be the least expensive method to use, and these accounts could be interest bearing.
Currently the players are dependent on the organizers to do due dillegence. The organizer with a profit motive could compromise due dillegence, or be convinced of 'credibility' based on reputation, eg. Madoff. These are all sorts of reasons to implement safeguards even if the integrity of the organizer is impeccable. For those that dont know, Chiva has a well earned reputation for integrity.
My feeling is that if we had an international federation, the responsibility of vetting could be shifted from the organizer. The federation would have the resources and standing to engage the sponsor and do it in the depth required. Tournaments held in countries with viable federations would have the national federation do the vetting or be a conduit for the international federation vetting.
In the meantime, perhaps this incident will motivate players to ask questions before rather than after the fact, and it will certainly sensitize organizers to be more cautious.
I am written this personally and not in my capacity as President of the USBGF. But, I will say on behalf of the USBGF that the subject of sanctioning tournaments has been raised by members of the board, and is something the USBGF could do.
Perry
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