Online Poker Kings Get Cashed Out

Killing livelihoods and a $2.5 billion industry, the feds attack Internet gambling

Online Poker Kings Get Cashed Out

When you've turned nothing into something once already, you tend to feel like you can do it again. There's faith your luck will turn. Perhaps it's delusion. But for a professional poker player, self-confidence is essential.

So it is for Walter Wright, who now finds himself in Costa Rica. He left his wife and two children behind to redeem their failing finances and faltering marriage by doing something that's now illegal in the United States—playing poker online.

Wright's life began to change in 2005, when he followed his then-girlfriend from New Orleans to Virginia, where she was beginning law school at Washington and Lee University. He had played strategy and role-playing video games as a kid in Houston and later began to obsess over chess. That's when he noticed his chess buddies were becoming increasingly dedicated to online poker and raving about the returns. Wright became engrossed.

Before the government crackdown on online gambling, Maxwell Fritz made $100,000 over 18 months of playing—all while still attending Princeton.
Photograph by Will Rice
Before the government crackdown on online gambling, Maxwell Fritz made $100,000 over 18 months of playing—all while still attending Princeton.
Vanessa Peng moved to Canada to gamble online after it became illegal in the States.
Courtesy of Vanessa Peng
Vanessa Peng moved to Canada to gamble online after it became illegal in the States.

He started as most people do, playing what's known the "cash game." It's simple poker—win by pushing your advantage when the cards are good and bluffing when they're not. If you know the odds, bet wisely, and seek out tables with lesser players, within a year or two, you can be making a grand a week or more. Five to 10 times more.

Wright started at low-stakes Texas Hold'em with table limits of just 25 and 50 cents. The beauty of playing online is that he could work eight tables at once. It wasn't the best of money. Pokerstars.com was taking its own cut from the pots, generally capped at $2 to $3 per pot. But as a volume player, he also received rewards points redeemable for things such as Amazon gift certificates, which he used to buy food in bulk.

"I was grinding my face off," Wright recalls.

As Wright honed his feel for the odds and what his opponents were holding, he moved up to sit-'n'-go games, which are essentially small-scale tournaments that can be finished in an hour. It took time, but he began to see more money than he had ever witnessed as a waiter in New Orleans.

Wright made $17,000 that first year and quit his job. He made $28,000 the next and $55,000 the year after.

Four years ago, when his wife got a job in the Las Vegas public defender's office, the Wrights shipped off to Nevada. Wright dabbled in casino poker, where the stakes are higher. But it also required a bigger bankroll and presenting wider swings of fortune. He wasn't ready.

"I made some money to, like, get some new tires on the car," Wright says. "Make some money and pay a bill. . . . I was getting a little frustrated with that."

That's when he discovered multi-table tournaments online. They're like sit-'n'-gos but feature as many as 200,000 participants in a single tourney—and much bigger pots.

It was easier than playing head-to-head in cash games, since the competition was generally worse. Wright's strategy was to play dozens of tournaments a night—primarily on PokerStars—move conservatively through the early rounds as the lesser players fell away, and then amp his aggressiveness as the field whittled down.

It was still a grinding way to make a living, sometimes requiring Wright to stare at a computer for 24 hours straight. But he'd spent his teens pulling World of Warcraft all-nighters. And now, instead of making bank with tiny pot after tiny pot, he could bring home as much as $15,000 in a single session.

The first year of online tournaments brought in $100,000. A year later, Wright's earnings had doubled, thanks to more than $100,000 he won by reaching the final table in the seventh World Series of Poker event in the summer of 2009.

But the money was coming a bit too easily. "We never really learned to manage money because nobody in our family has ever had any," Wright says. "So we didn't manage it well. . . . My mind-set became: 'How much money do you need? I'll make more.' Rather than 'We need to cut down on expenses,' it was 'Don't worry. I'll shoot for this goal.'"

Wright found himself retreating more and more into the casinos, especially when he and his wife would fight. He was becoming a classic workaholic, and he didn't enjoy the soul-sapping casino atmosphere. He was equally worried about the effect of Las Vegas on their kids.

Last year, Wright convinced his wife to move to Asheville, North Carolina, to be closer to her parents. The plan was for her to take the year off, care for their newborn daughter, and study for the North Carolina bar exam. Wright would support them by playing online.

Most of their bank account was consumed by the move, but Wright had few worries. Why should he? He could always make more.

They moved April 1. Two weeks later, the federal government took Wright's job.

In the poker world, April 15 is known as Black Friday. That's the day the U.S. Department of Justice seized the assets and shut down the three biggest companies serving the American market—PokerStars, Full Tilt Poker, and Absolute Poker (which also operated Ultimate Bet)—charging them with bank fraud, money laundering, and illegal gambling.

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