Nick Koustas sat at a bar inside the high-roller room of the Palms casino, face to face with poker legend Johnny Chan.

Chan showed up at the Las Vegas resort to talk business, not to compete.

He wanted to know whether Koustas could build a poker Web site and raise the cash to get it going. Chan, the poker star known for his aggressive play and a cameo in the 1998 Matt Damon movie Rounders, offered to lend his name and expertise.

Koustas, a 36-year-old University of Colorado alum, jumped at the opportunity. He left the meeting with a handshake and an agreement.

He and colleagues Xander Oxman and John Mix got to work, securing $5.4 million from investors and creating the Web site JohnnyChan.com. It's an online poker school that aims to teach Chan's style of play to the masses and to capitalize on the mounting interest in the game.

Koustas, a Denver-based entrepreneur, had been in the middle of a friend's bachelor party about a year ago when he was summoned by Chan's manager to the impromptu meeting. They had talked previously about possible deals, but the telephone call was unexpected.

Poker enthusiasts outside the U.S. can wager money at the site, Koustas said, though U.S. law means those within our borders can't legally bet (they still can play without handing over cash). It's what Koustas hopes will distinguish the Chan site from others that have drawn heat.

"This is a clean site," he said. "And we've got one of the biggest names in poker attached to it."

Internet gambling sustained a blow after a bill was passed last year barring U.S. credit-card companies and banks from processing bets, and a number of sites have cut off U.S. business amid a government crackdown.

Residents in this country can play at no cost and strive for a shot at winning a tutorial and dinner with Chan. They also can get strategic advice and tips about keeping emotions in check, managing money and avoiding beginner mistakes.

The Denver trio also is launching "Johnny Chan Universities," both online and at brick-and-mortar locations, to train casino dealers. Ordinary customers will be able to receive an education, too.

Focusing on Asian market

Chan explained in a telephone interview that he's focusing on the Asian market.

"The timing is great," Chan said. "With Asia and Europe, there's a big pie out there."

China is a top priority. Customers there will not be able to gamble but will be able to learn the game from a professional.

Chan, raised in Canton, China, will be a good ambassador they trust.

Chan, who has won 10 World Series of Poker bracelets during his career, said he's looking forward to imparting his wisdom.

"So many players get lucky," he said. "They win $100,000, $200,000 and they think they walk on water. I can teach them."

Online poker has become a crowded field with lots of people offering instruction and games. That could make it hard to connect with customers.

Time will tell.

"But at least he has the skills and the bracelets to back it up," said Brian Masters, head of Denver Poker Tour, which organizes tournaments at bars and hotels.

Masters said Chan is popular among the players he meets, though he said many in Colorado probably are bigger followers of names such as Phil Hellmuth.

Few guys have the cachet of Johnny Chan. Poker star Doyle Brunson has his own site, DoylesRoom.com. Hellmuth is aligned with UltimateBet.com.

"We're going to try to differentiate ourselves with the quality of the school," said Oxman, 27. "The ability to connect with Johnny, whether it's watching a webcast lesson or getting the chance to play with him," is another benefit.

Oxman said they'll be aggressive in barring U.S. players from betting money and in keeping abreast of the legal developments in the online poker realm.

Major players interested

Koustas, Mix and Oxman, who work out of an office on Market Street and plan to open a second spot in Nevada, hope to forge an agreement with a casino company and said they've had interest.

A couple of major players, Harrah's Entertainment and Las Vegas Sands, declined to comment.

If they manage to win over one of those companies, it wouldn't be the first time they've pulled off a deal. One of their joint ventures licensed a sports betting system to an outfit called VirtGame.

Progressive Gaming International, a publicly-traded company in Vegas, later acquired VirtGame and purchased its system outright. Koustas and his partners received a cash sum upfront and receive a percentage of the revenue over a 20-year period.

Rapid Bet Live, which allows gamblers to place a variety of bets throughout a sporting event, has appeared at the Palms on a trial basis. Koustas acknowledged the process of getting other casinos to pick it up has gone slowly, but he's confident it will spread.

patonj@RockyMountainNews.com or 303-954-2544

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