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To really do it right you need to be pretty good at chess, probably 2000+ level.
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Yea and its very easy and done all the time.
Many folks get kicked off of ICC for cheating and its really not that hard at all to tell a computer was playing.
But in general you are right it takes some combination of human skill and software but its doable.
Regarding the OP...
What are you really talking about?
Chess has its on universe online.
ICC
At any given time there are thousands of chess players online (Right now 1,700 with 17 Grandmaster and 39 International Masters). Playing for money is another matter and if it was going to be "created" it would grow out of ICC. Distance matches do occur but the internet is only a partial tool at best, moves are replayed and folks sit in front of a board in a public place in real time. This takes the whole cheating issue and puts it to bed.
Curtains runs the US Chess League website and that's a pretty solid example of a process that works.
US Chess League
Having played in tourney chess for 30+ years, I don't see any desire by myself or any chess player I know to jump to a "casino" chess format. Just wondering did you take any pictures at dinner?
Thanks for the post...