PokerListings.com is the world's largest and most trusted online poker guide, offering the best online poker bonus deals guaranteed, over $1m in exclusive freerolls every year and the most free poker content available on the Web.
Breaking Down the AGCC Determination Report
Full Tilt Poker misrepresented itself, lost $331 million in DOJ seizures and failed to repay its customers according to the AGCC Determination Notice that was released today.
Earlier in the day the Alderney Gambling Control Commission officially revoked FTP’s license, turning a large part of the poker world on its head.
Despite a Hail Mary attempt by Full Tilt Poker to acquire an investor and extend its license hearing another 30 days, the AGCC decided that it simply couldn’t wait any longer to reach a verdict on the company.
In a press release the AGCC stated:
"Due to the seriousness of the grounds established against FTP, the Commissioners are of the opinion, that it is in the public and player interest for the Commissioners to discharge their duties without unnecessary delay. The Commissioners therefore reject FTP's application for the Commissioners to adjourn their determination in relation to sanctions."
The Alderney Gambling Control Commission didn’t revoke Full Tilt’s license without reason, however.
What follows is a list of the main grounds upon which the license was revoked:
1. Full Tilt’s financial situation
According to the AGCC’s investigation into FTP, the company is essentially insolvent and made troubling financial decisions in the past.
2. Lack of communication with the AGCC
Full Tilt failed to notify the AGCC several times within the required 48 hours of serious incidents that would negatively affect operations.
According to a report by the AGCC, the Department of Justice seized approximately $331m U.S. dollars from Full Tilt Poker going all the way back to June 2007 and right up until June 2011. These seizures were not reported accurately.
In addition those frozen funds were treated as cash by Full Tilt Poker.
3. Full Tilt failed to repay registered customers
After the events of Black Friday, FTP did not return funds to its U.S. players post-April 15th and, eventually, to its European players.
4. Full Tilt did not cover its customers' balances
Full Tilt Poker did not operate within the approved internal control system and did not have enough funds on hand to cover player balances.
5. Full Tilt allowed players to bet with “phantom” money
Full Tilt permitted customers to make transactions when they were not in possession of the actual funds due to payment processing issues.
The AGCC does not allow poker sites to give players credit in such a manner.
6. Full Tilt failed to submit accurate financial reports
According to the AGCC, FTP submitted financial reports that failed to detail the actual financial situation of the company.
In addition there were several facts that came to light in the Determination Notice:
- FTP requested more time for its suspension hearing to be delayed but was denied.
- Neither FTP nor its legal representatives were present during the initial regulatory hearing on Sept. 19/20 in London. FTP representatives were present at the follow-up hearing on Sept. 27 but did not provide evidence or comment.
- Players’ funds exceed the assets of Full Tilt Poker’s three licensees: Vantage Limited, Filco Limited and Oxalic Limited.
- The accumulation of uncollected payments and the offer of credit amounts to approximately $128 million in U.S. dollars.
For more background on the Full Tilt story, see our Black Friday Bulletin Board.