Law & Business

PokerStars Adds Malta License, Will Launch PokerStars.eu

Fri, 10 Feb 2012 08:30:00 -0800

Calling licensing an “arduous task” that requires significant resources and detailed scrutiny of company practices, Hollreiser says despite the effort obtaining the Malta license offers a clear benefit to the players, the industry and the company.

“As countries around the world awaken to the advantages of online poker regulation,” Hollreiser writes, “a development that PokerStars has continuously supported, the industry will continue to wind its way through the complex web of rules that address everything from online security to taxation to consumer protection to corporate finance.

“Sometimes these rules reflect existing regulation in other markets, sometimes they underscore the lack of clear rules elsewhere. That's why we support a regulated marketplace and seek licenses, which provides clarity to players and operators.

Hollreiser says players in European markets will benefit from the new Malta license immediately - particularly in regards to taxation clarification offered to sites operating with licenses from EU nations.

Hollreiser also emphasized that PokerStars will continue to protect player funds in segregated accounts separate from operating accounts.

“We believe that each new license we obtain,” Hollreiser adds, “underscores the reasons why they should feel comfortable playing with us.

“We don't know of any company in our industry that has been licensed by as many jurisdictions as PokerStars.”

Launch Expected Soon

The launch of the new .eu domain could come as early as next week. Sweden and Finland head the list of countries to be served by the new site.

The announcement comes on the heels of PokerStars being approved for a license in Belgium this week.

The following sites will continue to share a player pool:

PokerStars.com (including Spain) PokerStars.ee PokerStars.dk PokerStars.be PokerStars.eu

PokerStars.it and PokerStars.fr remain restricted to players from Italy and France, respectively.

Read the full post here.

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Tapie Confirms Unpaid Debts May Block Full Tilt Deal

Fri, 03 Feb 2012 22:00:00 -0800

Responding to a recent interview with BTG lawyer Behn Dayanim, Tapie confirmed to iGamingFrance that the unpaid debts of 19 poker pros, including Phil Ivey, Erick Lindgren and David Benyamine, could threaten the impending deal to purchase Full Tilt Poker's assets.

The unresolved debt of $16.5 million is not something the Group is willing to take on, Tapie says, especially since the overall financial situation at Full Tilt is "worse than expected."

Still, Tapie says they have reached out to all of the pros and some have even signed repayment contracts already. Some have yet to respond.

Tapie also specifically said Full Tilt players will only be refunded if GBT completes the takeover, which will require "the bulk" of that money returned.

If it isn't repaid, Tapie says it is true it could block the deal.

Said Tapie, roughly translated:

"The poker community, and particularly that made up of former Full Tilt players waiting to recover their funds, deserves to know the reality of the behaviour of some major poker figures who say they are ‘sorry for the situation of Full Tilt players and want to do everything they can to help them get their funds back, blaming the old management, but also refrain from saying how much they have borrowed from Full Tilt, and lost, playing on the site.

"However these losses represent some of the funds owed to the players who are waiting to be reimbursed. When you are a poker player, a great player at that, recognised and admired, the basic rule, it seems to me, is to honour your gambling debts.

"Fortunately, among the 19 players we have attempted to contact, some have immediately called back and worked with us on a repayment plan to clear their debts, and we are already finalising contracts to that effect."

Read the rest of Tapie's comments at iGamingFrance.

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Greenstein Responds to FTP Debt Allegations

Thu, 02 Feb 2012 15:00:00 -0800

Calling the outstanding debts a "serious obstacle" to completing the deal, Dayanim named several players including Phil Ivey, David Benyamine and Greenstein as having outstanding debts they are seeking to have paid before the takeover.

Saying he's been inundated with calls from poker media, Greenstein said it would be easier if he responded in a public place and made a statement concerning his debt on 2+2:

Statement below:

"I borrowed $400,000 to play on Full Tilt a few years ago, before PokerStars had high stakes games. I didn’t pay it back, hoping that some people who owed me and had money on Full Tilt would pay me there so I could use that against the debt. (I'm only owed about $150,000 now).

"I have assumed when this case is resolved, the DOJ will allow methods for dealing with debt to FTP.

"Tapie Group contacted me last week and asked if I would pay them directly. Their attorney offered me the opportunity to pay in installments so I could have a chance to use money owed to me. He even offered me the opportunity to discount my debt if the US players don’t get paid in full"

"I told him that I have never paid less than I owe on any debt and I would rather wait until the DOJ establishes a fund for the US players. I don't believe my debt has any impact on the sale to the Tapie group as they have alleged.

"I was concerned about taking money due to US players and giving it to the Tapie Group because it is understood that the Tapie Group won't be the one paying the US players.

"On the other hand, I realize that the total debt counting other players is substantial, especially because I would include in that tally any money taken from FTP once it had become insolvent."

See the full post along with an excerpt from the letter Greenstein sent to FTP's attorney here.

Greenstein also suggested everyone who owes money to Full Tilt discusses it openly for "a better chance that they will make good on their debts" and so "money will end up in the pockets of players with balances on FTP."

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Unpaid Pro Debts “Serious Obstacle” in FTP Deal

Thu, 02 Feb 2012 10:00:00 -0800

Behn Dayanim, the lawyer representing the Tapie Group, told pokerstrategy.com in an exclusive interview that the due diligence process has revealed Full Tilt’s financial situation to be “substantially worse” than anticipated.

In particular, outstanding debts to the company from pros including Phil Ivey, Mike Matusow, David Benyamine, Erick Lindgren and Barry Greenstein could be problematic.

Said Dayanim:

"GBT doesn't want to acquire assets which will need to be litigated over later. In total, the sum owed to the company is between $10 and $20 million.

"Several of the players who owe money and have not yet expressed a willingness to pay their debts include Phil Ivey, Layne Flack, David Benyamine, and Erik Lindgren. Barry Greenstein, Mike Matusow, and others owe a smaller but still significant amount.

"If the money doesn't come in, it creates a serious obstacle to completion of the deal."

A signed agreement is in place between GBT and the US Department of Justice to purchase the assets of the former Full Tilt for $80 million, although the working through of several necessary conditions has taken more time than expected.

As recently as this past week however, Groupe Director Laurent Tapie has said he expects the deal to be completed by the end of February.

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Tapie Slams Ferguson Rumors, Deal on Track for Feb.

Wed, 01 Feb 2012 08:00:00 -0800

In an interview with iGamingFrance, the Director of the Bernard Tapie Group called the story “totally false” and said the deal is on track to be completed by the end of February.

Said Tapie:

"This (story) is totally false. Chris Ferguson has no problem with regard to the completion of the takeover agreement, which is now imminent.

"Even if Chris Ferguson wanted to oppose it (which is not the case), he would not be able to because the agreement has already been validated.

"Now that the due diligence process is nearly complete, and unless there are last minute surprises, we hope to do the deal by the end of February."

The original story published by Subject: Poker involved the investigation of several bank accounts in the name of Pocket Kings Ltd that were ostensibly under the personal control of Ferguson and to which he “funneled” money.

According to Subject: Poker, $14.3 million of an estimated $60 million was not withdrawn and instead was used to cover Full Tilt’s post-Black Friday expenses.

The insinuation of a possible delay came in the deal from the suggestion Ferguson and his lawyer Ian Imrich are seeking an accounting of the money spent post-Black Friday and may pursue legal action to reclaim any money “spent improperly.”

As reported in the original story, this may or may not even be possible and no sources were named.

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Ferguson Accounts "Could" Impact FTP Deal

Wed, 25 Jan 2012 20:00:00 -0800

According to Subject: Poker, over the last four years Ferguson transferred an additional $60 million in Full Tilt dividend payments (on top of the $25 million paid into his personal accounts) into accounts belonging to Pocket Kings Ltd.

Those bank accounts were understood to be Ferguson's personal accounts it claims.

Ferguson withdrew or moved $45 million of the money through various means, the report says, including transfers to other personal accounts, payments to his lawyer Ian Imrich, loans to other FTP shareholders and the purchasing of more FTP shares.

According to Subject: Poker, $14.3 million of the $60 million was not withdrawn and instead was used with Ferguson’s approval to cover Full Tilt’s post-Black Friday expenses.

As for how the accounts could affect the impending deal, Subject: Poker sources say Ferguson and Imrich have been trying to recoup this $14.3 million and have threatened legal action to see an accounting of the money and reclaim any money “spent improperly.”

This may or may not even be possible though, Subject: Poker says.

The report also claims early versions of Full Tilt’s agreement with the Bernard Tapie Group included giving the equivalent in shares to Ferguson but that changed when the DOJ stipulated Full Tilt’s board of directors could not be involved in the new company.

No sources have been officially named and neither Imrich or Ferguson were reached for comment.

Read the full report here.

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Zynga “Confirms” Interest in Real-Money Gambling

Fri, 20 Jan 2012 09:00:00 -0800

According to writer Tricia Duryee's post, a “Zynga spokesperson” provided the following statement in response to the question of a potential launch into real-money gaming:

“We build games and experiences that our players want and love. Zynga Poker is the world’s largest online poker game with more than 7 million people playing every day and over 30 million each month.

“We know from listening to our players that there’s an interest in the real money gambling market. We’re in active conversations with potential partners to better understand and explore this new opportunity.”

No specific spokesperson was named and the statement is open to interpretation, but rumors of Zynga looking into partnerships with land-based casinos in the US have been circling for months.

While US poker players are anxiously awaiting regulated US poker sites, an ongoing interest has been the crossover potential from the massive play-money gaming pool on Zynga Poker.

With an expected 10-20% conversion rate to real-money players should it become available, it could be the most substantial influx of new players into the poker economy since 2003.

Zynga founder and CEO Mark Pincus also recently announced at a press event that the company was preparing to launch Zynga Casino with its first game expected to be bingo.

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New UB Complaint Claims $20M Stolen

Tue, 17 Jan 2012 11:55:00 -0800

The complaint names Excapsa Software, the company that controlled Ultimate Bet, and alleges that at least $20 million was stolen from customers of the online poker room. It goes on to assert that members of the site’s management were complicit in the theft.

In addition to Excapsa, the complaint names 10 John Does and explains that while the plaintiffs are unable to prove who these 10 individuals are right now, they have suspicions and are working to amend the complaint with names when evidence is discovered.

The plaintiffs in the complaint are named as Daniel Ashman of Cambridge, Massachusetts, Brad Booth of Vancouver, British Columbia, Thomas Koral of Skokie, Illinois, Greg Lavery of Madison, Wisconsin, Dave Lizmi of Baltimore, Maryland, Joseph Sanders of Lima, Peru, Daniel Smith of Bethesda, Maryland and Dustin Woolf of Los Angeles, California.

While some of these names are familiar to mainstream poker fans thanks to televised appearances, all of them are or were high-stakes online poker professionals.

This complaint seeks not only to recoup the players stolen funds, but also to compensate them for interference with prospective economic advantage, intentional infliction of emotional distress, unfair business practices, fraud and negligence, as well as to uncover the identities of those responsible at Ultimate Bet.

The complaint’s supporting material reads as a detailed history of the Ultimate Bet super user scandal and investigation, clearly implicating founders and management of Ultimate Bet including Russ Hamilton, Greg Pierson, Jon Karl and Jack Bates.

The complaint reads:

Since at least June 2003 and until at least January 2008 Excapsa/UltimateBet did conspire to and did direct, effect, and permit the theft of over $2 million held in plaintiffs' online poker accounts at UltimateBet.com. Specifically, by creating and making use of an intentional a security flaw in the UltimateBet.com software, and with the assistance of owners, agents, and employees of Excapsa and its various subsidiaries that operated UltimateBet, defendants either allowed others to or did directly view plaintiffs 'hole cards' during high-stakes poker matches run at UltimateBet.com.

With the assistance of owners, operators, officers, employees, and/or agents of Excapsa and its subsidiaries, the cheaters were further able to change their online identities to avoid detection and to improperly funnel their illicit proceeds through various UltimateBet accounts in a manner that would have been impossible without insider assistance. Through these activities, defendants stole or caused to be stolen at least 20 million dollars from plaintiffs and other high-stakes poker players at games run by UltimateBet.

At this time, plaintiffs suspect but do not know the identities of Does 1-10. Evidence, some of which is discussed below, has arisen that some of the founders and management of UltimateBet and Excapsa, including Greg Pierson, Jon Karl, Jack Bates, Russ Hamilton, and others who formerly operated (and may continue to be involved in the operation of) UltimateBet were likely aware of or involved the conspiracy to cheat players. However, because the identities and activities of UltimateBet and those who have profited from its operations has been intentionally shielded though numerous agents, subsidiaries, and foreign corporations, it will be necessary to conduct significant discovery before a complete list of defendants can be identified. After such discovery, plaintiffs will seek to amend the complaint to add additional defendants.

In "the UltimateBet.com online poker cheating scandal” plaintiffs and other high-stakes online poker players were cheated out of millions of dollars in crooked online poker games where their opponents (employees, agents, owners, and/or officers of Excapsa/UltimateBet) had illicit access to players 'hole' cards. Plaintiffs unknowingly played games of high-stakes poker with their cards essentially face-up. The facts underlying the case have already been the subject of intense public interest and media scrutiny, including a feature story on 60 Minutes, an investigative series by the Washington Post, a feature article by MSNBC, and hundreds of articles and news reports across the Internet.

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Belgium Approves 3 Poker Sites, Plans to Block Others

Thu, 05 Jan 2012 11:00:00 -0800

PokerStars.be, Partouche.be and Casino777.be will all be granted fully operational licenses in the country.

Despite the .be domain, PokerStars.be and Casino777.be are expected to be the same as the .com versions meaning players in Belgium will be able to play against the rest of the world, unlike France and Italy.

The one exception appears to be Partouche.be as the site is currently French-only, which means the .be version will likely be Belgium-only.

Perhaps more interesting is the fact that Belgium has also created a “black list” of unauthorized online poker sites. Sites on the list will be blocked by the four largest Internet Service Providers in Belgium.

France has taken the same approach and recently made a ruling that all French ISPs must block unauthorized online poker sites.

Despite the list, online poker giants such as PartyPoker and iPoker have stated the new laws are impossible to enforce and they will remain open to players from Belgium.

The Belgium online gambling laws, which were passed in 2011, have received their share of criticism thanks to their restrictive nature. If Belgian poker player plays on an unapproved site they could potentially face criminal penalties.

For its part the European Commission has voiced displeasure at the new Belgium online gambling laws claiming they go against Free Trade Agreement, which assures free trade across Europe. The EC has criticized France for the same reason in the past.

Belgium is one of several countries that are looking to regulate online poker in 2012 including Germany, Spain and France.

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DOJ Says Wire Act Only Applies to Sports Betting

Fri, 23 Dec 2011 14:00:00 -0800

The memo was written as a response to requests from the states of Illinois and New York regarding interstate lottery sales back in September but only released to the public today.

In it the DOJ reveals that its legal position, according to Assistant Attorney General Virginia Seitz, is that “interstate transmissions of wire communications that do not relate to a ‘sporting event of contest’ fall outside the reach of the Wire Act.”

In theory, this moves online poker out of the scope of the Wire Act although no further clarification by the DOJ regarding poker was offered.

THe DOJ also made it clear this was not inherently related to the enforcement of the UIGEA.

The conclusion of the memo is included below:

“Given that the Wire Act does not reach interstate transmissions of wire communications that do not relate to a ‘sporting event or contest,’ and that the state-run lotteries proposed by New York and Illinois do not involve sporting events or contests, we conclude that the Wire Act does not prohibit the lotteries described in these proposals.

“In light of that conclusion, we need not consider how to reconcile the Wire Act with UIGEA, because the Wire Act does not apply in this situation.

“Accordingly, we express no view about the proper interpretation or scope of UIGEA.”

Online poker advocates such as the Poker Player's Alliance on jumping on the revelation, encouraging the Federal government to take it one step further and initiate fully legislated, interstate online poker.

“State by state licensing and regulation," said former Senator and PPA member Alphonse D'Amato in a statement, "could result in a balkanized online poker world where players across the nation would be limited in their choices of where and against whom they could play.

"This could potentially reduce the number of total players, reducing revenues state lawmakers project from this activity.

"At the same time, it would deter entrepreneurs from entering the online poker market, as there would essentially be 50 different sets of laws and rules to which they would have to adhere.

"We urge members of Congress to act quickly based on today’s announcement and pass legislation like H.R. 2366 to license and regulate online poker at the federal level."

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Nevada Approves Regulations for Online Poker

Fri, 23 Dec 2011 08:00:00 -0800

While still limited to just play within state borders and not yet open to players until Federal regulation is approved, it clears the way for gaming companies to be officially licensed to offer online poker in Nevada.

The new regulatory framework forces applicants to prove they can control player registrations, prevent underage play and restrict players to in-state locations before they can be considered for a license.

It also dictates the information companies have to show on their websites, how they will keep records and resolve disputes and how they will pay fees and be taxed.

Information and support outlets for problem gambling also have to be provided.

The new framework is the first comprehensive set of guidelines for online poker licensing in the US.

At least six companies had previously initiated the licensing process with the state of Nevada including Bally’s Technology, South Point, Caesars Entertainment, International Game Technology, Shuffle Master and Cantor Gaming.

Chairman of the Nevada Gaming Control Board Mark Liparelli says those companies will have "a smoother time moving forward" because they have already passed some essential checks.

Liparelli said he expects one of those companies to be awarded the first actual license in the Spring.

Added Cantor Gaming chief executive officer and president Lee Amaitis:

“This is an important day for gaming control everywhere as Nevada again opens a path to a future that will benefit jurisdictions around the globe.

"I feel privileged to share it with you.”

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Absolute Poker Co-Owner Pleads Guilty

Tue, 20 Dec 2011 08:00:00 -0800

Beckley, one of the co-founders of Absolute Poker along with Scott Tom, appeared in Manhattan court today according to Bloomberg News and admitted to conspiring to break U.S. Internet gambling laws and conspiracy to commit bank fraud and wire fraud.

The maximum prison sentence for bank fraud is 30 years but Beckley will likely serve 12-18 months under his plea agreement, Reuters says.

"I knew that it was illegal to accept credit cards from players to gamble on the Internet," Beckley said before his plea, according to the report.

"I knew it was illegal to deceive the banks in this way."

Beckley, also referred to as "Director of Payments" at the hearing, told Judge Ronald Ellis that Absolute Poker accepted credit cards from US players between 2006 and April 2011 and disguised the payments, contravening the UIGEA.

Beckley admitted to hiring Ira Rubin in 2008 to process e-checks for Absolute as payroll processing, affiliate marketing or online electronics merchant transactions.

Rubin is also said to be nearing a plea deal.

Sentencing for Beckley is set for April 19.

Beckley is one of eleven defendants in the case brought by the US Department of Justice against Poker Stars, Full Tilt Poker and Absolute Poker/UB.com on April 15th, now known as Black Friday in the poker industry.

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PokerStars Unveils New ‘Player Protection Plan’

Fri, 16 Dec 2011 10:00:00 -0800

Called the PokerStars Player Protection Plan, this strategy will see the appointment of a fully independent UK trust company to oversee player funds. The trust company PokerStars has chosen is owned by IFG Group plc, an established financial services company with market listings in London and Dublin.

PokerStars is introducing this plan in the closed French market first, but hopes it will become the industry standard across Europe. The online poker giant has already begun discussions to introduce the plan to regulated markets including Spain, Italy and Belgium.

“The security of player accounts and the integrity of online poker play are fundamental to the ongoing and future success of the industry,” said PokerStars’ CEO Gabi Campos.

“We are pleased to partner with the thought-leaders in European regulation to establish an industry-wide standard for ensuring player funds are protected,” he continued.

Unlike Full Tilt Poker, PokerStars kept its player funds completely segregated from business assets, and was ready to repay players in the wake of Black Friday. This new plan is simply a more formalized version of that fund segregation, one that will be overseen by a third-party group.

By installing a trusted third-party overseer, PokerStars has given its customers another avenue of recourse should problems arise.

PokerStars has pledged that the third-party group will be regulated by the Financial Services Administration in the UK, and will ensure that player funds are kept in bank accounts in regulated banks with balances at least equal to outstanding amounts owed to players at any given time.

Additionally, PokerStars has explained that it will be bearing any and all risks associated with the payment processors that handle deposits and withdrawals. That is to say, should a payment processor fail to transfer the money from a player deposit, PokerStars will still be responsible for crediting the segregated player fund accounts.

For ongoing updates on Full Tilt Poker and everything that’s happening in the wake of Black Friday, keep an eye on our Black Friday Bulletin Board.

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GBT and FTP Reach Agreement on Assets

Thu, 15 Dec 2011 09:00:00 -0800

The two groups executed an agreement to further transfer Full Tilt Poker’s assets to the French group. This comes roughly one month after GBT successfully struck a deal with the DOJ to purchase forfeited FTP assets.

According to that deal GBT will take on responsibility for repaying non-US players while the DOJ will facilitate the repayment of players within its borders. GBT paid a reported $80 million, taking on the estimated $150 million non-US player liability.

This latest agreement was passed by a two-thirds majority vote by Full Tilt owners, according to Subject: Poker, and is thought to be an early, and relatively straightforward, step in what will be a long and very convoluted process.

Subject: Poker also reported that Laurent Tapie personally appeared in Dublin to speak to Full Tilt Poker employees.

The real forfeiture of FTP funds is expected to follow this agreement, as well as the dismissal of the civil charges against the companies that make up Full Tilt Poker that is essential to getting the poker room back online.

And while this agreement marks an important step towards the DOJ dropping charges against FTP as a company, it will not effect the civil and criminal charges against the individuals involved in the mismanagement of Full Tilt Poker.

For ongoing updates on Full Tilt Poker and everything that’s happening in the wake of Black Friday, keep an eye on our Black Friday Bulletin Board.

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Bodog Re-Branding in US as BOVADA

Wed, 14 Dec 2011 07:00:00 -0800

Bodog had already announced this summer it intended to transition the Bodog brand out of the US market by the end of December.

The email, sent out yesterday, confirms the Bodog.eu website will no longer be offering its services to US customers as of December 14.

The Morris Mohawk Gaming Group, Bodog's licensing agent in the US, will continue to provide the same operations as it did on Bodog via a new domain - www.bovada.lv.

The .lv domain extension is the country code for Latvia.

Below is the email sent out in full.

Bodog.eu is changing - New Name, New Look, Same Great Service The Morris Mohawk Gaming Group's ("MMGG") brand licensing agreement with the Bodog Brand is expiring at the end of this year and as a result MMGG will no longer be offering its services using the bodog name or from the website, bodog.eu. From today, December 14th, MMGG will continue to operate as it has for over 4 years, just under its new name, BOVADA, at www. bovada.lv Your account and balance has automatically been transferred to the new website and you are able to log in to the site using your existing account details and password. PLEASE NOTE: As part of the transition process, there will be a scheduled outage overnight to both the old and new websites.

We expect Bovada.lv to be live by 11:00am ET on December 14th, 2011. If you have any questions regarding your account or the new brand we ask that you contact the customer service team directly at 1-888-263-0000 or service @bovada.lv. We hope you enjoy the new site! Sincerely, Bodog.eu

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AGCC to Review Full Tilt Licensing and Suspension

Wed, 07 Dec 2011 08:00:00 -0800

The review is intended to “provide full transparency” and “make the outcome public” in the best interests of players, license holders and the AGCC itself.

Peter Dean, the former Chairman of the British Gambling Commission, has been appointed by the AGCC to conduct the review.

André Wilsenach, Executive Director of the AGCC said:

“As soon as we became aware that there were possible irregularities in relation to FTP’s operational integrity AGCC acted to discharge fully our statutory obligations.

‘We believe we acted appropriately and fairly at all times but, following our own internal assessment and the inevitable questions that have been raised by third parties, the Commission decided that it is in the best interests of players, licence holders and AGCC itself to commission an independent review and to make the outcome public.”

The three licences in question belonged to Vantage Limited, Filco Limited and Oxalic Limited, together trading as Full Tilt Poker.

Dean will present his report and recommendations to the Commission by the end of March 2012.

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888poker Gets Nod as Poker Operator of the Year

Tue, 06 Dec 2011 10:30:00 -0800

It’s been a big year for 888poker with a major software redesign and new exclusive features such as webcam tournaments, team tournaments, 3D graphics and private user-created games.

Customers seem to have responded in a big way as 888poker reportedly had an increase of 122% in liquidity of active players over the year.

"Winning the EGR Poker Operator of the Year is a great honor and reflection of a phenomenal year for 888poker,” said an 888poker representative.

“We are committed to continuously enhance the playability at 888poker in order to give our consumers a poker offering that meets their needs, that's intuitive, simple and stands out from the crowd."

Recent winners of the EGR Poker Operator of the Year include PKR in 2010 and bwin Poker in 2009.

In addition to claiming Poker Operator of the Year, 888 was shortlisted for several awards including Affiliate Programme of the Year, Casino Operator of the Year, Innovation in Gaming, Marketing Campaign of the Year and Operator of the Year.

It’s not the first time 888 has earned accolades from the online poker industry. Leisure Reports, Egaming and the Gambling Online Magazine have all highlighted the company at various times.

Founded in 1997, 888 has been involved in the online gambling industry for more than a decade and is now offered in 176 countries worldwide. The company is licensed and regulated by the government of Gibraltar and is listed on the London Stock Exchange.

For more information be sure to check our 888poker review. The site is currently running a Ten on Top promotion where players can instantly receive $10 for free, just for making their first deposit.

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Judge Sets Trial Date for Black Friday Indictments

Thu, 01 Dec 2011 08:00:00 -0800

Presiding over a hearing today in Manhattan engineered by the lawyers of two of the lower-profile defendants in the case – Chad Elie and John Campos - Kaplan also said the chances of dismissal of the cases are slim.

“I think it extraordinarily unlikely the entire indictment will be dismissed,” U.S. District Judge Lewis Kaplan said at the hearing, according to the report in Bloomberg Business Week.

Elie and Campos filed their motions for dismissal back in October claiming the charges levied against them on Black Friday weren’t actually applicable.

As to the UIGEA and Wire Act charges of offering online gambling services against federal law, the two are claiming poker doesn’t technically fall under either Act as it is primarily a game of skill and "not a gambling business."

As for the separate charges of bank fraud and money laundering, the claim is that no bank was harmed in the process so no fraud had occurred.

Judge Kaplan said he would rule later on the motion submitted by Elie and Campos and that a trial, if it comes to that, would start March 12.

Eleven defendants in total are included under the case of U.S. v. Scheinberg, 10-cr-00336, U.S. District Court, Southern District of New York (Manhattan).

Elie and Campos are the only defendants who have filed full motions to dismiss the charges

Lederer and Furst File Claims, US District Court Extends Deadline

Earlier this week both Howard Lederer and Rafe Furst joined Chris Ferguson in filing motions to claim seized bank accounts.

The US District Court for Southern New York also announced yesterday it has extended the deadline for Full Tilt Poker, PokerStars and Absolute Poker to respond to the amended complaint filed Sept. 21, 2011.

Each company now has until Jan. 2, 2012, to respond to the amended complaint which added Full Tilt Poker owners Lederer, Ferguson and Furst to the civil complaint and famously accused Full Tilt Poker of being a Ponzi scheme.

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Facebook Angling for Real-Money Gambling in UK?

Wed, 30 Nov 2011 11:00:00 -0800

The report, (behind a paywall at eGR but covered in detail here on TechCrunch) says Facebook has spoken with up to 20 online gaming experts and potential facilitators over the last six months and is considering offering eight licenses for UK operators to offer real-money gambling apps.

888 Holdings in the Mix

Leading candidates among potential licensees are reportedly 888 Holdings, owner/operator of 888 Poker, and Gamesys, another well known UK online casino operator.

According to eGR’s sources, TechCrunch says, Facebook has also begun "staffing up" for the launch and support of real-money gambling apps on its platform.

eGR also speculated that Facebook is essentially using the UK as a trial run before rolling out real-money gambling apps across Europe.

Facebook was notorious in the past for refusing to accept any advertising for online gambling operators but has recently opened up to gambling operators in certain countries.

If Facebook is in fact planning a launch into real-money gambling it could be a real industry game changer.

Facebook’s most popular poker app, Zynga Poker, has recently claimed it is not interested in pursuing real-money gambling but the free-play social media market offers a massive potential audience for real-money play with millions of daily users.

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Bernard Tapie Group Officially Acquires Full Tilt

Fri, 18 Nov 2011 11:00:00 -0800

According to a leaked Yahoo Finance story the Bernard Tapie Group has agreed to acquire FTP for $80 million in a deal brokered by the DOJ.

As part of the deal FTP has agreed to forfeit its assets to the U.S. government, which then sold the assets to the Tapie Group.

The French firm will take responsibility for the players outside of the U.S. who never got their deposits back from the site while the DOJ will return funds to American players.

It was also revealed that Full Tilt shareholders will face no further prosecution.

Full Tilt Co-Founder Ray Bitar has since released the following press release to PokerStrategy.com on the matter:

Full Tilt Poker is pleased that the terms of the agreement between Groupe Bernard Tapie (GBT) and the Department of Justice have been finalized, and that the agreement provides for GBT to repay or make whole players outside of the United States and for the Department of Justice to permit United States players to request compensation out of the forfeited funds. Since Black Friday, repaying customers has been FTP’s number one priority. “I am extremely pleased with the efforts of the Department of Justice, and the Groupe Bernard Tapie corporation, and appreciate their continued dedication in working towards a mutually beneficial agreement that will facilitate repayment of the players ." Now that the agreement with DOJ has been reached, GBT and Full Tilt Poker will now turn to memorializing the final terms of their agreement, to bring this matter to a complete resolution as soon as possible. Full Tilt Poker would like to thank all its customers for their continued patience since Black Friday and during this negotiation process.

For continuing updates on the status of US online poker and Full Tilt, keep an eye on our Black Friday Bulletin Board.

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Ferguson Files New Motions to Reclaim Full Tilt Assets

Wed, 16 Nov 2011 10:00:00 -0800

Ferguson, who filed the documents with the United States District Court of Southern New York, is acting on behalf of the companies that comprise Full Tilt Poker, including Tiltware LLC, Pocket Kings Ltd, Vantage LTD, Kolyma Corporation A.V.V. and Filco Ltd.

The documents outline accounts and amounts seized by the Department of Justice, and claim that Full Tilt’s companies have legal right to the assets under the Supplemental Rules for Admiralty and Maritime Claims.

They go on to specify that the accounts contain funds deposited by Full Tilt Poker players and funds that were in the process of being returned to Full Tilt Poker players.

There are numerous individual documents, corresponding to Full Tilt’s numerous companies. An example of one of the motions can be found here. All the Black Friday legal documents filed so far can be found here.

While the majority of the documents seek to regain control of seized assets, one seeks to add a new lawyer to Ferguson’s defense team.

Ian J. Imrich, a Los Angeles based lawyer, will have to be admitted pro hac vice should he join Ferguson’s defense, since he is not licensed to practice law in the State of New York.

Pro hac vice, Latin for “for this occasion”, allows out-of-state lawyers to practice law in a certain jurisdiction on a temporary basis.

In his application to grant Imrich this special authorization, Ferguson’s lawyer Jonathan Harris vouches for Imrich’s standing and ability, saying, “I have found Mr Imrich to be a skilled attorney and a person of integrity.”

Harris also pointed to Imrich’s familiarity with federal practice and the Federal Rules of Procedure as reasons for allowing his involvement.

For ongoing updates on everything related to Full Tilt Poker and Black Friday, keep an eye on PokerListings.com’s Black Friday Bulletin Board.

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DOJ on Elie and Campos Motions: Poker is Still Gambling

Fri, 11 Nov 2011 09:00:00 -0800

That poker is still considered gambling in the eyes of US law.

Calling on as diverse a range of precedents as the Kenny Rogers’ song “The Gambler” and an 1888 saloon trial, US attorney Preet Bhahara’s primary explanation for denial of the motions is that “Playing poker for money has, since the birth of the game in the 1800s, been treated both in American culture and law as a form of gambling.”

By definition then, Bhahara contends, all of the Black Friday defendants violated US law - and specifically both the Illegal Gambling Business Act of 1970 (IGBA) and the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA).

To make its case for denial of Elie's and Campos dismissal motions, the DOJ motion references 65 previous cases in US courts and 16 US statutes in the document.

The DOJ’s full preliminary statement is included below:

“Playing poker for money has, since the birth of the game in the 1800s, been treated both in American culture and law as a form of gambling.

“Historically, states legislatures enacted laws that have either prohibited the operation of gambling businesses outright or subjected them to significant regulation, and state courts have regularly applied these gambling laws to poker rooms.

“New York courts, for their part, have treated poker as illegal gambling in reported opinions dating back 100 years. Federal regulation of gambling is more recent, and has been explicitly crafted to build upon – not replace or alter – pre-existing state law.

“Both the Illegal Gambling Businesses Act of 1970 (“IGBA”), 18 U.S.C. § 1955, and the Unlawful Internet Gambling Enforcement Act of 2006, 31 U.S.C §§ 5361-67 (“UIGEA”), incorporate by reference the gambling laws of states where the business at issue operates, and federal law too has therefore routinely been applied to poker businesses.

“The 2006 enactment of UIGEA, which specifically criminalized the use of the United States. financial system to accept payments from gamblers, gave rise to the core of the conduct alleged in this Indictment.

“The leading internet poker company of the pre-UIGEA era shut down its U.S. operation, and the founders of the gambling industry’s dominant payment processor were arrested.

“The poker companies who rushed to fill the void encountered a daunting obstacle: there was no legitimate or easy way to obtain the billions of dollars from United States residents that was the lifeblood of their businesses.

“So they engaged Elie and Campos, among others, to perform an indispensable service: find ways, by hook or crook, to move money from United States residents, through the United States financial system, to the offshore accounts of the poker companies.

“They did so in violation of IGBA, the UIGEA and other federal statutes. Yet defendants argue in their motions to dismiss that the Indictment’s detailed allegations do not in fact allege the commission of any crime at all.

“They claim that IGBA simply does not apply to poker, or at least is “ambiguous” in its application, notwithstanding longstanding precedent to the contrary at the state and federal levels.

“Defendants then read UIGEA, which applies if anything more broadly than IGBA, to contain an implicit exemption for internet poker companies -- or, if not for the poker companies, for those who conspire with them to process payments -- based on a tortured construction of the statute at war with its plain language and clear legislative intent.

“Elie, who is charged with a conspiracy to commit bank and wire fraud involving tricking banks into processing illegal transactions without their knowledge, nevertheless contends that this is not a federal crime since the banks earned fees and were thus not harmed by being deceived.

“These conveniently cramped constructions of the statutes at issue are nothing more than exercises in wishful thinking.

“If proven, the conduct alleged in the Indictment – a scheme through which the charged defendants abused the U.S. financial system in order to fund their illegal operations – amounts to clear violations of the statutes charged.”

Campos and Elie are facing six and nine counts,, respectively under the current indictments and have plead not guilty to all counts.

Read more about their motions for dismissal here and the full DOJ motion for denial on Pokerati here.

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Tapie Group: Full Tilt/DOJ Deal in 15 Days

Thu, 03 Nov 2011 15:00:00 -0700

In an interview with iGamingFrance, Tapie also said he expects the final agreement to be drafted by the end of the week and should be signed within the next 15 days.

The deal, which was originally reported on Tuesday, would see the Bernard Tapie Group reimburse European players while the DOJ would return U.S. player funds.

Full Tilt CEO Ray Bitar initially broke news about the deal in an email to FTP shareholders.

In the past the Bernard Tapie Group has stated they are attempting to have the site up and running again by January 2012.

It’s just another chapter to the ongoing Full Tilt Poker saga.

Earlier this year Full Tilt was locked out of the U.S. market due to events of Black Friday. In the fall the site was shut down completely when the DOJ alleged Full Tilt was a Ponzi scheme and did not have cash to cover player deposits.

The site is believed to owe over $150 million to U.S. players alone.

For continuing updates on the status of US online poker and Full Tilt, keep an eye on our Black Friday Bulletin Board.

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Bitar Email Says Full Tilt Deal Almost Done

Tue, 01 Nov 2011 12:30:00 -0700

As reported by Subject Poker, Bitar informed shareholders that the DOJ and BTG reached an agreement in principle that would see BTG take responsibility for repaying non-US players, while the DOJ would facilitate the return of US player funds.

Subject Poker says the email has been confirmed by numerous sources, but doesn't elaborate on who those sources are.

The DOJ’s consent was one of the biggest criteria of the conditional acquisition agreement between Bernard Tapie Group and Full Tilt Poker. With that consent, BTG is now free to finalize the acquisition and revive the now-defunct online poker room.

The email in its entirety follows:

Dear members,

I am pleased to announce that today the Department of Justice and Groupe Bernard Tapie have reached an agreement in principle regarding the acquisition of the companies comprising FullTiltPoker. My understanding is the deal provides that in exchange for an agreed upon payment by GBT, and a GBT commitment to assume responsibility for payment of ROW players, DoJ will reimburse US players and settle the outstanding civil litigation with the companies comprising FTP. Beyond these conditions, issues like the time frame and process for repayment of players remain unclear at this point and time.

With DoJ’s consent now in hand, GBT may now proceed to finalize an agreement to acquire the companies or assets that comprise FTP. That agreement will very likely address the status of your shares or interests in the successor company. When I receive that agreement, I will coordinate with our attorneys to ensure the terms of that proposed agreement will be shared with the membership and voted on.

-Ray

For continuing updates on the status of US online poker and Full Tilt, keep an eye on our Black Friday Bulletin Board.

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Bwin.Party Seal US Partnership Deal With MGM

Mon, 31 Oct 2011 20:00:00 -0700

All three companies put out press releases today to publicize the partnership and follow-up interviews with several news agencies have outlined how the agreement would work.

According to a report on reuters.com, once the proper regulatory framework has been enacted by the US government a still-to-be-named company will be formed by the three parties in which bwin.Party will own the majority share at 65%.

MGM will hold 25%, Boyd Gaming will hold 10% and each entity will be responsible for the same percentage of start-up and operating costs.

Both MGM and Boyd would offer poker games under current bwin brands like Party Poker and the WPT but each will also have licenses to use bwin’s existing software to offer products under their own brands.

MGM’s own brand entities include the MGM Grand, Bellagio and Mandalay Bay properties in Las Vegas. Boyd Gaming owns 17 gaming entertainment properties across six states including the Borgata in Atlantic City and Sam's Town, The Orleans and Gold Coast casinos in Las Vegas.

Said MGM Chief Executive Officer Jim Murren in his interview with Reuters:

"There is now an overarching opinion in Washington that this (online poker legislation) needs to be addressed."

bwin.Party CEO Jim Ryan, who recently publicized his active pursuit of partnership agreements with US casino companies, added:

“The intention of the joint venture is to take the PartyPoker brand and the World Poker Tour brand and our operating expertise and combine that with the regulatory expertise of MGM and Boyd.

“Effectively you will have four brands in the U.S. and all four brands will be acquiring players and putting them in one hub, one poker network.”

Added Keith Smith, chief executive of Boyd Gaming:

“We believe that the right approach to offering legal online poker in the United States is through a federal regulatory structure that ensures the games are conducted with the greatest possible integrity and security,” he said.

“Should Congress enact legislation to legalize Internet poker, this agreement will allow us to partner with the world’s most experienced and prestigious online operator to offer a secure, fair and entertaining experience for players in the United States.”

Bwin.Party is the largest publicly traded online gambling company in the world with reported revenue of $716 million last year.

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AP and UB Liquidating Assets to Pay Players?

Fri, 28 Oct 2011 16:00:00 -0700

Details in the release are somewhat vague, but it does outline the idea that AP and UB’s parent company, Blanca Games, is planning to liquidate Blanca’s assets and distribute the proceeds.

It wasn’t noted if the plan was to liquidate just the AP and UB.com assets or all of Blanca Games' assets, which also include other bingo and casino sites.

The full statement as released by the KGC below:

“Since the actions taken by the US Attorney’s Office for the Southern District of New York (the “SDNY”) on April 15, 2011, the Commission has been in close and regular discussions with its licensee, Blanca Games Inc. (“Blanca”), operating as Absolute Poker and UB.com (“AP/UB”), to facilitate the reimbursement of both US and non-US players.

"The Commission has also received regular updates of discussions between AP/UB and the SDNY.

"Over the past several weeks, we were advised of a potential solution prepared by Blanca and its representatives, establishing a process to liquidate Blanca’s assets and distribute proceeds to players.

"We understand that this process has been presented to SDNY for consideration and approval.

"The Commission’s foremost concern in this matter has been, and remains, the reimbursement of both US and non-US players, as quickly and completely as possible.

"To avoid further prejudice to affected players, the Commission has demanded that all parties complete their discussions and implement a reimbursement solution without further delay.”

See the official PDF from the KGC here.

The smallest of the three US poker sites seized by the US Department of Justice on Black Friday, AP and UB.com had reached an agreement with the DOJ back in May to release the two domain names back to the company and begin the player repayment process.

Despite a trickle of payments over the first few days post-April 15th, AP and UB.com have been unable to process most withdrawal requests.

Estimates put the amount owed to Cereus Network players at around $48 million US.

An Absolute Poker spokesperson also released an exclusive statement to PocketFives.com that confirmed the company is "still in discussions" with the DOJ and that the distribution of funds to US players remains its "highest priority."

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D’Amato Likens Online Poker to Prohibition at Hearing

Tue, 25 Oct 2011 22:00:00 -0700

"The problem that we have now seems to me very parallel to what we had in Prohibition," D'Amato said.

"Billions of dollars that today flow across our borders and onto offshore websites could be kept here... yielding billions of dollars in revenue for the federal government, all without having to raise taxes."

"We're well behind the rest of the world," said D'Amato. "If we do nothing, [the problems] will grow and we will have no opportunity to fix it.”

Titled “Internet Gaming: Is There a Safe Bet?”, today's hearing drew together a wide range of experts to debate the merits of two proposed online gambling bills put before Congress recently, in particular one put forth by Rep. Joe Barton, and how best to begin integrating online poker back under the legal umbrella of the US government.

The panel was chaired by Rep. Mary Bono Mack from California.

Despite differing opinions on how proper regulation should be executed, all participants agreed that gambling is currently legal in 48 states (excluding Hawaii and Utah), Americans are still currently playing online poker at offshore gambling sites despite Black Friday and that by regulating the industry significant tax revenue could stay in the country.

Government oversight could also provide critical consumer protection, added D’Amato.

“This legislation can't protect everybody at every time in every instance.

“But it can go a long way towards protecting people who have no protection at all right now. It will be imperfect, but a heck of a lot better than what we have now."

Rep. G.K. Butterfield, a Democrat from North Carolina, testified to poker being a part of the very fabric of America, similar to baseball and football.

Rep. Barton used his introduction to the game as a child as another point in poker’s favor.

"Poker is the all-American game,” Barton told the committee.

“I learned to play poker, believe it or not, in the Boy Scouts. If you learned something in the Boy Scouts, it has to be a good thing."

By the end of the meeting, Rep. Bono Mack agreed potential jobs and tax revenues from online poker could be a great asset if gaming can be effectively regulated and negative societal costs can be minimized, but that there’s still a lot of investigating to do before a decision could be made.

"A lot of questions need to be fleshed out further," Bono Mack said.

The next step is for the expert witnesses called today to answer more questions from the committee over the next 10 days and a follow-up hearing will be held at a date to be determined.

The full list of expert witnesses and transcripts of their testimonies can be found here.

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AGCC Amends DOJ Seizure Statement

Thu, 20 Oct 2011 07:00:00 -0700

Originally estimated at $331 million USD, the AGCC is now saying that figure is more accurately the amount of funds that are now “unavailable” to Full Tilt, of which only a part is as a result of DOJ seizures.

The estimated seized amount from other sources put the number closer to $159 million, with roughly $115 million seized prior to Black Friday and $44 million seized on April 15th itself.

The AGCC contends the mistake is “not of significance” in its assessment of Full Tilt’s licensing suspension and eventual removal.

The full statement as it appears on the AGCC website can be found below:

“AGCC wishes to correct and clarify an erroneous statement contained in the Commission tribunal’s published determination notice of the hearing into Full Tilt, which includes the statement:

“the individual seizures made by the Department of Justice during the period 28th June 2007 to 20th June 2011, which amount to a cumulative total of approximately $331 million US Dollars.”

The underlying evidence in the hearing clearly demonstrated that $331 million was the total of funds unavailable to Full Tilt, of which DOJ seizures formed only a part.

“The mis‐statement is thus not of significance in the Commission’s assessment of the matter.”

See the original release from the AGCC here.

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Party Poker Angling for Return to US Market

Wed, 19 Oct 2011 09:00:00 -0700

According to an interview with Ryan published on Forbes.com, Ryan has been actively seeking partnership deals with at least two US companies over the last five weeks and has been driving a major point home in his presentation:

Full Tilt and PokerStars are out and bwin.Party, the world’s largest publicly-traded online gambling company, is in.

“My focus is on the U.S.” Ryan told Vardi. “Even though there is no guarantee that online gaming will ever regulate in the U.S.”

Ryan has apparently been using a chart for his presentations that has PokerStars and Full Tilt crossed out in red, implying that the recent indictments have made it unlikely either will ever be allowed to do business in the US again.

Of all the online poker brands left, then, Party Poker is the one with the most brand awareness in the US.

After the passing of the UIGEA in 2006, Party Poker was one of several brands to completely withdraw from the US market while PokerStars and Full Tilt continued to allow American players to sign up and play.

Party Poker eventually also came to an agreement with the US Attorney's office, admitting its operations were in violation of US law.

At the time, Party Poker struck a deal to pay the DOJ $105 million in exchange for not being prosecuted.

Party Poker founder Anurag Dikshit also reached a personal agreement with the DOJ to repay over $300 million in return for not being prosecuted.

Given the recent Black Friday indictments of PokerStars, Full Tilt and Ultimate Bet/Absolute Poker, Party Gaming Attorney Behnam Dayanim also suggested that Party Poker “has been vindicated now in getting out when they did and in dealing with the Department of Justice.”

Ryan said he is optimistic about online poker returning to the US with major land-based casinos like MGM and Caesars now involved and actively lobbying in Washington.

Still, Ryan suggests it may be on the state rather than federal level where regulation begins.

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Details Emerging About Full Tilt Acquisition

Tue, 04 Oct 2011 09:00:00 -0700

While Bernard Tapie’s son Laurent has taken the reins with the media and in negotiations with the US Department of Justice, both the elder Tapie and an attorney for the company have weighed in in interviews with small details suggesting the Group's intentions.

Combined with Laurent’s interview last week with iGaming France and now a New York Times reporter, a picture is slowly starting to emerge as to the nature of the ongoing negotiation and the possible future organization of the new company.

Initial Response from Bernard Tapie Measured

Enthusiasm in the poker community regarding the agreement signed last week was tempered after the elder Tapie spoke with Agence France Presse over the weekend.

According to the interview, Tapie did confirm an exclusive agreement had been signed with FTP but that it’s far from either a done deal or a “full ownership” commitment.

Tapie said his son Laurent has been tasked with determining the viability of the takeover and now has until the end of December to sort out the legal and technical issues with the DOJ to the Group’s satisfaction.

Tapie also said if the deal goes ahead his Groupe would only retain a 5-10% stake in the new company and it would likely be held through the International Stadiums Poker Tour (ISPT), another organization the Groupe holds a 30% share in.

The ISPT was founded in 2010 by Tapie and Prosper Masquelier, a former colleague at Partouche Interactive, which is an arm of the well-known French casino Partouche conglomerate.

Information on the ISPT is somewhat scarce as of yet, but the ISPT.com website does feature a video clip promoting “the biggest poker event ever” allegedly coming to London’s Wembley Stadium from May 10-12, 2012.

Billed as a $30 million guaranteed event, the promo video shows everything from a stadium full of people to electronic poker terminals and real poker tables spread across the stadium floor and a champion's trophy being handed out. Watch the video here.

Calls to Wembley Stadium, however, confirmed the stadium is not yet booked for those dates.

Regardless of the status of the ISPT’s events, Tapie did confirm that any deal regardless of the percentage is contingent on an agreeable settlement with the US Department of Justice.

He has also now directed all media requests to his son Laurent.

Laurent Tapie: "Full Tilt Poker is Injured But Not Dead"

Laurent Tapie

Currently in the US to meet with the US Department of Justice, Laurent Tapie has reiterated in an interview with New York Times reporter Matt Richtel published today, that his plans are to bring Full Tilt Poker as a brand back to life.

“Full Tilt Poker is injured but not dead,” he told Richtel.

Tapie confirmed the company owes around $300 million to players around the world but that he feels players are the “key asset” and must be repaid in full for the deal goes through.

“We are going to put all the money into the company we need to to please the players,” Tapie said. “They are the key asset, above all.”

Tapie also confirmed that the Group would not continue with the acquisition unless there is an agreeable resolution to the civil matter with the Department of Justice.

What the Group is looking for, he indicated, is a commitment from either the DOJ, current management or other investors to inject all or part of the money needed to repay players.

Tapie also said some current employees or managers of Full Tilt could foreseeably continue on with the new compnay but none found guilty of a crime would stay.

The company is also going forward based on the assumption online poker is still in legal limbo in the US and the US poker market will be closed to Full Tilt for at least the time being.

One thing Tapie is counting on is a continued human desire to gamble.

“It’s a natural instinct to gamble,” he told Richtel.

“Gambling is something inside the human being. It’s something that’s inside of us. And online is something you can’t stop either.”

Attorney Says Controlling Interest Would Be Held, May Offer Equity Stakes

In an interview with the Wall Street Journal, Behnam Dayanim, an attorney for the Group, said the family is still interested in taking a controlling stake in Full Tilt if the proper deal can be arranged.

Mr. Dayanim said it hasn't been determined how large an investment or stake Groupe Bernard Tapie would make.

He did say the Group may address Full Tilt's liabilities by “offering equity in a revived company to poker players owed the most money.”

Tapie Family No Stranger to Controversy

While Laurent Tapie and Group attorneys are in New York meeting with the Department of Justice, more details about the Tapie's controversial past have also started to make their way across the Atlantic.

Public figures in France for last few decades, both Bernard and Laurent are still somewhat unknown entities to the general North American public, let alone to the poker community at large.

PokerListings.it reporter Giovanni Angioni compiled a brief history of the Tapie family and its controversial past for the benefit of our readers.

Excerpts are posted below. For the full text in Italian, check it out here.

"Bernard Tapie, a Life Between Scandals and Corruption

“Familiar to all football lovers now in their thirties, the smile of Bernard Tapie is one of the most significant symbols of the nineties in Southern Europe and the absurd excesses that accompanied us during that long decade.

"Charming, rich, powerful: the Bernard Tapie that in 1992 managed to sit in the CEO chair at Adidas is the perfect incarnation of the European dream.

"A transalpine response to the rising trend of Berlusconism in Italy, the power system created by Tapie in France was a formidable one.

"Tapie succeeded in finding his way to the front pages by leading the football team of which he was president, Olympique Marseille, to the heights to which all fans still remember with nostalgia and regret.

"While the climb of Olympique Marseille was unstoppable both nationally (with 5 titles) and internationally, the house of cards built by the entrepreneur born in the Parisian suburbs collapsed a few days after the triumph that marked the apex of Tapieismo – a Champions League win in Monaco against the AC Milan of Van Basten, Maldini, Baresi, Rijkaard and Fabio Capello on the bench.

"Probably driven by the intention to compete with friend Silvio Berlusconi’s AC Milan in the best possible way, Bernard Tapie bribed some of the Valenciennes players before a league match with Marseilles to allow Marseilles to earn 2 points without the effort that might have risked their top players for the Champions League final.

"The outcome of the investigation against Tapie - which then saw the sports fraud accompanied by a number of other irregularities ranging from corruption to non-transparent financial management of the team - condemned the former rising star of French finance first to a two-year sentence then reduced to six months' imprisonment which he served in 1997.

"Fast forward 10 years and, his past somehow forgotten, the smiling prodigal son returned to prominence as a star of national public life in 2007 when, even as a member of the leftist French Radical Party, the entrepreneur publicly stated support for the candidacy of Nicolas Sarkozy as President of the Republic.

"According to the journalists of the Canard Enchaîné, Tapie would have done so mainly due to a presidential promise to keep an indulgent eye on his troublesome and never clear relationship with the French fiscal system.

"The return to the public scene of Mr. Tapie also coincided with the reappearance of the scandals that have accompanied him since the beginning of his career – the lthe most recent example even bringing accusations against French finance minister Christine Lagarde with it."

"According to the indictment lodged against Ms. Lagarde, she abused her authority to help her friend Tapie solve his long court case with Credit Lyonnaise relating to the sale of Adidas in favor of a 400 million euro judgement in Tapie's favor.

"Laurent Tapie, a Son Who Knows How to Use His Last Name

"The first time the name of Laurent, privileged son of Bernard, earned the honor of appearing in the Transalpine 'yellow papers' was because of a scandal.

"Last December 13, Tapie found himself the protagonist of an unfortunate car accident which ended with a complaint filed against him and charges of verbally and physically assaulting the accident victim.

"Accident aside, Tapie had already gained his spot in French public life a long time ago.

"Attracted by the area of e-business and utilising the power of his family name, Laurent launched the now-defunct FreeGoal.com in 2000, a free sports portal that turned out to be powerful enough to attract an investment of 8 million francs by Canal +, publicly one of Bernard Tapie’s historic enemies as the owners of the Paris Saint Germain football team at the time of Bernard’s presidency with Marseilles.

"Only five years later, the young Tapie decided to move into online gambling with the launch of LiveBetting.com, a site then bought by French giant Partouche – where he then got the role of Executive Director of Partouche Interactive.

"Tapie soon ended his affiliation with the Partouche group and founded consumer website BernardTapie.com.

"Within a few months of its launch, however, the site ended up in the center of controversy for its somehow arbitrary management of the privacy of its members and for complaints of a monopoly ("it is impossible to get others the same bids Tapie’s father can have thanks to his network," said some French bloggers)

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AGCC to FTP Players: Don't Come To Us

Tue, 04 Oct 2011 08:00:00 -0700

Don't come to us.

In the wake of the announcement of the license revocations last week, AGCC Executive Director Andre Wilsenach made it clear he thinks Full Tilt is entirely to blame for the situation and the AGCC was duped into believing false financial statements.

As for what happens next, the AGCC has further clarified its position and posted another message on its website for Full Tilt players left in the lurch.

Titled "On-going concerns of Full Tilt's registered players," below is the post in full.

"Following the revocation of the licences, AGCC no longer has authority to intermediate or arbitrate on player issues or disputes with Full Tilt (excepting for players registered under a Swiss address).

Players may have the following alternative options:-

1. Full Tilt has been requested to provide a specific player contact: this is awaited and will be incorporated here upon receipt.

2. Any player who believes they are a victim of crime, as a result of their dealings with Full Tilt, should in the first instance contact their own local police in their country of residence and report the matter to them. These reports will then be co-ordinated centrally.

3. It is understood that a number of civil actions have been initiated by players against Full Tilt, some as class actions representing multiple players by UK, US and Canadian lawyers. Details of the firms concerned can be found through internet search."

No time frame for the appointment of a player contact has been given by either the AGCC or Full Tilt.

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Campos, Elie Fire Back with Lawsuits Against DOJ

Mon, 03 Oct 2011 12:00:00 -0700

Following in the wake of Full Tilt CEO Ray Bitar’s lawsuit filed last week, both John Campos and Chad Elie have filed separate motions in federal court alleging the indictments are invalid on several grounds including the fact online poker is "not a gambling business."

Campos, a former Vice Chairman of the Board and part-owner of SunFirst Bank in Utah, was charged with six counts of violating the Unlawful Internet Gambling Enforcement Act, violating the Illegal Gambling Business Act and conspiracy to commit money laundering for accepting cash to process online poker transactions.

Elie, a payment processor who is accused of lying about the nature of the transactions, is charged with nine counts including violating the Unlawful Internet Gambling Enforcement Act, the Illegal Gambling Business Act, money laundering and conspiracy to commit bank fraud and wire fraud.

Both have plead not guilty to all charges.

The core of the legal arguments filed in court is that poker is a skill game and, as online poker sites only take rake for providing the place to play, is not inherently in the same category as a casino or bookmaking operation which offers games against the house.

As such, poker can't actually violate either the UIGEA or IGBA.

They also make a jurisdiction-based argument saying the business was primarily conducted offshore and not in the State of New York where the indictments were filed.

For the additional charges against Elie, the motion says the charges of bank fraud against him are invalid since there was no harm done to any bank.

To quote one of the filings:

"PokerStars and Full Tilt are not ‘illegal gambling businesses’ under IGBA because they are not ‘gambling businesses’ at all.

“To be ‘engaged in the business of betting or wagering’ requires that the business has a stake in the outcome of gambling contests, and the Indictment here fails to allege that the poker companies had any such stake.”

No response or statement has been made by the US Department of Justice.

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Laurent Tapie: FTP Could Be Back Up By January 2012

Fri, 30 Sep 2011 15:00:00 -0700

Earlier today Full Tilt Poker and the Bernard Tapie Group released a statement saying they had signed an exclusive agreement to sell the company and all of its assets.

According to an interview with iGaming France, Tapie says he “wouldn’t have undertaken such a project if he didn’t believe in its potential.”

Tapie went on to say the investment group has shown they have the funds necessary to repay the debt incurred by Full Tilt Poker’s owners and repay players who currently have their bankrolls frozen.

Tapie also confirmed they plan to keep the Full Tilt Poker brand alive.

“The brand is not in question, it’s a well-known brand and the technology is widely recognized as being possibly the best in the industry. The management of the company is being questioned and it will be changed (should the takeover be concluded).

"I believe we have the tools necessary to once again make the site one of the leaders in the online poker sector.”

Tapie did advise caution, however, as he said there was "still a long way to go" before the site is up and running again. One of the key obstacles is negotiation with the Department of Justice, who allegedly hold $331 million of FTP’s funds.

Despite the challenges ahead, Tapie remained optimistic that the online poker site could be up and running again by this January.

The "Groupe Bernard Tapie" has a history of salvaging financially distressed companies and famously purchased Adidas in 1989, although it was later forced to sell the company.

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Bitar Files Claim Against DOJ, AGCC Blames Full Tilt

Fri, 30 Sep 2011 12:00:00 -0700

The claim from Full Tilt CEO Bitar was filed on Sept. 28 in Dublin and claims the assets listed as subject to forfeiture by the US Department of Justice are “neither proceeds nor instrumentalities of any crimes in any jurisdiction in the United States or elsewhere.“

In the claim Bitar also requests an opportunity to challenge the government's forfeiture and says his claim to the "specified property" is superior to the government's interest.

The specified property is identified his legal and equitable ownership and share in Full Tilt Ltd. and Tiltware LLC along with the domains belonging to those entities plus three bank accounts itemized in the DOJ's amended claim – two in the name of Tiltware and one in his own name.

See the full claim here.

Wilsenach Blames Tilt Absolutely

Executive Director of the Alderney Gambling Control Commission Andre Wilsenach did his lashing out in an interview with eGaming Review and placed the blame for Full Tilt's current situation entirely on FTP's Board of Directors.

“I blame it absolutely on Full Tilt,” Wilsenach said in the interview. “In my view it’s absolutely right that the commission has decided to revoke their licences."

Wilsenach also suggested no licensing regulators would have known the Department of Justice was seizing funds - especially before Black Friday.

“Do you think for a minute that the other operators, PokerStars and Absolute, do you think that their regulators knew that the DoJ was freezing their funds? Don’t for a minute think that in April Black Friday was the first time they froze funds.

"If your operator doesn’t tell then there’s no way you would know.” Find the full interview (behind pay wall) here.

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Full Tilt Poker Sign Acquisition Agreement with Bernard Tapie Group

Fri, 30 Sep 2011 08:00:00 -0700

In a release sent out to pokerstrategy.com, the company says the French group, led by Bernard Tapie's son Laurent, has now signed an exclusive agreement to acquire Full Tilt Poker and its associated assets.

The agreement includes the repayment of all Full Tilt Poker player accounts around the world in full.

It is, however, still subject to several conditions with the primary condition being a "favorable resolution" with the US Department of Justice.

Meetings with the DOJ are set to begin immediately.

Full press release below:

Dublin, Ireland (September 30, 2011) Laurent Tapie, Managing Director of ‘Groupe Bernard Tapie’ announced today that the group has signed an exclusive agreement with the Board of Directors of FullTilt Poker to acquire the company and all of its associated assets.

This agreement, which includes the repayment of Full Tilt Poker’s world-wide players in full, is subject to several conditions; the first of which is a favorable resolution with the United States Department of Justice. Discussions with the United States Department of Justice will begin immediately.

‘Groupe Bernard Tapie’ has over 30 years of experience in the salvation of financially distressed businesses, with over 40 companies acquired and managed to profitability, the most well-known being the sport equipment giant, Adidas."

Tapie Not Scandal-Free Either

While the Tapie family has had its successes in both business and sports, including owning a cycling team that won the Tour de France twice and running a soccer team, Olympique de Marseilles, that won the Champions League title, it's not without its own scandals.

In 1993, Bernard Tapie was accused of fixing a match between Marseilles and a minor club so he could save his players for more important matches.

His club was stripped of its French league title and Tapie ultimately ended up spending six months in jail for "complicity of corruption."

Tapie has also been convicted of tax fraud, sued by his banker for repayment of a $240 million loan and been declared bankrupt by a French Court of Appeal.

More recently, after being appointed Minister of the Republic for Urban Affairs in the French government, Tapie was forced to leave his post after less than six weeks due to accusations of fraud.

He was later exonerated.

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Breaking Down the AGCC Determination Report

Thu, 29 Sep 2011 21:00:00 -0700

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.

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DOJ Says Return of Player Funds "Possible"

Thu, 29 Sep 2011 20:00:00 -0700

Posted on the justice.gov website under the banner of the US DOJ Southern District of New York, the statement says the DOJ, along with the FBI, is trying to trace and secure as much of the missing funds "derived from operation of the fraud" as possible.

It also says that despite the agreement it made with Full Tilt Poker post-April 15th authorizing the return of player funds, Full Tilt never had the funds on hand.

The current operation is focusing on obtaining and examining Full Tilt Poker's books and records but is hampered by the fact much of this is held overseas.

Most importantly for players, the DOJ says the return of forfeited funds is possible but dependant on several factors including current litigation, the amount ordered to be forfeited by the court and other actions of the DOJ still to be determined.

Below is the DOJ posting in full:

“After the amended complaint in United States v. Pokerstars et al., 11 Civ. 2564 (LBS), was filed on September 22, 2011, the United States Attorney’s Office for the Southern District of New York received a number of new inquiries from individuals regarding the recovery of their funds from Full Tilt Poker.

“By way of background, in April of 2011, this Office entered into a domain-name use agreement with Full Tilt Poker. That agreement, among other things, expressly authorized Full Tilt Poker to return player funds to players.

“However, as the September 22 amended complaint alleges, Full Tilt Poker did not in fact have player funds on hand to return to players.

“Instead, the amended complaint alleges that Full Tilt Poker had, among other things, (a) transferred significant amounts of players’ real money deposits to principals of the company, while (b) allowing many players to continue to gamble, and “win” and “lose,” with phantom credits in their player accounts.

“At this time, this Office, together with the FBI and other agencies, is attempting to trace, secure and forfeit as much as possible of the funds derived from operation of the fraud committed by Full Tilt Poker and its board members that is alleged in the amended complaint.

“The Office is also attempting to obtain and examine the books and records of Full Tilt Poker. Many of those books and records are kept overseas.

“The return of forfeited funds to victims of the alleged fraud may be possible, but will depend on several factors, including the successful conclusion of the litigation, the amount of funds seized and ordered forfeited by the court, and compliance with other procedures the Department of Justice may eventually establish regarding return of forfeited funds to victims who lost money as a result of the alleged fraudulent conduct.

“We cannot predict the duration of proceedings in this case, other than to state that they will last for many months at the least. We will apprise victims of the alleged fraud of future developments as appropriate.”

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Full Tilt Releases Statement re. License Revocation

Thu, 29 Sep 2011 18:00:00 -0700

Titled, "AGCC DEALS A BLOW TO FULL TILT POKER PLAYERS AS ‘INVESTOR CLOSE TO A DEAL’ TESTIMONY IS DISREGARDED," the statement was released exclusively to pokerstategy.com shortly after the AGCC released its statement this morning.

In the statement, Full Tilt explains it offered the AGCC the testimony of the interested investor group showing the "advanced nature" of the negotiations.

Full Tilt's representatives asked for an additional 30 days time to remain under suspension to allow for the transition of ownership to the new team.

By denying the extension and revoking three of the four licenses, Full Tilt says the Commission’s decision "makes it more difficult to execute the sale of the company."

It also says that despite the "damage done by the Commission and its disregard for our players" FTP is still committed to repaying its players in full.

Negotiations are reportedly still ongoing with regard to the sale of the company.

Another statement from Full Tilt is expected "shortly."

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Breaking: Full Tilt Poker Has License Revoked

Thu, 29 Sep 2011 12:00:00 -0700

In a media statement released today, the AGCC said Full Tilt Poker had "fundamentally misled" the Commission about its operational integrity and breached several of the AGCC's regulations including false reporting and unauthorized provision of credit.

The license revocation applies to three companies that collectively traded as Full Tilt Poker - Vantage Limited, Filco Limited and Oxalic Limited.

A fourth company called Orinic Limited, described as "a recently added geographic sub-division of the FTP poker room," remains under suspension.

The ruling doesn't preclude the reactivation of the licenses under new ownership or mangement, the statement says, but the AGCC now no longer has jurisdiction over the current ownership.

It also says unresolved player claims are now a matter for "police and civil authoritiies."

Below is the AGGC's statement in full:

"AGCC Commissioners, sitting as a tribunal, have today revoked the licences of Vantage Limited, Filco Limited and Oxalic Limited, trading as Full Tilt Poker (FTP), with immediate effect. This follows the earlier suspension of the licences on 29th June 2011.

"At a hearing held in London over six days, it emerged that FTP had fundamentally misled AGCC about their operational integrity by continuously reporting as liquid funds balances that had been covertly seized or restrained by US authorities, or that were otherwise not actually available to the operator.

"Serious breaches of AGCC regulations include false reporting, unauthorised provision of credit, and failure to report material events.

"At the commencement of these proceedings on 26th July AGCC made clear its preference to hold the hearing in public, to the benefit of players and media alike.

"However, the tribunal was persuaded that the hearing should be held in camera on the basis of claims by FTP that this would maximise the chance of a commercial rescue of the business for the benefit of players. For this reason an adjournment of 54 days was allowed.

"It is important to note that the revocation of FTP’s licences does not, as has been suggested, prevent a reactivation of the business under new ownership and management.

"Unresolved claims by players against FTP become a matter for the police and civil authorities. Now that FTP’s licences have been revoked, AGCC no longer has jurisdiction over these companies.

"The licence of Orinic Limited, a recently added geographic sub-division of the FTP poker room, remains suspended."

The full written determination of the AGCC outlining its decision and reasoning is available here.

For more background and continuing coverage of the Full Tilt story, check our Black Friday Bulletin Board.

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Full Tilt Investors Waiting on AGCC Decision: Ifrah

Wed, 28 Sep 2011 08:00:00 -0700

Or, for that matter, even a statement indicating that the hearing has ended.

Originally expected to be wrapped up within 72 hours, the hearing is rumored to have extended over the full course of last week in London due to an impending deal for the sale of Full Tilt to a French investment group.

Information surrounding the hearing has been scarce, but Full Tilt Attorney Jeff Ifrah spoke with pokerstrategy.com earlier this week and said the investment deal is very real but still contingent on the AGCC reinstating Full Tilt’s operating license.

Said Ifrah:

“The investors are totally committed to doing this – we’ve met with them and seen the funds.

“Their primary concern right now is the AGCC’s decision on Full Tilt’s license.

“The investor’s position is that if Alderney revokes the license, they won’t go through with the deal because it makes things too difficult.”

As of Monday, Ifrah said the investors are in Alderney meeting with the AGCC to adress concerns and finalize an agreement.

Ifrah also said a settlement with the US Department of Justice is critical for negotiations to go forward and to that end the investment group has retained counsel and set up a meeting with the DOJ.

“They’ve hired a prominent and respected lawyer in the gaming industry,” Ifrah said, “and are setting up a meeting with the DoJ to try and work out the issues Full Tilt has in the US.”

Dates for this expected meeting with the DOJ have been bandied around on the forums and "by Oct. 3" has surfaced in the threads atrributed to an email from Irfah.

Ifrah has also said the letter of intent signed by the investment group is due to expire on Sept. 30.

According to an article on the French media site mediapart.fr, the investment group is rumored to include Laurent Tapie, son of noted French businessman, politician and actor Bernard Tapie.

No update has been posted on the Alderney Gambling Control Commission website.

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Asset Seizure Warrant Issued Against FTP Owners

Fri, 23 Sep 2011 21:00:00 -0700

Technically the warrant is called a "warrant in rem," which is a civll action directed towards the property of the individuals, not a criminal arrest warrant.

All five accounts are directly connected to accused board members Ray Bitar, Howard Lederer, Chris "Jesus" Ferguson and Rafe Furst.

The accounts are listed as subject to civil forfeiture as "property constituting or derived from proceeds traceable to vioations of specific unlawful activites."

Those activiteis include "operating an illegal gambling business," "wire fraud," "bank fraud" and "money laundering."

Below is the text from the warrant directly naming the accounts to be seized.

"YOU ARE HEREBY COMMANDED AND AUTHORIZED to seize the property described below by personally serving a copy of this warrant in rem upon any person presently in possession of such property:

All funds and other property on deposit in account numbered GB81 RBOS 6095 4234 0877 66 held at NatWest, in the name of Raymond Bitar, and all funds traceable thereto;

All funds and other property on deposit in account numbered 7655741861 held at Wells Fargo Bank N.A. in the name of HH Lederer Consulting LLC, and all funds traceable thereto; and

All funds and other property on deposit in account numbered GB56LOYD30166314010402 held at Lloyds TSB International, Isle of Mann, in the name of Howard Lederer, and all funds traceable thereto;

All fund and other property on deposit in the account numbered 40039049628 held at Citibank N.A., in the name of Chris Ferguson, and all funds traceable thereto; and

Account numbered CH87 0875 5057 0684 0010 0 held at Pictet & Co Bankers, Switzerland, in the name of Telamonian Ajax Trust, and all funds traceable thereto.

YOU ARE FURTHER COMMANDED AND AUTHORIZED to prepare a written inventory of the property seized and promptly return this warrant and inventory before this Court as required by law."

For more on the amended complaint filed against the Full Tilt Board members on Monday, check out the full story here.

For more on Black Friday, check our updated Black Friday Bulletin Board.

FTP Lawyers Dismiss Ponzi Scheme Claim, French Investors Rumored

Thu, 22 Sep 2011 16:00:00 -0700

Ian Imrich, a Los Angeles-based attorney representing Chris “Jesus” Ferguson, released a statement calling the use of the term careless and inflammatory.

“While the government has obviously taken issue with the underlying activities of FTP, under any reasonable interpretation, the worldwide operations of the online cardroom are not a so-called Ponzi scheme,” said Imrich.

“Use of the inflammatory term Ponzi scheme in the post-Madoff era is more than careless and may violate pre-trial publicity rules of professional responsibility.”

Jeff Ifrah, acting attorney for Full Tilt in its hearing with the Alderney Gambling Control Commission, echoed that sentiment in an interview with Reuters UK.

"I disagree strongly with the allegation that FTP operated as a global Ponzi scheme," Ifrah said on Wednesday.

"FTP may have made mistakes, but I have seen no evidence to support the DOJ's characterization of it as a global Ponzi scheme."

The distinction, Imrich says, is that a Ponzi scheme is "an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors."

Full Tilt never came close to offering anything near a Ponzi scheme, Irfah added in an interview with the Wall Street Journal, suggesting it operated more like a “problematic bank.”

"A Ponzi scheme requires an investment vehicle in order to receive a certain rate of high return," Ifrah said. "None of those things happened here."

Ifrah also characterized the primary issue in the case as "mismanagement."

French Investment Group In the Picture?

In the background of the amended complaint released by US Attorney Bhahara on Tuesday is the now-concluded hearing in London between Full Tilt and the AGCC regarding Full Tilt's license suspension.

Ifrah indicated in an email to a member of the 2+2 forums that the primary issue being considered is another 30-day extension for Full Tilt to finalize a deal with a potential new ownership group.

Ifrah followed that up in an interview with eGaming Review by saying a deal with an unnamed party is in the works and a letter of intent is in place that includes provisions for settling any fines with the Department of Justice and repaying all funds to players worldwide.

The letter expires on September 30, however, and is not binding in its entirety.

According to an article on the French media site mediapart.fr, that investment group is rumored to include Laurent Tapie, son of noted French businessman, politician and actor Bernard Tapie.

Bernard Tapie is well known in the business world as a specialist in the recovery of bankrupted companies, having turned around several dozen in the late 80s and doing the same for Adidas in the early 90s.

No official statement has been released by either Full Tilt or the AGCC.

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Rafe Furst Responds with Open Letter Regarding Full Tilt

Wed, 21 Sep 2011 18:00:00 -0700

Specifically, Furst says due to the seriousness of the allegations he's not allowed to comment on the pending DOJ case.

He does however say he feels he has "nothing to hide" and that "it sucks to have to endure the character assassination and potshots" being taken at him.

The full letter can be found below or at emergentfool.com.

“By now you’ve no doubt heard about the allegations against me in a Federal civil suit regarding Full Tilt Poker.

“Because of the seriousness of the allegations I’m not able to comment at all about the pending case, much as I would like to.

“From a moral, personal and interpersonal perspective I feel I’ve got nothing to hide. And since I trust in our system of justice and have the utmost respect for my legal counsel, I will refrain from talking about the case until it’s resolved.

“What I would like to express here is concern for my family, friends, colleagues and supporters who believe in me and who feel my pain as if it were their own.

“It sucks to have to endure the character assassination and potshots being taken at me in the media and social networks without being able to defend myself.

“Privately though I have received incredible support from many of you, and I can’t tell you how much it means to me. May you never have to endure something like this, but if you do, I hope you have friends as good as mine.

“To the skeptics, please consider that not everything you read is true, and our society is built on a presumption of innocence until proven otherwise.

“It’s difficult to take back hurtful things that you might later regret, when the damage has already been done.

“To those of you who have asked what you can do to show your support, I am grateful for the offer.

“My only request at this time would be to not let the naysayers and haters be the only voices out there expressing their opinion of me.

"My twitter is @rafefurst, and I’d love to hear from you publicly.

"With Respect and Love,

Rafe"

According to the amended claim, Furst was one of the Board of Directors of Full Tilt Poker and was part of the disbursement of $444 million in payments to owners that were at least partially paid out with player deposits.

Furst himself was reported to have received $11.7 million in shareholder payments between April 2007 and April 2011.

See our news story for more on yesterday's amendend claim against Full Tilt Poker and its owners.

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Breaking: DOJ Calls Full Tilt "Ponzi Scheme," Claims Owners Defrauded Players

Tue, 20 Sep 2011 08:03:00 -0700

According to the Wall Street Journal, the amendment names Howard Lederer, Chris "Jesus" Ferguson, Rafe Furst and Ray Bitar as the principals in a scheme that paid out $444 million to themselves and the other owners of Full Tilt Poker at least partially through supposedly segregated player deposits.

"Full Tilt was not a legitimate poker company, but a global Ponzi scheme," said Bharara in the statement.

Bhahara also said Full Tilt "cheated and abused its own players to the tune of hundreds of millions of dollars" and that "insiders lined their own pockets with funds picked from the pockets of their most loyal customers while blithely lying to both players and the public alike about the safety and security of the money deposited with the company."

Further to the complaint, the DOJ is also seeking new penalties for each defendant totaling $41 million for Bitar, $42 million for Lederer, $25 million for Ferguson and $12 million for Furst, related to the percentage of their ownership in the company when the fraud was committed.

It is also asking for forfeiture of all funds paid to each individual from Full Tilt Poker.

From the amended complaint filed by Bhahara:

"The Amended Complaint alleges that one of the Poker Companies, Full Tilt Poker, not only engaged in the operation of an unlawful gambling business, bank fraud, wire fraud, and money laundering as alleged in the Complaint, but also defrauded its poker players by misrepresenting to players that funds deposited into their online player accounts were secure and segregated from operating funds, while at the same time using player funds to pay out hundreds of millions of dollars to Full Tilt Poker owners.

"Full Tilt Poker was able to accomplish this massive fraud, in part, because it illegally conducted business in the United States but maintained its personnel, operations, assets, and accounts principally overseas.

"The Amended Complaint further alleges that, in or about the summer of 2010, Full Tilt Poker payment processing channels were so disrupted that the company faced increasing difficulty attempting to collect funds from players in the United States.

"Rather than disclose this fact, Full Tilt Poker simply credited players' online gambling accounts with money that had never actually been collected from the players' bank accounts. Full Tilt Poker allowed players to gamble with -- and lose to other players -- this phantom money that Full Tilt Poker never actually collected or possessed.

Rafe Furst: Added to the DOJ defendant list.

"When other players won these phantom funds, their accounts were credited with money that Full Tilt Poker did not actually possess, but now nevertheless owed to these players.

"As a result, Full Tilt Poker soon developed a massive shortfall between the money owed to United States players and the money actually collected from United States players, with Full Tilt Poker having credited approximately $130 million in phantom money to U.S. players online accounts that was never actually collected from players' bank accounts.

"Full Tilt Poker never disclosed this shortfall to the public.

"The Amended Complaint further alleges that, as of March 31, 2011, Full Tilt Poker owed approximately $390 million to players around the world, including approximately $150 million owed to players in the United States.

"At that time Full Tilt Poker had only approximately $60 million on deposit in its bank accounts. As of the filing of this Amended Complaint, Full Tilt Poker still owes players over $300 million.

"The Amended Complaint alleges that, meanwhile, from approximately April 2007 until April 2011, Full Tilt Poker, and its Board of Directors, Bitar, Howard Lederer (“Lederer”), Christopher Ferguson, a/k/a “Jesus” (“Ferguson”), and Rafael Furst (“Furst”), all owners of Full Tilt Poker, distributed approximately $443,860,529.89 to themselves and other owners of the company.

"Payments to the Full Tilt Poker owners stopped only after April 15, 2011."

No representatives for any of the parties could be reached for comment by the Wall Street Journal.

Full Tilt Poker is currently in the processs of completing its hearing with the Alderney Gambling Control Commission about the reinstatement of its operating license.

No statement has been released by either party regarding the proceeedings over the last two days in London.

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Full Tilt Poker Hearing: What Happens Next?

Sun, 18 Sep 2011 09:00:00 -0700

Set for 9 am at the Riverbank Park Plaza Hotel in London, the hearing this time will be held "in camera" and the public will not be allowed access to the proceedings.

While some have expressed their discontent with the closing of the meeting, most jilted Full Tilt customers at this point care only about one thing - getting the money from their FTP accounts back.

For their parts, both the AGCC and Full Tilt released statements this week in advance of the hearing.

The AGCC focused its statement on why the hearing will now be in private instead of in public (balancing the interests of all parties).

Full Tilt instead focused its release on its intentions to repay players in full and to continue serving non-US customers should its license be reinstated.

FTP also said it is facing a €12m shortfall thanks to the effects of Black Friday, and if it were to compensate for that shortfall entirely through staff redundancies it would cut 250 jobs from the Pocket Kings office in Dublin.

Past the official statements, the real question on Full Tilt players' minds is what they can realistically expect for their FTP money post-hearing.

Industry-wide, the consensus seems to be the following are the possible options:

Investor Found, License Reinstated

€12m shortfall the least of FTP's worries right now.

The best-case scenario for FTP account holders on Monday is Full Tilt uses the meeting with the AGCC to confirm it has a deal in place with an investor, European or otherwise.

Based on the previous hearing and the resolution of the issue of Full Tilt not paying its outstanding licensing fees, this seems to be the major sticking point in getting its license reinstated.

If that's so and FTP's license is reinstated, it's assumed the investor will then inject the needed capital into the company to repay all American players immediately and get the site back up and running and serving all non-US customers.

Given the circumstances, the investor will also likely need to provide an extra stash of cash reserves to accommodate a rush on cashouts from all international players not willing to keep their business at FTP.

The latest from Full Tilt regarding investors came in a statement on August 22 that said Pocket Kings had "concluded the exclusivity period of negotiations" with an original potential investor and that it had begun negotiations with additional potential investors.

License Not Reinstated, FTP Moves to Kahnawake

Full Tilt’s secondary license is held by the Kahnawake Gaming Commission in Quebec, and rumors had FTP moving its operating platform over to Kahnawake back on June 30 when its license with the AGCC was supended.

FTP thought better of it and has instead waited through the Alderney process in hopes of securing a new investor and reinstating its primary license.

FTP could theoretically resume operation under its secondary Kahnawake license, but its credibility would be virtually impossible to restore and it would seem implausible it could run a viable operation.

A run on cashouts would also likely ensue once the site was running again and FTP may or may not have any reserves available to pay out what’s needed.

License Not Reinstated, Full Tilt Goes Back into Holding Pattern

Backed into a corner, some players left the country.

It’s also quite possible, according to FTP’s current attorney Jeff Ifrah (despite his motion to step down), that the hearing with the AGCC on Monday will result in another postponement.

FTP has contended privacy and confidentiality are critical to securing an outside investor to both settle with the DOJ and pay back accounts, and they could make the case they still need more time to make it happen.

Given the AGCC has always stated the best interests of the players is the number one priority, this is a viable scenario according to Ifrah.

Unfortunately for players, unless the DOJ unfreezes Full Tilt’s seized bank accounts their FTP money and FTP accounts would likely remain in limbo.

For American players willing to start over however, there is still the possibility of playing online poker in the interim before the inevitable licensing and regulation of the US poker market.

A couple of active poker networks are still accepting US players, including the Cake Poker network and the Merge Gaming Network.

Another option for American players has been to relocate to other countries around the world to resume playing online.

Americans who want to play free poker also will have a couple of new options coming as two land-based casinos, South Point in Las Vegas and Barona in San Diego, have announced they are launching free-play online sites in the coming weeks.

Speculation is that the land-based casinos are ramping up now to be fully operational for real-money online poker as soon as legislation is passed.

Though it seemed impossible a year ago, FTP could go bust.

For players outside of the US, dozens of licensed and regulated poker sites such as Poker Stars, 888 Poker, bwin Poker, Titan Poker and Party Poker are of course all still available to most of the world.

Many online poker sites are even offering new and generous sign-up bonuses and promotions to cater to FTP refugees.

All sites on the iPoker network, for example, have bumped their sign-up bonuses to $2,000 and most sites are offering equal VIP status with proof from their previous VIP level at Full Tilt.

Insolvency?

Should Full Tilt’s license be officially revoked by the AGCC on Monday and no investor has been found, Full Tilt could pull the plug and declare insolvency.

Regardless of the ongoing civil action pending from players hoping to get their FTP money back, there seems to be little chance players will see any money returned in this type of scenario.

With no active online poker revenue, a large staff still needing to be paid and a massive payment pending with the US Department of Justice, it would seem unlikely Full Tilt would be able to pay back any of its creditors let alone the estimated $150 million owed to its US players alone.

Stay tuned to the PokerListings news section for an update on the meeting with the AGCC Monday.

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Full Tilt Hearing Now Sept. 19, Lawyers Try to Withdraw

Tue, 06 Sep 2011 06:00:00 -0700

Originally held July 26 in an open-to-the-public format at the Victoria Park Plaza Hotel in London, lawyers for Full Tilt quickly asked to take the hearing private.

AGCC board members spent the bulk of the day considering the request before finally agreeing to move in-camera and postponing the hearing until "no later than Sept. 15th" to allow Full Tilt to continue to negotiate with private investors.

The full statement released by the AGCC re. the new hearing date below:

"The hearing will reconvene at 0900 on Monday 19th September, 2011. The hearing will be held in the Plaza Suite at the Riverbank Park Plaza Hotel, 18 Albert Embankment, London, SE1 7TJ.

"As before, those wishing to attend are requested to contact the AGCC on +44 (0)1481 825500 or via info@agcc.gg

"Full update pending"

In the interim since the last hearing, Full Tilt has also released a statement saying the exclusivity agreement with the initial potential investor had expired and that it was now opening negotiations up to several more potential investors.

Full Tilt's attorney Jeffrey Ifrah also started a thread in the 2+2 forums to answer player questions and revealed negotiations were ongoing with three parties.

This past week, however, both Ifrah and fellow attorney David Deitch filed a motion to step down as Full Tilt's attorneys of record.

The motion contended that “continued representation of the Defendants would create unreasonable difficulty for us to carry our employment effectively and would result in an unreasonable financial burden to our law firm.”

More about Black Friday on our Black Friday Bulletin Board.

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Caesars CEO: Not If, but When for Regulated Online Poker

Tue, 16 Aug 2011 08:00:00 -0700

Among the key highlights from his video interview with LA Bureau Chief Matthew Garrahan, Loveman said there is a will in Congress to make changes in existing laws and the question is now not if, but when.

"You find when you talk with Congressional members and Senators about any piece of legislation you start with a certain level of skepticism and the sense that this will never happen.

"We certainly had that years ago. Now there's a sense of inevitability to it.

"People are not talking about 'could this happen' or 'if this'll happen' there's now a sense of 'when should it happen and under what circumstances' and that's a very important change of thought."

Loveman was also quoted in the text interview as saying:

“I do believe there is a will in Congress to correct this …. we ought to clean up the regulatory and policing environment and that’s what we’re seeking.

“First, it creates the appropriate legal and enforcement environment where the game is being provided fairly by regulated entities that are known to the American authorities.

“Second, there’s a lot of job creation associated with this; we could provide thousands of American jobs if given the right to do so and there [also] would be the benefit of tax revenues.”

Added Loveman:

“I can’t think of another example where there is something an American can buy that no American entity can provide.”

US congressman Michael Grimm also recently released a statement connecting online poker to new US jobs, saying:

“Together we must fight for the return of quality, good paying jobs to the United States and a strong regulatory framework for legal online poker will contribute to that goal.”

Howard Stutz, a reporter for the Las Vegas Review-Journal, fueled speculation of a speedier push of legislation through Congress even further over the weekend when he tweeted:

"Senate Majority Leader Harry Reid tells R-J staff Internet poker legislation 'will get done.'"

See the full interview with Loveman at the Financial Times website.

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PokerStars Hires New Chief Marketing Officer

Tue, 16 Aug 2011 06:00:00 -0700

PokerStars introduced Payne in a release today, explaining he was hired following an intensive eight-month international search and that Payne will take over all aspects of consumer marketing across the business.

His range of responsibilities will include "the company's brand and advertising, TV programming productions and media buying, online marketing including paid search, organic search, social media, regional customer relationship management and acquisition and conversion and retention campaigns for online and live poker players."

Payne joins PokerStars after 11 years with Microsoft, most recently as Sales & Marketing Director for Microsoft's search engine Bing in the UK.

"I'm delighted to be joining PokerStars," Payne said. "I am joining an outstanding business, which is the clear leader in its category and has enormous potential ahead of it.

"Moreover, it's a product in which I have a huge personal passion."

Some of Payne's recent achievements at Microsoft include creating a US industry standard for online ads with Yahoo! and AOL and launching Windows 7 in Europe. Prior to Microsoft, Payne spent ten years in advertising agencies including OgilvyOne and EHS Brann.

PokerStars remains the highest traffic online poker site in the world with over 52,000 players at its 24-hour peak, despite being prevented from operating in the United States.

This latest appointment rounds out the hiring of a new Senior Leadership Team at PokerStars built over the last 12 months.

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Full Tilt Poker Pays AGCC Outstanding License Fees

Fri, 05 Aug 2011 18:00:00 -0700

In a statement published on the AGCC's website under a red "Full Tilt Update Click Here" button and titled simply “Full Tilt Poker," the AGCC said:

“As a result of the AGCC’s investigations the decision was taken on 29 June 2011 to suspend the licences of the companies collectively trading as FTP.

"The AGCC has also imposed a condition that requires the licensees comprising FTP to arrange for the ring-fencing of identified players’ funds under their control.

"On the 26 July 2011, the AGCC held a public hearing to consider allegations arising from the investigation.

“At the hearing the Commissioners of the AGCC, acting as a tribunal, decided to adjourn the hearing to a date no later than 15 September, as they felt that this was in the best interest of the players using FTP’s services.

“The recent payment of overdue licence fees by FTP is also in players’ best interests since it allows commercial negotiations to take place that might result in a successful refinancing deal.

“Further details regarding the exact date and venue of the next hearing will be announced as soon as possible.”

The payment of the licensing fees follows on the heels of the announceement on Tuesday that the Kahnawake Gaming Commission had also renewed Full Tilt Poker’s Secondary gaming license.

The AGCC has confirmed that Full Tilt Poker’s license will be considered valid until the next hearing.

A proposed deal between Full Tilt and a group of European investors has been rumored for well over a month now.

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French Tribunal Rules Poker Game of Skill

Tue, 02 Aug 2011 06:00:00 -0700

The Tribunal de Grande Instance in Toulouse made the ruling on July 20, 2011, in the case of Jean-Pierre Gleizes, a local card room operator who was accused of "organizing private poker competitions in public venues without a license."

According to current French law, only a limited number of licensed operators, both live and online, can offer gambling activities that involve "games of chance."

After hearing expert testimony from a national bridge and chess champion, a mathematics professor and a professional poker player, the court ruled in the defense’s favor and declared the evidence insufficient to prove poker is a game of chance.

The decision is now under appeal by the French government, however, as it could have dramatic ramifications for the gambling industry both offline and online.

The biggest consequence would be that poker would no longer fall under the recent Online Gaming Bill which regulated the French market, meaning operators would technically no longer be required to pay licensing fees and taxes

The government is being pressured to expand the online gaming bill to include games of skill, however, so that could change as well.

Live poker pros would now see their income taxed though because poker would be classified as a game of skill.

The decision poker is entirely a game of skill is the first of its kind in France, although the Court of Appeal of Versailles did shift slightly in that direction in 2009 when it ruled poker is a "reasoned game of chance," where chance is reduced the greater the number of hands played.

The current decision is based primarily on the testimony of the expert witnesses, so may be overturned by France's Supreme Court where the appeal now sits.

Another outstanding issue is the decision currently only applies to Texas Hold'em.

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Full Tilt Poker Hearing Adjourned Until Sept.

Tue, 26 Jul 2011 06:00:00 -0700

The much anticipated hearing set by the AGCC regarding Full Tilt Poker's license suspension started with a one-hour delay at 11 a.m. (CET), and was soon interrupted again by request of the FTP legal representatives.

In short, Full Tilt Poker's lawyer, Martin Heslop, immediately asked for a private hearing.

Heslop argued that Full Tilt's case has "commercially sensitive information" that could affect ongoing deal negotiations and could also have a "damaging effect" on customers if released to the public.

At the time there were about 150 people present, with around 50 of them media.

The Alderney Commission originally disagreed and presented their case to continue the hearing.

The key issue for the AGCC is that Full Tilt owes $400,000 in outstanding license fees and its main charge is to get this money back.

This money had been due for some time and has nothing to do with payouts to players.

FTP agreed to pay the money within seven days under two conditions:

1. The hearing will be adjourned and later held "in-camera."2. AGCC considers the possibility of reinstating Full Tilt Poker's license.

This lead most observers to believe the AGCC did not suspend Full Tilt’s license because of the company’s "failure to satisfy" its affairs were in order and to support player payouts, as expressed in the AGCC's original statement, but only to get the money that Full Tilt failed to pay in licensing fees.

Heslop argued that FTP does not see any reason to pay its licensing arrears to the AGCC if they don’t see the chance to get their license back.

The AGCC replied that without the payment Full Tilt will not get their license back at all.

There was a short break, all members of the public were asked to leave, and the board carried on a lengthy discussion in private about the adjournment of the hearing.

At the original time of writing (11:00 a.m. ET), the private meeting was still ongoing with three possible outcomes:

The hearing stays public and will be carried on with later today The hearing will be carried on in camera The hearing is postponed.

In the final case it is expected to be about 2-4 weeks before the hearing resumes.

In the meantime, bwin.party shares rose by 4% today.

UPDATE: After deliberating for most of the day, the AGCC reconvened the hearing shortly before 6 p.m. (GMT) and determined that, in the best interests of Full Tilt customers, the hearing will be adjourned until Sept. 15, 2011, at the latest.

The reasoning given was so Full Tilt can continue its negotiations with possible investors.

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Full Tilt Hearing Set to Go Tuesday

Sun, 24 Jul 2011 12:00:00 -0700

The hearing will begin at 10 a.m at the Victoria Park Plaza Hotel in London and will be open to the public.

The primary purpose, accordiing to the original statement from the AGCC, is “to make public evidence from both AGCC and Full Tilt regarding the suspension of Full Tilt’s licence and to adjudicate the findings transparently.“

Full Tilt Poker's operating licence was suspended by the AGCC last month in the wake of the April 15 indictment of owner Ray Bitar by the United States Department of Justice.

The site continued to operate outside of the US post-April 15, but it subsequently “failed to satisfy" the AGCC that its business was in order and FTP's license was suspended, effectively shutting down all operations as of June 29.

Said the AGCC in its release that day:

"Alderney Gambling Control Commission (AGCC) has today issued Hearing Notices under Regulation 46 of its Regulations to Vantage Ltd. Oxalic Ltd, Filco Ltd and Orinic Ltd, collectively trading as FULL TILT POKER.

“In addition, AGCC has issued Suspension Notices under Regulation 47 to the above named companies requiring them to suspend all operations with immediate effect.

“The decision to suspend these licenses follows a special investigation prompted by the indictments unsealed by US Attorney General's Office in the Southern District of New York on 15th April 2011, during which grounds were found to indicate that these licensees and their business associates were operating contrary to Alderney legislation.

“The nature of the findings necessitated the taking of immediate action in the public interest.”

Millions of dollars in player funds (in addition to the original DOJ seizures) has since been in limbo and speculation about FTP’s future has spread liberally.

From Phil Ivey’s “White Knight” deal to an LA Times report about an impending sale to European investors to the more recent suggestion investors are only interested in FTP's UK and Irish assets, there's been no shortage of both hopeful and discouraging flutter.

Unfortunately very little of it has been substantiated by either fact or direct sources, save the LA Times report.

The overarching theme on all sides, however, has been the need for immediate return of all player funds - an opinion also voiced by the Executive Director of the AGCC, André Wilsenach, in his original statement regarding the hearing:

“AGCC’s choice to hold a public hearing in regards to the future of Full Tilt Poker demonstrates our willingness to act transparently and we will welcome members of the public and the media.

"As ever at all times, our primary concern is the protection of the player.”

Check back Tuesday for a full report from the hearing.

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888 in “Advanced Stages” of Partnership Talks With Caesars

Fri, 22 Jul 2011 09:00:00 -0700

Mattingley referred to the status of the talks in an interview with Bloomberg reporter David Altaner, saying 888 is also considering applying for an online poker license in Nevada and would be making a decision by “mid-autumn.”

Mattingly told Altaner that 888 “would love” to do a deal with Caesars and called expanding into the US a “no-brainer” if it becomes possible.

The article coincided with the release of 888 Holdings’ earnings statement for the last quarter which shows a 29% rise in revenue due primarily to poker and casino increases.

According to the earnings statement, poker sales on 888 have increased 58% compared to last year to $13 million and the number of active casino and poker customers has doubled.

In an article on egrmagazine.com, Mattingley attributed the rise in sales in part to the Full Tilt Poker shutdown but mostly due to the release of its new Poker 6 software last year, which added over 100 new features for players.

PokerListings.com's online stats tracker has 888 Poker traffic up 24% over the last month with peak traffic hitting 4,105 players.

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LA Times Reports Full Tilt to Be Sold to European Investors

Thu, 30 Jun 2011 18:00:00 -0700

In the article published just a few hours ago, reporter Nathaniel Popper says:

"Attorneys associated with Full Tilt said the company signed an agreement Thursday with a group of investors who would put up enough money to pay back players and in doing so attain a majority stake in Full Tilt's Irish parent company, Pocket Kings."

He continues on to say the deal is part of broader negotiations to settle Full Tilt's civil lawsuit and criminal indictment and that the attorneys spoke anonymously due to the ongoing negotiations with the Department of Justice.

Popper also reports Phil Ivey is set to withdraw his lawsuit against Tiltware LLC in Nevada state court today and quotes Ivey's attorney, David Chesnoff, as saying:

"Mr. Ivey intends to dismiss his lawsuit as he believes Full Tilt is taking steps to see that the players are paid."

Full article again can be found here.

Update:

It's been confirmed that Phil Ivey has voluntarily dismissed the case without prejudice. You can see the update if you search the Clark County Courthouse website.

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PokerStars, Isle of Man GC Issue Reassurance Statements

Wed, 29 Jun 2011 09:00:00 -0700

News of the suspension of Full Tilt's operating license by the Alderney Gambling Control Commission pending a July hearing spread quickly this morning, but both PokerStars and the IMGSC were similarly quick to nip any speculation about PokerStars' operations in the bud.

Said the Gambling Commission in a release:

"The Isle of Man Gambling Supervision Commission wishes to make it clear that the licensing status of PokerStars in the Isle of Man remains unchanged following today's statement from the Gambling Control Commission in Alderney.

"Alderney is a separate jurisdiction from the Isle of Man and the operation in question is separate from PokerStars.

"PokerStars continues to demonstrate compliance with its license conditions in the Isle of Man.

"PokerStars continues to offer withdrawals to any players who wish to withdraw their funds, including players in the USA to whom PokerStars does not currently offer real-money gaming."

Similarly, PokerStars issued its own release re. the FTP shutdown:

"In light of today’s news that Alderney Gambling Control Commission has suspended Full Tilt Poker’s license, PokerStars wishes to assure our customers that their funds are completely safe and that our operations are completely unaffected.

"The Isle of Man Gaming Commission today reaffirmed that PokerStars' worldwide licensing is intact and that our operations are in full compliance with all of its requirements.

"PokerStars' online operations continue as normal and all funds in players’ accounts are safe and available for withdrawal as usual with no delays.

"PokerStars also remains in full compliance with our licenses in other jurisdictions where we are regulated, including France, Italy and Estonia.

"As provided under our licensing, PokerStars has always maintained the integrity and security of our players’ funds, by keeping all such funds in segregated bank accounts, always available for immediate withdrawal.

"Since the actions of US Department of Justice in April, we have returned more than $120 million to US players and continue to act upon requests as they are received. Players outside the US have not been affected and all cash-outs have been processed without delays.

"Further, PokerStars entered into an agreement with the Department of Justice which expressly confirmed the company’s ability to operate outside the US.

"We will continue to operate as a responsible corporate citizen and are committed to serving the needs of our customers in complete compliance with our regulatory requirements."

More information will be posted as it is released.

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Breaking: Full Tilt Down Pending July Hearing

Wed, 29 Jun 2011 08:00:00 -0700

All ongoing action came to a halt immediately and all international sites went down temporarily.

At first, the AGCC released the following statement:

"Alderney Gambling Control Commission (AGCC) has today issued Hearing Notices under Regulation 46 of its Regulations to Vantage Ltd, Oxalic Ltd, Filco Ltd and Orinic Ltd, collectively trading as FULL TILT POKER.

In addition, AGCC has issued Suspension Notices under Regulation 47 to the above named companies requiring them to suspend all operations with immediate effect.

The decision to suspend these licenses follows a special investigation prompted by the indictments unsealed by US Attorney General’s Office in the Southern District of New York on 15th April 2011, during which grounds were found to indicate that these licensees and their business associates were operating contrary to Alderney legislation.

The nature of the findings necessitated the taking of immediate action in the public interest.

The venue and date for the hearing will be announced in due course.

Issued by:

André Wilsenach (Executive Director) Alderney Gambling Control Commission Alderney, Channel Islands

Date issued: 29th June 2011"

After that, the FT lobby could no longer be connected to and all international home pages temporarily went down.

Some of the sites have now turned up again with a message saying the site id down for scheduled maintenance.

Later the AGCC issued a follow-up statement:

"The above named companies must, until the Suspension Notices are cancelled or the Commissioners of AGCC have reached a determination at the conclusion of the hearing convened in accordance with Regulation 46 of the Alderney eGambling Regulations, 2009 cease to exercise their eGambling licenses, which means that these licensees must from today cease to:

Register new customers; Accept deposits from existing customers; Allow existing customers to withdraw funds that are held in their accounts; and Permit customers to participate in any form of poker game play or gambling transaction.

The Alderney Gambling Control Commission will hear the matters contained in the Hearing Notices at a Regulatory Hearing which will commence at 10.00am on Tuesday 26th July, 2011 at the Victoria Park Plaza Hotel, 239 Vauxhall Bridge Road, London SW1V 1EQ. In the event that there is a change to these details this notice will be amended."

As yet, Full Tilt has not presented any form of public response.

PokerListings will follow up on this and keep you posted.

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Doylesroom Pinched in New US Federal Indictments

Tue, 24 May 2011 14:00:00 -0700

The indictments were announced yesterday by U.S. Attorney Rod J. Rosenstein and representatives from the Internal Revenue Service, Immigration and Customs Enforcement and Homeland Security Investigations.

Named in the indictments are two internet gambling businesses, as well as three individuals. The first indictment charges British Columbia, Canada business ThrillX Systems, Ltd and its principles Darren Wright and David Parchomchuk. The second set of charges names Costa Rican businesses K23 Group Financial Services and BMX Entertainment as well as principle Anne Marie Puig.

As a result of these indictments the U.S. Attorney's office has moved to seize ten domains associated with these businesses. These include Doylesroom.com, Bookmaker.com, 2Betsdi.com, Funtimebingo.com, Goldenarchcasino.com, Truepoker.com, Betmaker.com, Betgrandesports.com, Betehorse.com and Beted.com.

“It is illegal for internet gambling enterprises to do business in Maryland, regardless of where the website operator is located,” said Rosenstein. “We cannot allow foreign website operators to flout the law simply because their headquarters are based outside the country.”

Rosenstein went on to explain that the charges are a result of a collaborative investigation by multiple government organizations.

The operation involved setting up an undercover payment processing company to gain person-to-person contact with top managers of gambling organizations, as well as informants setting up accounts and conducting gambling activities.

IRS Special Agent in Charge Rebecca A. Sparkman, also present at the announcement, emphasized that the prosecution of illegal gambling and money laundering remains a high priority for the U.S. Government.

“Laundering money from illegal activity such as illegal internet gambling is a crime. Regardless of how the money changes hands - via cash, check, wire transfers or credit cards - and regardless of where the money is stored - in a United States financial institution or an offshore bank - we will trace the funds," said Sparkman. "IRS Criminal Investigation will vigorously investigate and recommend prosecution against the owners and operators of these illegal enterprises to the fullest extent possible.”

In addition to seizing internet domains, the indictments also seek the fortfeiture of bank accounts used to process the illegal transactions.

For updates on Black Friday and the state of online poker in the U.S. keep an eye on our Black Friday Bulletin Board.

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AGA Calls For Regulated Online Poker in the U.S.

Fri, 13 May 2011 10:13:00 -0700

The AGA released a new white paper Thursday entitled Online Gambling Five Years After UIGEA, warning of the growing risk to U.S. consumers under the U.S. government’s current Internet gambling policy.

“Americans like to gamble online. Millions of Americans bet billions of dollars a year at offshore foreign websites and have demonstrated that they will do so even if their government tells them not to,” said AGA President and CEO Frank J. Fahrenkopf, Jr.

“This report illustrates that the United States can and should establish a safe and regulated online poker experience.”

The report recommends the Unlawful Internet Gaming Enforcement Act (UIGEA) be improved by reinforcing law enforcement tools and proscriptions to protect Americans from gambling websites operating from offshore jurisdictions with minimal or no regulation.

It also recommends authorizing a state-focused program to license U.S.-based operators offering online poker only and preserving the ability of state governments to decide whether online poker should be available within its borders.

$4 Billion Gambled Online Last Year

Tracking the growth of Internet gambling in the U.S. the report shows that while numbers dipped after the UIGEA passed, recovery was swift with some 15 million U.S. residents gambling a total of $4 billion on the Internet last year.

The AGA's report also suggests the online gambling market for U.S. bettors will recover from what the industry is calling Black Friday.

In fact, the AGA says the DOJ's recent enforcement activity could force U.S. gamblers to play with the approximately 1,000 remaining foreign operators.

Currently, the report estimates as many as 10,000 jobs and $2 billion in annual taxes would be generated in the U.S. if the law were changed to allow U.S. companies to provide online poker.

“It is time that the U.S. government clarifies its laws on Internet gambling in the United States once and for all,” Fahrenkopf said.

“Licensing and regulation of online poker in the U.S. would ensure American consumers are protected and that the jobs and revenues associated with this billion-dollar industry are realized here in the United States.”

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Absolute, UB Reach Agreement with DOJ, Players Funds Still in Limbo

Wed, 11 May 2011 09:55:00 -0700

"Absolute Poker has reached an agreement with the United States Attorney's office for the Southern District of New York," reads a statement from the sites.

"Under the agreement, the US Attorney's Office has agreed to provide all necessary assurances that third parties may work with Absolute Poker to facilitate the return of funds to players located in the U.S. This provision is an important step to returning U.S. player funds.

"Unfortunately, the Company still faces several legal issues which must be navigated before funds can be paid out to U.S. players."

April 15, the Manhattan U.S. Attorney charged the principals of three of online poker's biggest sites with bank fraud, illegal gambling and laundering billions of dollars.

In all, 11 defendants were charged, including PokerStars' Isai Scheinberg, Fill Tilt Poker's Ray Bitar and Absolute Poker's Scott Tom.

PokerStars, Full Tilt, Absolute Poker and UB have all since pulled out of the U.S. market and began the process of defending themselves against the charges.

Absolute Poker issued a statement in late April claiming it had retained council and parent company Blanca Games Inc. said last week it has downsized and streamlined operations significantly at both UB and Absolute.

After letting its roster of sponsored pros go earlier this week, the company says it has notified authorities that it has closed its U.S. operations, stopped real-money poker play in the U.S. and will not be asking for the return of its worldwide domain names, www.AbsolutePoker.com, www.UltimateBet.com and www.UB.com.

In the meantime, the company says its top priority is the refund of account balances to U.S. players.

"The company's U.S. attorneys, Blank Rome LLP, continue to work diligently to resolve these issues, which is a necessary further step to facilitate the return of funds to players," the statement reads. "Player funds, therefore, will not become immediately available for withdrawal as a result of today's agreement with the DOJ.

"Today's signing of the agreement with the DOJ is an important step towards the safe and efficient return of funds to our U.S. players. We can now move as expeditiously as possible to establish proper mechanisms for the return of funds to our U.S. players.

"Blank Rome LLP will continue to engage in discussions with the SDNY in order to complete the necessary agreements for the final transfer of balances to our U.S. players. This remains our highest priority. We will continue to update our players and the poker community, as we move forward to resolve outstanding issues."

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Absolute Poker, UB Drop Sponsored Pros

Tue, 10 May 2011 09:16:00 -0700

"Recently, Absolute Poker and UB ceased their U.S.-facing operations due to legal developments in the United States," reads a statement from parent company, Blanca Games.

"To ensure the on-going viability of the business, it has been necessary to downsize certain aspects of Absolute Poker's and UB's operations. These efficiency measures have been taken to enable the brands to continue to operate their non-U.S.-facing business.

"These actions are the result of the severe impact of 'Black Friday' on the business, and these efficiency measures have negatively affected not only the financial position of the brands, but also their staff and personnel. Regrettably, the negative effect of 'Black Friday' has extended to the Company's highest profile group of poker professionals, known as 'Team UB.'"

Management at Blanca Games has informed the team of ten UB pros and one player representing Absolute Poker their contracts have been terminated.

That list includes Joe Sebok, Prahlad Friedman, Eric "Basebaldy" Baldwin, Maria Ho, Brandon Cantu, Tiffany Michelle, Scott Ian, "Hollywood" Dave Stann, Adam "Roothlus" Levy, Bryan Devonshire and Trishelle Cannatella.

"This was a difficult task for Blanca's management, and we are very disappointed that we have been compelled to sever ties with our sponsored pros," the statement reads.

"Over the years, the Company has been successful in gathering a group of young, extraordinarily talented and brand-appropriate poker professionals who have proudly sported its logos.

"We are truly saddened that circumstances have dictated this course of action, and we regret that we are no longer in a position to partner with our sponsored pros, or to provide them with a source of income for playing the game that they love. We appreciate their significant time and dedication shared with us, and we thank them for the loyalty and patience they have continued to show us even during the unsettling events of the past few weeks.

"We respect and admire them for their many accomplishments, both at the poker tables and away from them, and we will always be grateful for their valuable contributions to building the UB and Absolute Poker brands and creating a rock-solid community at the pair of online poker rooms."

April 15, the Manhattan U.S. Attorney charged the principals of three of online poker's biggest sites with bank fraud, illegal gambling and laundering billions of dollars.

In all, 11 defendants were charged, including PokerStars' Isai Scheinberg, Fill Tilt Poker's Ray Bitar and Absolute Poker's Scott Tom.

PokerStars, Full Tilt, Absolute Poker and UB have all since pulled out of the U.S. market and began the process of defending themselves against the charges.

Absolute Poker issued a statement in late April claiming it had retained council and Blanca Games Inc. said Wednesday it has downsized and streamlined operations significantly at both UB and Absolute.

The company now claims its legal counsel is moving forward in ongoing discussion with the U.S. Attorney's office with the ultimate objective of reaching an agreement to facilitate the return of funds to U.S. players.

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UB, Absolute Restructure, Refute Bancruptcy Reports

Fri, 06 May 2011 08:06:00 -0700

While several news outlets and online poker affiliate sites with news-like content reported the sites were filing for bankruptcy Wednesday, the site's parent company, Blanca Games Inc., has issued a statement claiming they are simply restructuring.

"As previously stated, Absolute Poker and UB ceased their U.S.-facing operations due to recent legal developments in the United States," the statement reads. "The company is currently restructuring and is focusing its resources on consolidating its non-U.S., rest-of-the-world operation and software business."

April 15, the Manhattan U.S. Attorney charged the principals of three of online poker's biggest sites with bank fraud, illegal gambling and laundering billions of dollars.

In all, 11 defendants were charged, including PokerStars' Isai Scheinberg, Fill Tilt Poker's Ray Bitar and Absolute Poker's Scott Tom.

PokerStars, Full Tilt, Absolute Poker and UB have all since pulled out of the U.S. market and began the process of defending themselves against the charges.

"This decision comes after considerable review and analysis of the impact that ‘Black Friday’ has had on the business as a whole," the statement reads. "The workforce has been liquidated, and the process of rehiring approximately 20% of staff in key positions has commenced. All affected employees have been informed of this necessary restructure."

The sites employed more than 300 people in Costa Rica.

”We regret that we have been compelled to take these actions," a company spokesperson said.

"We have worked tirelessly to create a truly amazing company that is filled with extraordinary people. We have always been and still remain fully committed to our employees and players. At the same time, we are confident that this restructuring will strengthen the company and its future.”

As to the erroneous reports regarding the site's Bancruptcy, the company claims these stem from the fact that Blanca recently informed a debt holder, Madeira Fjord, that it was terminating its relationship and debt payments.

"As a result, Madeira Fjord apparently filed a notice of bankruptcy in Norway," the spokesperson said. "This notice has no negative impact upon Blanca, the operating company, or its brands. As stated previously, Abolute Poker and UB continue to operate their non-U.S. facing business around the world."

In the meantime, both sites have increased their maximum withdrawal limits to $1,000 for Visa withdrawals and $500 for all other methods.

Players are still restricted to one transaction per week, but the site's claim to be working to return non-U.S. withdrawals to normal service levels as quickly as possible.

The company’s legal counsel is in continuing discussions with the U.S. Attorney’s office to formalize an agreement that would facilitate the return of funds to U.S. players.

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Gaming Manufacturers Refuse to Declare Online Poker Dead

Wed, 04 May 2011 10:44:00 -0700

"A funeral procession today would be premature as federal lawmakers may more immediately take up the issue as several congressional leaders back the legalization of limited forms of online gambling, specifically Internet poker," reads a release from the group that includes Shuffle Master automatic card shufflers.

"In the interim, casino operators and their gaming suppliers take another wait-and-see approach in an evolving race of techhnology and innovation."

April 15, the Manhattan U.S. Attorney charged the principals of three of online poker's biggest sites with bank fraud, illegal gambling and laundering billions of dollars.

PokerStars, Full Tilt, Absolute Poker and UB have all since pulled out of the U.S. market and began the process of defending themselves against the charges.

And while the Association of Gaming Equipment Manufacturers says the indictments may not have a direct effect on its business, it has certainly had an impact on its land-based casino partners.

"Advocates for Internet poker and gambling were dealt a 7-2 offsuit in April when the United States Justice Department unsealed an indictment charging the online operators Absolute Poker, Full Tilt Poker, and PokerStars with bank fraud, illegal gambling offenses, and money laundering," the association said.

"While this does not directly affect existing global gaming suppliers, it is a setback to traditional casino operators who have been proactive in setting up joint ventures with Internet poker companies."

Referring to partnership breakups between both Steve Wynn and PokerStars and Fertitta Interactive and Full Tilt Poker, the association says brick-and-mortar casinos are facing an uncertain future as they attempt to embrace new technology.

"The direct impact of these movements remains uncertain," the association said. "At a time when traditional casino operators seek new revenue streams and global gaming manufacturers yearn to expand their reach into the gaming sector, Internet gambling, which was thought to be a rescuer, has been severely hindered.

"A federal court case will likely intensify the light shined on Internet gambling, specifically Internet poker."

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Post-Indictment Cashouts Begin on PokerStars

Wed, 27 Apr 2011 10:42:00 -0700

April 15, the Manhattan U.S. Attorney charged the principals of three of online poker's biggest sites with bank fraud, illegal gambling and laundering billions of dollars.

In all, 11 defendants were charged, including PokerStars' Isai Scheinberg, Fill Tilt Poker's Ray Bitar and Absolute Poker's Scott Tom.

The Internet domain names used by PokerStars, Full Tilt, Absolute Poker and Ultimate Bet were seized and began redirecting to a message from the U.S. Department of Justice and the FBI.

But last Wednesday, the U.S. Attorney announced the office had entered into an agreement with PokerStars and Full Tilt Poker to release the domain names and allow U.S. players to register for refund requests directly with the sites.

In a statement of its own, PokerStars said while it has stopped offering real money poker in the United States, the agreement would soon allow it to pay out player balances to its former customers in the U.S., once a suitable payment processor was found.

Wednesday, the site said it has made arrangements with a U.S. bank and begun the process of returning player funds to U.S. customers.

"The funds to cover these withdrawal requests are readily available," the statement reads.

"All player deposits for players outside the U.S. are also completely safe and secure. PokerStars has always held all such funds in accounts that are segregated from company assets, in compliance with the strict licensing laws of the Isle of Man.

"The company continues to operate outside the U.S. under the www.pokerstars.com domain name and retains its position as the world’s number one poker site."

Full Tilt said last week there are numerous legal and jurisdictional issues that must be considered before poker winnings can be paid out to U.S. players, but it is ready to work with the United States Attorney’s Office to try and resolve these issues.

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Absolute Poker Issues First Statement on Indictments

Fri, 22 Apr 2011 07:58:00 -0700

The Manhattan U.S. Attorney charged the principals of three of online poker's biggest sites with bank fraud, illegal gambling and laundering billions of dollars.

In all, 11 defendants were charged, including PokerStars' Isai Scheinberg, Fill Tilt Poker's Ray Bitar and Absolute Poker's Scott Tom.

The Internet domain names used by PokerStars, Full Tilt, Absolute Poker and Ultimate Bet were seized and began redirecting to a message from the U.S. Department of Justice and the FBI.

Wednesday, the U.S. Attorney for the Southern District of New York announced the office had entered into an agreement with PokerStars and Full Tilt Poker to release the domain names and allow U.S. players to register for refund requests directly with the sites.

An offer was also extended to enter the same agreement with Absolute Poker.

Thursday, Absolute Poker responded.

"Absolute Poker has retained Blank Rome LLP as United States counsel to provide legal advice in relation to civil and criminal matters filed in federal court in Manhattan and made public on April 15, 2011," the statement reads.

"Absolute Poker is aware that on April 19, 2011, the U.S. Attorney for the Southern District of New York entered into separate agreements with Full Tilt Poker and PokerStars. These agreements concern the use of the respective www.fulltiltpoker.com and www.pokerstars.com domain names. The US Attorney, in a press release dated April 20, 2011, stated that the government is willing to enter the same agreement with Absolute Poker and UB.

"At this time, Absolute Poker’s top priority is, and must be, the refund of balances to its and UB’s U.S. players. However, given the far-reaching consequences of the U.S. Attorney’s actions for Absolute Poker and for the entire poker community, Absolute Poker believes that the responsible course of action is to review with its attorneys the relevant court filings before taking any action.

"Absolute Poker believes that the U.S. Attorney shares the view that refunds to U.S. players are an immediate and pressing concern, and Absolute Poker wishes to make clear that it wants to work cooperatively with the U.S. Attorney to safely and efficiently return its players’ funds. To that end, Absolute Poker’s counsel has initiated communications with the U.S. Attorney’s office and plans to continue proactively advancing those discussions."

The statement also says further information will be provided directly to Absolute Poker and UB’s players.

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U.S. Cashouts Delayed on PokerStars, Full Tilt

Thu, 21 Apr 2011 08:01:00 -0700

Friday, the Manhattan U.S. Attorney charged the principals of three of online poker's biggest sites with bank fraud, illegal gambling and laundering billions of dollars.

In all, 11 defendants were charged, including PokerStars' Isai Scheinberg, Fill Tilt Poker's Ray Bitar and Absolute Poker's Scott Tom.

The Internet domain names used by PokerStars, Full Tilt, Absolute Poker and Ultimate Bet were seized and began redirecting to a message from the U.S. Department of Justice and the FBI.

In a statement released Wednesday, Manhattan U.S. Attorney Preet Bharara said, "no individual player accounts were ever frozen or restrained, and each implicated poker company has at all times been free to reimburse any player's deposited funds."

However, in a statement of its own, Full Tilt Poker said it cannot allow U.S. players to withdraw their balances just yet.

"The agreement represents an important first step towards returning funds to U.S. players because it allows Full Tilt Poker to utilize its domain to facilitate the withdrawal of player funds," the statement reads.

"But, unfortunately, there remain significant practical and legal impediments to returning funds to players in the immediate future. As a result of the recent enforcement action, there exists no authorized U.S. payment channel through which to make refunds; Full Tilt Poker has no accounting of the millions of dollars of player funds that were seized by the government; and the government has not agreed to permit any of the seized player funds to be returned to the players.

"Finally, there are numerous legal and jurisdictional issues that must be considered before poker winnings can be paid out to players throughout the United States. While Full Tilt Poker continues to believe that online poker is not illegal under federal law or in 49 states, the indictment and civil forfeiture action filed last Friday require Full Tilt Poker to proceed with caution in this area.

"Notwithstanding these issues, Full Tilt Poker is ready to work diligently with the United States Attorney’s Office in the Southern District of New York to try and resolve these issues and to get players their money back as soon as possible."

PokerStars says the company "categorically denies" the allegations against it and will "robustly defend itself."

In the meantime, while it has stopped offering real money poker in the United States, PokerStars says the agreement should soon allow it to pay out player balances to its former customers in the U.S. - Just not right now.

"Returning US players' funds is a top priority for PokerStars and the company can now start the process of returning money to its former US customers," a statement reads. "All PokerStars player deposits are completely safe...This money is readily available to meet withdrawal demands, indeed the company continues to comply with withdrawal requests from players based outside the U.S. as normal."

However, a FAQ document released by the company Wednesday says it will not allow U.S. players to cash out until a suitable processor is found.

"Cashouts for US residents are expected to be available within several weeks," the document reads.

"The Cash Out option in the PokerStars Cashier will temporarily be unavailable, to allow us to prepare the technical solutions and formulate the plan and processes required to allow you to cash out your balance.

"We will notify all U.S. players as soon as the cashier is available to allow you to proceed to cash out. Providing you with the facility to cash out is our top priority right now, and hopefully all U.S. players will be able to cash out via the PokerStars Cashier in the near future."

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PPA Says Fight For Online Poker Just Beginning

Thu, 21 Apr 2011 07:59:00 -0700

Friday, the Manhattan U.S. Attorney charged the principals of three of online poker's biggest sites with bank fraud, illegal gambling and laundering billions of dollars.

In all, 11 defendants were charged, including PokerStars' Isai Scheinberg, Fill Tilt Poker's Ray Bitar and Absolute Poker's Scott Tom.

The Internet domain names used by PokerStars, Full Tilt, Absolute Poker and Ultimate Bet were seized and began redirecting to a message from the U.S. Department of Justice and the FBI.

And while the site's now say they are looking for a way to process U.S. cashouts, poker advocacy group the PPA says the fight goes on.

“The poker players have spoken, and it seems the U.S. Government has heard their cries," said PPA Executive Director John Pappas. "But players are still in pain. While (Wednesday's) action allows players on two of the three online poker sites to access their funds, this is just a small victory in the ongoing fight to protect Americans’ rights to play poker online.

"Even with (Wednesday's) announcement, millions of Americans are being denied their hobby, avocation and in many cases their livelihood because they remain unable to play poker on the Internet."

Pappas said PPA members have sent more than 65,000 emails and letters to the Department of Justice, the Administration and Congress demanding access to the money in their online accounts and condemning what it calls a "declaration of war on poker."

“Online poker players have been the true victims of the DoJ’s action, and it is good to see the DoJ recognizing that fact and working with Full Tilt Poker and PokerStars to get players their money," he said. "Yet, the fight to protect American’s freedom to play poker online is not over.

“Now more than ever, poker players are uniting against the vague laws that continue to obstruct their right to play this game of skill in any format. Americans from all walks of life enjoy this great game, from stay at home moms to disabled veterans to the thousands of average Americans who earn or supplement their income through online poker winnings and they continue to tell their stories through online forums, the media, and calls and letters to Congress.

“The message they are sending is clear – at a time of such economic weakness in the U.S., citizens expect their government to be wholly focused on improving their way of life through job and revenue creation, not attacking their personal activities. Congress needs to recognize the benefit of licensing and regulating online poker to protect players’ rights while adding thousands of jobs and billions in revenue to the U.S. market."

The PPA says online poker is not illegal and the government should stop treating poker players like criminals.

"Congress has two choices: Either pass legislation to license and regulate online poker to provide much needed support to the U.S. economy, while offering a safe and stable environment for millions of Americans to play poker, or ignore millions of their constituents and pay the price at the polls in 2012.

"The answer is clear. Congress must listen to its citizens and take necessary action to license and regulate online poker – we know it, Congress knows it, and millions of Americans are demanding it.”

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PokerStars, Full Tilt Domain Names Returned to Facilitate Refunds

Wed, 20 Apr 2011 12:05:00 -0700

Friday, the Manhattan U.S. Attorney charged the principals of three of online poker's biggest sites with bank fraud, illegal gambling and laundering billions of dollars.

In all, 11 defendants were charged, including PokerStars' Isai Scheinberg, Fill Tilt Poker's Ray Bitar and Absolute Poker's Scott Tom.

The Internet domain names used by PokerStars, Full Tilt, Absolute Poker and Ultimate Bet were seized and began redirecting to a message from the U.S. Department of Justice and the FBI.

Wednesday, the U.S. Attorney for the Southern District of New York announced the office has entered into an agreement with PokerStars and Full Tilt Poker to allow players to register for refund requests directly with the sites.

"On April 15th, this Office and the FBI took specific legal action against 11 individuals who allegedly engaged not merely in the operation of illegal gambling businesses, but in massive wire fraud, bank fraud, and money laundering, despite repeated warnings and clear notice that their conduct was illegal in the United States," said Manhattan U.S. Attorney Preet Bharara.

"No individual player accounts were ever frozen or restrained, and each implicated poker company has at all times been free to reimburse any player's deposited funds. In fact, this Office expects the companies to return the money that U.S. players entrusted to them, and we will work with the poker companies to facilitate the return of funds to players, as today’s agreements with PokerStars and Full Tilt Poker demonstrate."

Under the terms of the agreements, PokerStars and Full Tilt Poker will not allow U.S. residents to play or make deposits, but will regain use of the pokerstars.com and fulltiltpoker.com domain names to allow U.S. players to log on and withdraw funds.

The sites will once again be allowed to conduct international business outside the U.S. through the once-seized domain names as it pleases.

An independent monitor will be appointed to verify PokerStars’ and Full Tilt Poker’s compliance.

An offer has also been extended to enter the same agreement with Absolute Poker.

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Regulators React to Online Poker Indictments

Wed, 20 Apr 2011 10:09:00 -0700

Friday, the Manhattan U.S. Attorney charged the principals of three of online poker's biggest sites with bank fraud, illegal gambling and laundering billions of dollars.

In all, 11 defendants were charged, including PokerStars' Isai Scheinberg, Fill Tilt Poker's Ray Bitar and and Absolute Poker's Scott Tom.

The Internet domain names used by PokerStars, Full Tilt, Absolute Poker and Ultimate Bet were seized and now redirect to a message from the U.S. Department of Justice and the FBI.

Tuesday, The Kahnawake Gaming Commission, which oversees the jurisdiction where Absolute Poker and Ultimate Bet hold licenses, issued a statement saying it is reviewing the indictments.

"The KGC's principal concern is that players are not adversely affected by the actions taken by US authorities," the statement reads. "The KGC is presently engaged in discussions with its licensee concerning the status of player accounts. Upon completion of its review, the KGC will determine what steps may be required and will issue a further statement at that time."

In the meantime, the Mohawk Territory of Kahnawake, the sovereign jurisdiction located just outside Montreal, Quebec, Canada where the KGC is housed, says it is aware of the indictments and is working with the commission to review and analyze developments that may have "widespread implications."

“The actions are being taken primarily in the area of banking and payment processing – the actual gaming activities are secondary,” said Grand Chief Michael Ahríhron Delisle, Jr. “While charges have been announced, no one has been convicted of any wrongdoing.

“We need to remind the community that any and all licensees operating under the authority of the Kahnawake Gaming Commission are aware that they must obey the laws of the jurisdictions in which they operate."

Last year, the Mohawk Territory of Kahnawake community received a dividend of $1.7 million from its licensing operations.

Across the Atlantic Ocean, where PokerStars calls the Isle of Man home, the Isle of Man Gambling Supervision Commission has also issued a statement.

"The Commission is aware of documentation issued by authorities in the USA which makes allegations against PokerStars and some of its personnel," the statement reads.

"While we are discussing the matter on an ongoing basis with PokerStars and watching developments, we can confirm that PokerStars’ licensing status in the Isle of Man remains unchanged.

"We are aware that PokerStars have suspended the availability of cash-play games in the USA and we are currently endeavoring to ensure that any player who wishes to withdraw money from their account can do so."

Meanwhile, the Alderney Gambling Control Commission, which oversees Full Tilt Poker, says it is aware of proceedings, will review the documentation and undertake its own investigation into the allegations.

"AGCC notes that its licensee, trading as Full Tilt Poker, denies all of the allegations," a statement released Wednesday reads. "Upon the grant of its licence Full Tilt Poker identified that it had obtained specific legal advice relating to its proposed activities. AGCC further notes the current public statements made by Full Tilt Poker to its customers and its recent decision to suspend “real money” play in the USA.

"AGCC is concerned that appropriation of Full Tilt Poker’s dotcom site is hampering and potentially adversely affecting its lawful operation elsewhere in the world."

Meanwhile, the Alderney Gambling Control Commission, whioch oversees Full Tilt Poker, says it is aware of proceedings, will review the documentation and undertake its own investigation into the allegations."AGCC notes that its licensee, trading as Full Tilt Poker, denies all of the allegations," a statement reads. "Upon the grant of its licence Full Tilt Poker identified that it had obtained specific legal advice relating to its proposed activities. AGCC further notes the current public statements made by Full Tilt Poker to its customers and its recent decision to suspend “real money” play in the USA. "AGCC is concerned that appropriation of Full Tilt Poker’s dotcom site is hampering and potentially adversely affecting its lawful operation elsewhere in the world."

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PPA Calls For Action on Online Poker Indictments

Tue, 19 Apr 2011 09:44:00 -0700

Now that PokerStars, Full Tilt Poker and Absolute Poker have effectively shut out U.S. customers in response to the charges, the PPA has issued an action alert calling on its more than one million U.S. members to express their outrage over the U.S. Department of Justice’s actions.

“The DoJ’s action serves as a wake-up call to poker players across the country that the basic right to play online poker is in serious jeopardy,” said PPA Executive Director John Pappas.

“We simply cannot miss this opportunity to protect our rights as American citizens. Now is the time for poker players to speak up in defense of this great game through as many outlets possible.”

Through a special PPA Action Page, PPA members can access a variety of vehicles for immediate outreach including posting to the DoJ Facebook page, emailing President Barack Obama and Congress, contacting their local Representative and Senator, posting to the PPA Facebook page and sending a message on PPA’s Twitter.

As it shares the frustration of the millions of Americans unable to play online poker and access money frozen by the government as a result of the indicments, the PPA says it will "continue to fight for its members, for every American who plays poker, and for the continued freedom to play this great American pastime."

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PokerStars, Full Tilt Pull Out of U.S. Market

Sat, 16 Apr 2011 10:42:00 -0700

Friday, the Manhattan U.S. Attorney charged the principals of three of online poker's biggest sites with bank fraud, illegal gambling and laundering billions of dollars.

In all, 11 defendants were charged, including PokerStars' Isai Scheinberg, Fill Tilt Poker's Ray Bitar and Nelson Burtnick and Absolute Poker's Scott Tom.

The Internet domain names used by PokerStars, Full Tilt, Absolute Poker and Ultimate Bet were seized and now redirect to a message from the U.S. Department of Justice and the FBI.

In response, PokerStars issued a statement through a pop-up on its poker client saying it has suspended real-money play in the United States.

"As you may have heard, we have had to suspend real money poker services to people based in the U.S. due to legal developments there," the statement reads.

"The developments are confined to the U.S. and do not have any impact on your ability to continue using our services. Please be assured player balances are safe. There is no cause for concern. For all customers outside the U.S. it is business as usual."

The statement goes on to say the PokerStars website has been moved to www.pokerstars.eu and its support email address is now support@pokerstars.eu.

Full Tilt Poker also released a statement saying it supports poker players and Bitar, the company's chief executive, but has been forced to pull out of the U.S. market.

"Full Tilt Poker is saddened by today’s charges against its CEO Raymond Bitar and offers its full support to Mr. Bitar and Nelson Burtnick," the statement reads.

"Online poker is a game of skill enjoyed by tens of millions of people in the United States and across the world. And, Full Tilt Poker remains as committed as ever to preserving the rights of those players to play the game they love online.

"Mr. Bitar and Full Tilt Poker believe online poker is legal – a position also taken by some of the best legal minds in the United States. Full Tilt Poker is, and has always been committed to preserving the integrity of the game and abiding by the law."

The statemet goes on to say Full Tilt Poker has decided to suspend real-money play in the United States until the case is resolved, but will continue to provide its services outside of the United States.

“I am surprised and disappointed by the government’s decision to bring these charges," said Mr. Bitar.

"I look forward to Mr. Burtnick’s and my exoneration.”

At press time, no public comments have been made by principals at Absolute Poker, Ultimate Bet or the Cereus Poker Network.

For ongoing updates over the weekend, visit our Black Friday Bulletin Board.

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Major Online Poker Sites Charged with Fraud, Illegal Gambling, Money Laundering

Fri, 15 Apr 2011 15:52:00 -0700

According to a press release from the U.S. Attorney's office in New York, a multi-billion dollar civil money laundering and forfeiture action has also been filed and the Internet domain names used by PokerStars, Full Tilt and Absolute Poker have been seized.

In all, 11 defendants have been charged, including PokerStars' Isai Scheinberg, Fill Tilt Poker's Ray Bitar and Absolute Poker's Scott Tom.

"As charged, these defendants concocted an elaborate criminal fraud scheme, alternately tricking some U.S. banks and effectively bribing others to assure the continued flow of billions in illegal gambling profits," said Manhattan U.S. Attorney Preet Bharara.

"Moreover, as we allege, in their zeal to circumvent the gambling laws, the defendants also engaged in massive money laundering and bank fraud.

"Foreign firms that choose to operate in the United States are not free to flout the laws they don’t like simply because they can’t bear to be parted from their profits."

Janice Fedarcyk, The FBI's Assistant Director-in-Charge, said the online poker sites lied, flauted the law and wagered they could circumvent U.S. law without repercussions.

"These defendants, knowing full well that their business with U.S. customers and U.S. banks was illegal, tried to stack the deck," she said.

"They lied to banks about the true nature of their business. Then, some of the defendants found banks willing to flout the law for a fee. The defendants bet the house that they could continue their scheme, and they lost."

The indictment alleges the online poker companies continued to operate in the United States despite passage of the Unlawful Internet Gambling Enforcement Act in 2006, used fraudulent methods to circumvent federal law and trick banking institutions into processing payments on their behalf, and enlisted "payment processors" to lie to banks about the nature of the financial transactions they were processing and disguise payments back to the them.

It goes on to allege PokerStars and Full Tilt approached the principals of a few small, local banks facing financial difficulties to engage in payment processing on their behalf in return for multi-million dollar investments in the banks.

The indictment and civil complaint seek at least $3 billion.

Some of the charges carry maximum penalties of up to 30 years in prison.

With many of the defendants named not living in the United States currently, the U.S. Attorney’s Office is working with foreign law enforcement agencies and Interpol to secure their arrest and seize their criminal proceeds located abroad.

For ongoing updates over the weekend, visit our Black Friday Bulletin Board.

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Wynn and PokerStars Join Forces to Fight For Online Poker's Future

Fri, 25 Mar 2011 12:59:00 -0700

A press release from Wynn Resorts released Friday says the companies will work together to help get federal legislation passed to legalize, regulate and tax online poker in the US before jointly operating a regulated, US online poker site under the name PokerStarsWynn.com.

"After much study, we are convinced that the lack of regulation of internet gaming within the US must change," reads a statement from the Wynn Resorts' Billionaire CEO Steve Wynn.

"We must recognize that this activity is occurring and that law enforcement does not have the tools to stop it. As a company that has safely conducted gaming in the US for more than 40 years, we believe that the same can be done for poker on the internet.

"Additionally, it is time that the thousands of jobs created by this business and the potentially significant tax dollars come home to the US."

Making a rare public statement on behalf of PokerStars, Chairman and Founder Mark Scheinberg said the World's largest poker site is looking forward to the partnership.

"We have long supported the enactment of local regulatory regimes that protect consumers and provide valuable tax revenues and jobs," he said.

"PokerStars is closely regulated in many European countries and it has been endorsing the adoption of the same approach in the United States for years, with this alliance representing a critical step in that direction.

"We are excited about the opportunities that partnering with Wynn, a pioneering leader and innovator in gaming, will present for PokerStars in the United States."

This announcement comes on the same day representatives from PokerStars are in Carson City, Nevada attempting to convince lawmakers to adopt a bill that would legalize online poker in that State.

It also comes a day after Nevada gambling regulators approved a partnership between Caesars Entertainment and 888 Holdings allowing those two entities to run a Caesars branded online gaming site in the UK.

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Online Poker Bill May Be Attached to Obama Tax Cut Plan

Wed, 08 Dec 2010 16:51:00 -0800

But Reid was quoted following a press conference Wednesday saying that despite last-minute lobbying, his online poker bill would not be on the agenda during this session of congress.

However, later in the day his staff said he still intends to push the legislation through during this session.

Last week, it was widely reported the Nevada Senator was planning to introduce his Internet Poker Act of 2010 before the current lame duck congressional session ends Dec. 17.

A draft copy of the act was leaked to the Las Vegas Review Journal and published by the paper.

Should it ever become law, online poker sites wishing to operate in the US would be forced to obtain a five-year operating license and pay 20% tax on all deposits.

The first license would not be issued for 15 months with current grey-market operators like PokerStars and Full Tilt being forced to cease activity in the US.

For the first two years, licenses would only be issued to current US casino or race track operators and casino slot machine manufacturers.

The U.S. player pool would also be segregated from other players around the globe for a period of three years.

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U.S. House Committee Votes in Favor of Online Gambling Regulation Bill

Thu, 29 Jul 2010 10:30:00 -0700

Should it become law, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act of 2009 would establish a federal regulatory and enforcement framework under which Internet gambling operators could obtain licenses authorizing them to accept bets and wagers from individuals in the United States.

The Act passed in the House Financial Services Committee by margin of 41-22 and must now go through both the full House and Senate before becoming law.

According to the Committee, the legislation comes in response to the Unlawful Internet Gambling Enforcement Act (UIGEA), which restricted the use of the payments system for Americans who gamble online.

The new act will require licensees to take appropriate safeguards to prevent fraud, money laundering, underage and compulsive gambling.

It also contains protections to prevent minors from gambling online; prevents inappropriate online advertising targeted toward underage or compulsive gamblers; prohibits licensees from accepting bets or wagers from persons on the self excluded list of compulsive gamblers and persons delinquent with child support payments; prevents the use of a credit card to gamble online; requires that players set financial loss limits; strengthens regulatory requirements regarding integrity and fairness; bans violators of federal and state gambling laws from obtaining a license; and requires a substantial U.S. presence as a condition of obtaining a license.

PokerStars, the World's largest online poker site, has come out quickly to applaud the Committee's support of the bill.

"The bill, sponsored by Committee Chairman Barney Frank, offers a long overdue common sense approach to Internet gaming regulation in the United States," reads a release.

"PokerStars wholeheartedly supports the efforts of Chairman Frank and the bill's proponents. This bill represents the most significant U.S. legislative accomplishment in the history of the Internet gaming industry."

Although PokerStars has continued to allow U.S. Players on its site through the passage of the UIGEA, the company believes its activities in the U.S. are and at all times have been lawful and will not prevent the organization from obtaining a license should the bill become law.

"PokerStars maintains its strong support for H.R. 2267 and encourages the full House and ultimately the Senate to move quickly to secure passage during the current Congressional term," said Paul Telford, PokerStars' General Counsel.

"PokerStars, a pioneer in operating online poker under stringent regulatory frameworks, looks forward to working with incumbent and new operators in promoting a safe and healthy online poker industry in the United States, as it currently does under similar licensing models in Italy and France."

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Internet Poker Bill Sees Committee Hearing

Thu, 22 Jul 2010 09:00:00 -0700

The bill, which is officially titled H.R. 2267, the Internet Gambling, Consumer Protection and Enforcement Act, would see online poker officially licensed and regulated by the U.S. government.

"This Committee and this Congress should not tolerate laws that seek to prevent responsible adults from playing a game we find stimulating, challenging and entertaining," said Duke, who was speaking on behalf of the Poker Players Alliance.

"H.R. 2267 provides this freedom in a safe and regulated environment and I urge everyone on this Committee to support this common sense policy."

The House Financial Services Committee held the hearing, which also heard testimony from Tom Malkasian of Commerce Casino, Ed Williams on behalf of the Credit Union National Association and Michael Fagan, a law enforcement specialist.

Rep. Spencer Bachus, for one, was not sold on the legislation.

"It makes no sense to me why we would be taking steps to open casinos in every home, dorm room, library, iPod, Blackberry, iPad and computer in America," said Bachus during the hearing.

After approximately two hours of discussion the hearing was adjourned.

The next step for the proposed legislation is a markup and vote, which could happen as early as next week. Amendments could potentially be added to the bill during the markup.

One proposed amendment is the addition of a loss limit clause which would restrict the amount that could be wagered on online poker sites.

If the bill was to get enough votes in committee it would then go to the full House of Representatives for consideration.

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UIGEA Hearing Planned for Friday

Tue, 13 Apr 2010 06:00:00 -0700

The U.S. House Committee on Financial Services is holding a hearing to discuss the expected challenges from enforcement of the Unlawful Internet Gambling Enforcement Act (UIGEA) this Friday.

Amid concerns the UIGEA is ambiguous, burdensome for banks and financial institutions and unlikely to achieve its main objective of stopping Americans from gambling online, the U.S. Department of the Treasury and the Federal Reserve Board delayed the date for implementing regulations from the act by six months, from Dec. 1, 2009 to June 1, 2010.

Two pending bills introduced by House Committee on Financial Services Chairman Barney Frank (D-MA), the Reasonable Prudence in Regulation Act and Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2009, sought to delay implementation of UIGEA for one year or replace it with a regulatory and enforcement framework for licensed gambling operators to accept bets and wagers from individuals in the U.S.

Both bills and the UIGEA are expected to be discussed at Friday's hearing, scheduled to begin at 10 a.m. ET in Room 2128 of the Rayburn House Office Building in Washington, D.C.

"This hearing will provide further evidence that UIGEA is a poorly-crafted law that simply does not work," said Michael Waxman, spokesperson for the Safe and Secure Internet Gambling Initiative.

"A more common sense approach to protect Americans is required. We expect this hearing to provide further impetus for the House Financial Services Committee and Congress to address this issue and move forward Chairman Frank's regulatory bill."

A revised companion to Chairman Frank's bill, the Internet Gambling Regulation and Tax Enforcement Act of 2010, introduced by Rep. Jim McDermott is projected to generate $42 billion in new federal government revenues and $30 billion in new state government revenues over ten years.

The primary source of the revenue would come from ensuring applicable taxes and license fees on regulated Internet gambling activities are collected.

This act is also expected to be discussed at the hearing.

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PartyGaming Poker Revenues Drop

Thu, 04 Mar 2010 09:00:00 -0800

"Whilst the macroeconomic environment remains uncertain, we remain focused on executing our stated strategy and are confident about the Group's prospects," said PartyGaming CEO Jim Ryan.

The Gibraltar-based company, which runs PartyPoker, dropped from a $66.9 million profit in 2008 as total revenue declined 6% to $446.2 million.

The loss is being blamed partly on the $105 million settlement the company signed with the U.S. Attorney's Office in April to avoid prosecution for providing Internet gambling services to U.S. customers prior to the enactment of the Unlawful Internet Gambling Enforcement Act (UIGEA).

Under the terms of the agreement, PartyGaming agreed to stay out of the U.S. Internet gambling market under current legislation and is hoping, should the legislation change, it would be in a prime position to move back in.

"We believe that at some point the U.S. will regulate online gaming and we want to be ready to take that opportunity," said Ryan. "We have a number of organizations who are willing to do business with us. It is our ticket back."

While the weakness of the English Pound was a factor in the loss, a fall in poker revenues to $196.7 million from $274.0 million in 2008 also played a large role.

However, Ryan is pointing to the fact revenues have already turned around in the first two months of 2010 as a reason for continued optimism.

New player sign-ups on PartyPoker increased to an average of 1,700 per day with 55,900 active players on the site every day generating average gross daily poker revenues of $709,000 throughout January and February 2010.

"We delivered a solid performance during 2009 which demonstrated the resilience of our business model that continues to generate strong cash flow, even in the most challenging of circumstances," Ryan added. "We plan to do more in 2010 and I believe we are on course to meet our objective of becoming the world's most valuable online gaming company."

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Proposed U.S. Tax Legislation Includes Internet Gaming Regulation

Wed, 24 Feb 2010 10:30:00 -0800

Should it become law, the Bipartisan Tax Fairness and Simplification Act of 2010, introduced to Congress by Democratic Senator Ron Wyden and Republican Senator Judd Gregg Tuesday, will regulate Internet gambling and charge Internet gaming operators a licensing fee of 2% on all deposits monthly.

"Internet gambling in the United States should be controlled by a strict Federal licensing and regulatory framework to protect underage and otherwise vulnerable individuals, to ensure the games are fair, to address the concerns of law enforcement and to enforce any limitations on the activity established by the States and Indian tribes," the proposed legislation reads.

Many of the provisions in the act regarding Internet gambling are similar to those included in legislation introduced last year by House Financial Services Committee Chairman Barney Frank.

Senator Wyden also introduced an amendment in the Senate Finance Committee to use Internet gambling revenue to offset the costs of health care reform last year.

However, he later pulled the amendment to focus on the health care aspect of the bill.

Internet gaming lobbyists from the Safe and Secure Internet Gambling Initiative are applauding Wyden and Gregg's latest bill.

"With so much media focus on the differences between Democrats and Republicans in Congress, this bipartisan initiative highlights the growing support on both ends of Capitol Hill for replacing the failed prohibition on Internet gambling with a system to regulate the industry, protect consumers and generate billions in new revenue," said spokesperson Michael Waxman.

A Joint Committee on Taxation analysis found that regulating Internet gambling would generate nearly $42 billion over 10 years.

The next step for this latest bill is to be debated in a Senate committee.

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Gowen's Full Tilt Lawsuit Dismissed

Fri, 12 Feb 2010 12:30:00 -0800

The lawsuit, filed Nov. 14, 2008, sought $40 million in damages from Full Tilt Poker, Tiltware, a series of related companies, Tiltware CEO Raymond Bitar and a group of Team Full Tilt players, claiming, among other things, breach of contract.

Gowen alleged that in 2004 she was offered a 1% stake in the site in exchange for her services as a celebrity endorser, but never received compensation.

Concluding that her claim of an agreement with the site lacked detail and that she was never offered a legal partnership with Full Tilt because she was never held responsible for the site's losses prior to becoming profitable, U.S. District Court Judge Robert Jones dismissed the case for a third and final time this week.

"Nowhere in the allegations does Plaintiff allege, consistent with a general partnership, that the agreement made her liable for 1% of Full Tilt Poker's losses before it became profitable," the decision reads. "Therefore, it is not plausible that a partnership, limited or general, was offered."

Judge Jones granted a motion to dismiss the case back in April of 2009, but the lawsuit was not thrown out in its entirety.

Gowen was given leave to amend the complaint to include just Full Tilt Poker, Tiltware, the related companies, Bitar and Howard Lederer as defendants and appeal the decision to dismiss the case.

In a decision released in October 2009, Judge Jones both denied Gowen's appeal and granted Full Tilt's latest motion to dismiss the newly amended complaint.

However, the suit was not dead yet. Judge Jones granted Gowen leave to amend the complaint a third time to include only Tiltware.

Lawyers for the former Oklahoma teen beauty queen re-filed, but this week's decision put an end to the suit.

Gowen, who has over $1.6 million in career tournament earnings, is currently in Adelaide, Australia playing as a PokerStars sponsored player in the ANZPT event there.

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Estonia Moves to Legalize Online Poker

Mon, 11 Jan 2010 09:00:00 -0800

Starting this year citizens of the small Northern European country will be able to legally play online poker on the nation-based Olympic Casino group platform, which was developed by industry giant Playtech.

“We are truly glad of this opportunity to start our partnership with Olympic as the leading casino entertainment provider in Central and Eastern Europe,” said Mor Weizer, executive manager of Playtech.

In 2011, the laws will change again, allowing international operators into the country as long as they are able to satisfy requirements set by the Estonian government.

A former economic leader, Estonia was one of the hardest hit countries by the world-wide recession in the late 2000s.

Last year retail sales plummeted and the government is hoping that regulating and taxing the online gambling industry will help stimulate the economy.

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Poker Leads Way to PartyGaming Profits

Fri, 18 Dec 2009 14:30:00 -0800

“Returning poker to growth has been a key focus for us,” PartyGaming CEO Jim Ryan said in a statement released Friday.

“We are pleased to see that initiatives released throughout the year are now feeding through into both operation and financial performance with increased player numbers and average net daily revenues versus the previous quarter, despite continued competition from illegal US-facing sites and the difficult macroeconomic climate.”

PartyPoker made headlines earlier this year when it acquired the World Poker Tour. The site also released a major software revamp to its poker client that added a variety of new features.

Ryan went on to say changes in licensing and regulation in both Italy and France could potentially lead to a new source of long-term revenue.

Poker wasn’t the only positive development for PartyGaming, which also saw its casino, bingo and sports book put up strong numbers in the last quarter of the year.

PartyGaming, a publicly traded company, was hit hard when the U.S. passed the Unlawful Internet Gambling Enforcement Act in 2006. The site pulled out completely from the country and its player base subsequently dropped dramatically.

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Mangas Gaming Acquires Everest Poker

Wed, 16 Dec 2009 10:00:00 -0800

Mangas Gaming, which also owns BetClic, Expekt and Bet-at-Home, will hold 60% of Everest Gaming stock with the remaining 40% held by current shareholder GigaMedia.

“We are very proud that Everest is joining our group,” said Isabelle Parize, CEO of Mangas Gaming.

“It is a great company; it is a brand with an outstanding awareness in the world of poker, well known for its know how, its platform reliability and its strict policies. Mangas Gaming is reinforcing its position as a major European player in both online poker and sports betting.”

Established over 10 years ago, Everest Poker has a strong presence in Europe and Asia and is consistently one of the biggest online poker rooms in the world.

Everest Poker is also one of the few rooms that runs its own proprietary poker software and is the exclusive poker table sponsor for the World Series of Poker in Las Vegas.

“We were looking for a reference partner with complementary activities to ours,” said Arthur Wang, CEO of GigaMedia. “Our strategy is to participate in the growth of this innovative and dynamic industry in Europe. We are glad to do it alongside the French leading sports betting and online gaming group.”

Mangas Gaming has a presence in more than 25 countries and over four million customers. Earlier this year the Mangas-owned BetClic announced it had signed famous poker pro Isabelle Mercier as a consultant and sponsored player.

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UIGEA Hearing Held

Fri, 04 Dec 2009 08:30:00 -0800

Over the 90-minute hearing, Frank delivered his case for legalizing and regulating the poker industry while Republican Rep. Spencer Bachus opposed the idea of changing the Unlawful Internet Gambling Enforcement Act (UIGEA) that was passed in 2006.

Frank once again championed the two bills he introduced earlier this year, which would legalize and regulate the online gambling industry and delay the compliance date for UIGEA by one year.

The meeting was mostly informational and a number of witnesses took the floor including representatives from the Problem Gambling Council, the Morongo Band of Mission Indians, the Wired Safety Group, the Independent Community Bankers of America and Youbet.com.

The majority of the witnesses appeared to support Frank's proposed legislation and the idea of legalizing and regulating the online gaming world.

Speaking in opposition, Bachus revealed a letter from the FBI, claiming it suggested there were several ways to cheat at online poker and legalizing it would be opening up a pandora's box of corruption.

After the meeting concluded, the Poker Player’s Alliance said Bachus' argument sounded more like one to legalize and regulate online gaming than anything else.

“Every concern the letter raises is better addressed by licensing and regulation than by prohibition,” said John Pappas, executive director of the PPA. “The letter misconstrues much about the current state of online poker, but it does so in a way that clearly makes the case for why federal oversight is necessary.”

Although the hearing was adjourned without a vote, it does appear there will be more discussion on the topic as Committee Chariman Frank finished saying, “We will be returning to the subject next year.”

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UIGEA delayed six months

Fri, 27 Nov 2009 23:59:43 -0800

A joint press release from the U.S. Department of the Treasury and the Federal Reserve Board announced Friday that the date for implementing regulations in the Unlawful Internet Gambling Enforcement Act (UIGEA) has been delayed by six months, from Dec. 1 to June 1, 2010.

The regulations were to force financial institutions in the U.S. to stop processing any transactions related to Internet gambling.

However, the delay will now give the U.S. House Financial Services Committee the chance to hold hearings on two bills designed to regulate and tax online gambling and futher delay UIGEA enforcement.

Those hearings are schedule for Dec. 3.

Committee Chairman Barney Frank applauded Friday's announcement.

"This will give us a chance to act in an unhurried manner on my legislation to undo this regulatory excess by the Bush administration and to undo this ill-advised law," he said.

A poker advocacy group lobbying to legalize online poker in the United States, the Poker Players Alliance believes the delay is also the first step towards legal and regulated online poker in America.

"This is a great victory for poker, but an even greater victory for advocates of good and fair public policy," said PPA Chairman Alfonse D'Amato.

"These additional months are critical to provide legislators time to clarify UIGEA and pass legislation to licence and regulate poker early next year."

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UIGEA hearing scheduled Dec. 3

Wed, 25 Nov 2009 17:01:46 -0800

According to the House Financial Services Committee website, a full committee hearing on two bills designed to regulate and tax online gambling in the US and delay UIGEA enforcement will be held Dec. 3.

House Financial Services Committee chairman Barney Frank, a longtime proponent of legalized online poker, unveiled both bills this past May.

HR 2266 is designed to delay UIGEA compliance until December 2010 while HR 2267 seeks to render the act moot by establishing a federal regulatory and enforcement framework to license Internet gambling operators, including online poker sites, in the United States.

The hearing will be held Dec. 3 at 10 a.m. ET in the Committee's Rayburn House Office Building and interested members of the public can watch a live webcast through the Committee's website.

In the meantime, UIGEA regulations come into effect next Tuesday Dec. 1 forcing financial institutions in the U.S. to stop processing any transactions related to online gambling.

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Gowen lawsuit tilts again

Fri, 23 Oct 2009 23:55:55 -0700

Gowen alleged that in 2004 she was offered a 1% stake in the site in exchange for her services as a celebrity endorser, but never received compensation.

She was dropped from the Team Full Tilt roster just days before the suit was filed.

Federal Judge Robert Jones granted a motion to dismiss the case back in April of this year, but the lawsuit was not thrown out in its entirety.

Gowen was given leave to amend the complaint to include just Full Tilt Poker, Tiltware, the related companies, Bitar and Howard Lederer as defendants and appeal the decision to dismiss the case.

However, in a decision released this week, Judge Jones both denied Gowen's appeal and granted Full Tilt's latest motion to dismiss the newly amended complaint.

Although, it appears the suit is not dead yet.

Judge Jones has granted Gowen leave to amend the complaint a third time to include only Tiltware.

Gowen and her lawyers have 15 days from the Oct. 14 decision date to file the amended complaint.

A former Oklahoma teen beauty queen, Gowen has over $1.6 million in career tournament earnings.

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Full Tilt sued over bot accusation

Tue, 06 Oct 2009 19:44:58 -0700

Lary "pokergirl_z" Kennedy and Greg Omotoy filed a complaint in the Superior Court of California this week accusing Full Tilt Poker, all the members of Team Full Tilt, Full Tilt Pro Perry Friedman and TiltWare CEO Ray Bitar of fraud, false advertising, racketeering, unjust enrichment, libel and slander.

According to the suit, Full Tilt confiscated more than $80,000 from the two player's accounts after accusing them of using poker bot software.

Kennedy, who used both accounts after Omotoy abandoned his, claims she never used a bot or computer program and attempts to clear her name using a webcam to broadcast images of her actually playing were ignored by the site.

The lawsuit also accuses Full Tilt of a number of indiscretions, making several insinuations about the inner-workings of the organization.

Included in the allegations are claims that Team Full Tilt's Chris Ferguson and Andy Bloch created poker bots to fill out online tables and generate revenue for the site and that Team Full Tilt members are playing on the site using company revenues, which is akin to being the house in a casino and therefore contrary to the site's claims it is not a gambling website.

Kennedy and Omotoy are seeking compensatory and punitive damages to be determined by the court based on Full Tilt's revenues.

Full Tilt Poker declined PokerListings' requests to comment on the suit.

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Annette_15 ad pulled in the UK

Wed, 16 Sep 2009 22:05:27 -0700

The Betfair Poker ad, distributed by email, shows a picture of Obrestad with the tagline, "Online experience is measured in games, not years. Join the new breed. Annette_15."

A complaint was filed with the ASA claiming the ad was irresponsible because it might encourage children and young people to gamble.

The ASA also challenged the ad as contrary to a Committee of Advertising Practice code which states no one under 25 can appear in a gambling ad in the UK.

Betfair argued it did not target its marketing at under 18-year-olds, claiming the ad was only emailed to people over 18 and it implores technical measures to prevent children and young people from gambling on the site.

After hearing argument from both sides, the ASA released a decision Tuesday ordering that the ad must not appear again and Betfair must ensure no one under 25 appears in its ads in the future.

"We concluded the ad was likely to have particular appeal to children and young people, and that, by representing a successful young poker player with the implication she was 15 years old, it could encourage young people to gamble and was therefore irresponsible," the ASA's decision reads.

Betfair argued that Obrestad, 20, was featured in the ad not because of her age, but because of her standing as a poker professional who has had a profound effect on the game.

However, the ASA decided her appearance in a gambling ad was still in contravention of the Committee of Advertising Practice code.

Despite claiming it would effect Obrestad's ability to derive earnings from sponsorship deals, Betfair said clear instructions had been given to its marketing department not to use her again in marketing material directed at UK consumers.

Obrestad built her bankroll by playing with the online handle "Annette_15", an alleged reference to the age she started playing.

Obrestad was 18 when she shocked the poker world by winning the inaugural WSOPE Main Event in the fall of 2007 for over $2 million.

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PA jury finds poker a game of chance

Fri, 14 Aug 2009 23:02:51 -0700

Lawrence Burns, 65, was charged with twelve different illegal gambling misdemeanors in 2007 when authorities discovered he'd been running poker tournaments at two local fire halls in Westmoreland County, PA, just outside of Pittsburgh.

Burns admitted to organizing the tournaments, but argued in court it wasn't gambling because Texas Hold'em is a skill game.

Pennsylvania law defines gambling as something where a payment is made, there is the possibility of a reward and the outcome is determined by chance.

Lawyers for Mr. Burns argued that since the application of learned techniques increases your win rate in poker, it must be defined as a game of skill.

University of Denver professor Dr. Robert Hannum testified in Burns' defense claiming poker is not a game of chance referencing a computer simulation that showed skilled players winning 960 million times out of one billion over non-skilled players.

Dr. Hannum also testified in a similar case in Colorado where the defendant was acquitted.

His testimony was subsequently stricken by a higher court and that decision is currently being appealed in the Colorado Supreme Court.

Susquehanna University professor Matthew Rousu also testified in the Burns trial that poker is a game of skill.

After two hours of deliberation, a 12-person jury disagreed, finding Burns guilty on all counts Thursday.

The local district attorney said he would not seek jail time and Burns is planning to appeal.

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Players Alliance backs Colorado appeal

Thu, 13 Aug 2009 20:59:02 -0700

"Given the Weld County District Court judge's ruling that poker is gambling because of the small element of chance in the dealing of cards, one could easily presume that any game that depends even a little on chance - from Monopoly to Yahtzee to Candy Land - is gambling and therefore illegal in the state of Colorado," said John Pappas, executive director of the PPA.

"We clearly think this is the wrong interpretation of the law, especially in regard to poker."

In 2008, five people were arrested and charged with illegal gambling at a $20 buy-in No Limit Hold'em tournament held in a Colorado bar, including tournament organizer Kevin Raley.

After arguing that poker is a game of skill, and therefore not gambling, Raley was acquitted and charges were dropped against the other four defendants.

During the trial, University of Denver professor Bob Hannum was called to testify that poker is indeed a skill game.

In an effort to clarify Colorado's laws regarding poker, the state appealed the ruling that Hannum be allowed to testify.

On Aug. 4 a County District Court Judge ruled poker is already considered gambling under Colorado law and Hannum's testimony should not have been allowed.

Although the state will not re-file the charges, Raley is now planning to appeal of the decision in the Colorado Supreme Court.

"The choice to petition the Colorado Supreme Court is about more than me or my friends," Raley said. "It's about all poker players' opportunity to ensure that current Colorado law recognizes that poker is a game of skill and is based on much more than the luck of the draw.

"So much has changed regarding poker and how the game is perceived publicly; it is disheartening to see this great game treated as a crime because of a misapplication of the law."

The PPA has more than one million U.S. members including more than 13,000 in Colorado and is standing firmly behind Raley.

"The PPA is going to do everything in its power to support Mr. Raley's efforts in order to protect PPA members and all poker players in the state of Colorado," said the PPA's Colorado State Director, Gary Reed.

"I am especially alarmed because this ruling ignores the abundance of research that proves poker is a game of skill and confuses rather than clarifies the matter for law enforcement."

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Canadian charged in U.S. online gambling case

Fri, 07 Aug 2009 21:00:03 -0700

Authorities allege Douglas Rennick, 34, opened a number of U.S. bank accounts claiming they would be used for issuing rebates, refunds and payroll cheques when, in fact, the accounts were used to process payouts for offshore Internet gambling companies that offered poker and casino games.

The U.S. Attorney claims more than $350 million was funneled through the accounts from a Cyprus bank account.

Rennick was charged with conspiracy to commit bank fraud, conspiracy to engage in money laundering, and conspiracy to operate an illegal gambling business.

If convicted he could face up to 30 years in prison and a $1 million fine on the bank fraud charge, 20 years in prison and a $500,000 fine on the money laundering charge, and 5 years in prison and a $250,000 fine on the gambling charge.

The indictment is also looking to seize $565,908,288 in proceeds it claims Rennick obtained as a result of the alleged activities.

Rennick currently lives in Canada and there has been no word on whether the U.S. Attorney's office will seek extradition.

The FBI, the Department of Homeland Security's U.S. Immigration and Customs Enforcement and the Internal Revenue Service all played a role in the investigation, which authorites claim is still ongoing.

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Menendez launches new poker bill

Thu, 06 Aug 2009 21:09:57 -0700

The Internet Skill Games Regulation Bill (S8309) is the brainchild of New Jersey Senator Robert Menendez and the major difference between it and similar bills is that only addresses online poker and other games of skill.

According to a release from the Dow Jones Newswires, the bill would establish a regulatory framework allowing online poker companies to register in the U.S.

It would also put in place consumer protections, including age-verification procedures and blocks for States where online poker is not yet legal.

Of interest to players is a proposed 10% tax on all deposits, representing one of the first times an actual number has been given in regards to taxes the U.S. government might be interested in charging should online poker be regulated.

The bill is expected to receive support from various financial institutions across the U.S., which were charged with the task of rejecting individual bank transactions based on the vague Unlawful Internet Gambling Enforcement Act (UIGEA) passed in 2006.

House Representative Barney Frank's Internet Gambling Regulation, Consumer Protection and Enforcement Act (HR 2267) is scheduled to go to a hearing in September and could potentially gain even more support if Menendez' bill is well received.

No debate or votes on the bill will occur until after the Senate's August recess.

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Poker's march on Washington works

Wed, 05 Aug 2009 23:55:55 -0700

July 19-25 was the first National Poker Week organized by the Poker Players Alliance and the results speak for themselves.

Over the span of the week the PPA collected over 375,000 signatures on a petition to President Barack Obama supporting the legalization of online poker, nearly 200,000 letters/emails were sent to U.S. representatives and members of the PPA attended over 100 congressional meetings.

Even radio host Howard Stern signed up as a member of the PPA.

"I think we made a very strong impression on lawmakers who weren't aware of online poker or maybe even opposed it," said PPA executive director John Pappas. "We raised the overall understanding of the situation."

Pappas, PPA Chairman Alfonse D'Amato, 33 PPA state directors and seven poker pros including Andy Bloch, Annie Duke, Jan Fisher, Howard Lederer, Dennis Phillips, Linda Johnson and Greg Raymer all made the trip to Washington, D.C. to show their support for legislation that would legalize and regulate online poker in the United States.

"I truly feel we are winning on this issue and the time is ripe for pro-poker legislation to pass into law," said the aforementioned Bloch.

It has been an uphill battle, according to Pappas, but the group finally seems to be making some headway.

"There is obviously a great fear when it comes to online gambling," he said. "People are concerned about having a casino in every home. That's not necessarily the case as we are bringing a skill game into people's homes.

Packed full of poker players.

"This isn't anything new. People have been playing poker in their homes for their entire lives. This way the government would be able to collect tax revenue from it."

The organization put a great deal of support behind Rep. Barney Frank's Internet Gambling Regulation, Consumer Protection and Enforcement Act (HR 2267) which was originally scheduled for a hearing in July.

The proposed hearing was postponed to September, but the PPA was still able to convince seven more representatives to co-sign the bill, which is now up to 54 co-sponsors. Rep. Betsy Markey, Rep. Bill Pascrell and Rep. Russ Carnahan were all among the recent co-sponsors.

"We had several goals in Washington and I think we exceeded them all," Pappas said. "It was a great success. The only thing we weren't able to do is actually meet with President Obama and present him the petition with signatures. We hope to accomplish that later this year."

Despite the fact that National Poker Week is over, the PPA will continue to educate politicians about the game.

"We will continue to talk to people and promote the game," said Pappas. "We hope to set the stage for Frank's bill in early to late September.

"We also have the short-term goal of getting poker excluded from the current Unlawful Internet Gambling Enforcement Act, which will officially be enforced as of Dec. 1, 2009. We want them to leave poker out of that legislation because poker is a skill game."

Pappas went on to say that New Jersey Senator Robert Menendez will finally be dropping his long-awaited poker-only bill tomorrow (August 6).

In the end, when it comes to the future of online poker, Pappas was optimistic.

"I think it's going in the right direction," he said. "For the first time we are on the offensive when it comes to legislation. We're seeing numerous pro-poker bills and I haven't seen a single anti-poker bill introduced for months.

"The bills that have been introduced lately have all been about extending poker player's rights."

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Fog clearing over fund seizures

Wed, 10 Jun 2009 02:11:13 -0700

Turns out there was only partial reason to be alarmed.

There was in fact a federal fund seizure by the Southern District of New York on June 4 affecting more than $30 million in funds belonging to online poker players.

It wasn't, however, directly related to the UIGEA, nor was the target an online poker operator.

The target instead appeared to be one specific instant echeck provider used by some major poker sites, including Full Tilt Poker and Poker Stars, that also deals in online casino payment processing.

The Poker Player's Alliance, representing more than 1 million poker players in the United States, was still none too pleased about it.

A letter was sent to the Assistant District Attorney for the Southern District of New York and an official statement was quickly released expressing its concerns.

"The PPA is disappointed that this unprecedented action has been commenced against law abiding poker players," the statement began.

"The payment processor funds frozen by the Southern District of New York belong to individual poker players - not operators of poker websites - and do not represent the proceeds of any gambling activity, much less illegal gambling activity.

"This money should be immediately released by the Southern District to ensure that player payouts are not further disrupted. To that end, the PPA is coordinating a legal strategy to appropriately protect PPA members who are impacted by the Southern District's actions.

"Further, the PPA has contacted the affected poker websites and has been informed that deposit and payout issues of players are being addressed and will be fully satisfied."

Full Tilt Poker also released a statement allaying fears about the frozen funds.

"In light of recent events involving freezing of certain poker players' money in the United States of America, Full Tilt Poker would like to assure all players that their funds remain safe and secure.

"Processing of both deposit and withdrawal requests is proceeding as normal and is still available to all of our players in the US.

The issue involving the freezing of some funds affected only one of the many check processors that Full Tilt Poker uses to support player withdrawals.

"We do not expect any further interruption in check withdrawals or any other withdrawal methods, and any player who wishes to make a withdrawal should expect normal processing times.

"All players who were affected by the current situation have had their funds returned to their Full Tilt Poker accounts and all new withdrawal requests are processing normally."

More to come on this issue as it develops.

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Online poker in Obama's book

Wed, 13 May 2009 17:20:30 -0700

In the White House Citizen's Briefing Book released Tuesday, online poker is the top technology issue and the 11th issue overall.

"Poker players around the country are speaking with one voice to protect the game they love, and the White House is hearing that message," Poker Players Alliance Executive Director John Pappas said.

"[This] proves that this is not a niche issue, but a national public policy that this Congress and this president should advance this year."

The White House asked citizens to submit policy proposals to be voted on through its website, www.change.gov. Those issues with the strongest support were included in the Citizen's Briefing Book officially sent to President Obama this week.

The proposal to "Boost America's Economy with Legal Online Poker," received 46,890 points, making it the number one technology issue and just outside the top ten overall.

The proposal, originally crafted by online poker player Aaron Huertas of Washington, D.C., asks the government to reform the Unlawful Internet Gambling Enforcement Act to exempt poker, boost the US economy by letting American players and companies make money and pay taxes instead of sending the business offshore, and help protect against online cheating.

Over the past few months the PPA has made a strong push for the poker community to get behind the initiative.

"We hope the Administration hears and acts upon the clear message sent via the Citizen's Briefing Book," Pappas added.

"The poker community stands ready to work with President Obama and Congress to make sure the will of the people is acted upon."

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iMEGA fights Minnesota block

Fri, 08 May 2009 21:34:23 -0700

The first part of the attack is informing ISPs that they don't have to comply with Minnesota's request to block sites.

On Tuesday iMEGA said it sent letter to the 11 Internet service providers that the Minnesota Department of Public Safety had ordered to block access to 200 online gambling Web sites alerting the ISPs that they don't have to comply with the order.

iMEGA followed that up by filing a lawsuit in the U.S. District Court in Minneapolis to prevent the DPS from enforcing an order to block state residents' access to the nearly 200 online gambling Web sites.

The lawsuit was filed against John Willems, director of the DPS Alcohol and Gambling Enforcement division, who initiated the move to have the online gambling sites blocked.

According to iMEGA, Minnesota lacks the authority to compel the ISPs to block residents' access to the sites. The association believes those actions are a violation of free speech rights guaranteed by the First Amendment of the U.S. Constitution.

"It's our hope that Minnesota will recognize their error and drop their blocking order," said Joe Brennan Jr., iMEGA chairman. "Censoring Internet access for Minnesota residents would establish a troubling precedent of government intrusion into the online world, and we just can't allow that to happen."

iMEGA also pointed out in its letters to the ISPs that the state had erred in its application of a federal law from the 1960s regarding the use of telephone and telegraph wires for the transmission of illegal wagers.

iMEGA believes that Minnesota has neither the authority or the jurisdiction to order the ISPs to block Minnesota residents access to sites that are not located within the state.

"Because Web site operators are not subscribers of yours, have no contracts with you and are not provided facilities by you, you should be aware the MN DPS is attempting to mislead (either intentionally or inadvertently) you into believing that you are bound by federal law to do what the MN DPS asks," iMEGA's letter stated.

"In fact, [the Wire Act] simply does not apply to the Web site operators and imposes no duty upon you and provides no authority to you to comply with the MN DPS request."

iMEGA isn't the only one fighting against the DPS. State Representative Pat Garofalo introduced legislation in the state Congress this week that would bar the DPS from forcing ISPs to block access to Internet gaming sites.

"The Department of Public Safety has to have better things to do with their time than to go after a college kid in his dorm room or some guy sitting in his basement spending a couple of hours playing online poker," Garofalo said.

"Demanding that a private-sector Internet service provider block access to Web sites is not a proper function of our state government."

The legislation would require prior legislative approval before the DPS could ask companies to block access to Web sites.

"I'm certainly not condoning online gambling, but I have serious concerns about government banning access to Web sites" Garofalo said.

Poker sites on Minnesota block list Minnesota attacks online gambling

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Frank reveals online gambling legislation

Wed, 06 May 2009 19:44:37 -0700

The Internet Gambling Regulation Consumer Protection and Enforcement Act of 2009 would establish a federal regulatory and enforcement framework for Internet gambling operators who want to accept U.S. customers.

"We applaud [Financial Services Committee] Chairman Frank's strong leadership to advance a common sense approach to regulate Internet gambling and reverse the intrusive, ineffective and burdensome prohibition," said Jeffrey Sandman, spokesperson for the Safe and Secure Internet Gambling Initiative.

This legislation is similar to what Frank introduced in 2007 in response to the Unlawful Internet Gambling Enforcement Act, which attempts to block money transfers from banks and other financial institutions to online gambling sites.

Frank has previously said he believes restricting online gambling is an inappropriate interference on the personal freedom of Americans and his hope is to reverse the UIGEA.

Along with the act to overturn the UIGEA, Frank is also going one step further, introducing separate legislation today to delay the implementation of UIGEA regulations set to go into effect Dec. 1, 2009.

The legislation will stop Federal regulators from enforcing the UIGEA until Congress has a chance to decide national policy.

"Despite the current prohibition, millions of Americans wager more than $100 billion annually with offshore Internet gambling operators," Sandman said.

"Rather than tell Americans what they can and cannot do online in the privacy of their homes, Chairman Frank's approach to regulate Internet gambling would protect consumers and allow the U.S. to generate billions in new revenue to fund critical government programs."

One of the stipulations for licensing under the new legislation is that companies must maintain effective protections against underage gambling, compulsive gambling, money laundering and fraud, and enforce prohibitions or restrictions on types of gambling prohibited by states and Native American Tribes.

The companies will also be subject to review of their financial condition and corporate structure, business experience, suitability and criminal background. They will also have to agree to be subject to U.S. jurisdiction.

The bill also grants the Treasury the authority to enforce the regulations. They can revoke or terminate the license of any online gambling site that fails to comply with the bill's provisions, and violators could be fined or imprisoned for up to five years, or both.

The Poker Players Alliance agreed the new legislation will do a better job of protecting U.S. consumers who choose to gamble online.

According to the PPA, the UIGEA was overly vague and wasn't actually protecting U.S. citizens as it was intended to do.

This new legislation will go much further towards keep children and problem gamblers off these sites, at the same time allowing for strong consumer protections for adult consumers who enjoy playing online poker and other online gambling activities, the PPA claims.

"Online poker is a legal, thriving industry and poker players deserve the consumer protections and the freedom to play that are provided for in this legislation," PPA Chairman and former Senator Alfonse D'Amato said.

"We are grateful for Chairman Frank's leadership and will be activating our grassroots army made up of over one million members to help him drive legislation."

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Gowen lawsuit tilts

Tue, 05 May 2009 18:58:41 -0700

The lawsuit was not thrown out in its entirety, however, and will likely continue against Tiltware, LLC, and two other named defendants.

In her lawsuit, Gowen claims she was entitled to 1% of Tiltware's profits in exchange for becoming a Full Tilt Pro and representing the company at poker-related events.

The defendants responded with a motion to dismiss, which not heard when Gowen filed an amended complaint, changing some of the language and adding additional factual allegations.

According to the defendants, Gowen's changes were merely cosmetic and did not cure any of the deficiencies they previously identified, so they renewed their motion to dismiss.

Front and center in the renewed motion was the argument that defendants Tiltware CEO Raymond Bitar, Howard Lederer, Andy Bloch, Phil Ivey, Chris Ferguson, John Juanda, Phil Gordon, Erick Lindgren, Erik Seidel, Jennifer Harman, Mike Matusow, Allen Cunningham, Gus Hansen and Patrik Antonius were not parties to the alleged agreement between Tiltware and Gowen, and therefore could not be liable for a breach of that agreement.

In a hearing on April 27 Judge Robert Jones agreed with the defendants.

Against all but three of the defendants - Tiltware, Bitar and Lederer - Gowen's complaint was dismissed with prejudice, meaning she is not permitted to amend her complaint a second time to try and bring those defendants back into the case.

Gowen was, however, given the opportunity to re-plead her claims against Tiltware, Bitar and Lederer.

Full Tilt attorney Thomas Dillard had no comment on the court's ruling.

However, Gowen's attorneys have indicated that they intend to appeal the Judge's ruling.

In the interim, they have filed a motion asking for clarification alleging the court did not dismiss two other claims unrelated to the alleged breach of contract.

Because of the court ruling, an earlier dispute with respect to discovery has also been put on hold.

Gowen was seeking depositions and documents from the various defendants and sanctions for their alleged failure to respond.

But with the lawsuit being dismissed against most, the discovery sanctions motion was taken off calendar.

Gowen did not respond to requests for an interview regarding the case.

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Poker sites on Minnesota block list

Fri, 01 May 2009 20:17:33 -0700

Sites on the list include Full Tilt Poker, CD Poker, Bodog Poker, Titan Poker, Everest Poker, Hollywood Poker and Players Only Poker.

However, major players like PokerStars, Absolute Poker and Ultimate Bet remain off.

While a few of the poker and casino sites that make up the 199-site list are big names in the online gambling industry, most are very small sites.

Some, the Interactive Media Entertainment & Gaming Association claims, don't even take U.S. business.

"We question how much thought was put into the selection of these sites," said Joe Brennan Jr., iMEGA chairman.

"To propose censoring Minnesota residents' Web access and not to know which sites are even in the U.S. market makes me wonder just how seriously the [Department of Public Safety] is taking this action. It comes off as a half-baked attempt at intimidation rather than thoughtful enforcement."

When asked how the sites were chose, John Willems, director of the DPS Alcohol and Gambling Enforcement Division, told PokerListings "The sites were chosen at random without regard to type of gambling or location."

However, iMEGA found it interesting to note that BetUS.com is on the list, a site that at one time had an endorsement deal with former Minnesota Governor Jesse Ventura.

iMEGA stepped in on the case in Kentucky when that state tried to seize 141 Internet gambling-related domain names they considered to be illegal. The organization has also been defending online gambling at the federal level filing a lawsuit against the UIGEA.

It's likely iMEGA will be willing to take on Minnesota as well, considering the organization's concern that the ban signals a new form of government censorship that could stretch well beyond Internet gambling.

"When Mr. Willems expresses his intention to extend his 'program' to thousands of other sites, just what kind of sites will he be targeting?" Brennan asked.

"And will he be making the determination which sites are 'legal' and which are 'illegal'? Because as far as we can tell, there is nothing in Minnesota or U.S. Federal law that makes these gaming or any other sites illegal, just their opinion."

The Wire Act of 1961 made it illegal to use telephones or telegraphs to transmit wagers. The U.S. Congress has taken up the matter a number of times since, but has yet to amend the law to include Internet gambling.

Congress also passed the UIGEA, making money transfers from banks and other financial institutions to online gambling sites illegal. But even the UIGEA does not outlaw the actual act of gambling online.

"What is most concerning is the shaky legal pretext that Minnesota has used to fashion their order," Brennan said.

"There is simply no Federal law that exists that makes it illegal for US citizens to gamble on the Internet. None."

Related Article: Minnesota attacks online gambling

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Minnesota attacks online gambling

Thu, 30 Apr 2009 17:45:38 -0700

The State's Department of Public Safety served notice on 11 national and regional telephone and Internet service providers this week telling them to prohibit access of all Minnesota-based computers to those gambling sites.

The DPS contends that online gambling is illegal in all U.S. states.

Under a federal statute enacted in 1961 that recognized the states' need to control illegal gambling, the state has the authority to use its law enforcement agencies to stop illegal online gambling activity.

The DPS said it believes this is the first attempt by a state to employ the federal statute to restrict access to online gambling sites.

"In Minnesota, and for Minnesotans, the primary issues are legality, state self-governance and accountability," said John Willems, director of the DPS Alcohol and Gambling Enforcement Division.

"In broader context, the long-running debate on online gambling continues to raise significant issues, including absence of policy and regulation, individual rights, societal impact, international fair-trade practices, and funding for criminal and terrorist organizations."

Not only will Internet Service Providers be asked to block computers in Minnesota from the list of online gambling sites, the written notice also provides the sites' telephone numbers so Minnesotans can't call those numbers either.

"We are putting site operators and Minnesota online gamblers on notice," Willems said

"Disruption of these sites' cash flow will negatively impact their business models. State residents with online escrow accounts should be aware that access to their accounts may be jeopardized and their funds in peril."

According to the DPS, a response from the notified ISPs is expected within two to three weeks, at which time issues of non-compliance will be referred to the Federal Communications Commission.

The list of specific online gambling sites isn't being made available until the DPS confirms it is legal to release it.

However, Willems told PokerListings the list is not defined by type of gambling.

"Staff prepared a sample list at my request, so it may or may not include poker," Willems said. "Please keep in mind this is about 200 sites, which is a small representation of the larger number that operate."

Willems anticipates the program will expand to address thousands of online gambling sites depending on the compliance of the telephone companies and ISPs. He said the required technology to restrict geographic access to particular sites is a relatively straightforward procedure for service providers.

"The state of Minnesota has not to this point explored regulating this business. Perhaps that will happen in the future," Willems said.

"However, as of now, this form of gambling is unlawful in our state."

Matt Werden, the Minnesota state director of the Poker Player Alliance, has already stepped up to defend online poker.

"This isn't simply a heavy-handed tactic by the government; this is a clear misrepresentation of federal law, as well as Minnesota law, used in an unprecedented way to try and censor the Internet," Werden said.

"I don't know what U.S. Code they're reading, but it is not illegal to play this great American pastime online, and we're calling their bluff."

Werden claims online poker isn't illegal, is not criminal, and can't be forcibly blocked by "a state authority looking to score some political points."

"We see headlines like this coming from communist China but never expect that it could happen here in Minnesota," Werden said. "The good news is groups like the Poker Players Alliance are here to protect the rights of poker players and set the record straight when government reaches too far."

Werden said the issue is more than just about protecting poker. It is about keeping the Internet free of censorship and ensuring that law-abiding citizens can enjoy a game of Texas Hold'em in the comfort of their own home, either online or with a group of friends.

"The PPA will take any action necessary to make sure our members and the general public are aware of these oppressive and illegal actions, and to make sure the game of poker - in all it's forms - is protected in the state of Minnesota," he said.

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