PokerStars.com LAPT Nuevo Vallarta - Live Updates

The second event on the PokerStars Latin American Poker Tour's second season has been canceled with 89 players still holding chips after the Mexican government suspended the Nuevo Vallarta main event due to licensing issues.

This highly irregular and unusual occurrence means that each of the surviving players will receive at least $5,000 in prize money, plus an additional allotment based on chip stacks and $500 from PokerStars (as opposed to the tournament prize pool).

The announcement sparked a near riot at the Marival Resort and Suites in Nuevo Vallarta as players among the 153 who had previously been eliminated from contention angrily demanded their money back as well. No word on whether they'll be appeased.

We're still waiting for official word from PokerStars as well as a list of those who cashed in this event, so stay tuned. Among those to walk away with cash will be Team PokerStars Pro pros Greg Raymer and Victor Ramdin, as well as LAPT1 Punta Del Este runner-up Alex Brenes and LAPT2 Costa Rica champ Ryan Fee.

Again, stay tuned for a statement from PokerStars.

The PokerStars Latin American Poker Tour's Nuevo Vallarta events remain suspended indefinitely. PokerStars and LAPT officials held a players' meeting at noon today at the Marival Resort in Mexico to explain the situation, with the gist of the situation being that nothing had been resolved and that an official decision will be made at 5 p.m. CT.

Sarne Lightman from PokerStars explained that the situation has been caused by a disagreement between the Mexican government and the third-party company from whom PokerStars obtained a gaming license to hold this event.

Apparently, the government monitored the tournament on Day 1 and decided that despite having previously determined that tournament poker was allowable under the country's gaming laws, something was amiss and the tournament should be shut down.

Currently, the third-party organization and its lawyers are negotiating with the government in an attempt to salvage the tournament. The LAPT expects to make an official decision as to their next course of action by 5, but Lightman stressed to the players that PokerStars will take full responsibility for the situation and that the gaming site guarantees the tournament prize money will be distributed in an equitable manner should alternate arrangements have to be made.

Stay tuned to PokerListings.com for more on this developing story.