POKER/GAMBLING NEWS

Another Delay in California Online Gambling Legalization

No regulation this year

This week, Senate President Pro Tem Darrell Steinberg announced that the legalization and regulation of online gambling in the US state of California will not happen this year, and he explained to stakeholders that "significant and unresolved issues remain", referring to tribal exclusivity, the games that would be authorised, the impact on sovereign nations' interests, Federal constitutional issues and the process of gaming site licensee eligibility.

"We believe that well thought out, fair solutions to these differences can be reached, but not before the end of this legislative year on September 9th," said the letter by Steinberg, D-Sacramento and Inglewood Democrat Sen. Roderick Wright, who chairs the Senate's Governmental Organization Committee that oversees gambling regulation.

In addition, Steinberg specified that the legalization of the pastime, despite its potential to bring hundreds of millions of dollars in taxes, is stalled by the fact that the existing proposals are not good enough and "rushing to meet a legislative deadline on an issue of such significance for our state and our people would be unwise".

The Senate Governmental Organization Committee will hold a hearing on the issue in January 2012.

Source: LCB News

Full Tilt Apologizes!

And keeps looking for new investors

A long expected press release from the beleagured online poker company Poker Kings Ltd on the status of the Full Tilt brand has been issued this week, addressing the question of potential investors and apologizing for the lack of communication with customers.

Although short, the statement was quite informative – in it, the company confirms that it is seeking new potential investors, at the same time continuing discussions with its current investor, all with an aim to close the sale/partnership of the Full Tilt Poker brand.

As for the past few months without communication with customers, the company stated that the ones to blame are legal and financial issues arising from "Black Friday", along with the need for potential investors' confidentiality.

Source: LPB News

NOW they apologize :`o ??? Let's just hope they are not the norm for other poker sites.I hope for the people that have  $$ in their acct.that this site can be trusted again and they receive their money back !! :-bd

NOW they apologize :`o ??? Let's just hope they are not the norm for other poker sites.I hope for the people that have  $$ in their acct.that this site can be trusted again and they receive their money back !! :-bd

It's taken them long enough to apologise that's for sure.

I hope so too Rosebud - I have a bit of cash on there (not huge amounts but it is mine!).  I feel for those that have thousands and thousands locked up in Full Tilt.

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US poker players turned into refugees

A new service to accommodate USA poker players whose livelihood has been ruined by the DoJ actions involving the internet's largest poker rooms, has been launched.

The service is called Poker Refugees and they offer services to relocate professional poker players to another country.  They can sort everything for them including finding accommodation until they can purchase a new home, sorting out bank accounts, accountants, cell phones and even a decent broadband connection for when they move into their new home.  They will even pick them up from the airport.

It's a sad day when Americans cannot continue with their poker playing profession and must move out of the US, leave their friends and other family members behind, just to support their family.

Original story on The Independant.

Online Poker Regulation a Step Closer in Nevada   

Nevada Gaming Board receives first drafts

After the legislature's approval of legalized internet poker subject to prior federal legalization, the US state of Nevada seems to be fast at pursuing the passage of the new law.

In order to do this, the Nevada Gaming Control Board needed to draw up appropriate regulations for the state to implement following federal legalization, so the Board this week presented a number of proposals on the organization's website.

The proposed drafts included: applicant vetting requirements, technology aspects, customer protection, record-keeping and auditing rules, state oversight provisions and a disciplinary regime for use in non-compliance issues involving licensees.

According to the Gaming Control Board chairman Mark Lipparelli, online poker has become a multibillion dollar business around the world. "The technology supporting it, while not perfect, has improved dramatically since its introduction," he said. "Similar to our land-based requirements, Nevada will establish high standards giving players as much confidence as possible in the entities and technologies that might eventually gain approval."

The next step is to consider the drafts through a public consultation workshop process that will begin at the end of September. In addition, they may be amended before becoming the subject of public hearings, which need to be held so that both the Board and the Nevada Gaming Commission can grant approval to the final version of the regulations.

Source: LPB NEWS

Full Tilt Poker Issues another Statement

The beleaguered poker operator accuses US enforcement actions for its downfall

In an interesting interview given to Forbes magazine this week, the troubled Full Tilt Poker online poker provider tried to explain why it has not paid its players so far, by accusing the Black Friday indictments against two of its top people, as well as the U.S. government cash seizures over many years and a $42 million theft conducted by one of its payment processors.

“As is obvious from the events that have transpired since April 15th, Full Tilt Poker was not prepared for the far-reaching, US government enforcement effort of Black Friday. Full Tilt Poker never anticipated that the DoJ would proceed as it did by seizing our global domain name and shutting down the site worldwide,” it was stated.

According to the statement, such DoJ actions against online poker payment processors over the last few years resulted in the confiscation of some $115 million of player funds located in U.S. banks.

Currently, FTP also faces a $3 billion DoJ claim in a civil lawsuit, and in addition, it claims that it was the victim of the above mentioned payment processor heist.

In relation to this, the company stated: “Until April 15th, Full Tilt Poker had always covered these losses so that no player was ever affected.” It was added that it experienced “unprecedented issues with some of its third-party processors that greatly contributed to its financial problems.”

At the moment, FTP is waiting for the second public hearing by the Alderney Gambling Control Commission where the future of its license will be decided. In the meantime, it is in search for investors who could help its recovery. According to the latest reports, six investment groups, including hedge funds and operators of other Internet firms, have visited FTP's Dublin headquarters, and the company also specified that it has hired an unnamed financial advisor to “assist us in our search for an infusion of cash as well as a new management team to restore the site and repay players.”

Source: LPB News

There's an interesting article about Bodog Poker changing software (possibly) at the end of 2011.

They are currently the 13th most popular poker site but they believe with the new software, they will be 3rd most popular or even 2nd most popular.

I'm wondering if they have 3D poker up their sleeves as this makes for the best enjoyment when playing online.  Whichever platform they choose, we can be expecting lots more promotions for 2012.

You can read the full article here

Update: DoJ Unfreezes Pokerstars Luxemburg Account

Funds to be released

A new development in the case between the U.S. Department of Justice and Pokerstars has been reported this week, informing the public that the two entities have closed a deal with the emergence of an order signed by U.S. District Court Judge, Leonard B. Sand, dated September 2 2011.

Based on the agreement, the funds from a seized Bank Hapoalim Luxemburg account belonging to Sphene International Ltd, one of the companies named collectively as PokerStars, will be released. The amount of the funds has not been specified, it is only known that it will not include $ 5.5 million which has been tagged as being derived from online poker play for real money in the United States and is to remain in the account frozen until the legal action against the company is resolved.

The company can thank its neat record-keepers for being allowed to access the rest of the funds, as it was their work that enabled it to prove exactly what portion of the funds came from its US operations.

Source: LPB News

Update: New Class Action against Full Tilt

Canadian consumer group represents a new legal issue

Troubles just won’t end for the beleaguered online poker group Full Tilt. This week, a report came of a new class action initiated by the Canadian consumer group, Groupe des droits des consommateurs, against Full Tilt, on behalf of players who have been unable to reclaim their money from the company after the U.S. Department of Justice action conducted in April.

It has been specified by the group: "The class action involves Full Tilt Poker's illegal freezing of clients' money that's kept in accounts available through the website www.fulltiltpoker.com."

This is the third class action on unpaid player funds against Full Tilt – the first came in June on behalf of U.S. Players only, and the second in August on behalf of anyone with an unpaid balance on Full Tilt Poker; both were filed in the United States District Court for the Southern District of New York.

Source: LPB news

New Online Poker Initiative in the US   

PPA in action again

After the US government presented a new communication site titled "We the People," with an aim to create American jobs in a stagnating economy, the Poker Players Alliance reacted by filing a new petition whose goal is to get the attention of US administration officials and lawmakers and point to them that the legalization of online poker and internet gambling in general could be of much help in achieving this goal.

If the Association managed to collect over 5000 signatures within 30 days, it may be able to draw the attention of the authorities who have a growing appetite for online gambling tax revenues. And having in mind the number of online players - tens of thousands daily- and the claimed 10 million players of poker, these numbers should be reached in no time.

According to PPA Player Relations VP Rich Muny, "I wish to thank the entire poker community for the outstanding work in telling our elected officials that we demand action on the online poker issue.

“We as individuals have sent over 100,000 letters to lawmakers and made countless phone calls to lawmakers this year alone. We have also posted thousands of pro-poker statements to their Facebook walls, while also sending them thousands of pro-poker Twitter messages."

Source: LPB News

Full Tilt Hearing Behind Closed Doors

The saga continues

Two statements arrived on Sept. 15, informing the public of the new developments in the Full Tilt Poker case and announcing a private hearing on September 19 2011.

The statement issued by Full Tilt Poker reads:

"On April 15th 2011 the United States Department of Justice unsealed a federal indictment against a number of individuals employed by major online poker operators. After the issuance of that indictment and a related civil case brought by the United States government, Full Tilt Poker withdrew from the US market. Then in a related action, on June 29th, 2011, Full Tilt Poker had its operating licenses suspended by the Alderney Gambling Control Commission.

As a result, Pocket Kings Ltd. (provider of marketing and technology services to Full Tilt Poker) has adopted a cost optimization program and estimates that they need to reduce their costs by approximately €12m. This program is intended to streamline the company's operations in order to better position itself for future growth and profitability in Full Tilt Poker’s markets outside of the U.S.

If all of the required cost savings were to be achieved through redundancies, approximately 250 positions could be affected; however the exact number cannot be confirmed until the conclusion of a consultation process with its workforce.

Notwithstanding the foregoing, Pocket Kings firmly believes it has a very strong future in Full Tilt Poker’s Non-US Markets, and is fully committed to ensuring Full Tilt Poker restores the site and repay players in full. To this end, Full Tilt Poker has retained Sea Port Group Securities, LLC as its financial advisor with regard to raising capital and/or assisting in securing a strategic partner in order to fund continued operations of Full Tilt Poker's non-U.S. business. The Company is in active discussions with several parties and will provide a further statement in due course."

Sea Port Group Securities, LLC is a credit focused Investment Bank founded by Michael Meagher and Stephen Smith and is described as "a firm unique in its ability to connect clients with diverse credit opportunities and create value."

The Alderney Gambling Control Commission (AGCC) released its latest statement with regard to Full Tilt Poker's much anticipated hearing scheduled for September 19, 2011 in London.  The Commission has notified interested parties that the tribunal has ruled that the hearing will not be open to the public but will commence in private "in camera", to the disappointment of the AGCC's Executive Director, André Wilsenach.

On the other side, the AGCC issued the following statement:

"The Commissioners of AGCC forming the tribunal dealing with the regulatory hearing into the affairs of FTP have decided that the hearing will continue on Monday 19th September 2011 but that it be held 'in camera'.

This determination was reached following a pre-hearing application by FTP to further adjourn the hearing.

André Wilsenach, Executive Director, stated:  "I am pleased that the FTP hearing will continue as scheduled, as was argued on my behalf. However, I am disappointed with the tribunal's decision that, notwithstanding my arguments to the contrary, the hearing will be held in private. I believe the public has a right to know the reasoning behind the decisions to suspend FTP's licences and call a hearing, and to hear the evidence that will be put forward on my behalf.

It is my understanding that the tribunal conducted a difficult balancing exercise of the interests of the various parties, taking into account the legal arguments for and against further postponing the hearing, and for and against allowing the public to attend the proceedings."

As a consequence of the tribunal's decision members of the public will not be able to attend the hearing. A further statement will be made at the earliest possible opportunity.

Issued by: Andre Wilsenach (Executive Director, AGCC)"

Source: LPB News

Update: House of Assembly Approves Massachusetts Online Poker Legalization Proposal 

The proposal included as an amendment to a wider bill

Good news for online poker fans arrived this week from the US State of Massachusetts, where the intrastate legalization proposal presented by Republican Daniel Winslow made it through the state House of Assembly as an amendment to a wider bill expanding land gambling in the state. It will now move on to the state Senate for further consideration.

The bill includes several amendments, one of which is the Winslow amendment, which proposes allowing up to five Internet poker companies to operate within the state, putting the proposed state gaming commission in charge of analyzing and developing the required legislation for intrastate Internet poker.

According to Winslow, "This amendment was aimed at creating high-tech job opportunities in Massachusetts, as well as increased local aid reveue.

"It is important to remember that 1,700 foreign companies already offer Internet poker, so state regulation will ensure that consumers are not being cheated."

In addition, the amendment envisages that the model intrastate legislation should be ready for consideration by July 2012, forming part of a wider piece of legislation seeking to license three land casinos in the state.

Source: LPB News

Update: US Attorney Files an Amendment to Black Friday Civil Complaint    

The complaint includes FTP's Lederer, Bitar, Ferguson and Furst

An announcement came this week that the Assistant US Attorney Michael D. Lockard has filed an amendment to the United States Southern District of New York's civil complaint against online poker companies PokerStars, Full Tilt Poker, and Absolute Poker, to itemize distribution payments to Full Tilt owners in the amount of $443 860 529.89, and to include Howard Lederer, Ray Bitar, Chris Ferguson and Rafe Furst's names.

Reportedly, the amendment establishes that as at March 31, 2011 Full Tilt Poker owed its customers $390 695 788, but that its bank accounts only held $59 579 413.

In U.S. Attorney Preet Bharara's opinion, “Full Tilt was not a legitimate poker company, but a global Ponzi scheme. Full Tilt 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.”

Source: LPB News

This is a very interesting news article but I struggled to understand what a "Ponzi scheme" is.  For those of you in the same boat as me, here is an explanation from Wikipedia.

"A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from any actual profit earned by the individual or organization running the operation. The Ponzi scheme usually entices new investors by offering returns other investments cannot guarantee, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors to keep the scheme going."

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Update: Full Tilt's Situation Gets Worse     

Are 'Ponzi Scheme' allegations true?

After the reports dated Sept. 20, that the US civil complaint against Full Tilt poker has been amended to claim that Full Tilt Poker operated like a Ponzi scheme and to include four of the company's reps – Howard Lederer, Ray Bitar, Chris Ferguson, and Rafe Furst, the industry went abuzz, shocked with the new revelations on the case.

The fact that the Justice Department pointed out that “FTP had assured players that their account deposits were segregated and held separately from their operating accounts,” when, it was actually pulling the money to use it for other purposes, caused quite a stir, as one of those purposes was to pay the company's owners and board members tens of millions of dollars.

Namely, the reports arrived that “The new revelations claim that defendant Ray Bitar got $41 million and top poker player and alleged co-founder Howard Lederer got $42 million. Chris Ferguson was supposed to get $87.5 million, although he may have only received $25 million of that amount so far, federal prosecutors claimed. The rest was characterised as monies owed to him by the company.”

The complaint also added Rafe Furst's name to the defendant list, as he allegedly received $11.7 million. And since it is believed that all these millions distributed to the individuals transferred to accounts in Switzerland and other overseas locations, the amendment also included an accusation of money laundering against the defendants, with a request for penalties that go between $12 million for Furst to $42 million for Lederer.

In terms of the FTP ownership, the Justice amendment claimed: "At all times relevant to the Amended Complaint, Bitar, Lederer, Ferguson, and Furst were among the founders of Full Tilt Poker, as well as part-owners of Tiltware, LLC, a California Limited Liability Company that was the beneficial owner of all other Full Tilt Poker entities.

"In total, approximately 23 individuals owned shares in Full Tilt Poker. The FTP Insider Defendants specifically owned the following approximate percentages of Tiltware LLC: Bitar (7.8%), Lederer (8.6%), Ferguson (19.2%), and Furst (2.6%).

“The FTP Insider Defendants were also, at all relevant times, members of the Board of Directors of Tiltware LLC, and Ferguson was Chairman of the Board of Directors."

The major issue is that the amendment claims that as of March 21, 2011, FTP owed approximately $390 million to players around the world, $150 million to U.S. players, and that in its accounts the company had only around $60 million. In addition, it was a major shock to players to learn that some $443,860,529.89 of their money ended up in Bitar, Lederer, Ferguson and Furst's pockets in a period between April 2007 and April 2011.

According to the amendment, “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.”

With such a development of the affair, the defendants may face an even more serious situation, including personal law suits, along with property attachments.

In a comment on the new revelations, John Pappas, executive director of the Poker Players Alliance, stated: "This is a sad and disappointing day for American poker players. If true, these allegations detail a massive betrayal of player trust which will cause financial hardship for thousands, if not millions, of individual poker players, none of whom are accused of doing anything wrong.

“We call on the Department of Justice to certify that the proceeds of any settlement or seizure that may result from this action will first be dedicated to reimbursing players. We further call on Full Tilt Poker, its management, directors and owners to take all available steps to ensure the prompt payment of players as their first priority."

So far, no comment has arrived from Full Tilt management, which is currently engaged in an attempt to recover the company's Alderney license. The hearing on this matter was continued on Sept. 19, behind closed doors, and such a decision of the Alderney Gaming Control Commission has been sharply criticized.

Source LPB news

WOW !! !! If this is all true...not good !! :`o :`o

Not good at all.

I can't see them getting their license back now.

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Update: Communication Arrives from FTP Lawyers… Finally

Denial of US Justice Department’s allegations

In light of this week’s allegations issued by the US Justice Department in which it claims that Full Tilt Poker was nothing more than a global Ponzi scheme, a comment arrived from the company’s legal representatives, whose reaction has been highly anticipated.

"I disagree strongly with the allegation that FTP operated as a global Ponzi scheme," said one of the attorneys, Jeff Ifrah. "FTP may have made mistakes, but I have seen no evidence to support the Department of Justice's characterization of it as a global Ponzi scheme."

“The issues at Full Tilt should be likened to that of a problematic bank, rather than an illegal investment scheme” he sadi, adding: "A Ponzi scheme requires an investment vehicle in order to receive a certain rate of high return. None of those things happened here. Maybe it was mismanaged."

Another attorney Ian Imrich, who represents both Full Tilt owner and board member Chris Ferguson, made a similar comment, saying: "While the government has obviously taken issue with the underlying activities of FTP, under any reasonable interpretation, the world-wide operations of the online cardroom are not a so-called Ponzi scheme."

It seems like everyone would now like to have their hands clean from anything to do with FTP, as there have been numerous revelations and justifications given for the money the company previously ‘invested’ in the support of online poker legalization on both intrastate and federal level.

One of such political contributions ($20,000) was made to a Democratic Party Congresswoman Shelley Berkley of Nevada, a famous advocate for federal legalization of Internet poker, who in a comment on the latest accusations against FTP said: "These allegations are extremely troubling and, if true, threaten to unfairly cast a shadow over the entire online poker community thanks to the alleged actions of a few individuals."

Another willing recipient of donations from poker interests is her fellow Democrat Barney Frank of Massachusetts, who has introduced several bills in Congress over the years to legalize Internet poker. He also took a contribution from FTP in the amount of $18,600, which together with other contributions he received since Jn. 2007 amounts to $48,300 from poker interests, which is some 7 percent of individual contributions to his political campaign funds.

In regards to the new names, FTP founders and board members, added to the civil complaint, the reactions have so far been rather harsh, including an announcement made by the Epic Poker League that it has suspended Howard Lederer and Chris Ferguson indefinitely following the US Attorney’s amendment, as the allegations in the amendment represent a violation of its Player’s Code of Conduct.

According to the Committee Chairman Stephen Martin “The Committee voted to suspend Howard Lederer and Chris Ferguson indefinitely, pending the outcome of the Department of Justice’s action.”

Not everyone agreed with the decision, however, including a committee member and poker pro Andy Bloch and presumably Annie Duke, a League official and the sister of one of the defendants, Howard Lederer.

Another reaction arrived from one of the new defendants from the list, Rafe Furst, who sent an open letter to the public, stating: "It sucks to have to endure the character assassination and potshots," he complained. “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.

"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."

All this happens while FTP is undergoing the continuation of a hearing on its license with the Alderney Gaming Control Commission. The hearing is being held in camera, but reports have leaked that an investment banker from The Seaport Group working for Full Tilt testified at the hearing, claiming that FTP had three interested investors, and that it is seeking another 30 days to resolve its issues.

An official statement from the AGCC is still being anticipated.

Source: LPB News

AGA Chief Comments on Recent FTP Troubles    

AGA seeks to add impetus to legalization drive

In an attempt to add impetus to the online poker legalization drive in the US, the American Gaming Association (AGA) has issued a statement addressing the latest Full Tilt Poker issue, using it to further its agenda.

In the statement, the AGA CEO and President Frank J. Fahrenkopf Jr. said: “I have two simple questions: ‘How much and for how long?' How much money that we don't know about is being swindled from U.S. consumers and how long will it take before we change laws to protect those consumers?

“This morning (Tuesday) we called on Congress to institute an effective online poker regulatory system to protect American consumers and released an online poker Code of Conduct that would ensure online poker companies are operated honestly, legally and responsibly.

“This afternoon (Tuesday) the Department of Justice (DOJ) accused one of the most well-known offshore online operators, Full Tilt Poker, of bilking players out of more than $300 million. The U.S. attorney who made the accusation called Full Tilt Poker, ‘…not a legitimate poker company, but a global Ponzi scheme.'

“Tomorrow Congress should begin changing the laws to protect consumers from such schemes.

“We applaud the DOJ for this latest action, but every time a shady website is shut down, an even shadier one pops up.

"The type of illegal activity the DOJ is accusing Full Tilt Poker of will continue to happen in the absence of the same tough, stringent regulations and enforcement that successfully govern bricks-and-mortar casinos.

"The time to act is now, or millions of Americans playing online will continue to face a risky environment.

"Congress needs to establish federal guidelines so that states that choose to can regulate and license online poker, and bring the jobs and revenues associated with this billion dollar industry to the U.S.”

source: LPB News

Update: Speculations on Identity of Investor Interested in FTP…   

… and on the outcome of the AGCC hearing

Another set of rumors and speculations emerged on Sept. 23, with more detail about the case of Full Tilt Poker, their negotiations with a potential investor, and the hearing on its license with the Alderney Gaming Control Commission.

This time, probably the most important rumor is that the investor interested in the purchase of the beleaguered company is Frenchman Laurent Tapie, son of Bernard Tapie, a businessman who has specialised in the recovery of bankrupted companies, including Adidas.

As for the AGCC hearing, reports came that the permanent revocation of FTP's license is close at hand, even though there were speculations earlier that FTP would actually get another 30 days from the commission to finalize negotiations with interested parties.

And back in Ireland, at the seat of FTP parent Pocket Kings, employees of the beleaguered company are reportedly utterly discouraged, " set to lose their jobs and many of them surf the web for clues about what will happen next."

In terms of the donations received by FTP, the United States Congressman Barney Frank stated that he is more than willing to put his "donations from Lederer, Furst and Ferguson into a special account and donate it to a fund for victims if the Justice Department sets one up....and if the defendants are found guilty."

Source: LPB News

Initial Passage of Nevada Online Gambling Regulations Without Problems 

Nevada Gaming Control Board holds a successful workshop

A report that arrived this week from the US state of Nevada includes the latest news from the Nevada Gaming Control Board's workshop where the state's proposed new online poker regulations were discussed.

The officials stressed that the purpose of these regulations is to put Nevada in a favorable position in case federal legalization occurs. They also said that they made sure the one-and-a-half hour session was highly informative for those who attended it, including players, industry attorneys, former regulators and corporate representatives of interested firms.

They reportedly briefed the audience on the requirements regarding the operation of interactive gaming, licensing, internal controls, record-keeping, player registration, fees, dispute resolution and the reporting of suspicious wagers.

It has also been specified in a statement that the briefing made the following notes:

“The Nevada Gaming Commission must review and approve all interactive gaming systems of applicant companies; There is a requirement for ongoing testing of interactive systems, including privacy oversight to protect a player's identity and account information; Strict requirements regarding the registration of players, including identity, age (21 years) and location verification, together with checks that the player is not a problm gambler or excluded player; Records of all financial transactions, wins and losses, must be kept and players may not be given credit; Operators must report suspicious wagers within seven days; Interactive gaming licenses are classified as distinct from any existing gaming licenses that may be held, and therefore a new i-gaming licence must be taken out by applicants, for which fees will be charged. Fees have been set at $500,000, with $250,000 annual renewals and $125,000 for service providers with $25,000 annual renewals.”

In addition, another public hearing will be held by the Commission and the Board in November, before the approval of final regulations, which must happen by the end of January 2012.

Source

Update: New Opinion on FTP Losses

Are the losses tax-deductible for US residents?

New opinions appeared this week regarding the US Justice Department assertions that Full Tilt Poker was operating a Ponzi scheme, including the one given by the a California law firm which believes that this turns out to be true, American players may actually have something to look forward to.....read the full story

Update: New Opinion on FTP Losses

 

Are the losses tax-deductible for US residents?

 

New opinions appeared this week regarding the US Justice Department assertions that Full Tilt Poker was operating a Ponzi scheme, including the one given by the a California law firm which believes that this turns out to be true, American players may actually have something to look forward to.....read the full story

 

 

I hear you Rosebud.  I only have about $30 odd on there but even so, it is my money.

I think FT will be sold and hopefully, we can gain access again soon.

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Full Tilt Poker's acquisition may be close at hand, according to recent Twitter posts which report of rumors that a French investor whose identity has caused much speculation throughout the industry has sealed the deal....read the full story

Hopefully some good news at last!!! :-bd :)

I hope so Rosebud.  I won't hold my breath though  ;)

After a period of silence from both sides, on Sept. 29 the Alderney Gaming Control Commission has announced its final decision regarding the licensing of Full Tilt Poker, revoking it and leaving the troubled FTP with a secondary Kahnawake licence....read the full article

Update: FTP Complains to AGCC's Decision to Revoke Its License

The company sale damaged

After the Alderney Gaming Control Commission issued a statement explaining its decision to revoke Full Tilt Poker’s license, the beleaguered company’s reaction was prompt and embittered.

In its statement, FTP claimed that the Commission's decision has made it more difficult to arrange the sale of the company that would enable the payout of the players who will this way, apparently, remain unpaid.

A part of the statement reads:

“Full Tilt Poker offered the testimony of an investor interested in acquiring the company. The interested investor testified before the Commission as to its advanced status of negotiations with the company and the terms and conditions of a potential purchase. Full Tilt Poker requested a 30-day adjournment of the hearing to allow for transition of the company to the new investment team.

“Today, the Commission announced its decision to revoke three of the four Full Tilt Poker operating licenses, despite the weight of evidence presented at the hearing by Full Tilt Poker of investor interest in acquiring the company. The Commission’s decision to revoke Full Tilt Poker’s operating licenses makes it more difficult to execute the sale of the company and hence repay its players.”

“Notwithstanding the potential damage done by the Commission and its disregard for our players, Full Tilt Poker remains committed to repaying its players in full and continues in active negotiations.”

However, despite the FTP’s claims that the negotiations with the prospective investors are jeopardized by the AGCC decision, it seems that they are still ongoing.

In related news, a notification has been issued by the US Justice Department regarding the info to victims of fraud policy, including the unpaid FTP players. The statement reads:

"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.  General information regarding what is known as “remission” (i.e., return to victims) of funds that have been seized and forfeited is set forth in Department of Justice regulations found at 28 C.F.R. Part 9."

Source: LPB News

According to the famous French internet gambling group Chili Gaming, the US online poker market may be its next venture, as it plans to open an office in San Francisco soon and offer a fully legal, free-to-play social poker gaming network using its proprietary software and virtual currency....read the full article

Update: FTP to Be Acquired

Speculations about the French investor prove as true

After a rather turbulent period, finally some good news arrived today for Full Tilt Poker, as the company is to be acquired by the French investor whose identity has finally been revealed. As it turns out, the speculations and rumors were right, and the buyer of FTP is the French business turnaround specialist Groupe Bernard Tapie.

The press release regarding the acquision has specified: "Laurent Tapie, Managing Director of ‘Groupe Bernard Tapie' announced today that the group has signed an exclusive agreement with the Board of Directors of Full Tilt 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."

This outcome may come as a surprise since it was only yesterday that the Alderney Gaming Control Commission announced revocation of Full Tilt Poker's license, which served as one of the conditions for the acquisition.

Source: LPB News

New Full Tilt Poker Buyer Optimistic

Tapie believes the company could be back by Jan. 2012

Not longer after it was announced that the beleaguered poker company Full Tilt Poker has reached a conditional agreement on its acquisition with French Groupe Bernard Tapie, an optimistic forecast came from Laurent Tapie, md of the company and son of the owner, regarding the timing when the company may be back up.

What he opined was that they could have FTP up and running again by January 2012, and that this will happen thanks to the skills and financial ability of his company which strongly believes in FTP’s future potential.

According to him, Groupe Bernard Tapie has the necessary funds to repay FTP's debt, and payout the affected players.

In addition, he specified: “The brand is not in question, it’s a well-known brand and the technology is widely recognised 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.”

However, Tapie Jr  is well aware of the hardships they may face on their way, especially in negotiations with the US Department of Justice, which has seized hundreds of millions dollars from the company during the enforcement actions.

"We want to find ways where we don’t have to put in all the money, and will be talking to the US Department of Justice next week," he revealed.

In related news, a report arrived this week that FTP’s current CEO Ray Bitar, has filed an application to fight the Department of Justice's seizure warrants on various bank accounts with which he is associated.

The application filed under the Federal Rules for Civil Procedure; Admiralty and Maritime Claims, which covers procedures related to "commercial activities that are land based or occur wholly on land, that are maritime in character," claims that "the assets subject to forfeiture are neither proceeds nor instrumentalities of any crimes in any jurisdiction in the United States or elsewhere" and that he should be permitted to challenge the forfeiture and the DoJ allegations surrounding it.

Source: LPB News

Forbes Reports on Opposition to Black Friday Busts

US courts getting busy

In light of the US authorities’ enforcement actions against e-processors, banks and operators, a report arrived this week that a banker and an e-cash processor involved in the indictments have decided to fight back, filing legal papers in which they argued that online poker businesses like PokerStars and Full Tilt Poker were not gambling enterprises.

The Forbes report reads: "John Campos, a former vice-chairman of a Utah bank that allegedly accepted a cash infusion in return for handling online poker transactions, and Chad Elie, a payment processor who is accused of deceptively facilitating the flow of funds between U.S.-based players and online poker companies, filed separate motions to dismiss all counts filed against them in federal court in Manhattan.

"It is the first direct assault on the April case the U.S. Attorney in Manhattan, Preet Bharara, brought against online poker’s biggest firms, which included the indictment of 11 individuals."

Further on, the filings claim: “PokerStars and Full Tilt are not ‘illegal gambling businesses’ under the Illegal Gambling Business Act 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. Instead, the companies charged a fee, or rake, on each hand.”

In addition, three different memorandums have been filed by Elie in support of his motions to dismiss all charges filed against him as "flawed attempts to prosecute," whereas Campos has brought before court a 33-page memorandum, in which he claims that the Unlawful Internet Gambling Enforcement Act charges against him should be dismissed because the law exempts financial transaction providers and those working on their behalf.

Both Campos and Elie have pointed out to the "skill vs. chance" argument, along with the fact that the Illegal Gambling Business Act lists nine activities regarded as gambling that do not include poker or any other card game.

In addition, Elie referred to a statement issued by US Attorney General Eric Holder: “Indeed, the Attorney General himself has commented that determining whether poker is a game of chance is ‘beyond [his] capabilities.’”

Finally, in one of his memorandums, Elie claims that government charges that he conspired to commit bank and wire fraud by getting banks and financial firms to process online poker transactions, disguising them to look like they were unrelated to online poker will be hard to prove as harmful to banks, since such transactions actually profited the banks involved. 

Source: LPB News

Alderney: Complaints about FTP Not Our Problem Anymore

Players need to find someone else to address, states Channel Isles regulator

After it revoked Full Tilt Poker's license, the Alderney Gaming Control Commission made another announcement that it is no longer in charge of answering the complaints of FTP’s unpaid customers.

Its announcement reads: "Following the revocation of the licenses, AGCC no longer has authority to intermediate or arbitrate on player issues or disputes with Full Tilt," It also adds that players can contact local police authorities or join several player class actions that are currently in progress.

In addition, the AGCC stated: "Full Tilt has been requested to provide a specific player contact: this is awaited and will be incorporated here upon receipt."

However, the problem lies in the fact that AGCC regulations did not require the ring-fencing of player deposits from FTP, which the Isle of Man regulator actually does.

Source: LPB NEWS

Update: Plans for FTP Revealed

Prospective buyer seems optimistic

In an interview given to the New York Times, the prospective buyer of Full Tilt Poker, Laurent Tapie, who represents Groupe Bernard Tapie as their MD, revealed his plans with the FTP and provided the public with more insight about the recovery prospects of this beleaguered company.

Namely, he expressed belief in the possibility of comeback for the company, stating that prior to the US enforcement actions it was a favorite of over two million Americans and another two million people from other countries.

“Full Tilt Poker is injured but not dead,” he said, adding that the company does owe a significant amount of money, some $300 million, but that the acquisition deal involved the full repayment of all players.

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

However, he stressed that the deal will be off if the civil cases involving the Department of Justice are not solved. In addition, he specified that all Full Tilt employees and managers found guilty of the DoJ charges will not be taken back to the company.

As for the financial side of the deal, it's still under negotiations, stated Tapie, adding that this is because it is not yet clear whether Groupe Bernard Tapie or the FTP current management would ultimately repay the players what they are owed.

At the moment, his group is hoping that, even though the US market is closed for FTP, federal legalization and a finalization of the FTP litigation may result in the opening of the market for the company that will be led by new management.

“It's a natural instinct to gamble. Gambling has been there for thousands of years. Now, the Internet has made gambling more easily accessible, presenting a combination that he opined is unstoppable,” he concluded.

Source: LPB NEWS

"....the company does owe a significant amount of money, some $300 million, but that the acquisition deal involved the full repayment of all players."

Good news finally.

blue

Online Gaming Hearing in the U.S. House of Representatives

Announcement arrives from PPA

It has been announced by the Poker Players' Alliance (PPA) this week that a hearing on online gaming will be held by the U.S. House of Representatives’ Subcommittee for Commerce, Manufacturing, and Trade on October 25, 2011.

The aim of the hearing is to gather more information on the regulation of the pastime, by hearing various, as yet unnamed, witnesses. Apparently, the collected info will be used when examining the merits of Representative Joe Barton's proposed Online Poker Act of 2011 H.R. 2366.

According to the PPA's Executive Director John Pappas, "The hearing may be more about internet gaming, but the Barton bill will be hard to ignore given that Barton sits on the subcommittee."

Also, the PPA in its statement urges its members to contact their U.S. representative if he/she is a member of the Sub-Committee, and to do so before the hearing.

The House Subcommittee on Commerce, Manufacturing and Trade is chaired by Mary Bono Mack of California's 45th congressional district and it comprises Barton as well as thirteen other Republicans and nine Democrats. The full list of the Subcommittee members is the following:

Republicans:

Mary Bono Mack, California, Chairman

Marsha Blackburn, Tennessee, Vice Chair

Cliff Stearns, Florida

Charlie Bass, New Hampshire

Gregg Harper, Mississippi

Leonard Lance, New Jersey

Bill Cassidy, Louisiana

Brett Guthrie, Kentucky

Pete Olson, Texas

David McKinley, West Virginia

Mike Pompeo, Kansas

Adam Kinzinger, Illinois

Joe Barton, Texas

Fred Upton, Michigan

Democrats:

George Kenneth Butterfield, North Carolina

Charlie Gonzalez, Texas

Jim Matheson, Utah

John Dingell, Michigan

Ed Towns, New York

Bobby Rush, Illinois

Jan Schakowsky, Illinois

Mike Ross, Arkansas

Henry Waxman, California

LPB News

A few interesting articles you might wish to read:

This week the US Congress Subcommittee on Commerce, Manufacturing, and Trade will hold a hearing titled "Is there a Safe Bet" which deals with the question of internet gaming. On that occasion, the subcommittee released a witness list for the hearing, which includes....read more

In light of the problems players experienced at Absolute Poker and Ultimate Bet after the Black Friday actions, the Kahnawake Gaming Commission's dispute management this week issued a statement, informing players that it is working to achieve a "financially beneficial solution" to their cases....full article

New info regarding the current situation at Full Tilt Poker arrived this week when a former staff member revealed many details about a number of issues within the company....read more

Thank you Blueday for the update, I searched to find out more, and came across the testimony of Ernest Stevens, Jr. Chairman National Indian Gaming Ass. democrats.energycommerce.house.gov/.../Testimony_CMT_10.25.1 I'm not going to summarize what he said. It's to long, but very interesting.

The online gambling market in the United States has always been attractive to operators, especially now when the legalization of online poker is in sight. Reports arrived on Nov. 1 that two new land casino operators, MGM Resorts International and Boyd Gaming Corp. have joined the overall pre-legalization frenzy and closed a deal with bwin.party interactive's online poker operations in a partnership that will go live if internet poker gets legalized in the USA.....read the full article

Update: New Details about Bwin.party Digital’s U.S. Online Poker Deal

Not long after the announcements of a new online poker agreement between Bwin.party digital and US land gambling companies MGM International Resorts and Boyd Gaming, bwin.party released a statement detailing some of the terms of the deal and pointing out that it is essential for its US market strategy....read more

FTP Reaches Deal with US Justice Department?

Numerous reports on the agreement; confirmation still anticipated

There have been numerous reports this week that prospective Full Tilt Poker owners, Groupe Bernard Tapie, FTP and the US enforcement officials have reached an agreement that may release player funds and enable payouts to those damaged by the US Justice Department actions.

Apparently, the Group Bernard Tapie acquisition has been progressed after an agreement with the US Department of Justice, which is still subject to approval from FTP shareholders.

A report also arrived of a statement from Full Tilt chief Ray Bitar to Tiltware shareholders, in which he advised:

"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 Full Tilt Poker.

"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."

It has also been noted in the report that final details still need to be finalized between GBT and the US Attorney’s Office for the Southern District of New York, but that once the details are worked out, Groupe Bernard Tapie will be able to propose a deal to acquire Full Tilt Poker directly to shareholders. Apparently, if the acquisition goes through, Groupe Bernard Tapie will assume responsibility of the company’s debt to non-US players whereas the US Department of Justice will set up a fund to repay owed US players.

So far, no comment has arrived from The Justice Department on the reported agreement.

Source: LPB News

According to Behnam Dayanim, a lawyer representing French businessman Laurent Tapie of the investment group, Groupe Bernard Tapie, his client and the US Department of Justice were close to settling a civil case filed by the Justice Department, which will enable the French group to finalize the acquisition of Full Tilt Poker and end the troubles for its players.....read the full story

Let's hope this is almost over and I hope that we here in the States will be able to play freely where we want to.

Let's hope this is almost over and I hope that we here in the States will be able to play freely where we want to.

I hope so too Rosebud.  I don't think it's very far away at all.  I'm guessing early part of 2012 (and hoping).

blue

Nevada to Begin Issuing Online Poker Licenses in Early 2012?

It’s possible, claims a Gaming Control Board official

An announcement arrived this week from Mark Lipparelli, the chairman of the Nevada Gaming Board, stating that the work on Nevada online poker licenses, valid for intrastate operations only until federal legalization, could start as soon as in the first quarter of 2012.

Reportedly, Lipparelli told delegates at the U.S. Online Gaming Law gathering in Las Vegas that the Board will begin taking applications to license companies to operate online poker sites in February 2012, adding that his organization would be prepared to conduct all the necessary probity investigations when that happens.

In light of this statement, it can be assumed that the whole procedure will be much faster for companies that are already known to the Board, and that already hold Nevada licensing, whereas it could be somewhat longer for new applicants.

However, Lipparelli was quite straightforward in that the licenses would only enable operators to offer intrastate online poker, confined within the borders of Nevada, in the absence of federal legalization. He also specified that even the controversial federal Unlawful Internet Gambling Enforcement Act, envisages several exceptions from the prohibition of online gambling, including intrastate and intratribal wagering.

Finally, Lipparelli specified that in order to obtain a license, operators will have to meet some stern requirements – similar to the Nevada land casino licensing model, with probity, player protection, and technology all receiving thorough scrutiny.

“We think we’ve set the bar high for licensing and suitability,” he said.

Hopefully, the Board will consider and approve regulations framed by the Nevada Gaming Commission by December, although it may be forced to tweak these in the months following implementation, with an aim to achieve more flexibility.

Source: LPB News

Has anyone actually realised how important a step this is?

After a press release issued by its software provider Microgaming, in which it advised that online poker operator 24Poker has been blocked, industry observers are left to speculate what’s behind this move...read the full article

Also please note that Kong88 Poker has had it's license suspended too

Update: More Details about Full Tilt and DoJ Agreement

Groupe Bernard Tapie Reaches Deal with US DoJ

The past period was that of good news for Full Tilt Poker, a beleaguered online poker operation that suffered a major blow in Black Friday actions. Namely, it was announced recently that a deal has been reached with the US Department of Justice according to which Groupe Bernard Tapie (GBT) will be enabled to buy Full Tilt Poker (FTP) for $80 million.

It has been specified that the deal envisaged FTP’s forfeiture of its assets to the U.S. government, which would then sell them to the French investment firm. In return, Groupe Bernard Tapie would need to pay back players outside the US, whereas the DoJ would pay those within the States (around $150 million).

Also, the deal which still has to be approved by a two-thirds vote by FTP shareholders, includes a provision that the DOJ is to dismiss the civil forfeiture proceedings against FTP, thus removing liability for the company's shareholders; nevertheless, the individual proceedings such as those against Howard Lederer, Chris Ferguson and Ray Bitar will be continued, and the deal also specifies that current FTP directors cannot hold shares in the company.

Source: LPB News