Possible sale could resolve legal issues facing the online poker site 

The remains of the Full Tilt Poker empire seemed likely to crumble even further last week after a regulatory body suspended the once-leading poker site’s primary license. But reports late in the week about a potential deal that would turn over the company to new owners gave U.S. customers hope that they may yet retrieve their deposits.

After completing an investigation triggered by the “Black Friday” indictments in the United States, the Alderney Gambling Control Commission (AGCC) last week suspended the license of Full Tilt Poker, citing “additional concerns” about the company.

The AGCC send notices to three companies—Vantage Ltd, Oxalic Ltd, Filco Ltd and Orinic Ltd., which collectively trade as Full Tilt—ordering them to cease operations immediately. Full Tilt was one of three companies—PokerStars and Ultimate Bet were the other two—indicted in the U.S. on April 15 and charged with money laundering and bank fraud. All three companies no longer operate in the U.S.

A hearing on the suspension will be held in London on July 26. In the meantime, the companies are expected to appeal the suspension so Full Tilt can remain operating at least until the hearing.

According to Andre Wilsenach, executive director of the Alderney Gambling Control Commission, “If I have reason to suspend or revoke a license then I need to call a regulatory hearing and that is what I’ve done. I have taken the decision in the interest of players and in the public interest.”

Wilsenach told GamblingCompliance the AGCC investigation revealed other information that disturbed the commission.

“We have material new information from the enquiry that was prompted by, but not directly related to, the charges in the indictments,” he said.

The Alderney licenses acquired by the Full Tilt companies between 2007 and 2011 are recognized by the other regulatory agencies in Europe. The U.K. Gaming Commission noted the suspension.

“We are aware of the action taken by the Alderney Gambling Control Commission in relation to Full Tilt Poker,” said a spokesman. “We would expect Full Tilt to cease all operations to the U.K. for the duration of the suspension.”

Meanwhile, a secondary license issued by the Kahnawake Gaming Commission in Quebec, Canada is also under review. Full Tilt is licensed through the Kolyma Corporation A.V.V. in Kahanawake. The KGC issues secondary licenses to online gaming operators that hold a valid primary license in another jurisdiction. The KGC said it was conducting “a review of all available information to determine whether the Secondary CPA presently held by Kolyma will be continued.”

In addition, Full Tilt is also licensed in France, where no action has been taken by the gaming authority, ARJEL. But play on the French Full Tilt site has been suspended due to the Alderney suspension.

But a report late last week in the Los Angeles Times indicated that Full Tilt had reached an agreement to sell a majority of the company to a group of European investors for $150 million. The investors would buy a majority of Full Tilt’s Dublin-based parent company, Pocket Kings.

Since its indictment, Full Tilt has failed to return the deposits of U.S. players, while rival PokerStars has completed the repayments. Full Tilt has been roundly criticized because of this failure by professional poker players. In fact, former Full Tilt player Phil Ivey refused to play in the year’s World Series of Poker in protest and filed a lawsuit against Full Tilt.

Citing anonymous sources, the Times said a deal was inked late last week that would provide the company enough funds to repay U.S. poker players and to negotiate a settlement of the charges filed by the U.S. Justice Department. The government is seeking to collect as much as $3 billion from the three indicted companies. Full Tilt’s new owners would also address the regulatory problems in the U.S., Alderney and elsewhere. Ivey’s attorney says the star player will withdraw his lawsuit against the company once the deal is finalized.

The ruling by AGCC prevents Full Tilt from registering new customers, accepting deposits from existing customers, allowing existing customers to withdraw funds that are held in their accounts, or permitting customers to participate in any form of poker game play or gambling transaction.

PokerStars issued a statement emphasizing that it is continuing to operate and is in no danger of having any licensing issues.

“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 company said. “The Isle of Man Gaming Commission today re-affirmed 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.”

According to PokerScout.com, which tracks online gaming play, Full Tilt was completely inactive the day of the announcement with no cash players active on the site.

By Staff