Author: elizabeth

Several former US players at Full Tilt Poker have grown tired of waiting for their funds to be returned to them and decided to take matters into their own hands by filing a class action lawsuit with the US District Court South District of New York, claiming Full Tilt Poker as the defendant. The lawsuit demands not only a return of the plaintiffs’ money, but also damages for suffering that they have endured at the hands of Full Tilt’s carelessness.

The court paperwork further goes on to accuse Full Tilt Poker of racketeering, stating that the only reason that players suffered losses was because executives and others associated with Full Tilt Poker willfully committed wire and bank fraud and money laundering, neglecting their customers in order to “pad their own pockets”. The plaintiffs are seeking recompense via the Racketeer Influenced and Corrupt Organization Act (RICO), which was designed in 1970 to help put an end to organized crime; by claiming that Full Tilt violated the RICO Act, the lawsuit is creating far more trouble for Full Tilt than it may initially seem. To enforce the RICO Act, the Attorney General can create a special task force aimed at investigating and uncovering any illegal operations in which Full Tilt has engaged; this gives the US government more force with which to drive the investigation into the site.

Some news sources speculate on what will become of this lawsuit after the sale of Full Tilt Poker, but class action lawsuits have a tendency to be tenacious and not simply go away when money is thrown at them, and as the RICO Act specifically covers fraud, violations of state gambling laws, and money laundering (all charges initially brought against the site in April of this year), the case itself is not without merit. A RICO indictment also means that the US Attorney General’s office can freeze assets for the company and require a performance bond (or “good faith money”), and because RICO examines patterns of behaviour for the company, the odds of a win for the plaintiffs are solid. As the plaintiffs stand to gain not only their money back, but also treble damages (damages that are multiplied by a factor of three due to the willful nature of the crimes), it is unlikely that they will back down.

Curiously enough, the suit not only names the CEOs and companies that are a part of FTP, but also brings charges against many of Team Full Tilt, including Phil Ivey, who had dropped his own suit against Full Tilt less than 36 hours before. The lawsuit claims that Ivey is a partial owner of Full Tilt (with at least 5% stake), and that he and the other professional players “represent the Full Tilt brand” and “all own an equity interest in– and are directors of– the Full Tilt and/or the entities that operate under the Full Tilt name”.

This class action suit appears to be a continuation of the charges brought against the site in April, as it cites the same evidence as the initial case, which claims that Full Tilt created a series of sham companies and used them to make US player money harder to track. The case states that this was done without the knowledge of US customers (a claim which is at best very questionable), but US law does not hold players accountable in this instance, stating that it is the responsibility of the banks and the companies to ensure that they only receive funds through legal channels.

• To read the full text of the court documents, click here.

Within days of the complete shutdown of Full Tilt Poker’s operations, the company is seeking to be bought out by investors in Europe, hoping that the change of management will allow them to regain their license. Full Tilt Poker will be exchanging a majority share of their parent company, Pocket Kings, which is based in Ireland, in exchange for the money needed to repay customers the money that was in their currently-frozen accounts, as well as the cash that the company needs to defend themselves against a barrage of accusations from the US government.

The name of the European investors, as well as other details of the deal, are currently being kept on the down low, so as not to draw too much attention or be overly complicated by the lawsuits currently pending against the large poker company. In addition to the charges pending on behalf of the US Department of Justice, professional poker player and former Full Tilt Pro Phil Ivey is suing the company over the millions of dollars currently frozen in his FTP account.

Full Tilt Poker is certainly feeling the pressure to not only return players’ money, but also to get back into business. ARJEL, a French gaming regulator, has issued an ultimatum to the site: either allow French players to get online and play immediately, or suffer the consequences (in this case, we can assume that would mean that FTP would lose their licensing in France as well).

FTP has been attempting to negotiate a full or partial sale of the company since April 15, 2011, when the original attack from the US Justice Department commenced. While some investors are clearly still interested in salvaging a sinking ship, others reportedly lost all interest in Full Tilt Poker once the Alderney Gaming Control Commission (AGCC) shut down the site.

American poker star Jack Binion is rumoured to be the newest Full Tilt Poker investor, which could potentially work out in everyone’s favour, if the circumstances play out right. While sources state that Binion has been to Ireland to negotiate the acquisition of the company, nothing is certain at the moment.

The United States is currently looking down the barrel of some serious changes to online poker, thanks to a new bill proposed by Texas Representative Joe Barton, who is attempting to prove that not all Republicans are morally opposed to having fun. Barton, who is best known for his egregious errors when it comes to environmental responsibility and the way that science works, has introduced the Barton Bill, which is still a long way from becoming law. The bill, fully called the “Internet Gambling Prohibition, Poker Consumer Protection, and Strengthening UIGEA Act of 2011” bill, or, as it’s more commonly called, H.R. 2366, would allow online poker to be available in the United States once more.

If the bill is passed into law, Jack Binion will be in an impressive position if he does, in fact, acquire Full Tilt Poker, as he will be fully equipped to relaunch the site from the United States, automatically making it the strongest contender for the US market.

The online poker world grew a little smaller today, as Full Tilt Poker was officially shut down. Players are now even more concerned, and for good reason– while the site (along with PokerStars and Absolute Poker) and its executives faced charges of bank fraud, illegal gambling, and money laundering, the initial response to this news was an assumption that this would mean the end of the sites in the United States. Two months after the infamous “Black Friday” in April, Full Tilt Poker had its eGambling license revoked by the government of Alderney, one of the Channel Islands that lies between England and France and the location of Full Tilt Poker. A follow-up meeting will be held at 10 in the morning on Tuesday, the 26th of July, 2011 in London; this regulatory hearing will address any rebuttals or presentation of additional materials that could potentially reverse the decision to revoke Full Tilt’s license.

So what, exactly, does it mean that Full Tilt has lost their license? Essentially, it means that the site can’t operate anymore as an online poker site (for real money, at any rate). While the site was having problems before with frozen accounts and the lawsuits and bad publicity that followed from previously-loyal players who now had up to millions of dollars on ice and their careers severely impacted, this new determination essentially outlines what Full Tilt is no longer allowed to do:

Full Tilt Poker cannot register new members.

• This alone wouldn’t be a huge problem for Full Tilt, as they have plenty of customers already (although they’ve been jumping ship in larger and larger numbers since the troubles started two months ago). The revocation of the license doesn’t limit Full Tilt to only keeping the members that they have– it goes much further.

Full Tilt Poker cannot accept deposits from existing customers.

• Basically, Full Tilt has no way to secure long-term financial gains. Without new money coming into the site, the amount that can be taken in rakes and tournament entry fees will eventually run out, and since the money can’t leave the site, it becomes worth more than its paper value to players, who will eventually think twice about paying fees.

Full Tilt Poker cannot allow existing players to withdraw money from their accounts.

• Wow, here’s the root of the problem that Full Tilt’s been having. If players can’t remove their money (their money– money that they either deposited or earned through game play with other poker players, all of whom were adults who willingly entered into poker games with them), then they have no incentive to stay with the site and every reason to leave (or to sue, like Phil Ivey did, in an attempt to get back their funds). American players have been having this problem since April 11th, but this now applies to all players worldwide, making this ruling one that will have a lasting impact on the poker community.

Finally, Full Tilt Poker cannot allow their customers to play any kind of poker game or take part in a gambling transaction.

• That pretty much sums it up. Full Tilt Poker is no longer allowed to let their players play any kind of poker game, even those that are not played for real money. This ultimate no-poker, no-gambling caveat seals the deal: while the Full Tilt Poker website currently says that they’re down for site maintenance, this is an inaccurate representation of the issue: Full Tilt Poker has been served a death sentence.