Carbon filling Full Tilt void?

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Full Tilt Poker Rumored to be Sold to European Investors


Posted 07/01/2011

July 1, 2011 - 12:37am By Shari Geller and Lou Krieger According to an article in the Los Angeles Time, it appears that Full Tilt Poker, which has been on the ropes since it was the subject of federal indictments unsealed on April 15, may be purchased by a group of European investors. The deal, if finalized, could result in repayment of some $150 million owed to U.S. players who have been seeking refunds of their deposits since Black Friday. Full Tilt Poker ceased serving U.S. players on April 15 when it, PokerStars and Absolute Poker, were the subject of federal indictments charging the companies’ principals and others with bank fraud, money laundering and violating gambling laws. Full Tilt continued to serve players outside of the U.S. until its entire operations were shut down by its licensing body, the Alderney Gambling Control Commission (AGCC), earlier this week. The AGCC said at the time that the suspension was required because Full Tilt was "operating contrary to Alderney legislation. The nature of the findings necessitated the taking of immediate action in the public interest." Since Black Friday, while PokerStars has returned the money that was owed to its U.S. players, Full Tilt has been unable to pay the approximately $150 million that U.S. players reportedly had in their accounts. Allegedly in response to this mishandling of player funds, Team Full Tilt member Phil Ivey sued the company and boycotted this year’s World Series of Poker. According to the LA Times report citing sources from within the negotiations, Full Tilt apparently signed an agreement Thursday with a group of investors who would put up the money both to settle the civil suit brought by the U.S. Attorney’s Office against the company and to reimburse U.S. players for their unreturned deposits. In exchange, these investors would gain a majority stake in Full Tilt's Irish parent company, Pocket Kings. As to how this deal would affect the existing lawsuit brought by Phil Ivey, his attorney David Chesnoff was quoted as saying, "Mr. Ivey intends to dismiss his lawsuit as he believes Full Tilt is taking steps to see that the players are paid." The timing of the deal is curious as Tuesday Jack Binion’s name was floated a potential suitor for Full Tilt only to have that idea shuttered on Wednesday when it was announced that Full Tilt Poker's European operations were shut down and its license to operate suspended.

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BLACK FRIDAY: The DOJ’s Campaign of FEAR






Posted 07/06/2011 by

BLACK FRIDAY: The DOJ’s Campaign of FEARBLACK FRIDAY: The DOJ’s Campaign of FEAR July 5, 2011 - 5:00pm By K. Preston Oade, J.D. & Arthur S. Reber, Ph.D. [Editor’s Note: Much of what has been written about Black Friday is not correct. Here, a lawyer and a psychologist outline the law, discuss the psychology of the situation, and urge players to keep playing online.] 1. No federal law makes playing online poker illegal. The Unlawful Internet Gambling Enforcement Act (UIGEA) did not change existing federal gambling law. It just prohibited the transmission of wagers that are “unlawful under any applicable Federal or State law…” The “applicable federal” law is the Wire Act of 1961. Thus if it is not illegal under the Wire Act, it is not illegal under UIGEA. Federal Courts have ruled that the Wire Act does not apply to poker, but only covers sports betting. While the UIGEA references state laws, only a very few states, such as Washington and Nevada, specifically prohibit playing poker online. 2. It is not illegal for a bank to transfer money to an online poker site. This is true by virtue of the above. Banks, however, are risk averse, which has led to the problems identified below 3. Banks stopped deposits for the wrong reasons. Some mistakenly believed that UIGEA might apply to poker or were concerned that a poker site might also offer wagers on sports betting. Others concluded it was too difficult to determine which payments were legal and simply blocked all deposits to offshore sites. 4. The sites set up “front” companies. To circumvent blocked deposits, online sites set up shell companies. A player’s deposit to Poker Stars was not recorded as a transaction with Stars. Instead, they used innocuous names … like “Henry’s Plant Store.” Federal banking laws, however, make it illegal to hide the true nature of a transaction or transacting parties’ identities. This is the real basis for the indictments. 5. Don’t be deceived by the indictments. The DOJ is using misdirection to further its campaign of fear and to convince others that UIGEA has real legal teeth. In fact, the defendants are charged with money laundering and bank fraud. The DOJ threw UIGEA into the pot to confuse and intimidate everyone, especially the poker community. 6. Expect guilty pleas. We anticipate guilty pleas because the bank fraud charges appear to be on sound legal footing. But don’t confuse these pleas with poker or UIGEA. They do not change the fact that without bank fraud charges the government does not have a case. 7. The government’s poker game. The DOJ “plays poker” at a very high level, but uses the law instead of a deck of cards and is careful to make sure it will never have to turn over its real hand. In effect, DOJ is bluffing poker players. DOJ assumes that poker players and the general public will confuse traditional bank fraud charges with UIGEA. Thus DOJ’s Black Friday press release emphasized UIGEA, not the traditional bank fraud charges. 8. Stop the fear. The DOJ wants to scare poker players to stop us from continuing to play online. It is a war of wills, and DOJ is winning. But it cannot win in the long term unless we abandon online play. The outcome of this fight is in our hands as poker players. Collectively, we control the outcome. If we want it enough, we cannot lose. And if we don’t want it enough, we deserve to lose. 9. Keep playing at websites that accept US players. They offer a variety of deposit methods including direct deposits, third-party payment processors like Pay Pal, and paper checks. As long as the identities of all participants are open and knowable, the deposits are legal. 10. Be careful. Stick to poker websites only. Poker websites that also offer sports betting, fall under the Wire Act. This makes it a “gambling” website under federal law—in which case UIGEA applies. Also be careful to manage your money. Deposit only what you can afford to lose and keep your account at an acceptable level of risk by making regular withdrawals. This avoids having too much money on deposit with the next DOJ target. Most of the easy targets, however, are already gone. And be forewarned; some sites might not operate in accordance with standard business practices as, apparently, Full Tilt was not. Law Professor Nelson Rose on his blog, GamblingAndTheLaw.com, observes that the DOJ has announced “showy legal action against easy targets about every other year,” but lacks “a statute that clearly makes the activity illegal.” He points out that although these scare tactics have driven some from the US market, “there are now wonderful opportunities for new operators to fill the vacuum. Unless, of course, Americans are actually going to stop playing poker on the Internet.” Comments or questions to Preston Oade at toptoadwisdom.blogspot.com

[tval35]

I see more and more people logged into Carbon every week. Still nowhere near FT or stars but its slowly growing.