On April 15, 2011 the Federal Bureau of Investigation (FBI) and the American Department of Justice (DoJ) indicted three of the world’s largest poker sites on a number of serious charges including money laundering and bank fraud. This lead to PokerStars, Full Tilt Poker and Absolute Poker/UB.com finally closing their doors to American customers as many European sites had done back in 2006 with the passage of the Unlawful Internet Gambling Enforcement Act (UIGEA).
The DoJ not only seized the dot com domain names of these sites but also gained control of a total of 76 bank accounts linked to the three companies, effectively locking up the funds of American customers. After tense negotiations PokerStars managed to strike a deal with the DoJ that allowed them to pay out more than $100,000,000 to its former customers but although Full Tilt Poker also made a similar deal they are yet to pay out a single cent to Americans who held funds on their site.
The management team and the “red pros” who represent Full Tilt Poker have had little to say and have hardly shared any information regarding their current position to return American players’ funds to them, which has caused a number of rumours to circulate including that Full Tilt Poker may actually be insolvent and about to go out of business. However, an update from a company spokesman, known as FTPDoug, was posted on the Two Plus Two forums yesterday which although admitted that Full Tilt Poker do indeed have a cashflow problem they are far from having to file for bankruptcy.
The full update reads:
To our customers:
We acknowledge that our lack of communication reflects poorly on us, and rightfully so. We have been too optimistic in estimating how long it would take to sort through the issues we have faced since Black Friday. And as frustrating as the delays have been for us, we recognize that it cannot compare to the frustration you have been feeling.
We further recognize that our lack of communication has led to much speculation and many unsubstantiated rumors, which have often been contradictory. With this message, we hope to clear up as much confusion as we can, while at the same time keeping in mind the constraints imposed on us as a result of the cases brought in the Southern District of New York.
The most pressing questions:
1. When will the US players be paid?
We still do not have a specific timeframe for this. There has been, and remains, no bigger priority than getting US players paid as soon as possible, and we have been working around the clock to get this done.
2. Is FTP bankrupt?
No. FTP’s worldwide business is healthy and, although we’ve had some short-term challenges, it is operating as normal.
“The AGCC’s investigation into the affairs of it licensee Vantage Limited, trading as Full Tilt.com, is ongoing; initial investigations indicate no reason to believe that player fund transactions are fundamentally threatened by any consequence of the US authorities’ actions. Delays caused by these actions are in the process of resolution, with normal service now being restored for non-US players. We understand that progress in respect of US player fund repatriation is anticipated and will be the subject of a separate statement from Full Tilt in due course. The Commission will remain engaged in this process.”
3. What is the company doing to speed up payouts to the US players?
We are raising capital to ensure that the US players are paid out in full as quickly as possible.
It is important to remember that Full Tilt Poker has always paid out our players, even in the face of previous legal obstacles or factors not in our control, such as payment processor defaults and prior actions by the US government which resulted in US player funds being seized.
In all of these previous instances, Full Tilt Poker has covered these losses and intends to do the same again.
4. Why are the Full Tilt Pros remaining silent?
It is not their choice. But they are constrained by the pending legal actions.
As a final note, we understand — and have always understood — the effect that our brief statements have had not only on our customers, but also on our reputation. It has not been easy to stay silent and watch the damage being done to our company brand and personal reputations, but we need to be mindful of the complicated and serious legal issues raised in the pending cases.
The third point refers to reports that Ray Bitar, one of the founders and owners of Full Tilt Poker and one of the men charged with bank fraud and money laundering amongst other alleged crimes, has been trying to sell up to $150,000,000 worth of the company so they can pay the American players out, which in itself is quite worrying especially when it was revealed last week that the DoJ had unfrozen an Irish bank account linked to Full Tilt Poker that was said to contain around $33,000,000.
This author believes that Full Tilt Poker will pay out its American citizens but could not guess when the case would be. He would also urge non-American players who are currently playing on Full Tilt Poker to keep a minimal balance on the site until the problems have been rectified, this despite non-American players having been paid out since Black Friday.
