The opinions in this editorial do not reflect the positions of the ownership or management of Poker News Daily.
The saving grace that came last week with the announcement of the long-awaited deal for the sale of Full Tilt Poker to the French investment company Groupe Bernard Tapie looked, at the start, to be what the online poker world was waiting for. The deal would solve the problems – payment of players, the current litigation in the United States, the site’s licensing – that face the former number two player in the online poker industry. But the first week following the agreement brings some ominous warning signs.
As reported here on Poker News Daily, Groupe Bernard Tapie and its managing director, Laurent Tapie, have been looking at some unusual methods for handling the issues facing Full Tilt Poker. The Wall Street Journal stated that the company is considering offering certain customers stake in Full Tilt Poker to settle the accounts of those players. In something that should send up warning flares as well, it is also possible that Groupe Bernard Tapie may give the former owners of Full Tilt Poker a chance to buy back into the company to raise capital.
These proposed moves by Groupe Bernard Tapie should be something that the online poker community disavows immediately. Taking the first option – the payment of major account holders in stock equity in the company – this does not treat the customers waiting for their Full Tilt money equally. It has to be figured that only the biggest players on the site – those with the most money in their accounts – would be treated differently than the Average Joe that has a few hundred (or less) on the site.
What would be the cutoff line for this “equity stake” in the new-and-improved Full Tilt? Even though there are potentially millions of players who are waiting for their money, you would have to figure that only the top 5% may have enough money in their account to be in position to take advantage of the equity deal. This is a discriminatory move that puts more value on those that are owed the most versus taking care of all players equally.
Furthermore, the equity deal may violate some tenets of many online poker operations. For many sites, owners and employees of an online gaming operation are not allowed to play on the site due to a potential conflict of interest. How would it affect the rank-and-file players to know that the “big guns” who took equity in the company are still allowed to play on the site?
The second part of the proposals by Groupe Bernard Tapie should be the most alarming to the online poker world, however. After the mismanagement of the company by its previous owners, how would it serve the online poker community to allow them back into ownership of the site that they nearly destroyed? The outrage over the potential for the former ownership of Full Tilt Poker – people such as Ray Bitar, Howard Lederer, Chris “Jesus” Ferguson and Rafe Furst (all indicted by the U. S. Department of Justice), among others – should be something that is expressed by the poker community.
Although it has been stated by Groupe Bernard Tapie that, if this was to take place, those investors would have no management input, how can this be taken as true? A person who invests millions of dollars in a company is going to have some say in that company’s operation and, as such, it would make no sense for the people that have ruined the reputation of the site back into the game.
This part of the proposed plan from Groupe Bernard Tapie more than likely wouldn’t pass the muster of the U. S. Department of Justice. With the litigation pending, any potential view that the company’s former ownership was still involved with Full Tilt would probably not be met favorably by the DoJ. While Groupe Bernard Tapie is facing a huge uphill battle – not to mention the potential investment of an estimated $750 million in Full Tilt – the proposals set forth over the past week should be something that the poker community doesn’t accept if Full Tilt Poker is to move forward.
Your title does not fit the article. It is fair to be sceptical, but after everything that has happened since April, this is hardly a “rocky start”. At least GBT appear to be making an effort.
Hello ljg,
On the contrary, I believe it applies. The proposed actions by Groupe Bernard Tapie at the minimum are questionable. In the first, it doesn’t treat all players equally. In the second, it is unconscionable to even think of allowing the parties that caused the issues at FTP to be able to get back involved with the company. Besides the factor that the DoJ will probably not accept either action, it doesn’t exactly inspire confidence in GBT’s ownership.
Glad someone else recognizes that there are serious issues with Tapie’s potential plans to take over Tilt. Kudos.
Seriously idiot? I just want my money back. Why shouldn’t the players with the most money being given opportunities the “average Joe” doesn’t”. You obviously don’t have money tied up at the site that is gone. This is our last hope. Whatever it takes to get my money back, I am for.
Hello Anon,
As a matter of fact, I do have a low four figure stake in this game. I have, however, potentially written off that loss. Not because I don’t need the money, but because I knew what I was involved with.
Seriously, players in the United States took the chance after 2006 if they played at PS, FTP and CEREUS that there would come a time when the s**t would hit the fan. That came with Black Friday. While I hate it for many who have HUGE numbers on FTP, it was a risk we all took.
To put a great deal of faith in the GBT potential buyout of FTP is something that the online poker world should be wary of.
Whoever wrote this article is a moron, and obviously has no money on FTP. Well played trashing the only hope we have. There is absolutely NOTHING negative about repaying all the players worldwide…So why play that hand?
Gee, shocking. Something might not be squeaky clean about an online poker deal. Or at least not to your standards. I agree with Anonymous. We just want our money back. As long as that happens, I’m all for some “creative” business dealings.
At the end of the day, this is a French investment company and they will care very little about what the DOJ thinks. If the DOJ kills the deal then NO ONE will get paid. We need to look at the DOJ since they have SEIZED 400 million and that could go a long way to pay the players back. The DOJ keeps pointing fingers at FT when they (FT) are trying to get people paid. At the end of the day the US is not important outside the US and Tapie will do whatever is needed to get his investment back–regardless of what Americans think.