Less than 48 hours after having its operating license suspended by the Alderney Gaming Control Commission (AGCC), Full Tilt Poker is reportedly set to sell a majority stake in the company in order to pay back U.S. players that have been waiting anxiously for their money.
The Los Angeles Times reported late Thursday evening that Full Tilt Poker has reached an agreement with a group of European investors that could allow the company to disburse as much as $150 million that Americans had in their accounts when the Department of Justice seized the company’s domain name on April 15.
According to the report, attorneys associated with Full Tilt Poker said the company signed an agreement Thursday with a group of investors who would put up enough money to pay back players and in doing so attain a majority stake in Full Tilt’s Irish parent company, Pocket Kings. The report also suggests that the money would go toward a civil lawsuit brought against it by the U.S. attorney’s office on Black Friday.
The Justice Department filed a lawsuit against Full Tilt Poker, PokerStars and Absolute Poker in April seeking $3 billion in civil money-laundering penalties and forfeiture. All three sites, as well as many other online poker rooms, have been barred from taking bets from U.S. players. The agency also froze the funds in players’ accounts; PokerStars settled with the DOJ in order to pay back a reported $120 million to U.S. players, but Full Tilt Poker, Absolute Poker and UB have yet to return player funds.
People associated with the rumored investment deal said the agreement isn’t expected to be finalized for at least three weeks. The buyers want to be sure that Full Tilt can strike a settlement with the DOJ before completing the investment.
The investors also hope to reach an agreement with gambling regulators in Alderney, where Full Tilt Poker is licensed. Casino regulators on the British Channel Islands suspended the gambling license of Full Tilt on Wednesday, halting its games around the world pending a hearing in July about the company’s legal troubles in the U.S.
On Thursday, an IP trace route shows that Full Tilt Poker’s traffic flowed through Kahnawake Mohawk Territory, suggesting that the Kahnawake Gaming Commission (KGC) may be able to get the online poker room up and running again in the near future. The KGC issued a press release saying that Full Tilt Poker has held a KGC “Secondary Client Provider Authorization” since July 2010, and added that it was carrying out “a review of all available information to determine whether the Secondary CPA presently held by Kolyma will be continued.”
KGC representatives said an announcement on the matter would be made soon.
In other related news, former Full Tilt sponsored pro Phil Ivey, who has refused to play in this summer’s World Series of Poker and filed a lawsuit against the company for damages to his reputation, was set to withdraw his suit in Nevada state court Thursday, according to lawyer David Chesnoff.
“Mr. Ivey intends to dismiss his lawsuit as he believes Full Tilt is taking steps to see that the players are paid,” Chesnoff said.
Stay tuned to Poker News Daily as more in this story develops.
One man’s loss is anothers’ gain and as far as I can see from now, party and 888poker will be competing for the top slot as we can see players switching alliance from other sites. As these sites offer a better platform and operate under totally regulated operational parameters, 888poker and party would be giving each other a run for their money. Beyond all that, players will find a safer option to play poker on 888poker and party till the FTP shit is cleaned or gambling legalized in the US.
@ Hilton
doubt it.
Full Tilt is done. How could any investor group even consider touching this company in the mess that they are in? The key is the U.S. market and that is unavailable. Company has lost all respectability among players and politicians now. If on line poker is legalized in the U.S. this company, in its current form of ownership, would have ZERO chance of gaining legislation in the States. Unless this investor group thinks they can survive without the U.S. player this would be a horrible decision…would be like throwing $150 million at an investment that will never be recovered. Now that is dead money.