Full Tilt May Give Players Equity, Receive Cash from Current Owners
According to the Wall Street Journal, Groupe Bernard Tapie, which conditionally agreed to acquire Full Tilt Poker’s assets last Friday, may give players equity in the reformed room and seek cash from current owners. The Journal explained, “The Tapies may address Full Tilt’s liabilities by offering equity in a revived company to poker players owed the most money. The family is also seeking new investment from the site’s existing owners, who wouldn’t be involved in managing the company. The Justice Department would have to agree to allow these owners to continue with the company.”
Subject Poker added that regulatory authorities would need to approve the site’s embattled owners investing in the new Full Tilt Poker. The Alderney Gambling Control Commission (AGCC) revoked Full Tilt Poker’s license last week and announced on Thursday that it “no longer has authority to intermediate or arbitrate on player issues or disputes with Full Tilt.”
According to the U.S. Department of Justice, Full Tilt was nothing more than a “global Ponzi scheme” that funneled $443 million to its executives and pros, all while owing players nearly $400 million. Its sale to Groupe Bernard Tapie is conditioned upon the new ownership striking a deal with the DOJ, a process that began on Monday in the offices of the U.S. Attorney’s Office for the Southern District of New York.
According to the Journal, the conditional sale also hinges on “due diligence of Full Tilt’s financial state. Such a review has been started, but hasn’t yet been completed.” The AGCC stated that any player owed money from Full Tilt, which is allegedly insolvent, should “contact their own local police in their country of residence and report the matter to them.”
Subject Poker added that if the plan to allow players to become stakeholders in the new Full Tilt came to fruition, “These shares would have to be held for some minimum specified period of time, and at some future time, they could be sold back to the company at market value, in addition to some additional incentive.” It was rumored that several high-stakes players, including Dan jungleman12Cates, who was participating in the Durrrr Challenge when Full Tilt sank, have well over $1 million locked up.
Finally, Groupe Bernard Tapie’s takeover of Full Tilt, according to the Journal, is contingent upon the site receiving a new gaming license: “Another condition of the deal is an understanding from regulators in the U.K.’s Channel Islands or elsewhere that Full Tilt would receive a new license to operate outside of the U.S. That would likely involve regulatory scrutiny of the Tapies.” Full Tilt continues to hold a secondary license from the Kahnawake Gaming Commission in Canada.
On Monday, Laurent Tapie, the Groupe’s General Manager, reminded New York Timesreaders that players will be paid back under the new regime: “We are going to put all the money into the company we need to please the players. They are the key asset, above all.”
Tapie also gave the Times insight into his philosophy on the gambling industry: “It’s a natural instinct to gamble. Gambling has been there for thousands of years. Gambling is something inside the human being. It’s something that’s inside of us. And online is something you can’t stop either.” The Tapies have turned around 40 fledgling companies, including the sporting giant Adidas. The organization also has ties to Partouche.
Whether online poker will become explicitly legal in the United States is anyone’s guess. In April, the U.S. Department of Justice indicted 11 individuals associated with PokerStars, Full Tilt Poker, and Absolute Poker and charged them with crimes that included money laundering, operating an illegal gambling business, and violating the Unlawful Internet Gambling Enforcement Act. The allegations even included a scheme to “buy” a bank in Utah to process online poker transactions.
On the same day, the DOJ seized the domain names belonging to PokerStars, Full Tilt, Absolute Poker, and UB. The former two have regained control of their domain names, while Absolute Poker and UB moved to dot-eu domains. The latter two have also not paid U.S. players back following Black Friday.
Stay tuned to PocketFives.com for the latest. Also, read the following related articles:
Full Tilt Poker Buyer Meets with U.S. Department of Justice
Groupe Bernard Tapie to Keep Full Tilt Brand, May Reopen in January
Full Tilt Conditionally Acquired By Groupe Bernard Tapie
