Stars acquires Tilt assets: The facts
eGaming Review outlines the main points from today's PokerStars-Full Tilt Poker deal - "First order of business is to re-open the site, pay back all of the players and begin rebuilding Full Tilt's reputation", says Stars spokesman.
PokerStars pays US Department of Justice (DoJ) total of US$731m to takeover Full Tilt Poker assets.
Agreement sees Isle of Man-based operator reach a repayment plan for Full Tilt’s players and ends the civil forfeiture proceedings against the former Alderney licensee.
Of $731m, PokerStars will forfeit $547 over three years and reimburse the outstanding balances of non-US customers totalling $184m within 90 days.
Around $330m in US player funds is owed with those players given opportunity to request compensation from the DoJ out of the agreed funds for their losses.
Formal close of the deal to take place in seven days.
The transfer of FTP assets will not take place until $225m is paid within six working days.
DoJ posts message on fulltiltpoker.com/usa outlining the deal is “pursuant to an agreement between US Attorney’s office for the Southern District of New York and defendant Full Tilt Poker taht may use this domain name in the US to facilitate players’ withdrawl of funds held by Full Tilt Poker (pictured).
Transaction has no bearing on the criminal charges against founder Isai and head of payments Paul Tate, who were indicted along with nine others on April 15 2011, or the criminal charges against individuals tied to Full Tilt Poker…
… but…
… founder Isai Scheinberg will be forced to stand down as a director of the company within 45 days time. This provision is subject to re-evaluation by the parties upon the resolution of the criminal case, according to the DoJ.
PokerStars intends to relaunch Full Tilt Poker “In most markets as a separate brand”, according to a statement this afternoon.
Stars will appoint a new management team to run Full Tilt operations from the latter’s existing Dublin office, although “regulatory oversight will be transferred to the Isle of Man.
The company will be licensed in either the Isle of Man or Malta (Stars is in talks with both jurisdictions according to today’s statement), will be announced in due course.
PokerStars is not “currently planning” to seek licences to operate FTP in France, Italy, Spain, Denmark, Belgium and Estonia, according to head of Home Games and former Stars press officer Lee Jones.
DoJ reveals Stars is prohibited from employing, or otherwise hiring, Full Tilt Poker insiders Raymond Bitar, Howard Lederer, Rafael Furst, Chris Ferguson, and Nelson Burtnick.
Pokerstars reaffirmed in today’s statement that it has admitted no wrongdoing and is “explicitly permitted” to apply to relevant US gaming authorities [regulation permitting] to offer real-money online poker when state of federal governments introduce regulation.
Chairman and Isai’s son Mark Scheinberg described it as bringing “Welcome relief to Full Tilt Poker players who have been waiting over 12 months for repayment of their money, and benefits the entire poker community”.
Today’s announcement “closes one chapter in our corporate history and opens another”, PokerStars corporate blog written by head of communications Eric Hollreiser read today.
“First order of business is to re-open the site, pay back all of the players and begin rebuilding Full Tilt’s reputation,” the blog said. “Going forward, we will operate Full Tilt as a separate brand, giving players another leading and trusted platform to enjoy the game. The re-launched Full Tilt site will bring back the innovative features, the authentic poker and the cutting-edge software that made it so popular with millions of players worldwide,” it added.
Jeff Ifrah, partner with Ifrah Law representing FTP, said Full Tilt and PokerStars had “interests of the players and the future of online poker at heart”.
FTP chief executive Ray Bitar arrested in New York earlier this month, pleading not guilty to charges brought against him in a superseding indictment which also named Full Tilt director of payments Nelson Burtnick says: “For the past 15 months, I have worked hard on possible solutions to get players repaid. It has been a very long road, with lots of bumps along the way, but I am glad we have gotten to the end. I only wish that we could have resolved the situation much sooner.
Bitar extends his “best wishes” to Stars. Calls deal “very creative” and that it “should benefit everyone: the players, Full Tilt and PokerStars alike”.