PokerStars and US Department of Justice Reach a Settlement

Published Wednesday, August 01, 2012 -

The Full Tilt Poker Room has been finally taken over by PokerStars its rival. PokerStars has been negotiating with the US Department of Justice since the deal with a French gambling firm Groupe Bernard Tapie fell through. The April 2011 indictments that charged Full Tilt, Absolute, and PokerStars with fraud and violations of the prohibition on online gambling in the USA has been partially resolved for now.

The Department of Justice and PokerStars reached the historic settlement recently allowing PokerStars to acquire the assets of disgraced Full Tilt Poker. Under the terms of the deal the PokerStars head of operations Isai Scheinberg is required to step down from any position whatsoever at PokerStars within 45 days of the Full Tilt Poker acquisition. He is also prohibited from working in any capacity at Full Tilt. There are still issues to be resolved with criminal charges still hanging over Poker Stars and Scheinberg. Once resolved these conditions may be revised. With regard to the repayment of player funds seized by the D of J,

Mark Scheinberg, PokerStars chairman stated, “The way we have operated our business since the U.S. Department of Justice brought its claim has underlined our credentials as a responsible online poker operator. In particular, the prompt repayment of our former US customers in as quick a time frame as possible demonstrated our industry-leading commitment to the segregation of customer funds. We continue to encourage jurisdictions all over the world to introduce sensible online poker regulation.” Poker Stars will make an initial payment of $225m to the DoJ which is reportedly due Aug. 6. 2012 A second payment of $125m is to be made within the next year, another $100m within two years, and a final payment of $97m within three years.

Preet Bharara the US Attorney who brought the charges against the online poker firms said, . “Today’s settlements demonstrate that if you engage in conduct that violates the laws of the United States, as we alleged in this case, then even if you are doing so from across the ocean, you will have to answer for that conduct and turn over your ill-gotten gains.”

Related news

Return to Latest News