July 31 2012, Matthew Kredell
Tuesday’s settlement between PokerStars, Full Tilt Poker and the U.S. Department of Justice removes a black mark from the online poker industry and could help lead to a regulated U.S. market, perhaps one in which PokerStars and even Full Tilt return their services to the country.
There’s no doubt that the push for online poker regulation in the U.S. will be driven by U.S-based casino interests and not those offshore. But with Senators Harry Reid and Jon Kyl ramping up their efforts to pass regulatory legislation during the lame-duck session at the end of this year, the settlement clears a possible impediment.
The settlement explicitly permits both PokerStars and Full Tilt to apply to relevant U.S. gaming authorities to offer real-money online poker once state or federal governments introduce a framework to regulate such activity. However, that path will be long and full of potholes.
The biggest challenge will be to make sure whatever bill is passed does not include language that prohibits the licensing of companies that offered online poker in the U.S. following the implementation of the Unlawful Internet Gambling Enforcement Act.
To ensure that doesn’t happen, PokerStars’ best bet likely remains partnering with a respected U.S.-based casino company that will have its back in behind-the-scenes discussions with Reid’s office. Just prior to Black Friday, PokerStars had entered a partnership with Wynn Resorts. The alliance was terminated following the indictments.
A key element in the settlement is that PokerStars did not admit to any wrongdoing. The people who have admitted to wrongdoing at PokerStars and Full Tilt were individuals who will no longer be working at the companies. The agreement stipulates that PokerStars CEO Isai Scheinberg, who is presently under indictment, shall no longer serve in any management or director role at PokerStars within 45 days of the acquisition of forfeited Full Tilt assets. PokerStars also is prohibited from hiring Full Tilt Poker insiders Raymond Bitar, Howard Lederer, Rafael Furst, Chris Ferguson and Nelson Burtnick.
While this certainly wasn’t the intention of the DOJ, the move cleanses the brands of the people who could have been problematic in future efforts to gain U.S.-based licenses. In Nevada, it is fairly common for casinos that have made a gaming violation to be forgiven once under new ownership.
One prominent connection remains in Mark Scheinberg, Chairman of the Board of PokerStars and Isai’s son. Although he wasn’t indicted, it remains to be seen whether the family association with Isai could prove detrimental.
What is clear is that PokerStars will make an attractive partner. PokerStars comes out of this process with a great deal of goodwill across the poker community. It proved to be a stand-up company in its quick handling of cashing out players following Black Friday, and now really looks like a hero for going above and beyond to ensure Full Tilt players get payment as well. Players will remember this and want to play on PokerStars. Potential U.S. casino partners will look at this as a very attractive quality.
Full Tilt Poker is a different story. The brand name is severely damaged. Still, with new ownership and players made whole, Full Tilt Poker (perhaps under a different name) could have a chance at a license.
As long as the regulatory bill allows PokerStars to apply for a license, the company should be able to make a strong case in front of a licensing board. PokerStars can show it not only paid its penalty to the DOJ but also get credit for stepping in and helping players.
Payments to players owed money from Full Tilt will go through the DOJ. This process has yet to be laid out in detail, though it is expected to entail a claim for remission submitted to the DOJ. The DOJ already has information on player names, addresses and balances, and everything needed to make payments happen. There’s reason to believe that the DOJ will look for reasons to quickly process these requests rather than drag the issue on, and will therefore keep the burden of proof reasonable for players, though no time frame is yet known. The Poker Players Alliance has stated it will make sure to get clear instructions to players when they are available.
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July 27 2012, Brett Collson
Before everyone is glued to their televisions for the start of the London Olympic Games, we’re here to deliver Friday’s biggest stories in the world of poker. In this edition of the Nightly Turbo, we’re covering an online poker deal in California, the new bling of the European Poker Tour, and more.
In Case You Missed It
The Senate Committee on Indian Affairs released a discussion draft of a bill on Internet gaming on Thursday. PokerNews’ Matthew Kredell breaks down the details.
Olympians from all over the world have made their way to London for the 2012 Olympic Games. PokerNews spoke with some members of Team USA who enjoy playing poker during their down time from competition.
How was the high-stakes action at the PokerStars tables this week? Read the Online Railbird Report to find out the week’s biggest winners and losers.
Poker coach Nick DiVella recently made a deep run in the World Series of Poker Main Event. In the latest Strategy With Kristy podcast, DiVella discussed some key hands he had along the way.
Day 2 of the 2012 Australia New Zealand Poker Tour Queenstown Snowfest Main Event came to a close on Friday. Find out who advanced to Day 3 in our daily ANZPT recap.
Cantor Prepares for Online Poker in California
On Friday, Cantor Gaming and Horse Racing United announced an exclusive agreement under which Cantor would develop an Internet poker platform once online poker is legalized in California.
Cantor Gaming, which operates race and sports books across seven Las Vegas resorts, would provide Horse Racing United the technology and supporting infrastructure to operate an online poker site within state lines. The agreement is subject to Horse Racing United receiving a license to operate an intrastate gambling website. Horse Racing United is a not-for-profit organization representing the interests of substantially all Thoroughbred racing and breeding within California.
Horse Racing United and Cantor Gaming are both supporters of Senate Bill 1463, which was introduced in California last February. The bill seeks to generate “hundreds of millions of dollars” for the state in the fiscal year 2012-13. California is facing one of its most concerning budgetary crises in its history, and many state politicians have looked to online gaming to help get the budget under control.
“As other states begin to move to legalize online gaming, California is well positioned to leverage its size and generate revenue that otherwise would not exist,” said Lee M. Amaitis, president and CEO of Cantor Gaming. “If enacted, it will provide additional support to California’s horse racing industry.”
The online poker deal is the second made by Cantor Gaming in California. Last month, the company agreed to provide mobile gaming for Colusa Casino Resort.
Read more in Cantor Gaming’s press release.
New Watches for EPT Winners
When Season 9 of the European Poker Tour kicks off next month, a new piece of hardware will be up for grabs at every stop.
Each of the six EPT Main Event winners will receive a “Black and Steel” design Slyde by HD3 watch worth “5,480. In addition, the winner of the PokerStars.com and Monte-Carlo®Casino European Poker Tour Grand Final will receive a “Black and Rose Gold” design a retail value of “9,000.
“The EPT is delighted to be working with Slyde by HD3, and are very pleased to be offering our winners these beautiful watches as part of their prize,” said EPT President Edgar Stuchly. “We are looking forward to an exciting Season 9, and the fact that we are working with such a prestigious brand of luxury Swiss watches shows the appeal of the European Poker Tour to companies outside of poker.”
Season 9 gets under way Aug. 15 in Barcelona. The tour then makes stops in San Remo, Prague, the Bahamas, Deauville, London, and Berlin before the Monte-Carlo®Casino European Poker Tour Grand Final in May 2013.
The full EPT schedule can be found right here at PokerNews.com.
888poker Revenue Skyrockets
888 Holdings Plc, which operates 888poker.com, announced this week that poker revenues for the second quarter of 2012 were up 59 percent over Q2 of 2011. Revenue reached $20 million from April 1 through June 30 of this year, up from $13 million last year.
888 also had 378,000 active business-to-consumer customers in the second quarter, a 63 percent increase over the same quarter last year. The company said the numbers were “primarily boosted by ongoing product improvements, targeted marketing and effective CRM.”
888 CEO Brian Mattingly credited the positive results to the company’s marketing campaigns and market-leading customer relationship management. “We have the right product offering and back office capabilities to grow and sustain market share, as indicated by the success in building a significant market share in the newly regulated Spanish poker market,” Mattingly said in a statement.
888poker has done well in the new Spanish gaming market, which opened early last month. According to PokerScout.com, 888poker.es ranks second to PokerStars.es in real-money ring game traffic. Meanwhile, 888poker’s dot-com offering ranks fourth overall behind PokerStars, iPoker and PartyPoker.
Read the full financial report at 888′s website.
Declarations in Queenstown
Liam O’Rourke won’t agree that he crushes online poker tournaments. We’ll let you be the judge after his chat with PokerNews’ Nicki Pickering during the ANZPT Queenstown Main Event.
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July 20 2012, Brett Collson
If you’re looking for Friday’s top poker stories to get your weekend started off right, then you’ve come to the right place. In this edition of the Nightly Turbo, we’re covering the South Point Casino’s big plans in Nevada, the latest winners from PokerStars’ MicroMillions II, and more.
In Case You Missed It
How was the high-stakes action at the PokerStars tables this week? Read the Online Railbird Report to find out the week’s biggest winners and losers.
The Race Is On
The South Point Casino is poised to launch the first licensed real-money online poker site in the United States.
The casino, which created a free-to-play site last October, is set to meet with the Gaming Control Board next month to discuss recommendation for an operating license in Nevada. If approved, South Point will seek final license approval from the Nevada Gaming Commission.
South Point owner and CEO Michael Gaughan told eGaming Review that a real-money online poker site would be ready to launch as early as September. Gaughan says his gaming platform has already been approved by an independent testing laboratory, meaning it can go live as soon as it is licensed to do so.
“We’re finishing up our second wave of testing and so far no problems,” Gaughan told eGamng Review. “I may not be the biggest or the best but hopefully I’ll have a head start by two or three months.”
Last month, slot machine suppliers IGT and Bally Technologies became the first companies to receive licenses to act as service providers for Internet poker operators. However, it could take up to six months for their technology to be tested by the board and the state. The providers also need to wait on partnering casinos to receive license approval from the NGC.
Read more about South Point Poker at eGR North America.
Small Buy-ins, Huge Prizes
We’re nearing the finish line of the PokerStars MicroMillions II tournament series. Through Thursday, more than 875,000 entrants participated in the first 72 events, with more than $4 million handed out over eight days.
Only 28 events remained going into Friday, which means Team PokerStars Pro Andre Coimbra is nearing the completion of his challenge. Coimbra played in all 72 events through Thursday, cashing in 16 of them for $318.68 – all while sleeping for about four hours per day. Coimbra has been updating his progress in a daily video diary:
Here’s a look at Thursday’s MicroMillions II winners.
| 1 | Zynga Poker | 120,400 |
| 2 | PokerStars | 24,800 |
| 3 | PartyPoker | 2,500 |
| 4 | 888Poker | 1,100 |
| 5 | Merge Gaming Network | 320 |
| 6 | ClubWPT | 300 |
| 7 | Ongame Network | 270 |
| 8 | iPoker Network | 140 |
| 9 | Microgaming Network | 67 |
Check out the latest traffic rankings at PokerScout.com.
PokerStars Macau Expands
PokerStars has announced two new events to be included in 2012 Asia Player of the Year season. The Macau Poker Cup Championship will take place from September 7 through 16, and the inaugural APPT: Asia Championship of Poker is scheduled for Oct. 26 through Nov. 11. Both events will take place at the Grand Waldo Entertainment Complex.
The Macau Poker Cup Championship is the annual finale for Asia’s premier poker series and will feature a HKD $20,000 buy-in Main Event that has a HKD $4.5 million guarantee. Meanwhile, the much anticipated APPT: Asia Championship of Poker (ACOP) will feature a HKD $100,000 buy-in Main Event with a massive HKD $10,000,000 guarantee. The 17-day poker festival will have 18 official Asia Player of the Year events, including a HKD $25,000 buy-in ACOP Warm-up (HKD $5,000,000 guarantee) and a HKD $250,000 buy-in High Roller event.
“ACOP is the next evolution of tournaments in Asia,” said Danny McDonagh, director of live operations for Asia-Pacific. “This is an exciting step towards reaching the success of major international tournaments like the PCA, EPT, and WSOP.”
Here’s a look at the remaining PokerStars Macau schedule for 2012:
