The founders of the three largest online poker sites were indicted by the FBI on Friday in what could serve as a death blow to the thriving industry. Eleven executives at PokerStars, Full Tilt Poker and Absolute Poker were charged with bank fraud and money laundering in an indictment unsealed in a Manhattan court. Two of the executives were arrested on Friday morning in Utah and Nevada. Federal agents are searching for the others. Prosecutors are seeking to immediately shut down the sites and to eventually send the executives to jail and to recover $3 billion from the companies. By Friday afternoon Full Tilt Poker’s site displayed a message explaining that “this domain name has been seized by the F.B.I. pursuant to an Arrest Warrant.†The online gambling industry has taken off over the last decade, drawing an estimated 15 million Americans to bet online. In 2006 Congress passed a law prohibiting online gambling. Most of the leading sites found ways to work around the law using foreign banks, but prosecutors allege that in doing so they broke the law. “These defendants concocted an elaborate criminal fraud scheme, alternately tricking some U.S. banks and effectively bribing others to assure the continued flow of billions in illegal gambling profits,†Preet Bharara, the U.S. attorney in Manhattan, said in a statement. Poker fans took to Twitter in droves, worried about the money in their online gaming accounts, fretting that online poker's days were at an end. "Well the good news is I think I only had about $300 left on the online poker sites overall," tweeted Jimi Schindler of Madison, Wis. "Maybe I'll see that money?!!?"
Had some time to digest the DoJ press release. So, obviously if you're reading this thread, you know that this is pretty bad; they've indicted the owners of Stars, FTP, and Cereus, charged them with numerous crimes, and asked for extradition; they've shut down the domain names (though not the servers) of the sites as well. That's not it, though: 1) They've shut down A LOT of payment processors and confiscated a lot of mnoey. This doesn't bode well for those of us with our money on the sites or in limbo. There's likely no point to cashing out right now... Stars isn't even allowing US players to cashout or transfer anyway. There's no direct indication that the government wants to hold our money, but I suppose it's not clear what's "ours" and what isn't, nor is it clear how long it will take to sort this **** out. Remember Netteller. 2) They haven't just been charged with running a gambling site. That would be something that the sites could legitimately fight in court. They've been charged with lying to banks, bribing banks, and money laundering. There's no ambiguity there. They broke the law... in a multibillion dollar crime. Some quotes: Ouch. So there's no question tha Stars was complicit in the fraud; it wasn't just payment processors. Worse than the fraud, though, is the bribery: You don't need to be a lawyer to know that that stuff is unambiguously illegal. 3) As you might have noticed in the above quote, the FBI/DoJ have access to internal Poker Stars documents. 4) Scott Tom still owns AP according to the ****ing DoJ and FBI. So, AP and UB did lie to us about the current management. I wonder what else they lied about...
Crazy stuff .... Must admit, I've always wondered what was driving the anti- online gaming in the US, given they have Vegas etc. Part of me wonders is it to protect the land based industry and tourism, taxes etc it generates ....
I am sure it is,this is one of the main reasons Paddy Power was never interested in the US market,while its a huge huge market its way to much hassle. Full Tilt have 800 workers over here,I am sure they are very concerned.
Pokerstars have now reregestered as Pokerstars.eu.Most of there banking is done via the isles of man,I cant see them been to helpful with the FBI.
Nah, Likewise Neteller is operated from the UK as I recall ... Moneybookers the same. The Guys at Ebay sure had a good read of the US attitude to online gambling when they boutht PayPal and almost overnight, disconnected it from all Gambling and Porn activities. OTT imho but the US does have it's views ....
Its strange flicking through the big tournaments on pokerstars..and not a USA player in sight. The sites have some serious charges against them,and feel sorry for the players who might lose all their money.
I was playing for a few hours on stars lastnight - I havent been called GAY once, nobody wants me to get cancer and nobody has even suggested f***ing my mother - Damn i miss the Americans
Lol..reminds of my first avatar there,it was a cartoon face of a Sheik..they went bananas after 9/11 and they thought it was Bin Laden.. the abuse i got was incredible..though it did send them on tilt a lot! Stars removed it in the end though.
Ha ha,the games will get a lot harder there may be ways around this once it settles for US players but the casual player will not bother with the hassle and risk been caught.
Full Tilt poker have had their trading licence suspended pending a hearing in mid July. They could be shut down for good now, and with them would go the 600 or so jobs in Cherrywood of their trading company Pocket Kings. Bad day for a lot of people. I know a good few working there.
Sh1t, best we can hope for is that one of the other online sites buy them and keep some (fingers crossed even all) of the jobs that are there ....
More on the shutdown of US Poker and Gaming sites. http://www.guardian.co.uk/business/2011/jul/10/america-online-poker-fans-down-to-their-last-card
Looks like there is a little good news, for the former players at Full Tilt ... http://www.igamingbusiness.com/content/pokerstars-buy-full-tilt - I hope there's some good news there also, for those whose jobs have been at risk. I've half a feeling PokerStars have offices here in Ireland, but not quite sure why I think that ?