Full Tilt Poker, PokerStars Done As We Know Them?

The online poker community was abuzz with excitement over the news that Rep. Barney Frank’s (D-MA) HR 2267 online gambling bill had been marked up in the House Subcommittee with a vote of 41-22-1.  This was being heralded as the most positive outcome the online poker sector has seen in years.

Not so fast say some industry experts. 

HR 2267 is proposed legislation that seeks to amend title 31, United States Code, to provide for the licensing of Internet gambling activities by the Secretary of the Treasury, to provide for consumer protections on the Internet, to enforce the tax code, and for other purposes. But a handful of amendments were added to the original measure, some of which would almost certainly shut out today’s top two online poker rooms from the US market.

“No one who took a bet or wager on or after the enactment of the Unlawful Internet Gaming Enforcement Act (UIGEA) in 2006, processed payments, or received ‘assistance’ can be licensed,” Joe Brennan, Jr. of the Interactive Media Entertainment & Gaming Association pointed out.

Full Tilt and PokerStars have continued to accept customers from the US since enactment of UIGEA.

Another expert on the industry, who wished not to be identified, suggested such legislation would ultimately be beneficial for both online poker rooms.

“Full Tilt Poker and PokerStars would likely be acquired.  A U.S. company would want to buy most of the software, perhaps Facebook or a similar enterprise.”

Employees currently based in online gambling Meccas like Costa Rica would be moved to the US where they can provide their expertise.

“No company in the U.S. would be set up to do this on their own,” the expert said.  

Of course online gambling ventures have long found a way around most, if not all, obstacles standing in the way. 

For example, what is to stop a Full Tilt Poker from purchasing a European-based brand that has not accepted U.S. customers since passage of UIGEA?  Let’s say Everest Poker.  Full Tilt Poker becomes Everest Poker and Everest’ management team heads up the business.  This is one way that the European online card rooms can enter the U.S market with a bang.

It would be difficult to envision a situation whereby Full Tilt and PokerStars do not somehow benefit from any new laws being that they are two of the biggest supporters of the Poker Players Alliance and have lobbied extensively for legalized online poker in the States.

Christopher Costigan, Gambling911.com Publisher

Submitted by C Costigan on Wed, 07/28/2010 - 21:36
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Comments

Re: Full Tilt Poker, PokerStars Done As We Know Them?

Thu, 07/29/2010 - 20:53 — Guest
“Full Tilt Poker and PokerStars would likely be acquired. A U.S. company would want to buy most of the software, perhaps Facebook or a similar enterprise.” The Bachus Amendment (Amendment No. 15) excludes from licensing any entity that (1) purchased a tainted entity, (2) purchased a customer list of a tainted entity or (3) purchased any equipment or operations of a tainted entity. A "tainted entity" is any entity that accepted a bet or wager in violation of U.S. law. There is a lot of discussion about whether FT / PS violated U.S. law, but if that's found to be the case, those companies basically have dead assets as far as U.S. licensing is concerned. Nobody would buy them because it would jeopardize their ability to obtain a license. "It would be difficult to envision a situation whereby Full Tilt and PokerStars do not somehow benefit from any new laws being that they are two of the biggest supporters of the Poker Players Alliance and have lobbied extensively for legalized online poker in the States." This isn't necessarily the case. As we saw in committee, there were provisions that were added to Rep. Frank's original version of the bill that seem to be targeted at preventing "illegal operators" from becoming licensed. It seems that the intent of those provisions (even though one could argue that Full Tilt and PokerStars didn't engage in any illegal activity) is to keep out anyone who continued to conduct U.S.-facing internet gaming operations subsequent to the passage of UIGEA.

Re: Full Tilt Poker, PokerStars Done As We Know Them?

Thu, 07/29/2010 - 15:02 — Guest
"For example, what is to stop a Full Tilt Poker from purchasing a European-based brand that has not accepted U.S. customers since passage of UIGEA? " The USA will be looking at company principals, ownership and so forth of any company wishing to be licensed.

Re: Full Tilt Poker, PokerStars Done As We Know Them?

Thu, 07/29/2010 - 11:09 — Guest
Now you can see why PartyPoker followed the rules and left the U.S. market when they had to. They were the dominant player and if not for their exit, PokerStars and FullTilt would remain a distant second. PP was thinking long term and I'm sure lobbies the U.S. congress with high influence regarding passage of legal, online gaming in the U.S.

Re: Full Tilt Poker, PokerStars Done As We Know Them?

Thu, 07/29/2010 - 14:59 — Guest
I don't think that because PP left the market it will help their case. And forget about any of the SportsBooks that have taken bets. Even companies such as SportingBet may not be immune even though they exited the market years ago. I call this the Vegas Clause, because the American Gaming Association has long lobbied that illegal websites should not benefit from new legislation after years of making money at the ‘expense’ of American companies.