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Since Gambling911.com first broke the story that PokerStars had reached a deal with the US Government to pay back players owed by Full Tilt Poker as part of an acquisition of its one time rival, some skeptics have expressed concerns over whether US players will actually see their monies.
Stars will pay players outside the US from their own pockets while US-based customers will apparently need to file claims with the US Attorney’s Office in the Southern District of New York. And there is talk these individuals may only see their deposits returned (no winnings and no loyalty points)…though this is just conjecture for the moment.
The good news is that the US Attorney has already begun the process of assigning a facilitator to ensure US customers receive the more than $159m owed to them.
Those of us here at Gambling911.com have spoken to a few operators who believe this deal will give a much-needed boost to the worldwide online poker industry with the US as its catalyst. The reason: Players will once again feel confident about playing on these websites.
The land-based US casinos may have years of brand awareness in their favor but recent actions taken by the Justice Department and Full Tilt’s inability to pay back players has left a black eye on the sector that cannot easily be rectified by regulation alone. Full Tilt Poker, after all, had become a more recognizable name than half the casino properties in Vegas, thanks in part to heavy exposure on ESPN.
The San Antonio Express columnist Chuck Blount has expressed optimism after reading the settlement language. In a nutshell, players must be paid if this industry is going to thrive any time soon.
When the language coming out of the recent PokerStars.com settlement with the U.S. government specifically contains the clause that the business will be able to pursue a gaming license if online poker is legalized at the state or federal levels, you know it's there for a reason.
PokerStars creates a unique problem and solution to that plan. When it promptly paid back its players and continued to thrive in legally regulated overseas markets, it showed character. And when it agreed to forfeit nearly a half billion to the U.S. government, it showed that it has deep pockets.
Money is the driving force behind any future federal legislation, and you won't find a study or analysis that indicates anything but a win-win for poker players and bean counters.
The only way to make those tax windfall predictions a reality, though, is to get the online poker industry back to the player numbers it enjoyed during its U.S. heyday.
This isn’t just a US problem. Lack of regulation and the heavy handed nature of some nation’s attempting to regulate with an iron fist.
We would be remiss in pointing out that a handful of European-based online poker sites have closed shop in recent months. The world’s second largest online poker network, iPoker, has seen a decline of 38 percent in year-on-year traffic, according to PokerScout.com. It has never had exposure to the US market.
- Chris Costigan, Gambling911.com Publisher
