PokerStars,
the Isle of Man-based online poker company, has settled with US
authorities over allegations of money laundering and bank fraud.
PokerStars has confirmed it will pay $731 million (£466 million) to
avoid any further prosecution in the US.
The
deal includes a paragraph stating that PokerStars could potentially
return to the US market, when online poker is legalised. The Chairman of
PokerStars, Mark Scheinberg, said he is “delighted”.
“The
deal appears to be a win for all parties”, said Lloyd Levine, President
of Filament Strategies and a former Member of the Califonia State
Legislature. “The players will get their money, the companies assets
will be merged, and they will be given a clean start in the US market,
the Department of Justice gets settlement money, and nobody has to go to
court.”
It
has also been agreed that PokerStars acquires the assets, and pays off
debts, of Full Tilt Poker, a onetime rival that was also indicted on 15
April 2011, which became known as ‘Black Friday’. On that day the US
Department of Justice (DoJ) brought criminal charges against executives
of PokerStars, Full Tilt Poker and Absolute Poker, shut their websites
to US-based players and seized funds. PokerStars will pay $547 million
to the DoJ and $184 million to poker players outside the US who are owed
money by Full Tilt Poker.
Levine
stresses “the move to legalisation of internet gambling is gaining
momentum.” Although he adds “things here are moving at a snail’s pace”,
Levine emphasizes that “we have gone from no legalisation, to three
states being legalised, and five more states and Congress discussing
it.”
Linda
Shorey, a Partner in the Harrisburg office of K&L Gates, thinks
“there is a possibility of federal legislation being passed by Congress
when it returns to work after the election.” Whether Congress will
propose any framework for regulation “depends on the results of the
November election”, Shorey said.
Levine
explains the surge in enthusiasm for regulation because “obviously,
money is a big factor. Governments at all levels are cash strapped and
they see this as a way to bolster their budgets without increasing
taxes.” Levine is convinced “were there not this much money involved it
is likely the other efforts would have been a lot less effective.” He
predicts “legalisation will happen eventually. Not this year, but
perhaps late in 2013 or 2014.”
Michiel Willems © 2012 CP Publishing Ltd. London, UK.
