BLACK FRIDAY
laundering and bank fraud.” In addition to the 52-page criminal indictment, the
Department of Justice also filed a 68-page civil complaint, demanding forfeiture of monies, bringing the DoJ’s claims to around $3 billion in forfeits and penalties. As a result of this, 76 bank accounts in 14 countries around the world were immediately hit with restraining orders, cutting American players off from their money.
WITH IMMEDIATE EFFECT Almost immediately anyone trying to visit the dot
com sites of ‘Stars, ‘Tilt, Absolute and Ultimate Bet were greeted with an FBI holding page advising: “This domain has been seized by the F.B.I. pursuant to an Arrest Warrant…” reminding visitors: “Conducting, financing, managing, supervising, directing, or owning all or part of an illegal gambling business is a federal crime.”
In the week of ‘Black Friday’ Full Tilt suffered a week-on-week traffic decline of 48%, PokersStars numbers were down by 25%, and UB and Absolute dropped by 39% (source:
Pokerscout). For the first time ever I found myself playing in hugely reduced playing fields against all manner of nationalities I didn’t even know liked poker; there wasn’t an American in sight! The sites were still operating for non-USA players, but had to immediately reduce their guaranteed tournament payouts to reflect this drastic reduction in player numbers. Meanwhile my inbox filled with Euro poker sites offering me new deals, reload bonuses, and generally trying to make hay while the sun shined. Or shone. I’m never quite sure…
A week after ‘Black Friday’ PokerStars came to an
agreement with the DoJ and began allowing players to withdraw the funds in their accounts, although
what still isn’t clear is what happens to the Frequent Player Points that players have accumulated over the years. At the same time Absolute Poker issued a release stating: “…the US Attorney’s Office has agreed to provide all necessary assurances that third parties may work with Absolute Poker to facilitate the return of funds to players located in the US. This provision is an important first step to returning US player funds.”
CHIN UP
While many people saw all of the above as the end of the world, others put a more positive slant on proceedings, seeing this as perhaps a ‘cleansing’ of the industry in readiness for a regulated template to be laid down.
…what still isn’t clear is what happens to the Frequent Player Points that players have accumulated over the years
Zvi Lando, President of TableBrain Corp. (creators
of Party Poker’s new “Double Hold’em”) believes that this could be the first step in the right direction: “Last month’s crackdown against the big online poker companies (each of which generates billions of dollars per year in revenue) was a first step, but was it an attempt to begin setting up a controlled environment where regulation is possible, or was it the start of a total shut down? The US government is faced with a simple choice: regulate the blossoming skill-based online poker industry and reap up to $42 billion in tax benefit (JCT’s projection) or try for a “prohibition era” type crackdown and spend countless millions struggling to enforce it. The choice seems easy, doesn’t it?”
Indeed it does, but only time will tell. As they say in the trade, ‘watch this space’.
JUNE 2011 69
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