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PokerStars, the largest Internet poker site on the planet, has agreed to acquire former competitor Full Tilt Poker and fork over $184 million in owed money to overseas poker players in order to settle civil charges brought on by the U.S. Department of Justice (DOJ), which accused the site of sidestepping U.S. regulations related to online gambling and money laundering. As part of the settlement, PokerStars will also forfeit $547 million to the U.S. government.
"We are pleased to announce these settlements by Full Tilt Poker and PokerStars, which allow us to quickly get significant compensation into the victim players’ hands," Manhattan U.S. Attorney Preet Bharara said in a statement. "Today’s settlements demonstrate that if you engage in conduct that violates the laws of the United States, as we alleged in this case, then even if you are doing so from across the ocean, you will have to answer for that conduct and turn over your ill-gotten gains."
The Manhattan branch of the DOJ said that U.S. victims will be compensated out of the $547 million PokerStars is forfeiting to the U.S. government, though it's unclear exactly how much is expected to be released. Also as part of the settlement, PokerStars is prohibited from offering online poker in the U.S. for real money unless and until it because legal to do so.
"We are delighted we have been able to put this matter behind us, and also secured our ability to operate in the United States of America whenever the regulations allow," said Mark Scheinberg (PDF), Chairman of the Board of PokerStars.
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ultrapain
August 01, 2012 at 9:45am
I just love "settlements" like this because you never see how much ends up in the victims' hands. However, you can bet your *** that the bulk of it will stay with the government. What will be done with it? Put a dent in the budget deficit? Ease the burden on tax payers? Distributed nationally to schools in need? Nope. It'll just disappear into the black hole known as the U.S. Government. Will there be any oversight into what's done with the money, how it's distributed, etc.? Again, nope. God bless the U.S.A.
chop_slap
August 01, 2012 at 2:27pm
It'll likely be new board game to educate American familes on the dangers of gambling and marijuana use.
Penterax
August 01, 2012 at 8:26am
Welcome to the United States of America, home of the free. That's "free from having to choose because Big Brother government knows what's best for you"!
What, you thought it meant something about personal freedom and the rights of the individual?
Meanwhile, we fall into the greatest recession since the Great Depression because of crooked dealings in Wall Street, our big banks make "organized crime" look like a lemonade-stand business, politicians keep getting free trips to the Bahamas for "conferences"; yes, we are well protected, here in America, by our superiors, who have all proven they can think and act better than those of us who don't hold a public office.
warptek2010
August 01, 2012 at 11:37am
We're mostly in the hole because of Big Government meddling, protectionism, over regulation of interstate commerce, over regulation of just about any business out there, high corporate taxation, anti-business rhetoric from the Obama administration, Obama-care of which the full effects have not hit the economy but will AFTER the election, off shore drilling and exploration ban, pipiline ban, 5 trillion in debt, QE-I and QE-II of which we have NOTHING to show for it except even more anemic growth.
jaygregz
August 01, 2012 at 7:36am
I used to love playing on pokerstars. It's ridiculous that I can't spend my money how I see fit. Oh well.. I'm off to carbon poker.
Incognito
August 01, 2012 at 10:53am
The US Government won't allow it because they can't get a cut of the action, plain and simple.
tekknyne
August 01, 2012 at 6:55am
"We are delighted we have been able to put this matter behind us, and also secured our ability to operate in the United States of America whenever the regulations allow,"
In other words, buying out the government is a great way to ensure that you can continue to make billions.
