Black Friday was last year’s top online poker story; perhaps nothing has ever had such a major impact on the global online poker industry than this event. Online poker experts have predicted that the biggest online poker story of 2012 will be the acquisition of Full Tilt Poker (FTP) by Groupe Bernard Tapie (GBT), the French investment company. If the headlines in 2011 screamed about the downfall of FTP, the US federal allegations against it, the revocation of its gaming licenses, and its inability to refund its players, the headlines of 2012 might be about restoration of FTP.
FTP in the Past
Whatever its present condition, it cannot be denied that Full Tilt Poker was one of the largest online poker rooms, the home of poker pros such as Phil Ivey, Howard Lederer, Andy Bloch, Tom Dwan, Patrik Antonius, Mike Matusow, and Eric Siedel and the chief sponsor of poker TV shows such as Poker After Dark, Face the Ace, Learn from the Pros, Poker Championship at Red Rock, and others.
When the US federal government passed the SAFE Port Act, which included an amendment called the Unlawful Internet Gambling Enforcement Act (UIGEA) in September 2006, PartyGaming Plc withdrew from the US market and the void created by the absence of Party Poker was filled by FTP and PokerStars.
FTP was a paradise of cash games and tournaments, based on popular poker variants such as Omaha, Texas Holdem, Stud, Razz, H.O.R.S.E, and others. Early in 2012, Full Tilt Poker introduced a new variant of speed poker called Rush Poker, enabling players to play incredibly large number of hands per hour.
FTP’s Legal Troubles
FTP’s troubles began in April 2010 when the federal court in Manhattan began investigating the activities of its board of directors, especially Chris Ferguson and Howard Lederer. A year later, on April 15, 2011, the US federal government cracked down on FTP, PokerStars, and Absolute Poker, seized their domain names, and indicted key people associated with them on multiple counts of money laundering, bank fraud, and illegal gambling—an event popularly referred to as “Black Friday” of online poker. Subsequently, the three companies left the US, but continued operating outside it.
Two months later, the Alderney Gambling Control Commission (AGCC), the regulatory body that had issued licenses to FTP, suspended its licenses pending investigation. Since investigations indeed revealed that FTP had broken AGCC laws, the regulatory body revoked FTP’s gaming licenses on September 29, 2011.
On September 20, 2011, another blow fell on the fallen online poker room when the US Department of Justice (DoJ) made an amendment to the civil complaint it had filed against FTP. According to the amended complaint, Full Tilt Poker was a Ponzi scheme of global proportions, through which its owners cheated innocent players of around $440 million. FTP’s legal representatives denied these allegations, while admitting that FTP’s financial situation is a mess.
Current Situation
On September 30, 2011, GBT, a French investment company that specializes in converting impoverished companies into profitable businesses, expressed its interest in purchasing FTP.
Accordingly, in November, GBT held a round of talks with the US DoJ and reached an agreement stating that FTP would forfeit its assets to the DoJ and that the DoJ would refund FTP’s US players while the GBT would refund FTP’s international players. Once FTP forfeits its assets to the DoJ, it would sell the company to GBT for $80 million.
FTP shareholders have agreed to these terms, but a definite agreement is still to be signed, and once that is done, the acquisition of FTP will be complete and FTP will be re-launched by its brand new owners.