PokerStars, Full Tilt Poker websites settle U.S. allegations
Two online poker websites accused of fraud and money laundering have reached a settlement under which customers will be reimbursed for the money they deposited with the sites.
In a complicated deal, PokerStars, based on Britain’s Isle of Man, agreed to acquire Full Tilt Poker and pay back Full Tilt Poker’s customers. U.S. customers will be reimbursed from a $547-million government pool to be paid by PokerStars, while non-U.S. customers will be paid $184 million directly by PokerStars. PokerStars customers have already been reimbursed.
U.S. District Judge Leonard B. Sand approved the settlement. A proposed settlement with Absolute Poker, the third company charged in the case, has not yet been approved.
U.S. Atty. Preet Bharara in New York said in a statement that the settlements would enable the government to “quickly get significant compensation into the victim players’ hands.”
The companies did not admit any wrongdoing.
PokerStars is prohibited from offering online poker in the U.S. for money until and unless gambling laws change, the Justice Department said.
“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,” PokerStars Chairman Mark Scheinberg said in a statement.
The Justice Department says the firms illegally tricked U.S. banks into processing gambling money.
The agency shut down the sites last year and charged 11 people in connection with the case. Seven have been arrested. All of the defendants pleaded guilty except Full Tilt Poker founder Raymond Bitar, who was arrested in July.
PokerStars plans to reopen the Full Tilt site and make reimbursement funds available to non-U.S. players within 90 days after the deal formally closes next week. U.S. customers have to apply for reimbursement with the Justice Department.
“This is not only important to the individual players who have had their bankrolls tied up for more than a year, but it’s also vital to rebuilding trust in online poker and instilling confidence in the global poker economy,” Eric Hollreiser, a spokesman for PokerStars, said on the company’s website.
