Alderney gaming regulators pull plug on FullTilt Poker

Gaming regulators in Alderney on Thursday officially pulled the plug on FullTilt Poker, revoking the company's Internet gaming license over concern about its "operational integrity."

In late June, Alderney, which is in the British Channel Islands, suspended FullTilt's license after the U.S. Justice Department indicted the company's principals as part of a federal crackdown on Internet poker.

Last week, a federal prosecutor called FullTilt "a global Ponzi scheme" and added two of the website's board members -- professional poker superstars Howard Lederer and Chris Ferguson -- as defendants in a civil money laundering complaint. Authorities alleged FullTilt defrauded players of more than $443 million. In a statement, the Alderney Gambling Control Commission said it was "fundamentally misled" by FullTilt back in June. The company had claimed funds that had been covertly seized or restrained by U.S. authorities and not available as "liquid funds."

"Serious breaches of Alderney Gambling Control Commission regulations include false reporting, unauthorized provision of credit, and failure to report material events," said the statement.

Alderney officials said the license revocation would not prevent FullTilt from being reactivated under new ownership and management.

Unresolved claims by players against FullTilt, however, "become a matter for the police and civil authorities."

In an unattributed statement obtained by The Associated Press, FullTilt said the license revocation makes it more difficult to execute a sale and repay players. The company said it is still committed to repaying players despite "the potential damage done by the commission and its disregard for our players."

The operators of FullTilt, PokerStars and Absolute Poker were indicted April 15 and charged with money laundering, bank fraud and operating an illegal gambling business. The Justice Department also filed a civil lawsuit seeking $3 billion in money laundering penalties.

The move shut down the websites to American gamblers.

PokerStars, headquartered in Isle of Man, reached an agreement with the Justice Department to repay American customers money they had on account. PokerStars said it refunded more than $100 million.

FullTilt struck a similar agreement but returned nothing to American players.

In last week's amended complaint, prosecutors alleged FullTilt board members and executives funneled money to their own accounts, rendering the online gaming company insolvent.

Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.
Follow @howardstutz on Twitter.