Alderney officials suspend FullTilt Poker’s gaming license

FullTilt Poker's gaming license was suspended Wednesday by the Alderney Gambling Control Commission in advance of a regulatory hearing in July.

In a statement, the British Channel Islands-based online gambling authority said it took the action following April's indictment of the founders of FullTilt Poker and two other Internet gambling operations by the U.S. Department of Justice.

"The decision to suspend the eGambling license was in the public interest and, because of the seriousness and urgency of the matter, it required that immediate action be taken ahead of the regulatory hearing," Andre Wilsenach, executive director of the Alderney Gambling Control Commission, said in a statement.

Alderney officials said the indictment of FullTilt by the U.S. government showed the business was "operating contrary to Alderney legislation. The nature of the findings necessitated the taking of immediate action in the public interest."

The commission's move prompted gambling regulators in the Isle of Man to reaffirm the licensing status of PokerStars, the world's largest online poker site that has faced the same legal trouble as Full Tilt, The Associated Press reported.

"PokerStars continues to demonstrate compliance with its license conditions in the Isle of Man," the Isle of Man Gambling Supervision Commission said in a statement.

Federal prosecutors unsealed the nine-count indictment on April 15 and charged 11 individuals, including the operators of FullTilt Poker, PokerStars and Absolute Poker, with fraud, money laundering and operating an illegal gambling business. The U.S. government also filed a lawsuit against the companies seeking $3 billion in money laundering penalties.

The action stopped the Internet sites from accepting wagers from American gamblers, but the company's operations in Europe remained open.

The move by the Alderney commission could put FullTilt out of business.

In April, PokerStars, based in Isle of Man, said it had refunded more than $100 million to American online gamblers who had money on account.

FullTilt and Absolute Poker have not refunded money owed to American gamblers.

FullTilt CEO Raymond Bitar and his business partner, Nelson Burtnick, were two of the individuals named in the indictment.

Bitar, 39, a U.S. citizen, was listed in the indictment as a resident of both California and of Ireland. Burtnick is a Canadian citizen who lives in Ireland.

"I am surprised and disappointed by the government's decision to bring these charges," Bitar said in a statement following his indictment. "I look forward to Mr. Burtnick's and my exoneration."

FullTilt's roster includes poker professionals Howard Lederer, Phil Ivey, Chris Ferguson and Jennifer Harman.

Ivey sued FullTilt this month in Clark County District Court, saying he wouldn't participate in the World Series of Poker and that he was "embarrassed" FullTilt had not paid players owed money.