SBR newswoman Natalie Rydström provides an iGaming news update. This week's headlines consist of an update on the recent twitter controversy surrounding Poker Stars potential acquisition of Full Tilt Poker, as well as a disgraced CEO out on bail awaiting federal charges for violating the UIGEA, and more.
LST Financial, a financial processing firm based in Texas, has agreed to
forfeit more than $6 million of funds connected with illegal online
gambling charges in a settlement with the feds. According to EGR, LST
processed these funds for a company owned in part by Ryan Lang, a Black
Friday indictee. The US Government will now reportedly return funds
frozen which were not related to the online gambling charges.
Poker Stars communication head Eric Hollreiser has shot down claims that
Poker Stars potential acquisition of Full Tilt has fallen through. On
Thursday, an ex Party Gaming legal advisor tweeted the following:
“Pokerstars folds on FTP deal. Never real deal, just bluff to prevent
Tapie from bringing FTP back to market – great bargaining chip with
Any potential deal would be subject to repayment of Full Tilt Player balances, which is reportedly around $330 million.
Speaking of Full Tilt Poker, disgraced founder Raymond Bitar is out on 2
and a half million dollars bail, having posted cash and properties,
including a warehouse in California, according to a report by
CalvinAyre.com. Bitar turned himself in to the FBI last Monday to face
the charges against him in Manhattan federal court. Bitar is accused of
violating the Unlawful Internet Gambling Enforcement Act of 2006,
allegedly laundering funds, and operating what’s referred to in the
indictment as a “Ponzi scheme”. Bitar entered a not guilty plea.
Changing gears now, the Nevada Gaming Control Board has pre-approved
Shuffle Master Incorporated and Irish sports betting giant Paddy Power
for interactive gaming licenses. The two companies must attend a meeting
on July 26th with the Nevada Gaming Commission before the licenses
become official. SBR reported last month that IGT and Bally Technologies
were the first to be granted interactive gaming licenses in the Sin
City. Before any cards fly over the internet in Nevada, a rigorous round
of testing will be done by independent laborities appointed by the
state. This process could take four to six months.