Full Tilt’s License Revoked Prior to Acquisition Agreement Reached

Full Tilt Poker received what it considered the worst possible news on Thursday when the Alderney Gambling Control Commission announced that all of Full Tilt Poker’s licenses have been systematically revoked by the commission.

Full Tilt Poker as we knew is officially dead. New deal depends on DOJ cooperation.

Reasons for Revocation

The commission released a determination notice that explained in detail the reasons behind their choice to revoke Full Tilt’s licenses.  Most of the reasons centered around the insolvency of  Full Tilt and their inability to pay players back.  In addition, they claimed that Full Tilt’s inability to pull player funds was the same as the company issuing credit, a violation of their policies.

The commission also pointed out that while the US Department of Justice issued a modified civil complaint that included key members of Full Tilt, the Commission considered the new information as irrelevant and acted based on information provided.

Full Tilt Did Not Participate

The Determination Notice also revealed that neither Full Tilt or their legal team participated in the hearing.  At the beginning of the hearing on September 19th and 20th, the Full Tilt legal team tried to get the AGCC to grant another delay to the hearing.  When this was denied, the legal team was instructed to leave by Full Tilt and neither party participated in the hearing.

Full Tilt Desperation Play

The two parties were notified of the decision on the 26th invited back by the Commission on the 27th to give explanations of their activity or comment on the actions.  They chose to do neither.  Instead, they tried to get the AGCC to delay the announcing of their finding and actions while they negotiated with a potential buyer.  The AGCC rejected this citing the best interest of the public.

Full Tilt Issues Statement Claiming AGCC Ignored Testimony

Soon after the announcement of their license suspension on Thursday, Full Tilt released yet another press release where they stated the AGCC ignored evidence.  Below is part of that statement:

“During the hearing, Full Tilt Poker offered the testimony of an investor interested in acquiring the company. The interested investor testified before the Commission as to its advanced status of negotiations with the company and the terms and conditions of a potential purchase. Full Tilt Poker requested a 30-day adjournment of the hearing to allow for transition of the company to the new investment team.

Today, the Commission announced its decision to revoke three of the four Full Tilt Poker operating licenses, despite the weight of evidence presented at the hearing by Full Tilt Poker of investor interest in acquiring the company. The Commission’s decision to revoke Full Tilt Poker’s operating licenses makes it more difficult to execute the sale of the company and hence repay its players.”

Full Tilt Miraculously Announces Acquisition Agreement

Contrary to statement made leading up to the suspension of Full Tilt’s license, an announcement was made Friday that the company had entered an acquisition agreement with a group headed by Bernard Tapie.  Here is that press release:

“Dublin, Ireland (September 30, 2011) Laurent Tapie, Managing Director of ‘Groupe Bernard Tapie’ announced today that the group has signed an exclusive agreement with the Board of Directors of Full Tilt Poker to acquire the company and all of its associated assets.

This agreement, which includes the repayment of Full Tilt Poker’s world-wide players in full, is subject to several conditions; the first of which is a favorable resolution with the United States Department of Justice. Discussions with the United States Department of Justice will begin immediately.

‘Groupe Bernard Tapie’ has over 30 years of experience in the salvation of financially distressed businesses, with over 40 companies acquired and managed to profitability, the most well-known being the sport equipment giant, Adidas.”

Sale Not a Done Deal

Much of the proposed acquisition of Full Tilt depends on how much money the U.S. Department of Justice will release to be repaid to players worldwide and as to whether the company can reasonably settle their matters with the DOJ.  Tapie has stated that while he has the money to repay players, he would rather not do so.

At this time, the new acquisition group is in negotiations with the DOJ regarding frozen money and the charges against the company.  Should they come to an agreement, players worldwide will likely be paid back, but estimates are that it will be many months down the road.

As always, we will keep you updated on the situation with Full Tilt and the Black Friday developments as they occur.

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