The latest bit of bad news for Full Tilt Poker came Thursday morning when the Aldernay Gambling Control Commission (AGCC) made the final determination to revoke the operating license of Full Tilt Poker. The AGCC made this determination based on the evidence gathered at their recent hearing in London, where the AGCC and Full Tilt poker representatives met to discuss the state of the ailing online poker company.
In today’s statements from the AGCC it was revealed that Full Tilt poker representatives at the hearing requested an adjournment in order to allow for the company to continue negotiating with possible investors –a reason they used at the first hearing in July.
The news that the AGCC had revoked the Full Tilt poker operating license may very well be a deal-breaker for the site as it was negotiating with a group of French investors –the status of the license was something Full Tilt poker attorney Jeff Ifrah called the final sticking point in the negotiations.
Also coming to the light in the AGCC’s full statement on their findings were the following key points:
- Full Tilt poker had been adding government seizures and shortfalls from uncollected deposits to the financial statements they were supplying g to the AGCC
- The way Full Tilt Poker was crediting player deposits without following through with the transaction was a violation of their license agreement
- Apparently Full Tilt poker was obligated to cover all player funds and segregate the accounts based on this statement in the GACC report– “The Company will ensure that, at all times, there are sufficient funds in this account to cover all balances held by the company on behalf of its customers. The Company confirms that this account is not used as a security for any other operational liability”.
- One of Full Tilt Poker’s companies, Orinic Limited, was able to retain its license, although it remains in a state of suspension due to the association with the other companies that made up Full Tilt Poker
Here is a look at the press release issued by the AGCC on Thursday, as well as a link to the detailed report:
AGCC Commissioners, sitting as a tribunal, have today revoked the licences of Vantage Limited, Filco Limited and Oxalic Limited, trading as Full Tilt Poker (FTP), with immediate effect. This follows the earlier suspension of the licences on 29th June 2011.
At a hearing held in London over six days, it emerged that FTP had fundamentally misled AGCC about their operational integrity by continuously reporting as liquid funds balances that had been covertly seized or restrained by US authorities, or that were otherwise not actually available to the operator. Serious breaches of AGCC regulations include false reporting, unauthorised provision of credit, and failure to report material events.
At the commencement of these proceedings on 26th July AGCC made clear its preference to hold the hearing in public, to the benefit of players and media alike. However, the tribunal was persuaded that the hearing should be held in camera on the basis of claims by FTP that this would maximise the chance of a commercial rescue of the business for the benefit of players. For this reason an adjournment of 54 days was allowed.
It is important to note that the revocation of FTP’s licences does not, as has been suggested, prevent a reactivation of the business under new ownership and management. Unresolved claims by players against FTP become a matter for the police and civil authorities. Now that FTP’s licences have been revoked, AGCC no longer has jurisdiction over these companies.
The licence of Orinic Limited, a recently added geographic sub-division of the FTP poker room, remains suspended.
The determination notice containing the decision of the Commissioners and reasons for it is available at http://www.gamblingcontrol.org/userfiles/file/Determination%20Notice%20290911.pdf