Full Tilt may get licences back despite cheating claim

CLAIMS THAT that board members of on-line poker site Full Tilt, which employs 800 people in Ireland, misled clients may not derail its bid to have regulators restore its licences.

US prosecutors claimed in a New York court on Tuesday night that Full Tilt Poker paid board members more than $440 million using funds that it pledged to make available for withdrawal by its online poker players at any time.

Alderney Gambling Control Commission, which withdrew Full Tilt’s licences in July, this week held a private hearing that will allow the group to make a case for the restoration of its permits.

The commission did not issue any statement last night, but reports indicated that the regulator does not bar on-line betting sites from “co-mingling” company and client funds in the same accounts.

Alderney’s licensees have to disclose whether they mix client and company funds in this way. According to yesterday’s reports, Full Tilt has done this.

Full Tilt’s operations in the US were effectively halted when prosecutors filed a complaint against them for money laundering and illegal gambling in a New York court in April.

Alderney withdrew its licences in July, and the group’s Irish subsidiary, Pocket Kings, recently warned that it could have to axe 250 jobs as a result of these developments.

On Tuesday, Manhattan US attorney Preet Bharara’s office asked US district judge Leonard B Sand for permission to add new allegations to the April civil claim against Full Tilt, PokerStars, Absolute Poker and other businesses.

“Full Tilt insiders lined their own pockets with funds picked from the pockets of their most loyal customers while blithely lying to both players and public alike about the safety and security of the money deposited with the company,” Mr Bharara said in a statement. He called it “a global Ponzi scheme.”

By the end of March, the company owed players worldwide about $390 million, $150 million of which was owed to gamblers in the US, Mr Bharara said in yesterday’s statement. Full Tilt had only $60 million in its bank accounts at the time, he said.

The action parallels criminal charges by Mr Bharara against the poker companies and 11 people, alleging bank fraud, money laundering and illegal gambling. – (Additional reporting, Bloomberg)