News Category: Poker Player Newspaper 1983-2016

Initially, the media flares of July 31, 2012 put out by PokerStars, Full Tilt Poker (FTP), and the United States Department of Justice (DOJ), announcing a deal amongst them that would allow PokerStars to acquire the assets of FTP, ignited only a modest amount of fanfare; the poker community had already learned that the parties were poised to close the deal.

DOJ Stance on Settlement Agreement

 Within hours of the formal announcements, however, an assortment of lawyers, news analysts, protagonists, and pundits, began to weigh in on all that was left silent in the settlement agreement of the DOJ’s civil forfeiture claims against PokerStars and FTP.

Poker Media Learns Lessons

 Except for those who had been more taken by Curiosity’s trajectory to a Mars-based landing, Poker Player Newspaper (PPN) created a furor within the poker community when it broke the news of the impending deal the prior Friday, with additional updates until the formal press releases surfaced. Following the PPN breaking news item, a swirling tornado of poker media reports ensued.

 One poker media reporter who chimed in shortly after the first PPN bulletin with her own update erroneously proclaiming the date for a definitive announcement, learned a sharp lesson, as did some other poker media, who in hasty efforts to get into the fray, misstated important facts, only to find that their misstatements revealed themselves.

 The waiting game for the formal announcements created challenges all around. But no poker media report matched the frustration and concern produced by a careful read of the DOJ’s press release.
While the settlement agreement provides for PokerStars’ repayment of player account balances in full to the rest of the world (ROW) players, it left unclear the specific amount of funds that will be refunded (and the process by which refunds will be released) to American-based players.

Thus, a day after the DOJ’s press release, and a story in Forbes Magazine headlined: The Big Question For Full Tilt’s U.S. Players: Will They Get Their Poker Winnings Back?, I pondered further,  my own recent reports which were silent on the DOJ’s long fencing match with participants in the negotiations, regarding the process for refunds of FTP player balances under different deal scenarios.
Forbes writer Nathan Vardi exhibited the guts to put a pin in the celebratory balloon, following the deal’s approval by Judge Leonard Sand, showing deep insight into the potential for a major fracas over the monies due to FTP players in America. The DOJ has yet to reveal its hand.

FTP Story Is More Complex Than Meets The Eye

 Throughout the year-long discussions that were focused on a bailout of FTP, there was substantial legal wrangling over the treatment of American-based players’ deposits and winnings. FTP representatives— including Ray Bitar, Howard Lederer, and their legal advisors—apparently pleaded with the DOJ for full repayment, based on a settlement that would allow for such reimbursements, according to multiple sources closely connected to these matters.

 Much of the poker world has viewed FTP, and its board members, Ray Bitar (CEO), Howard Lederer (the Big Man on Campus), Chris Ferguson (a disappointing “Jesus”), and Rafe Furst (the board member rarely referenced), as villains, rather than advocates for the returning to players their FTP funds. But various gaming lawyers as well as friends of the FTP directors insist that the personal circumstances of the FTP board members, vis-a-vis the DOJ, motivated them to do everything possible to bring about a “sale” of FTP, with the goal of obtaining the best results for players. The leverage of all but the DOJ, deteriorated over time.

 Anne Madonia, the corporate lawyer with Cozen & O’Connor who facilitated the transfer of the FTP assets to the DOJ confirmed in an interview today her previous public comments explaining the reality of limited leverage on behalf of her client: “We were representing a client who had very little to no leverage in negotiations.” Madonia worked on the FTP legal team led by nationally recognized white collar specialist, Barry Boss. Cozen and O’Connor’s team was well versed in the limited options at FTP’s disposal.

 Madonia noted that there were alternatives available to consider; bankruptcy, or contesting and defending the civil forfeiture complaint were among them. This allowed FTP’s advocates to make clear FTP would not summarily fold its tent into a forfeiture.
The corporate settlement, notwithstanding, the personal troubles facing Bitar and Lederer are anything but over. That said, their circumstances today seem starkly different from each other.

 Lederer and Bitar: More Differences than Similarities

 Ray Bitar is indicted. Significant monies and other assets of his have been seized. He was arrested in July, posted bail, and is now under house arrest in California, with travel restrictions in place—pending further actions in his criminal case.

 Until Bitar returned to American soil, July 2, 2012, he may have expected to pay the piper far less than now anticipated. He has since been presented with a more severe amended indictment that several legal experts say will likely cost him a significant jail sentence. Several lawyers point out things would be even worse for Bitar, but for his genuine efforts to get a settlement done that allows for player refund repayments.

 Howard Lederer, on the other hand, is not indicted. He is said to be in Las Vegas, most recently partying at his house with friends after FTP’s settlement with the DOJ. According to lawyers familiar with the DOJ’s seizures, Lederer’s resources have been little touched by the Government in the FTP matters. The smart money around the US Courthouse in New York is betting big that Lederer’s, Ferguson’s, and Furst’s current worries with the Government in this matter are probably limited to the DOJ’s efforts to impose substantial financial penalties to settle the individual civil charges against them. These same commentators express confidence that Lederer, Ferguson and Furst will avoid more serious consequences from these matters.

 In discussing FTP’s woes of the past year, many of Lederer’s friends and former associates emphasize that Bitar handled day to day management matters as the ship was going down. Lederer announced some years ago that he had given up day to day FTP  management duties, but reportedly returned to an active role during the company’s darkest days, these past few months–purportedly to help steer the company toward a deal that will see players reunited with their funds.

 Meanwhile, Lederer’s allies complain that he has been effectively and unfairly ostracized from the poker world, and they seek to help him rehabilitate his image. They demand anonymity in this article, but they are becoming increasingly vocal in this effort.
Lederer friends note he was the one player with an outstanding loan to FTP who made a substantial repayment without any prodding and prior to the embarrassing revelations of uncollectible player debt by Group Bernard Tapie during that company’s discussions of a possible deal to acquire FTP’s assets. Nobody, however, suggests that Lederer offered up any of his distributions to go back to FTP customers to repay their losses.

DOJ Has the Money

 Now, through the three-way settlement among PokerStars, FTP, and the DOJ, the Government is flush with forfeiture monies— enough to repay American players in full, if so inclined. Over the past year, the DOJ has repeatedly referred to the prospect of a remission fund to compensate American-based FTP victims for “losses.” However, the DOJ has yet to state publicly its position as to what constitutes “losses” for which players are entitled to compensation.

Poker Players Alliance and PokerStars Re-Linked

 The Poker Players Alliance (PPA), at one time largely a vehicle for FTP’s and PokerStars’ lobbying efforts for positive federal legislation, has morphed into a serious grass roots organization for poker players rights, needs, and aspirations, especially in online poker matters.

 PPA Executive Director, John Pappas  has positioned the organization to take its rightful place in a discussion of player repayment matters that will be overseen by the DOJ in Washington. The PPA is looking to its counsel, Marc Zwilinger, to provide the necessary magic that will result in US players seeing the return of their full player balances.

 Zwilinger has sent a compelling letter to the DOJ asking for that consideration. His name is generally unknown in the poker community, but it is well known in sophisticated legal circles, and very well known to the DOJ—where he worked early in his career.

 Back in 2009, Zwilinger, while at his former law firm of Sonnenschein, Nath and Rosenthal (now SNR Denton), where he chaired the Privacy and Security Group, was the key attorney involved in a legal opinion concerning Poker Stars operations in the United States. One noted gaming lawyer (a former partner at Zwilinger’s earlier law firm alma mater of Kirkland and Ellis) who reviewed the Sonnenschein opinion , described it as an exceptional document, notwithstanding the DOJ’s decision to prosecute PokerStars anyway.

 Now, upon completion of the PokerStars-DOJ deal to acquire the assets of FTP, Zwilinger (who now runs his own boutique firm), is in high gear, advocating for poker players across America for reimbursement of FTP player funds in full.

 At the top of his list of reasons to show players the money—that is, all of their money—are common sense fairness issues: ROW players are getting theirs; PokerStars players got theirs last year—with the blessings and explicit permission of the DOJ, and, he notes, FTP players were duped into believing they should leave their monies at the site, assured the safety of their player balances.
The PPA, under the leadership of Executive Director John Pappas, has reached a sufficient level of credibility that the DOJ sees fit to take a listen. That’s real progress!

The purpose of the three point bulletin was to provide my readers with concrete news of significant interest to the worldwide poker community at the earliest possible time.

The breaking story emanated from a highly knowledgeable source, who allowed the word to get out, on the condition it could not be traced back.  Before pulling the trigger, I hesitated for a moment, thinking through the worst case scenario—of being duped, betrayed and set up for a giant burn at the stake.  There was absolutely no rational basis for such concern.

Based on the facts as presented to me Friday morning, I was convinced the day had arrived when one could reliably assert that Full Tilt Poker players would regain control of their player balances at the site, in a finite time frame.

The over- the-top media frenzy and passionate discussion of the article on poker forums this weekend has created two overwhelming challenges: first, keeping up with others’  interpretations and reinterpretations of the article and second, responding to related questions and comments.

Since Thursday until late this evening I  had only intermittent Internet and telephone connectivity  during travels through the Berkshire Mountains and a visit in the mostly cell free zone of Stockbridge, MA.

This resulted in my dictating the article and subsequently two related tweets from my personal Twitter account. The article was published precisely as directed; and I continue to stand behind it. The related tweets left opportunity for improved clarity and further explanation; forthcoming in a fuller upcoming article.

Meanwhile, many emails have asked for my comment on the posts of corroboration and criticism from various poker media and specific poker reporters who took an active part in the Friday fray. The following were notable among them:

Jennifer Newell: freelance poker writer with known connections to PokerStars.

She tweeted  after the PPN posting, her independent confirmation of the substance of the PPN story, noting cutely that I was not her source. She bolstered her insider status claiming the announcement would come Friday or Monday, and then updating it to Monday for sure.  I refrained from time stamping the anticipated announcement in my article for fear that any delay beyond the date noted would cause needless further frustration.

Gambling 911: Chris Costigan, publisher (a site I read frequently).

Several hours after the PPN bulletin, Gambling 911 corroborated the substance of the story and added an interesting nugget. Costigan explained that he had retained the national law firm of Arnold and Porter to pursue a Freedom of Information Act request in connection with the FTP probe, noting the judge who granted his motion.

Gambling 911 headlined its article: Eolis: Full Tilt Poker Software to Relaunch in November, a reasonable interpretation of my weekend tweets. To be clear, the planned date for re-launch is not known to me and may not yet have been decided. However, there is a strong basis on which to believe it will be before November 1.

DiamondFlush: whose best known association was Subject: Poker which morphed into the writer’s own website.

This writer offered a semi corroboration of the article in a tweet that effectively disregarded the PPN bulletin in favor of hyping his/her own planned upcoming report,  “Long awaited news coming …next few days. No speculation, no rumors, real news.” I have often been impressed with this writer’s high quality FTP reporting, and I’ll still be interested in seeing his/her news report- whenever it may come to light.   Given recent debate on a popular poker forum as to the identity of DiamondFlush, suffice to say it is not I.

Other Posts:

While the writers referenced above all weighed in on Friday, there have been thousands of  posters similarly energized in the aftermath of Friday’s firestorm.

I appreciate the confidence that has been expressed toward  my research and my judgment in reporting on it many poker media colleagues and poker forum participants. I also respect the criticism and skepticism put forward by others in the media, on the forums and elsewhere. At the end of the day, however I believe I made the right decision for the right reasons in putting out the news, as I understood it.

The next edition of Poker Player Newspaper will have more coverage of this story, thanks to a short extension provided by our printer.

 One business day later, the poker natives are at peak restlessness, fuming over the delay in a concrete announcement by any of the parties that would confirm or bury the PPN bulletin.

 Last week’s PPN story stopped short of saying there was a done deal. While, my source was unequivocal in referencing a signed deal between the parties, the Deep Throat connection noted that the deal had yet to receive a final blessing – a signed order by the judge, approving the settlement.

Judge Keeps Up the Tension

 While not making light of this final piece in the process, you should know historically, judges generally are not inclined to withhold their seal of approval of a settlement that has been reached between the parties unless there are issues of competency, integrity, and/or sound mind regarding the dealmakers.

 In a case of this magnitude, filled with esteemed lawyers at center stage in the negotiations, it would be almost unfathomable for a judge to torpedo a deal signed by the parties – especially one that would assure prompt repayment of player funds.

July 27 News Bulletin and Follow-up

 Ergo, early in the morning of Friday July 27, after learning the deal between the parties had been completed a day earlier, I wrote my news report, deciding to steer clear of a pronouncement of a completed deal and taking care to avoid a date certain by which we might hear an announcement or find a public filing that would confirm the settlement.

 While poker forums nor the twitterverse are as active home turf for me as they are for many of my readers, over the weekend I was persuaded to provide some further details concerning the anticipated payout arrangements.

 Subsequently, I posted some responses to weekend reports regarding the bulletin and my tweets concerning the anticipated payout plans. That posting is linked HERE.

DOJ Cares about Player Funds

 One of the reasons the Tapie-DOJ deal had failed according to Groupe Bernard Tapie lawyer Behn Dayanim, was the Justice Department’s insistence that players be fully repaid within 90 days of completion of the deal.

 While FTP players around the world were unconvinced that the Justice Department was in their corner, I had long since learned through lawyers all around the courthouse that repayment of the players’ funds was an exceedingly high priority of the Manhattan–based US Attorney, Preet Bharara.

 Additionally, lawyers who have represented other potential suitors for FTP since Black Friday also confirmed their understanding that a timely payout plan would be mandated.  I received assurances that the payouts would be sooner than the bulletin suggested, but I opted to refrain from narrowing the timetable on that issue, choosing to address only a slightly accelerated timetable for the re-launch.

Updated Status Report

Today PPN goes to press without any announcement by the parties and with no evidence yet of a signed order by the judge.  Neither is there one scintilla of evidence in my possession from anywhere of a torpedoed deal. To the contrary, there appears to be mounting pressure for all concerned to bring the matter to a swift close. With this latest information in mind from previously rock solid sources,I’ll go out on a limb once more not only to stand behind our original bulletin, but also to predict we are talking about a matter of days before uncorking the champagne in celebration of a sealed deal.

 Without giving away the identity of a consistently impeccable resource, it is now safe to say announcements for public dissemination are in the works.  At this point I am ready to go out on a limb; FTP customers will see their monies well in time for Christmas shopping.

 Poker Player Newspaper’s print edition goes to press before I can provide further details, rest assured the story is a thriller that will be told.

Is There A Real Deal In The Cards?

There was still no official announcement on the anticipated deal that would turn over to PokerStars the assets of Full Tilt Poker (“FTP”) and no word on the concrete basis on which to believe that  Full Tilt customers were about to see  repayment of their locked up funds.

Is There Light At The End Of The Tunnel?

Following months of hot and heavy discussions with the US Department of Justice— after the Government’s civil forfeiture action and indictment in Scheinberg et al April 15, 2011—Poker Stars and FTP are still caught up in the crackdown on online poker.  A few short weeks ago, PokerStars and Full Tilt and their key executives seemed poised to breathe easier before the close of the 2012 WSOP— until the US Department of Justice caused more than a few new tremors.

Ray Bitar And Guy Laliberte On Different Stages the Same Day.

On July 2nd, Ray Bitar, the top honcho at FTP’s Dublin headquarters crossed the ocean to face the DOJ, surrendering voluntarily. The FBI swooped into Kennedy Airport for his arrival, greeting him with a superseding indictment. The expanded charges, if proven, could land him behind prison walls through the prime of his life, if not longer.  Apparently, Bitar was unaware of the blaring trumpets that awaited him.

The news of Bitar’s arrest came down on day two of the WSOP’s Big One for One Drop, the million dollar buy-in tournament with a huge charitable component; it was the brainchild of Cirque du Soleil founder and high stakes poker player, Guy Laliberte.

Laliberte’s rising chip stacks on day two kept spectators breathless , rooting  for the man behind the charity that drew 48 players who anted  up for fun,  and more fortune– and  the opportunity  to help quench the thirst of an impoverished population nearing two billion around the world.
But even with all of this WSOP-based fanfare, Bitar’s enlarged troubles were big news in the hallways beyond the Amazon room.  The wags got into high gear, debating the future fate for Howard Lederer, Chris Ferguson and Rafe Furst, each of whom were members of the FTP Board of Directors when the DOJ brought the hammer down on online poker.

Poker Stars Was Expected To Take The Stage During The WSOP.

PokerStars, on the other hand, according to the tuned-in chatterers in residence was rumored to be in in far better shape.  From the beginning of the WSOP, Caesars personnel, professional players and poker media alike were hearing through multiple grapevines that PokerStars would announce it had acquired the assets of FTP and would take prompt responsibility for paying back the players, in full—thus trumping whatever else might be happening on the grounds of the WSOP.
Shortly before the main event of the WSOP, word began to leak uncontrollably around water coolers on both sides of the pond First there was certainty that day 1A would bring the news. Next came the naysayers explaining that Poker Stars did not want to be inundated with requests for cash outs for main event entries.  Next came predictions of an  announcement on day 1B, but the most reliable pundits close to PokerStars were saying for days that the company had a definite plan to announce the deal on July 11th , an off-day for half of the WSOP main event  Day 2  contenders.   One would be hard pressed to argue that PokerStars was looking to steal the WSOP’s thunder. The announcement did not come.

Months Of Progress Is Thwarted.

Early last week, lawyers for PokerStars were working late into the evening, as the WSOP was rounding the bend to its final days of the summer season.  PokerStars was still expected to complete the deal, momentarily, and make the formal announcement the poker world craved to hear.

At the 11th hour, however, the DOJ apparently threatened PokerStars’ bid to become the hero in the online poker fiasco of the past year.  So, lawyers for the company would have no choice but to shift their attention to the ongoing prosecution. They filed motions to dismiss the civil charges so as to assure their legal rights to do so within filing date requirements.  With the same needs, Lederer, Ferguson, and Furst filed similar motions in connection with their cases.  The filings created a frenzy of speculation as did the DOJ’s motion to dismiss charges involving Poker Stars and FTP in Kentucky, during the same period—which looked more favorable to the prospects of completing a deal.

According to two lawyers with close ties to the protagonists, the skinny was simple: new issues as well as details related to the ongoing negotiations had developed, raising questions—but no answers– as to whether PokerStars’ plans to take over FTP will come to a close.

While Vanessa Selbst, a top PokerStars player was still heading toward another record finish on day six of the WSOP and her fellow Poker Stars Team Pro, Jan Heitman stepped into place as one of the final 27 players in the poker world’s “Big Dance,” the mood at PokerStars last weekend reportedly turned   less than rosy.

A Quick Review is In Order.

Over the past year, it has been difficult, sometimes, to see the forest for the trees among the many players and multi-pronged negotiations in progress.  PokerStars, Full Tilt Poker, and key executives indicted in the clampdown by the DOJ have been involved in both combined and conflicting efforts to resolve their legal issues.

A quick review provides perspective on the recent events and non-events that kept the hallways of the 2012 WSOP full of whispers, in the shadows of the richest and most prestigious poker tournament ever staged.

On April 15, 2011, the DOJ effectively brought down online poker in America.  On April 20th, the DOJ entered into “domain name agreements”  with PS and FTP in which the sites consented to end all US facing operations except for facilitating repayment of player funds locked out by the DOJ’s actions against the online sites. The Government’s press release was forceful, insisting that the players should be made whole—forthwith.    But the Government has never been forthcoming as to how it might assure such a result. Today, it is not clear that the DOJ is committed to making a deal that will insure such an outcome.

PokerStars’ History Since Black Friday is Worthy of Applause  

PokerStars for its part stepped up to the plate, unequivocally, during the late spring of 2011, responding to the DOJ’s expectations;  returning more than 100 million dollars due to its US players within four weeks  after the signing of its domain name agreement with the DOJ.  Full Tilt, however, began the dance of delay, soon proving itself as a prevaricator with respect to the safety of player funds.

In late June 2011, FTP was shut down by its regulators, the Alderney Gambling Control Commission (“AGCC”).  The AGCC’s own conduct as overseers has been alternately defended and challenged in recent months while FTP customers have been left out in the cold, to the tune of more than 300 million dollars, awaiting the DOJ’s further actions.

Since last summer, PokerStars has been well-positioned to show itself more like victims of a misguided DOJ that was riding herd on a favorite American pastime, than as villains taking advantage of their players. PokerStars has acquired many new online poker licenses in Europe, has supported taxation on gambling winnings in the EU in a similar manner to US policies, and has praised tight licensing and regulatory requirements of online poke sites.

PokerStars Proves Itself.

From all reports available, PokerStars is prepared to make payment of a monumental fine estimated to reach over $700 million dollars to the US Government in consideration of a global settlement of its legal troubles.  And, apparently, the company stands ready to acquire FTP’s assets in a manner that will result in their customers being repaid their outstanding funds within 90 days thereafter.

Now, one might ask, “Will the players become the victims of a Government bound and determined to show beyond a shadow of a doubt the fullness of its clout? “ PokerStars has shown itself as a highly responsible business in its dealings with poker player funds. It remains to be seen if the Government will show equal concern for players by moving forward with dispatch, to perfect the deal.

In the interim, the WSOP’s plans to complete the 2012 tournament with the final nine is a sure bet from October 28, 2012-October 30th when the 2012 WSOP winner will be crowned.

 WSOP Director Ty Stewart says, “We all need to work toward the goal of doing better to move the needle way up on the participation of women at the WSOP.” Stewart is on the prowl for exciting suggestions from industry leaders who share this goal. Additionally, other WSOP personnel say they are mindful of the need to avoid the appearance of endorsement or partnership with organizations or individuals who may have more self-serving purposes.  Beyond the world of women players are women professionals in the poker industry; many have started their management careers in a casino card room, but have seen few opportunities to use their skills in their employers’ broader operations.

 In an upcoming article, I will address recent and ongoing research on women in poker. As a collective group, women with successes under their belts need to do a lot more to support the growth of participation of women in major competition and mobility on the upward ladder in casino management.

 The WSOP Magnet

 Women’s achievements are often a hot button topic around the time of the WSOP as competition is at its fiercest. Preliminary findings indicate that there will need to be a further unification of women to effectively address the penchant of men to refer to women as “catty girls.” Constructive improvements in the processes that identify and celebrate women as role models in the poker world are critical to upgrading the level of participation of women in major poker competitions. And more attention towards honors and kudos based on merit can assure unmitigated applause of women who are feted as the cat’s meow.

 JoAnne Liu and Kathy Raymond: Two Women of Exceptional Accomplishments

 Liu’s and Raymond’s documented qualitative and quantitative contributions to the growth of respect for women in poker are longstanding and well documented, but the most glitzy recognition of women’s achievements, afforded by a high profile clique of women that are currently positioned as the arbiters of whose time has come—have delayed their unconditional applause for these two ladies up until now. Liu and Raymond have finally scored, in their eyes.

 Author Statement

 In the course of research, I reached out to Women in Poker Hall of Fame regarding their operations and selection processes. To be clear, I admire the meaningful contributions of WiPHoF members, notwithstanding my personal decision (and disclosure of it prior to my probing inquiries), to put myself out of consideration as a candidate for a future WiPHoF class.

 Poker Player Newspaper Supports Articles that Call a Spade a Spade— Accurately!

 For anyone who may have been told (as recently reported to me), that this article will be scratched, suppressed, or sliced and diced by publishers of my material, they were misguided. The article will appear in August with my customary best efforts to assure accurate, fair, balanced and considered reporting. Meanwhile, I offer a preamble.

 Women’s Poker Hall of Fame founded in 1998

 Going back to the turn of the century (1999), Tina Napolitano, an enterprising woman, known as “the heart and soul” of pokerpages. com (with her business partner and husband Mark Napolitano) laid the foundation for later projects in the poker industry that have built on her pioneering efforts.

 Napolitano established a woman’s page and the “Women’s Poker Hall of Fame.” She said (in a telephone interview), “I saw nothing out there; I wanted to pay homage to women who deserved it.” Her list of 30 women was built over the years of her stewardship of the online site; it focused on her efforts to include as many women for whom she could find “documentation” of distinguished accomplishments. The Women’s Poker Hall of Fame page has survived three generations of PokerPages.com owners.

 Like Liu and Raymond, Napolitano herself had an enviable record of achievements notwithstanding her relatively short 10 years at the helm of the business with her husband. She produced the first online poker satellite for a seat in the main event at the WSOP, the first online poker school, the first podcast of a major poker event—at the US Poker Championship, a live video feed at the 2001 Tournament of Champions and put solid time into advocacy of charity in her poker world.

 Her time has come, but she has yet to be awarded her rightful place in the annals of poker history created by those who influence these matters, currently.

 Come June 30^th, Ivey will be the brightest poker star in a stunning galaxy of millionaires and billionaires that will take their seats in the biggest poker rumble of all time: the WSOP’s Big One for One Drop. The WSOP team is pulling out all the stops to insure that the media, the public and the rarified roster of players coming out to support this charity–minded battle royal will remember it fondly.

 Meanwhile the WSOP staff is doing the traditional daily count down to the end of the tournament, and thousands of less flush poker pilgrims are gearing up for the grueling hours it takes for the best tournament players to reach the money in the lowly $10,000 buy-in main event, that used to be “The Big One” until Harrah’s picked up the WSOP and moved the needle to include a regularly scheduled $50,000 “Players Championship.”

High Stakes Poker Player Guy Laliberte Dropped $35 Million to Push One Drop

 One Drop is the brainchild of Guy Laliberté, the internationally recognized founder of Cirque du Soleil and high stakes poker player who anted up bigger bucks than our everyday millionaires can afford to spend on a little fun. In 2009 Laliberte got himself a ticket for a ride to the International Space Station and hung out up there in large measure to publicize his One Drop charity. Now, here on earth he is flying high, calling on people of extraordinary means to take a seat in the biggest poker game to hit Las Vegas-ever: The Big One for One Drop at the WSOP.  The growing confection is in the management hands of the WSOP team led by Mitch Garber, CEO of Caesars Interactive Entertainment (CIE). Garber became a newly minted member of the One Drop Board of Directors last March.

 With a $1 million entry fee, The Big One is predicted to eclipse the largest payout ever previously made for a single poker event anywhere in the world; Jamie Gold’s 2006 1^st place ticket in the main event was worth $12 million. A chunky 11.11% of the prize pool for The Big One will go toward aiding an impoverished population of nearly one billion people worldwide who thirst endlessly for clean drinkable water.

WSOP Head Honcho Consummates Big One on PokerStars Turf

 The deal for The Big One started, in earnest, in October 2011 during a hockey game attended by Laliberté and Garber, friends and fellow French Canadians. The brainstorming sessions proceeded smoothly during the fall. The most notable complaint was Laliberté’s assertion that the WSOP’s executive director, Ty Stewart was way too conservative. At the end of one of their meetings, the wickedly humorous Laliberté made off with Stewart’s tie, telling him to forget it next time. Stewart obliged. (Recently, Stewart went one better. For the 2012 WSOP employee event, Stewart showed up appropriately scruffy and in typical poker player garb—and cashed).

 Shortly after New Year’s Day 2011, the WSOP contingent, led by Garber, teed up the final talking points on his private plane (known affectionately by would be hitchhikers as Air Garber) en route to the Bahamas. They were ready to bring on the full-court press and tie the knot with Laliberté on Paradise Island.

 Before swooping in on their target, the WSOP’s Ty Stewart sent a courtesy message to a Poker Stars live event manager, alerting him to their impending arrival in the Bahamas—smack dab during PokerStars’ Caribbean Adventure. The PCA is nothing less than PokerStars’ annual flagship live event in North America. The Garber troops then took off for their appointment at Laliberté’s villa―where all manner of high stakes players in business, politics and poker have been known to congregate.

PokerStars  Made No Plans to Entertain WSOP Team

 A stone’s throw away from Laliberte’s compound PokerStars founder and patriarch, Isai Scheinberg, was shuttling from meeting to meeting inside the Atlantis Hotel planning deals to burnish the PokerStars brand and expand the Company’s stake in North America.

 Fit and trimmer than ever, Scheinberg was strutting his stuff a tad less modestly than was his usual style. He chatted up movers and shakers about the prospects of federal legislation to legalize online poker as just around the corner. He showed no apparent concern for hidden curves on the path, or of a doomsday scenario for online poker in America. And despite the upcoming arrival of the Caesars team, for reasons unknown, Scheinberg’s thoughts about the WSOP seemed to be focused only on how to give that organization a run for its money in America—soon.  He declined to post any welcome signs for Garber and his entourage.

 It didn’t take long for the two titans to cross paths. Just as Garber and Stewart were preparing to sit down for breakfast at the most lavish breakfast room in the Atlantis, they bumped into Isai Scheinberg with his son Mark Scheinberg, CEO of PokerStars. They all stopped in their tracks agreeing to have coffee, Scheinberg and Garber both told me.

 According to Garber, the rendezvous was not only unplanned, it was not anticipated. Garber reported the conversation as cordial, mostly about the lobbying efforts and the lobbyists pushing the one common denominator between them federally-based online poker legislation. Garber notes, “The whole conversation was over in less than a half hour and everyone went on their way.” While it is generally believed among knowledgeable lawyers who keep tabs on them that there has been no love lost between the two titans before or since that personal meeting, Garber says, semi-diplomatically, “They have not competed on a level playing field since 2006, but PokerStars clearly understands poker.”

AGA Chairman A lot Less Diplomatic than WSOP on PokerStars Operations    

 Frank Fahrenkopf, Chairman of the American Gaming Association, has been far less diplomatic than Garber when speaking about Isai Scheinberg and Poker Stars.  This past spring in an astonishingly candid and scathing audio/video interview with Marco Valerio of QuadJacks Poker Radio, Fahrenkopf called out PokerStars as arrogant about violating US law, dismissive of the potential consequences as strictly a matter of paying some fines and inaccurate in their announcement, just before Black Friday of an “agreement” with Wynn to work together.  Fahrenkopf claimed that in a conversation with Steve Wynn, he learned there were discussions, but no agreement had been reached.

Isai Scheinberg Might Prove to be Plenty Shrewd

 Recent word in legal circles around the US Attorney’s Office in Manhattan is that Scheinberg’s criminal case is not going to trial, suggesting that a global resolution has in fact been reached. PokerStars’ deal to acquire Full Tilt Poker (FTP) under its umbrella is almost old news, but for confirmation by the parties directly involved. Insiders say, however, that Poker Stars is not quite ready to re-launch, among other reasons there is no useful purpose served in allowing FTP customers to process cash outs for use at the WSOP.

 Neither Garber nor any of his Caesars colleagues are prepared to guess as to the prospects of Scheinberg cutting a deal that averts prison time. But since Black Friday, they certainly have distanced themselves from offshore online poker operators who continued to operate in the United States, after the passage of a federal law in 2006, that was designed to ban online poker bets in America.

Garber is a Man in Control

 Generally, Garber’s style is open and more forthcoming than many high-level executives who take more pride in being secretive than in being straightforward.  Garber wears well, be it jeans with an open collared shirt and a sport jacket or perfectly fitted finely threaded custom suits. His physical build and dress-for-success strategy are reminiscent of Caesars’ former WSOP Commissioner, Jeffrey Pollack, who briefly enjoyed the title of President of CIE when Garber was “sworn in” as the newly formed company’s CEO in 2009. The resemblance between these two men, however, ends right there.

After Leaving the WSOP,  Pollack Rises and Then Falls on Hard Times

 Under Jeffrey Pollack, the WSOP began its transformation from the single most important poker tournament of the year to an internationally branded series of events worthy of a ten-year long contract with ESPN for televised coverage of its high jinx happenings. Pollack was front and center in this effort, promoting his image and his vaunted role as the WSOP Commissioner as studiously as the WSOP itself. Along with the rise of poker’s popularity, Pollack became the face of the WSOP. Some within the Caesars family insist that Stewart was the more productive marketing man between the two.

 In the years leading up to Garber’s reign over the WSOP, there can be no argument; the tournament saw a huge surge in popularity under Pollack’s stewardship. Pollack took the role of Commissioner with him when he left Caesars, bequeathing it to his new business partner Annie Duke for her oversight role of Federated Sports + Gaming’s (FS+G)  Epic Poker League.

Caesars-EPIC—Pinnacle: One Degree of Separation Among Them  

 Since Jeffrey Pollack’s departure from Caesars and his creation of the controversial Epic Poker League which went into bankruptcy there have been no shortage of darts thrown back and forth, behind the scenes. Last week, one of Epics biggest creditors, Pinnacle Entertainment, acquired FS +G’s most valuable asset, the Heartland Poker Tour, along with the far lesser valued remnants of the Epic Poker League and the Global Poker Index.  A growing gaming company with visions of expanding into the online poker gaming space, Pinnacle’s CEO is a former Harrah’s executive and its chief marketing officer, Ginny Shanks is another Harrah’s alumnus. While employed at Harrah’s/Caesars, Pollack reported directly to Shanks from his start date until she left to go to Pinnacle in 2008.

 Shanks says: “Jeffrey Pollack was one of the best hires I have ever made,” singing  his praises for creativity, branding smarts and effective leadership—during the period in which he reported to her directly. She demurs, however, on questions about Pollack’s involvement as Executive Chairman of FS+G and its Epic Poker League. Some of Pollack’s other former colleagues remember him as less than generous in crediting others’ contributions—especially in Pollack’s presentations to higher ups. One high level Caesars employee laments incredulously Shanks’ praise could be a signal suggesting, “He might be drawing live,” at Pinnacle with a newly created management role on the horizon for him there. Garber nixes any discussion of Pollack’s departure beyond acknowledging that the WSOP grew exponentially on his watch. Punto!

 While Pollack is engaged in rising from the morass of the bankruptcy proceedings, PokerStars is still enmeshed in legal trouble in the US, and the Epic Poker League remains out of the limelight, Garber and his tripartite CIE team based in Montreal, Las Vegas, and Israel are moving briskly in pursuit of initiatives to broaden the brand of the WSOP, online social gaming, and mobile applications. As such, CIE currently maintains its position with unrivaled stature and growth potential—at least for the moment.

Garber Talks About the Shoulders On Which He Stands

 Garber, in the interim, has become a man of very considerable means, unabashedly comfortable in his Prada suits and his jet set lifestyle. He seems equally mindful, however, of the many shoulders on which he stands, offering a special tip of the hat to his good friend Mike Rumbolz, the former Chairman of the Nevada State Gaming Control Board who has worked for Trump, as well as an assortment of big players in e-commerce and online gaming. Garber also ticks off a list of lawyers, entrepreneurs, and casino executives that he credits with helping to build his skills as a lawyer and businessman.

 Above all, Garber treats information as power. He works assiduously on collecting useful data and validating it in assessing opportunities—not unlike the best poker players on the planet! In addition to talking to amateurs in the halls, regularly, Garber meets with pros frequently. Last weekend he spent a chunk of time with John Duhamel and he has had dinners with Hellmuth, Antonio Efandieri and Phil Laak, among others.

 After checking the latest information this morning, Garber called to assure, “There will definitely be more than 30 players (for The Big One For One Drop) and the capped number of 48 paid entries is within our reach.”

The WSOP remains a singular sensation in its 43rd year. Entrepreneurs, lawyers, government agencies, and players at felt tables, wrap themselves around their connections to the poker world, trying to make big news during the course of this six week-long annual event.  Behind the scenes stands Mitch Garber, the CEO of Caesars Interactive Entertainment (CIE), a subsidiary of Caesars Entertainment Corp (Caesars).

Before stepping into Mitch Garber’s world, some special notes are in order:

Caesars Entertainment Corporation (Caesars) was formerly Harrah’s Entertainment (Harrrah’s): from 1995-2010.  In 2010, Harrah’s changed its name to Caesars, which it had acquired in 2005.  In 2009, it also formed a subsidiary that is now Caesars Interactive Entertainment.

In February 2012, Caesars came out of its private shell of the past few years with a small initial public offering that made a big splash.  It followed up with a second offering of $500 million in additional stock.  So, Caesars now operates under the rules of the Securities and Exchange Commission.

Author Disclosures:  

My interview with Garber for this story took place on March 30, 2012, but it was not my first encounter with him. I have been familiar with his career through my legal consultancy for more than 20 years, as both a lawyer, and as a businessman.

During the summer of 2008, following Garber’s resignation as CEO of PartyGaming, Eolis International Group was retained by a client to provide a due diligence report concerning Garber. Questions were raised about him, for which we were unable, at that time, to provide useful answers.

Since his arrival at Harrah’s/Caesars, I have gotten to know Garber, and I have learned much more about his years in the E-commerce and I-gaming business. I regret that earlier, I was personally under-informed, both as to his commitment to corporate loyalty, and the soundness of his judgment calls in the role of a senior manager for companies he has served. I should have pushed our client to make a beeline to Garber’s door!

Garber, PartyGaming, and the U.S. Department of Justice

Garber served as CEO of PartyGaming for two years, beginning in 2006 and ending in 2008. He led the decision by the company’s Board of Directors to enter into negotiations with the United States Department of Justice after the passage of the Unlawful Internet Gambling Enforcement Act, and becoming aware that the Government was investigating pre-UIGEA activities of public companies in the online gambling space, including Party.

Attorney Behnam Dayanim, a specialist in commercial and online gaming matters, and an expert litigator, has served as counsel to several companies at which Garber has been employed. Dayanim pulled no punches when queried about Garber’s role in what ultimately concluded a non-prosecution agreement for Party with the DOJ.  With respect to prior chatter on the internet, and among some online poker competitors, a material portion of Dayanim’s response follows:

“In the first instance, it was the decision of the PartyGaming board, not of Mitch alone, although Mitch certainly led the way in advocating for it. By the time the NPA was actually executed, Mitch had left the company. The assertion that PartyGaming was somehow trying to gain competitive advantage in negotiating with the U.S. Attorney’s Office is completely baseless.  It makes no sense.  Party had suffered a devastating blow when it voluntarily withdrew from the U.S. market after the enactment of the UIGEA.

Nothing about that agreement harmed Party’s competitors, nor did the agreement somehow spur the USAO to investigate others in the sector.  As a public company, Party could not, and would not, hide from the United States authorities in the way its privately held counterparts did – and, in some cases, continue to do.”

Garber Has a Good Story to tell  

This past February, Garber and I arranged to meet in Las Vegas, just to shoot the breeze. It was a personal get together without an agenda.  In talking about his life, his work, his philanthropic initiatives, his role at CIE, and his growing imprint, I came to realize that the poker world knows little about this powerful Caesars executive who significantly influences their WSOP experience.  I suggested a future in-depth interview for a story to be published during the 2012 WSOP.  After telling me he rarely gives personal interviews, he smiled, and announced he was game, for this one. Garber was so forthcoming and generous with his time, that the interview warrants two stories during the WSOP.

Administrator, Strategist, and Policymaker

Garber is the man at the top of the Caesars Interactive Entertainment subsidiary, with responsibility for growing the fabled WSOP brand in tandem with expansion of the company’s footprint in internet-based and social gaming initiatives. The company is primed for legalized online poker in the United States.

Garber notes, “The key factor in taking the job was the chance to work with Gary Loveman.”  He observes, “Gary has essentially done with interactive gaming what he did with loyalty.  He architected the establishment of a subsidiary that would focus on interactive gaming, hired me, and allowed me to hire a team that were experts in different areas of interactivity.”

He describes his strategic plan: “Our goals are to remain at the forefront of all forms of interactive and digital gaming entertainment, whether real money or casual virtual currency games, across all platforms. We were the first land-based company to establish an interactive company, to partner with online poker software providers, and to enter the mobile and social games space, and we expect to maintain that leadership spirit.”

Garber’s Big Deal!

Garber’s team is split between Las Vegas (WSOP), Montreal (Technology), and Israel (Playtika).  He is especially proud of the Playtika acquisition, noting that Caesars’ application, Slotomania, is among the top apps on both Facebook and the iPhone/iPad.
CIE has also forged a licensing deal with 888 Holdings Plc, and the video game development company, Electronic Arts, is working with CIE as the mobile app game developer for the World Series of Poker.

WSOP Team Cheers Garber’s Leadership  

Since his arrival on the scene, Garber has generally remained out of the limelight of the WSOP, but  according to Ty Stewart, WSOP Executive Director, “Garber’s lack of visibility at events isn’t due to lack of interest.  He’s the first guy to send a text at 2am from half a world away, commenting on event reporting or a player’s twitter feed.”  Stewart adds, “His energy borders on scary. He is going to work longer than you, work out harder than you, and have more fun than anyone else while doing it.” Caesars employees close to him agree with Stewart, who says, “He will challenge you behind closed doors and has high expectations.  But he is fiercely loyal and incredibly generous.”

Garber Predicts Legislation Favorable to Online Poker

Garber is also willing to stick his neck out.  He supports and expresses high hopes for federal online poker legislation, and he has confidence it will come to pass.  For starters, he emphasizes, “The legalization of online poker in the United States remains a key pillar of our strategy.”  He sees on the horizon a reversal of the UIGEA legislative action taken against online poker. Garber claims there is at least as much momentum toward making online poker lawful now as he saw in 2006 toward making it unlawful.  (He insured, as part of his deal with Party, that his employment contract would be subject to renegotiation, in the event of legislation adverse to online gaming in the United States).

Garber suggests that the right people are beginning to see the merit in having a regulated, taxed environment for something that is already being practiced in an unregulated manner. If licensed, regulated and taxed online gaming comes to the United States, knowledgeable observers of the scene suggest that there is no company better positioned to take advantage of it than Caesars.

Personal Background

Born in 1964 in Montreal, Garber attended a private Hebrew school through high school, adding Hebrew to French and English at his fluent command.

He earned an undergraduate degree in Industrial Relations from McGill University, and a law degree from the University of Ottawa in 1989. He says he appreciates his law school experience, but knew early on that he was best cut out for business.

Garber has roots, important connections, and commitments to significant philanthropic causes based in Israel. While he is not religious, he espouses Zionism.

In September, 2009, Global Gaming Business Magazine named him one of the 10 most influential people in the gaming industry. His accomplishments and clout in the industry have grown exponentially since then.

The day after our March 30th interview, Garber revealed he is a poker player, and that he had slipped into New York the day before to play in a 10K buy-in event for the Bill Clinton Foundation.  He acknowledged he “had a good finish.”  One of our mutual friends tipped me off about his modesty, reporting that Garber had placed a very respectable tenth in the competition.

Garber currently lives in Montreal with his wife, Anne-Marie Boucher, a tax attorney, and their two sons.

More Garber News Coming: In our online edition, pokerplayernewspaper.com, learn more about Garber’s management of CIE, and the impact of it in the new hotsy-totsy world of internet-based and social gaming. In the next print edition of Poker Player Newspaper, look for a further report on Garber’s complex relationships in the poker industry; the departure of Jeffrey Pollack from the WSOP, the deal with French casino company Barriere (that relocated WSOP Europe), the unplanned meeting with Isai Scheinberg during a PokerStars tournament, and the trip that clinched the deal for the “One Drop” million dollar buy- in tournament that will take place and be televised at the 2012 World Series of Poker.

Tapie Deal Goes South

As previously reported, Tapie’s repayment plan to refund non U.S. “Rest Of World” (ROW) customers was a bone of contention in Group Bernard Tapie’s negotiations with the DOJ during the past few months.

Enter PokerStars

It didn’t take long for the DOJ to turn one deal on its head and land right side up with another! In the early morning of April 24th, rumors which had already begun to circulate on a popular poker forum, gained heat when Chili Poker CEO, Alex Dreyfus tweeted, “PokerStars buys FullTilt for a consideration of $750 million, including settlement with the DOJ and full balances of players ($330 million). I’m impressed.”

By noontime, on the same day GBT went fully public with a statement that confirmed the collapse of their negotiations with the DOJ to acquire FTP’s assets, PokerStars’ corporate communications director, Eric Hollreiser, reacted to the rampant rumors by posting a response on the PokerStars Blog.

Acknowledging both the company’s legal problems with the DOJ and the massive inquiries (following Dreyfus’ tweet), Hollreiser stated simply that the company was obliged to refrain from any premature comments on the “chatter.” As a practical matter, however, PokerStars’ response added support to Dreyfus’ assertion of a bizarre twist in the FTP tale that might well end with the sale of FTP assets to PokerStars.

Tapie Rises to its Own Defense

For his part, Tapie relied upon GBT counsel Dayanim to respond to Poker Player Newspaper, about the extraordinary turn of events. Dayanim acknowledged the deal as going sour approximately two weeks earlier when the DOJ hardened its position on repayment terms to ROW players, requiring the full refunds within a period of 90 days. He said, “It was a deal breaker.”

Dayanim chalked up the cratered deal “to a business decision on the part of the DOJ.” On questioning, he acknowledged that under the Tapie plan, players with larger balances would have had to wait years for a substantial amount of their funds.

Morgan Stanley Fancied Online Poker Not So Long Ago

Before the DOJ’s shutdown of online poker at the three most popular online poker sites April 15, 2011, the online poker kings were poised for unbounded growth and several high powered investment banks, most notably including Morgan Stanley, had buzzed around the online poker industry with visions of acquiring a major stake in it. They all seemed to believe the hype of affirmative federal legislation to license, tax, and regulate this activity as being on the near horizon.

During the 2010 World Series of Poker, Gabi Campos took up residence on the Isle of Man, as a consultant to PokerStars and with a deal in hand to take over the reins as the new CEO of the Company, October 4th of that year.

Campos was reportedly hot to trot with a public offering, not bothered by a story in the Financial Times that had recently reported the existence of a grand jury investigation of online poker.

Stateside, at the same time, FTP’s most well-known director Howard Lederer and his wife were hosting their Annual World Series of Barbecue in Las Vegas, a lavish event that showcased Lederer’s status as a king in the online poker industry. Ambling around the pool at the Golden Nugget was as an investment banking king and a poker playing trust fund kid (“Trust Fund Kid”), talking about the just held meetings between Morgan Stanley and Ray Bitar and Lederer.

In the interest of full disclosure, EOLIS learned of certain discussions through Morgan Stanley’s investment banking division, but it was not in the context of EOLIS’ professional relationship with lawyers associated with the firm.

According to a Morgan Stanley senior executive, The Kid had donated big bucks in live poker games that featured Chris “Jesus” Ferguson and other FTP celebrity pros. The Kid had no trouble hooking up the banker with FTP directors for a serious discussion. And the banker did not shy away from offering The Kid the prospect of millions of dollars as a business broker, if a deal were to be made.

The Trust Fund Kid also moved the needle for the investment banker by arranging a conversation with PokerStars top brass, shortly after the WSOP festivities. The Kid made the connection with Mark Scheinberg, son of PokerStars founder Isai Scheinberg, after securing an un-inked, but nevertheless reliable, agreement for a big payday if a deal were to fall into place, according to a Morgan Stanley money man.

Most of the protagonists in these high finance talks seemed to be oblivious to the DOJ’s sharp lens on the online poker industry.

Morgan Stanley Falls Out of Love

In the early fall, Morgan Stanley expanded its discussions of online poker beyond PokerStars and FTP and elevated its due diligence. The feedback indicated uncertainty as to whether Senator Harry Reid would bring about passage of a favorable bill in the Congress in the near future. Morgan Stanley’s appetite for online poker is said to have fizzled not only due to concerns over predicting the timetable for legalized online poker, but also because the Morgan Stanley managing director spearheading the initiative into the online gaming space was eyeing other options. He later set his sights on gaming interests in Macau; he left Morgan Stanley.

Reid Falters; PokerStars Hits Reset Button

At the end of 2010, Harry Reid suddenly halted his efforts to pass a favorable online poker bill during the last session of the Congress that year. According to some politicos, Reid made the tactical mistake of publicizing the planned gambling bill too far in advance of insertion into a broader must-pass bill, thus giving opponents of such a bill a wide berth to succeed in scotching any such attempt.

PokerStars’ political machinations continued in 2011 with continuing efforts in the spring on both the state (NV) and federal level. Meanwhile, Campos was actively contemplating grand online poker economics —including the possibility of going public—to make the company ever richer. Black Friday put an obvious brake on the astounding growth of the industry in recent years.

Insiders have said that Black Friday caused PokerStars’ to give up on a public offering for a second time; the first being in 2006 after passage of the Unlawful Internet Gambling Enforcement Act (“UIGEA”).

The Company changed course, opting to make a big push for the customer base of public online poker companies that pulled out of the US market once the UIGEA legislation was signed into law. This move was key to growing the power and wealth of PokerStars over the next five years.

And since Black Friday the Company has continued, unabated in growing its footprint and services to customers outside the United States.

PokerStars Sees Full Tilt as a Catch to Throw Back

According to a PokerStars insider last summer, it was soon after arranging for repayments of account balances to its American customers—more than 100 million dollars was repaid within a month of the shutdown of the site in America—PokerStars got busy looking into gobbling up Full Tilt Poker.

With FTP’s financial distress becoming more obvious by the day, PokerStars went into full throttle, deliberating carefully the possibility of investing in the site, according to the powerful insider at the time. He said, “Due diligence on a possible purchase of FTP is a high priority.”

Apparently soon thereafter, PokerStars became weary of FTP directors’ insistence on obtaining silent handcuffed investors who would allow management and control of the company to be left in FTP hands.

PokerStars Revisits Full Tilt

Less than a year later, PokerStars is now known to be back in the hunt to acquire Full Tilt Poker, in a more sophisticated game plan. Lawyers familiar with recent events say PokerStars seeks to make the Full Tilt Poker asset purchase part of a global settlement of the company’s legal problems with the U.S. government.

Most of the lawyers interviewed for this article believe that such a settlement would clarify that DOJ has no interest in interfering in any future effort by PokerStars to return to American licensing authorities in the event that online poker is legalized in America.

Since Black Friday, the poker industry has been kept in the dark by the Justice Department, both with regard to any incomplete negotiations with defendants and with respect to its intentions surrounding repayment of American player account balances.

But parties privy to the various talks between the DOJ and various suitors along the way say the DOJ is genuinely interested in seeing players refunded all of the monies due to them. Towards that end, these sources concur that DOJ made a raise on Tapie’s fourth street bet, once it was clear that Poker Stars would call. Tapie apparently made a crying call. In the next round of betting, DOJ made a continuation bet Poker Stars stayed in and and Tapie insta folded. Thus, the otherwise unfathomable current chapter in the tale of the highest stakes online poker competition played in the history of the game

DOJ is the Current King of Online Poker

In the interview with Tapie’s most active spokesperson, Counsel Behn Dayanim, he emphasized the sincerity of the GBT effort to reach a deal with the DOJ that would have resulted in GBT’s re-launch of the FTP site. The smart money around the Federal Courthouse in Manhattan took no bets on completion of the Tapie deal.

The chances of PokerStars taking down the pot are viewed with far more enthusiasm by the mix of lawyers interviewed, albeit with the caveat that it will take more than big bucks before the case against PokerStars is closed. They predict the departure of founder Isai Scheinberg as part of the company’s management.

As previously detailed, first, in Poker Player Newspaper, the credibility and timeliness of Tapie’s repayment plan to refund ROW customers became a bone of contention in negotiations during the past few months.

According to Behn Dayanmim, however, the DOJ did not show its hand–other negotiations in progress–while pushing Tapie to make full repayment of foreign “ROW” player account balances faster than desired by the company.

Dayanim was plainly annoyed by the DOJ’s sudden hard-nosed position on the timing of refunds to players, explaining that most would see their monies fully refunded almost immediately. On questioning, Dayanim acknowledged that players with larger balances would likely not have received full repayment for more than two years.

“The timetable for repayment of ROW funds had been a critical of concern to the DOJ for months,” say lawyers familiar with with the wrangling over this point between Tapie and DOJ. “Tapie ultimately showed its colors when push came to shove,” according to one lawyer close to multiple protagonists involved in the final weeks of the deal making process.

The poker industry has been kept in the dark as to the intentions of the Department of Justice regarding repayment of American player account balances, but knowledgeable insiders have been told in no uncertain terms that the DOJ is genuinely interested in seeing players refunded all of the monies due to them. “The United States Department of Justice has invested significant time in securing a reliable repayment process for players, both in the United States and abroad, ” says another source at one of the law firms representing Black Friday defendants.

Apparently, Tapie was raised by the DOJ, Poker Stars called and Tapie “insta folded”–thus creating a bizarre twist in the locked up FTP customer accounts. Several former government lawyers familiar with the complicated maneuvers involved suggest that Poker Stars’ patient and savvy play has been pure been genius, with the likely net result of FTP players seeing refunds of their monies at FTP coming to them from PokerStars timely, once all of the necessary paperwork is signed and sealed. This scenario is part of the new anticipated deal which will purportedly reflect settlement of the civil forfeiture actions by the DOJ against Poker Stars. Predictions come fast and furious these days, but concrete knowledge is harder to come by.

One European based lawyer who has represented FTP interests and has proven highly accurate in the past (but speaks only on the condition of anonymity) insists, “DOJ has cautioned the relevant parties against making public statements regarding the terms of the settlements until it gives the green light.” In an interview today, Tapie’s most active spokesperson, Counsel Behn Dayanim, emphasized the sincerity of the GBT effort to reach a deal with the DOJ that would have resulted result in GBT’s re-launch of the FTP site. The fingerprints of Dayanim, clearly resonate in the GBT company statement.

Note: This article appears in the online edition of Poker Player Newspaper.