PokerJunkie Editorial: Full Tilt Poker Blows More Smoke - Poker Junkie
Full Tilt Poker released a statement on Tuesday regarding its problems paying back players after the April 15th DOJ seizure.
Poker Junkie Blogger compncards gives his insights on the statement below.
From the statement:
"As is obvious from the events that have transpired since April 15th, Full Tilt Poker was not prepared for the far-reaching, US government enforcement effort of Black Friday."
First and foremost, this failure lies on Full Tilt's management. When you knowingly and blatantly violate U.S. law, at some point you have to setup a backup plan and a worst-case scenario plan.
It is clear to me that neither was created, or if they were, they were executed much in the same way as their business relations since April 15th.
"The events of Black Friday came on the heels of prior government enforcement activities and significant theft.
"Over the two years preceding Black Friday, the US government seized approximately $115M of player funds located in U.S. banks.
"While we believed that offering peer-to-peer online poker did not violate any federal laws - a belief supported by many solid and well-reasoned legal opinions - the DOJ took a different view."
Hooked on Phonics is a great program for those incapable of comprehending the written word. If I point a gun at you and say I will point the trigger if you don't move, you will move.
When the U.S. Government states that processing online gambling transactions is illegal and you will be prosecuted if you violate the law, you need to not process those transactions.
Fire your lawyers.
"In addition, as was widely reported, a key payment processor stole approximately $42M from Full Tilt Poker.
"Until April 15th, Full Tilt Poker had always covered these losses so that no player was ever affected. Finally, during late 2010 and early 2011, Full Tilt Poker experienced unprecedented issues with some of its third-party processors that greatly contributed to its financial problems.
"While the company was on its way to addressing the problems caused by these processors, Full Tilt Poker never anticipated that the DOJ would proceed as it did by seizing our global domain name and shutting down the site worldwide."
Firstly, the DOJ did not shut down the site worldwide. That happened after the AGCC suspended your license.
In regards to payment processors screwing you out of money, what did you expect? You were processing payments illegally.
Did you really think your operators were going to be honest, hardworking people?
"Over the last four months, Full Tilt Poker has been actively exploring opportunities with outside investors in order to stabilize the company and pay back our players.
"At least six of those groups, including hedge funds, operators of other internet businesses and individual investors, have visited Dublin to inspect the operation. We have recently engaged an additional financial advisor through an investment banking group to assist us in our search for an infusion of cash as well as a new management team to restore the site and repay players.
"While any deal of this nature is necessarily complex given the current regulatory environment, our players should know that Full Tilt Poker is fully committed to paying them back in full and restoring confidence in our operations."
Six groups? And yet none have bitten? Shouldn't that be a bit of a sign?
What is stopping these groups from pulling the trigger? Also, what evidence do we really have of these groups other than the so-called "European investors."
What your players know is that you are a company that has consistently dodged answering any and all questions for months now.
Your handling of the whole situation has been an exercise in how to perform a clusterfuck.
Your players no longer have any confidence in your company due to the fact that they have not been paid.
Even when, or rather I should say if, you are able to pay us back, good luck in getting anywhere near where you were before this happened.
This concludes Full Tilt's current "blowing smoke up your ass" session.