For poker players owed funds at Full Tilt Poker, Absolute Poker and Ultimate Bet, the Poker Players Alliance (PPA) has addressed in detail the legal issues involved in filing a claim.
The document, titled “Legal Rights of Players with Unpaid Account Balances – a PPA Information Guide,” concludes that “for the vast majority of players” it would be very difficult to demonstrate a valid claim.
However, for those players still interested, the document underscores a pressing deadline: players have until July 15 – just two days – to file a civil forfeiture claim.
The 23-page guide, available on scribd, outlines the steps required, even attaching the correct “Notice of Claim” form in the footer of the document. But throughout, the legal guide stresses that players should seek legal advice before filing a claim.
“Players, especially players owed substantial sums, should definitely speak with their own lawyer about whether it is in their interest to file a lawsuit either individually or as a self-defined group,” it reads.
“Unique Situations”
Despite initially stating there was “no question that players have an enforceable legal
right against any poker site” for failure to return account balances, the document takes pains to demonstrate the difficulties and pitfalls in filing for a claim.
Along with the expense of the lawsuit, and the likelihood of difficulty in collecting on a judgment, there is the concern that filing a lawsuit would “create collateral problems,” as players would be required under oath to “open themselves up” to possible legal problems and interest from tax authorities.
There is also a large hurdle in demonstrating if any players have a right to seek repayment for funds held in the accounts seized, as a claimant would need to demonstrate an ownership of interest in a seized bank account. Any player filing a claim faces possible fines if the court deems the suit frivolous.
However, it still may be beneficial to file a claim for some players in “unique situations.” One such circumstance is with the e-wallet QuickTender/UseMyWallet, that informed customers in June that money had been frozen in transit on the way to customers’ US bank accounts. In such a case, there is “little doubt as to who is the 'owner’ of the funds”, demonstrating a clear ownership interest.
Another special circumstance is if a player received specific communication from a poker site that contained specific guarantees, such as a promise to maintain funds in a segregated trust account:
It is also true, however, that many players, especially players at high volume or at high stakes, and some who used affiliates to sign up, had other communications with these sites. These other communications may contain promises that do rise to the level of creating a fiduciary relationship. As such, there may be many players out there with sufficient personal promises received from a site that may be sufficient to establish the required fiduciary relationship. But obviously that will vary from specific player to specific player.
Professor I. Nelson Rose, a leading expert in gaming law, shares the fears of the PPA.
“Should you file a claim? You probably don’t have much chance of success, unless you have a communication that mentions one of the bank accounts listed in the Complaint,” he writes on CalvinAyre.com.
“Even then, there are some risks. I don’t think the judge would punish a player if the claim failed. But the DoJ will now have your name and identifying information. There is no federal crime against playing poker online. But you can be sure that if you are claiming hundreds of thousands of dollars that you will have your taxes audited.
