Full Tilt Poker may have finally found their white knight, but it will cost them a controlling stake.
According to a news article in the LA Times Friday, an unnamed group of European investors have come to an agreement to buy a majority stake in Full Tilt, which may lead to a payout for US players.
“Attorneys associated with Full Tilt said the company signed an agreement Thursday with a group of investors who would put up enough money to pay back players and in doing so attain a majority stake in Full Tilt’s Irish parent company, Pocket Kings,” writes Nathaniel Popper. “The attorneys spoke anonymously because of the sensitivity of ongoing negotiations with the federal prosecutors in Manhattan who brought the charges.”
According to the article, as much as $150m is owed to players in the United States, who still have their funds tied up in Full Tilt since their withdrawal from the US market post-Black Friday.
The Wall Street Journal also reported the same story, citing two anonymous sources in Full Tilt.
“The deal is still tentative and isn’t expected to be closed for at least three weeks,” writes Alexandra Berzon. “The investors want to be sure that Fill Tilt can reach a settlement with the U.S. government before completing the investment.”
The article also states that the investors aim to reach an agreement with the AGCC.
On the news of a deal, Phil Ivey, the prominent face of Full Tilt Poker who filed suit against Tiltware for “suffering public ridicule, humiliation, and loss of personal and professional reputation” due to their alleged illegal activity, has reportedly dropped the case.
“Mr. Ivey intends to dismiss his lawsuit as he believes Full Tilt is taking steps to see that the players are paid,” Ivey’s attorney David Chesnoff told the LA Times.
The deal comes barely 24 hours after the Alderney Gaming Control Commission (AGCC) suspended Full Tilt’s license after an investigation in the wake of the Black Friday indictments. The poker room was taken offline, and at the time of writing remains inaccessible.
Soon after, Full Tilt’s dot-com website traced through Mohawk Territory, hinting that Full Tilt may be looking to switch back to a Kahnawake Gaming Commission (KGC) license, despite a Memorandum of Understanding with the AGCC intent on maintaining effective regulation between the two jurisdictions.
The KGC issued a statement stating that they were performing “a review of all available information” to determine whether an existing secondary license FTP holds in the jurisdiction will continue. The “Secondary CPA” is given to poker rooms already licensed in a different jurisdiction.
Full Tilt Poker’s French operation has also been taken offline since the Alderney suspension. The official regulator, ARJEL, has made no official statement, but according to an article on iGamingFrance, the authority has demanded they find a technical solution “without delay” to bring the “dot-fr” room back online.
Update: Article updated to reflect new information from the Wall Street Journal.
