Today the Kahnakwake Gaming Commission issued a statement that Blanca Games, operator of Absolute Poker and UB.com would begin a process to liquidate the assets of the company and ultimately distribute proceeds to players. The plan has been submitted to the U.S. Department of Justice in the Southern District of New York for approval.

The announcement comes approximately six months after the April 15th Black Friday seizures, which of course saw the domain names seized of the top three U.S. facing sites at the time. After the seizures and the subsequent banning of U.S. players, the Cereus Network took a huge hit that became precipitously worse in the months that followed as cashouts grinded to a halt and a lack of confidence in the brand grew.

For players, this is likely the beginning of a long process that will have to play out over many more months and perhaps years. Although the statement from Kahnawake sounds optimistic, previous liquidations of online poker sites have not gone quickly or produced impressive results. BetonSports, which got into trouble before the UIGEA, eventually paid players just under 5% of their balances that were owed. Other liquidations have produced no return of funds to players.

Read below for the full statement.

(MOHAWK TERRITORY OF KAHNAWAKE – October 27, 2011) – Since the actions taken by the US Attorney’s Office for the Southern District of New York (the “SDNY”) on April 15, 2011, the Commission has been in close and regular discussions with its licensee, Blanca Games Inc. (“Blanca”), operating as Absolute Poker and UB.com (“AP/UB”), to facilitate the reimbursement of both US and non-US players. The Commission has also received regular updates of discussions between AP/UB and the SDNY.

Over the past several weeks, we were advised of a potential solution prepared by Blanca and its representatives, establishing a process to liquidate Blanca’s assets and distribute proceeds to players. We understand that this process has been presented to SDNY for consideration and approval.

The Commission’s foremost concern in this matter has been, and remains, the reimbursement of both US and non-US players, as quickly and completely as possible.
To avoid further prejudice to affected players, the Commission has demanded that all parties complete their discussions and implement a reimbursement solution without further delay.

Tags: absolute poker, cereus network, doj, ub.com

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A new House hearing on online poker will be held this week, while Denmark reports more license applications than expected ahead of a regulated market in 2012. These stories and more are in this edition of the Weekly Industry Update.

House Committee to Hold Hearing on Online Poker This Week: On Tuesday, the House Energy and Commerce Manufacturing committee will hold a hearing on online poker legislation. Rep. Joe Barton, the Congressman who introduced the legislation earlier this year, stated "It’s a first step to showing why the current law is a lose, lose for everyone — the public, the taxpayer, the banking industry, and the people who want to play poker openly and honestly on the Internet. I look forward to an open exchange of ideas." The Barton bill would allow licensed race tracks, poker rooms and casinos to acquire licenses to set up online poker sites. In related news, Donald Trump has stated that his company, Trump Entertainment, would like to be involved in online gambling if/when regulation occurs in the U.S.

Full Tilt Update: This past week was relatively quiet as investor discussions continue. There was a new lawsuit, however, as players filed suit against Full Tilt Poker lawyers. The lawsuit claims that Full Tilt lawyer, Cozen O'Conner, received more than $2 million in fees "from money laundered through a scheme orchestrated by the companies behind Full Tilt Poker."

Meanwhile, Subject Poker has reported that the AGCC falsely reported that the U.S. Department of Justice had seized over $330 when the actual number was roughly $159 million. The story is noteworthy because the original figure would be enough to play players in full, while the actual figure -- which is the total amount seized by the DOJ over the last four years -- is roughly only half of what players are owed. The AGCC reacted to the story by making a follow-up.

Denmark Receive More License Applications than Expected: In 2012, the Denmark online gambling market will be opening up. According to a report from EGR, the Danish Gambling Authority has received twice the expected number of applications: 68 applications from 43 operators. The DGA will announce the new license owners in December.

Cereus Network Dead?: : With players reporting that the Absolute Poker and Ultimate Bet cashier is now inaccessible, it appears that the Cereus Network may no longer be operational. Even with the cashier no longer available, cashouts have been extremely slow and sporadic over the last few months. Since Black Friday, the Cereus Network has seen their player base dwindle 99%, down from thousands to less than 100 over the last few months.

Latest Traffic Update from PokerScout: PokerScout reports a large traffic increase for the previous week. The industry rose 2.1% due to some strength from PokerStars and a 7% gain from Merge Gaming, who last week began accepting U.S. players for the first time since June. The network regained the top US-facing room spot from Bodog.

Jottings: EU urged to respect member state right to gambling...Potential future of online gambling regulation...Everleaf Network sees huge traffic growth after Euro Sportsbook joins network...Bwin setting sights on the U.S...Maryland governor wants online poker off agenda

Tags: absolute poker, cereus network, denmark, full tilt poker, poker traffic, regulation, ub.com

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‎ Poker Gaming , ‎ Poker Industry News

Be sure to follow the Poker Affiliate Solutions Twitter feed for the latest updates.

It’s almost hard to believe it’s been a month since Black Friday. In our four week anniversary update on Black Friday, we take look at the Department of Justice confirmation of the Absolute Poker statement released a day prior, comments from WSOP officials about the 2011 World Series of Poker and the latest traffic updates.

DOJ Releases Statement on Agreement with Absolute Poker: On Wednesday night, the Department of Justice released a statement confirming an agreement with Absolute Poker regarding the return of funds to US players. The agreement will provide “assurances to third parties working with Absolute Poker in its legitimate efforts to return player funds.”

Unlike PokerStars and FullTilt Poker, the sites will NOT receive their domain names back as part of the agreement. The terms of the agreement also state that US players can not engage in real money play on either site. The compromise also expressly allows for Absolute Poker and UB.com to continue to do non-US business. An independent monitor has been appointed to ensure Absolute Poker’s compliance to the terms of the agreement. At the time of this writing, some US players were still seen playing at the tables.

WSOP Director discusses WSOP 2011: World Series of Poker Executive Director Ty Stewart said in a conference call on Wednesday that he didn’t see reason why this year’s field of players won’t meet or exceed last year’s figures. The World Series of Poker Main Event attracted over 7,300 players. Not only do many US poker players win their entries through online poker sites each year, but many still have funds tied up at Full Tilt Poker and Absolute Poker (Poker Stars players have been paid). Stewart did acknowledge, however, that they are “concerned about players not getting funds back in a timely fashion….that could be a salient factor.”

There doesn’t appear to be any new major policy on logos at the WSOP event. In some respect, the problem has fixed itself by operators who have terminated agreements with pros or have asked them not to wear logos at American events. This will be an interested sideshow to witness during this year's World Series of Poker.

Traffic Update: With the dust settling a bit since Black Friday, traffic shifts on a day-to-day basis haven't been as significant, according to PokerScout. Traffic at Merge Gaming is taking a breather. Still, the site did have their 2nd highest peak traffic number in their history on Wednesday (2982) and 3rd highest on Thursday (2889). On the other end of the spectrum, the Cereus Network’s 530 players seen on May 11th was their lowest recorded since Black Friday.

Jottings: LVRJ reports on a new push for legalized poker, this time from the AGA…PPA director John Pappas estimates $100-$500 million in player funds has been held up by the Black Friday domain name seizures…Costa Rican newspaper reports on last week raids…In non-Black Friday news, Spain is one step closer to regulation.


Feel like you’re behind on the developments?:

You can also check out our Twitter feed where we provide you with the latest daily minute developments. For your convenience we have also provided an archive of previous updates:

PAS Statement on DOJ Announcement 4/15
4/16 Cliff Notes: Details of indictment, when US players were shut out, Player funds, canceling of B&M partnerships, Initial statements from PokerStars, Full Tilt and the PPA
DOJ Domain Name Agreement 4/20
4/21 Cliff Notes: DOJ agreement, A new not guilty plea, AP/UB.com new message for US players, statements from gaming commissions of Kahnawake, Isle of Man and Alderney
Incredible Black Friday Promotions: We lay out the best of the best
4/22 Cliff Notes: Online poker traffic update, Antigua weighs in, Absolute Poker statements, collection of statements since 4/15
4/25 Cliff Notes: Merge gaming Breaking traffic records, Arizona credit union shut down, comments from Steve Wynn.
4/26 Cliff Notes: PokerStars Making US Cashouts, Merge Gaming now up 60%.
4/28 Cliff Notes: Jon Kyl Change of Heart?
Merge Gaming Ending Rakeback -- for New players who sign-up after June 1st.
5/3 Cliff Notes: Full Tilt cashouts coming soon?
Mixed Signals at AP/UB
5/6 Cliff Notes: Cereus Network Bankrupt?, Eric Holder says DOJ case was "appropriate"
Absolute Poker/DOJ Agreement

Tags: absolute poker, black friday, cereus network, doj, ub.com, wsop

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‎ Poker Gaming , ‎ Poker Industry News

On Wednesday night, MSNBC reported that parent company of the Cereus Network, Blanca Gaming, is currently unable to “make any payments towards its debt obligations.” However, on Thursday, Blanca issued a press release saying the previous reports were “erroneous” and clarified the report by stating “This notice has no negative impact upon Blanca, the operating company, or its brands. As stated previously, Absolute Poker and UB continue to operate their non-U.S. facing business around the world.”

There is also an interesting blog, posted by ESPN writer Gary Wise where he says the Cereus Network silence thus far seems “reasonable” after conversations with the company. Many players remain skeptical of that assessment.

Update: Gary Wise has recounted his blog post with an apology to US-based Cereus players.

Not only have Absolute Poker and UB stated that non-US operations are continuing, but they have went as far as to announce withdrawal limits have been RAISED to $1,000 for Visa withdrawals and $500 for other methods. Despite this seemingly optimistic news, non-US players have reported very little improvement thus far in successful cashouts recent days. Cashouts for non-US players had previously been capped at $250.

On Wednesday, an internal memo was leaked that reported many of the staff were being laid off (as much as 95%, according to some sources). Despite not accepting new US players, existing US players are still are able to sit down and play. At this point, however, it seems the status of US player funds are still very much in the air.

No room has been hit harder by the events of Black Friday than the Cereus Network. PokerStars and Full Tilt Poker had a large US-customer base, but not nearly as large a share as Absolute Poker and UB.com apparently had. This is strongly represented in their traffic numbers since Black Friday. Despite peak time traffic of 700-800 players on recent evenings, traffic has plunged over 75%, according to PokerScout.

Unlike Full Tilt Poker and PokerStars, the Cereus Network has not made a domain name agreement with the US Department of Justice to allow for funds to be paid back to players. While US players wait to hear word on their funds, PokerStars cashouts have already been initiated and Full Tilt Poker cashouts could be coming in the next week or so.

The full AP/UB Press release can be read below:

As previously stated, Absolute Poker and UB ceased their U.S.-facing operations due to recent legal developments in the United States. The company is currently restructuring and is focusing its resources on consolidating its non-U.S., rest-of-the-world operation and software business. In order to have a more efficient and successful future business, an immediate need to downsize and streamline operations significantly at both online poker rooms has been required. Absolute Poker and UB continue to operate their non-U.S.-facing business.

This decision comes after considerable review and analysis of the impact that ‘Black Friday’ has had on the business as a whole. The workforce has been liquidated, and the process of rehiring approximately 20% of staff in key positions has commenced. All affected employees have been informed of this necessary restructure.

A company spokesperson said: ”We regret that we have been compelled to take these actions. We have worked tirelessly to create a truly amazing company that is filled with extraordinary people. We have always been and still remain fully committed to our employees and players. At the same time, we are confident that this restructuring will strengthen the company and its future.”

The Company spokesperson also addressed erroneous reports that Blanca has filed for bankruptcy. The apparent confusion over this issue stems from the fact that Blanca recently informed a debt holder, Madeira Fjord, that it was terminating debt payments to, and its relationship with them. As a result, Madeira Fjord apparently filed a notice of bankruptcy in Norway. This notice has no negative impact upon Blanca, the operating company, or its brands. As stated previously, Absolute Poker and UB continue to operate their non-U.S. facing business around the world.

For non-U.S. players, Absolute Poker and UB have increased their maximum withdrawal limits to $1000 for Visa withdrawals and $500 for all other methods. The number of transactions being processed per day has been significantly increased as well. Players are still restricted to one transaction per week, but we are working to return non-U.S. withdrawals to normal service levels as quickly as possible.
As confirmed earlier this week, the company’s legal counsel is in continuing discussions this week with the U.S. Attorney’s office to formalize an agreement that would facilitate the return of funds to U.S. players.”

Tags: absolute poker, black friday, cereus network, ub.com

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