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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More big Full Tilt Poker news this week as the Department of Justice amended the civil complaint against the company. Meanwhile, investor negotiations are reportedly progressing with a letter of intent from French investors to purchase the battered poker site. Get caught up to speed on these stories and more in our Weekly Industry Update.

Full Tilt Poker Update: New DOJ Actions and Investor Letter of Intent The week began with a private hearing with the AGCC on Monday. There was no official word from the AGCC on the results of the hearing or the status of the Full Tilt Poker license. The delay is likely attributed to the status of investor negotiations, which according to reports include a letter of intent from unnamed French investors. According to Subject Poker, the terms of the purchase agreement "would provide funds to allow the repayment of account balances to all Full Tilt Poker players worldwide." The DOJ and the AGCC are aware of the letter of intent.

In other major news from the week, the DOJ amended the civil complaint against Full Tilt Poker to add three new defendants: Howard Lederer, Chris Ferguson and Rafe Furst. In a statement, the U.S. DOJ alleged that the directors operated the site as a "ponzi scheme" against players that paid $444 million to board members that eventually led to a $300 million plus shortfall as of March of this year. A lawyer for Full Tilt Poker rejects the notion that Full Tilt Poker was a ponzi scheme while acknowledging that the site made mistakes. It's important to note that no criminal charges have been made against the new defendants; however, the DOJ has moved to seize board members funds.

It remains to be seen whether these latest charges affect the sensitive investor negotiations in any way.

Latest Traffic Update from PokerScout: PokerScout's traffic report from last week reported a 2.4% drop in traffic over the last week. Merge Gaming picked up 3% after a poor showing from the previous week. In the year-over-year report, Bodog, Merge and iPoker have all gained over 20% while Microgaming, Entraction and Boss are among the PAS partners to lose traffic.

Coral Poker Affiliate Account Ready PAS is happy to report that Coral Poker affiliate account has been created and you can start promoting Coral Poker on your websites effective September 23rd. Remember, Eurobet will be closing on September 30th, so make sure that you inform players promptly that they will have to create new accounts at Coral Poker. Players will receive the same deal they received at Eurobet plus new extra retention promotions.

Jottings: PPA issues statement on latest Full Tilt Poker charges... Bodog blocking player and table data in poker software...Ireland plans new online gambling laws...AGA releases new code of conduct...Denmark egaming market opening up in early 2011.

Tags: coral poker, doj, eurobet, full tilt poker, ongame, poker traffic

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‎ Poker Gaming , ‎ Poker Industry News , ‎ PAS 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

In breaking news, Absolute Poker has just released a statement that it has reached an agreement with the DOJ to provide them with “all necessary assurances that third parties may work with Absolute Poker to facilitate the return of funds, currently held by third party processors, to players located in the US. This provision is an important step to return US player funds.”

In today’s Black Friday update, we go over this surprising release as well as some other news related to Black Friday.

Absolute Poker Reaches Deal with DOJ: In the statement released today, Absolute Poker and UB.com state that the "top priority has always been, and remains, the refund of account balances to its US players" but goes on to state that "Unfortunately, the Company still faces several legal issues which must be navigated before funds can be paid out to US players."

Other highlights include an appointed Monitor, approved by the US Attorney's Office to insure compliance of the agreement. Cereus has also agreed to cease ALL real money play from players located in the US.

It’s probably safe to say that many did not see this coming. The Cereus Network has lost over 75% of their traffic since Black Friday and had a barrage of bad news hit the network ever since. The release is going to cause some skepticism, but this is a very hopeful sign going forward. This is definitely a topic we will be following closely going forward. The full statement can be read at the bottom of this post.

Cereus Network Statement on Raids and Sponsored Pros: On Saturday, Blanca responded to reports of raids on their Costa Rican offices with a press release. Then on Monday, UB.com and Absolute Poker announced the parting of ways with 11 poker pros including Joe Seebok, Prahlad Friedman, Eric Baldwin and Tiffany Michelle. In the statement released by Blanca Games they stated the following:

“Recently, Absolute Poker and UB ceased their U.S.-facing operations due to legal developments in the United States. To ensure the on-going viability of the business, it has been necessary to downsize certain aspects of Absolute Poker’s and UB’s operations. These efficiency measures have been taken to enable the brands to continue to operate their non-U.S.-facing business.”

Some former UB.com and Absolute Poker pros have weighed in.

Full Tilt Poker Update: Full Tilt Poker has stated that players will be updated during the week of May 15th with additional developments regarding the status of player funds.

PokerScout Traffic Update: PokerScout has released their lastest poker site traffic report. Merge Gaming continues to grow, now up 77% since Black Friday. They have now grown 157% over the last 12 months. Cake Poker and Bodog are both up 28% and Party Poker is the big European winner up 10%. The Yatahay Network is also up 207% over the last 12 months. The entire online market is down 18% since Black Friday, with much of the loss of overall traffic loss coming from Full Tilt Poker and Poker Stars. Absolute Poker is also down over 75% the time period.

Jottings: Freakonomics have had some great articles on poker lately: Does poker pass the “daughter test”. Poker is a game of skill. Why the crackdown on internet poker is a mistake…Some online poker pros are debating moving abroad…PPA to host Member fly-in on May 23rd and May 24th…Internet gambling tempting Colorado B&Ms….In non-Black Friday news IGT is looking at acquiring the Entraction Network.

Full Absolute Poker statement can be read below:

ST. JOHN'S, ANTIGUA and BARBUDA--(Marketwire - May 10, 2011) - Absolute Poker, including the UB (formerly Ultimate Bet) brand, hereafter "Absolute Poker," issued the following statement today in relation to civil and criminal matters filed in federal court in Manhattan and made public on April 15, 2011:

Absolute Poker has reached an agreement with the United States Attorney's office for the Southern District of New York ("SDNY"). Under the agreement, the US Attorney's Office has agreed to provide all necessary assurances that third parties may work with Absolute Poker to facilitate the return of funds, currently held by third party processors, to players located in the US. This provision is an important step to returning US player funds.

The Company has also notified the SDNY that it has closed its US-facing operations, and it has agreed to the cessation of real money poker play in the US. As such, Absolute Poker has not requested the return of its worldwide domain names, Absolute Poker and UB, and today's agreement does not provide for their return. The agreement also provides for the appointment of Monitor, approved by the US Attorney's Office, to assess the Company's compliance with the terms of the agreement.

Absolute Poker's top priority has always been, and remains, the refund of account balances to its US players. Unfortunately, the Company still faces several legal issues which must be navigated before funds can be paid out to US players. The Company's US attorneys, Blank Rome LLP, continue to work diligently to resolve these issues, which is a necessary further step to facilitate the return of funds to players. Player funds, therefore, will not become immediately available for withdrawal as a result of today's agreement with the DOJ.

A Company spokesperson said: "Today's signing of the agreement with the DOJ is an important step towards the safe and efficient return of funds to our US players. We can now move as expeditiously as possible to collect player monies from third party processors as a prelude to establishing proper mechanisms for the return of funds to our US players. As previously announced, we have already taken specific actions to exit the US market by closing our US-facing operations. Blank Rome LLP will continue to engage in discussions with the SDNY in order to complete the necessary agreements for the final transfer of frozen fund balances to our US players. This remains our highest priority. We will continue to update our players and the poker community, as we move forward to resolve outstanding issues."

Updated 05-10-2011 at 05:40 PM by GonzoPAS (Update to details of Press release)

Tags: absolute poker, black friday, cereus, doj, player funds, ub.com

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‎ Poker Gaming , ‎ Poker Industry News

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

Almost a week after Black Friday, news and fallout from the day continues to reverberate. On Wednesday, to the surprise of many industry observers, the Department of Justice released a statement that they have reached an agreement with Poker Stars and Full Tilt Poker to have their domain names restored. In today’s edition of our Black Friday report, we take a look at this major development as well as other news surrounding the events on everyone’s mind…

DOJ Domain Name Agreement: The DOJ-PokerStars/Full Tilt Poker agreement allows the restoration of both dot com domain names with an assurance from PokerStars and Full Tilt Poker that they no longer service US players. The agreement also expressly states that both sites can continue to offer services to non-US players in regulated markets. Cereus has not yet made the same agreement, but the statement says the agreement is open to the site if it chooses.

Read our summation on the DOJ statement. After the DOJ release, Full Tilt Poker and PokerStars both released statements expressing their desire to pay players. Full Tilt Poker’s statement was a bit more cautious as they mentioned the “practical and legal impediments” to make quick payments.

A New Not Guilty Plea: A second individual who processed payments for online poker sites pleaded not guilty in New York on Tuesday. Chad Elie, was released on $250,000 bail, and is the second payment processor to plead not guilty this week.

Absolute Poker/UB.com update: When signing on to UB.com and Absolute Poker, US players are greeted with a message that states that the site has “suspended real money activity for online players based in the U.S. due to legal developments.” Many US players are still able to log in and play at the time of this writing, however.

Jottings: ESPN is removing poker ads and some advertising on their poker broadcasts. …Conservative journalist John Stossel is saying to leave the gamblers alone… 2+2 poster names the counsel for PokerStars and Full Tilt Poker.... PokerStars FAQ to USA players… Spencer Bachus stands firm on online gambling position… Great take from BWOP about what may have triggered the online poker investigation.

New Statements from Licensors of the indicted poker sites

Kahnawake Gaming Commission (License for Absolute Poker and UB.com)

The Kahnawake Gaming Commission (“KGC”) is reviewing the indictments issued on April 15, 2011 by the Southern District of New York against three online poker companies, one of which (Absolute Poker) holds its primary gaming license in Kahnawake. The KGC's principal concern is that players are not adversely affected by the actions taken by US authorities. The KGC is presently engaged in discussions with its licensee concerning the status of player accounts. Upon completion of its review, the KGC will determine what steps may be required and will issue a further statement at that time.

Isle of Man Gaming Commission (holds license for Poker Stars)

Following developments on Friday 15th April, the Commission is aware of documentation issued by authorities in the USA which makes allegations against PokerStars and some of its personnel. While we are discussing the matter on an ongoing basis with PokerStars and watching developments, we can confirm that PokerStars’ licensing status in the Isle of Man remains unchanged.
We are aware that PokerStars have suspended the availability of cash-play games in the USA and we are currently endeavoring to ensure that any player who wishes to withdraw money from their account can do so.

Alderney Gambling Control Commission Statement (holds license for Full Tilt Poker)

The Alderney Gambling Control Commission (“AGCC”) is aware of proceedings brought against Full Tilt Poker and individuals concerned with its operations by the authorities in New York State. AGCC will review the documentation affecting its licensee and to facilitate this AGCC will undertake its own investigation into these allegations; no further general commentary will be provided pending progress in these matters.
AGCC notes that its licensee, trading as Full Tilt Poker, denies all of the allegations. Upon the grant of its license Full Tilt Poker identified that it had obtained specific legal advice relating to its proposed activities. AGCC further notes the current public statements made by Full Tilt Poker to its customers and its recent decision to suspend “real money” play in the USA. AGCC is concerned that appropriation of Full Tilt Poker’s dotcom site is hampering and potentially adversely affecting its lawful operation elsewhere in the world.

Tags: absolute poker, alderney, black friday, doj, espn, full tilt poker, indictments, isle of man, kahnawake, pokerstars, ub.com

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‎ Poker Gaming , ‎ Poker Industry News