Full Tilt Poker Accused of Flouting US Gambling Laws

[JTodd]

Full Tilt Poker Accused of Flouting US Gambling Laws From the Financial Times Click Here for Full Story Full Tilt Poker, one of the largest online poker sites still serving the US, was accused in a lawsuit on Thursday of being controlled from within the country, raising questions about the effectiveness of a 2006 ban on US internet gambling. More broadly, the suit – which was filed by Lary Kennedy, a poker player and user of Full Tilt’s service – draws attention to the immense variety of strategies being used as companies jockey for position in the event that online card games or sports betting will be legalised. Bills are currently pending in Congress. Some companies, such as Full Tilt, have ploughed ahead with plans to build market share since the ban was introduced. Full Tilt’s main website does not warn US residents that online gambling is illegal, and it states its poker room was designed by well-known American professional poker players including Phil Ivey, Chris Ferguson and Howard Lederer. The suit that was filed in Los Angeles County Superior Court, names them and others as defendants and claims they control the company and its web site. Mr Ivey, Mr Ferguson and Mr Lederer could not be reached for comment. Full Tilt did not respond to requests for comment. Full Tilt has said it is regulated by the Kahnawake Gaming Commission, located in Quebec, Canada. Meanwhile, PartyGaming, the London Stock Ex­change-listed group that dominated the US market until the ban, has since operated in full compliance with US laws. It stopped accepting bets from US computers and agreed to a legal settlement in which it accepted it had violated laws relating to bank fraud, illegal gambling and wire fraud between 2001 and its exit from the US market in 2006. It may have agreed to that settlement in the hope the US would open its arms to virtual card-playing, people familiar with the company’s thinking said. Other groups are making strategic moves. London-based Betfair paid $50m in January for the TV Games Network (TVG) – what it calls the largest legitimate online betting operation in the US. The LA-based company specialises in cable broadcasts of horse races, which can be bet on electronically in several states. David Yu, Betfair chief, said the company wanted to be in the best position if the rules did change. The Las Vegas casinos are divided over what stance to take if the rules change. None are being more aggressive than Harrah’s Entertainment, owner of Harrah’s and Caesars casinos. Harrah’s this year hired Mitch Garber, attorney and former PartyGaming chief executive, to head an online division, and a month ago signed a deal with 888 Holdings to provide services and payment software in the UK. This suit against Full Tilt highlights a particular issue of concern for poker players – that they are playing against software programs instead of humans. The suit says that such programs were being deployed at Full Tilt tables. In addition, alleges Ms Kennedy, the company over-reacted to suspicions about such programs by instituting a zero-tolerance policy, allowing it to seize money deposited by her and other players who were unjustly accused of being robots. Copyright The Financial Times Limited 2009. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.