Poker Sites Shut Down

The US cracks down on online poker, closing down sites and charging operators with fraud.

The founders of three of the world’s biggest poker websites, Full Tilt Poker, PokerStars and Absolute Poker could be facing up to twenty years in jail if they are found guilty of breaching American anti-gambling and money laundering laws.
US investigators allege that the websites had formulated a complex criminal fraud in order to trick and bribe banks into huge money laundering and bank fraud. The US Department of Justice has taken control of the companies’ bank accounts and of the US websites. These websites now show an FBI warning about online gambling being illegal.
In the United States, it is illegal for their citizens to gamble online. Many Americans have chosen to continue betting through overseas sites operating illegally.
Analysts are predicting that British companies, who have not taken illegal bets in the US will profit in the long run. They are more likely to win licenses in the US when regulated online gambling is introduced.
Due to these allegations and charges, British poker sites are expecting to see a return of “whales”, big spending European poker players. Whales had been playing at Full Tilt, PokerStars and Absolute because they could play against Americas biggest names in poker. Now that the American whales can’t play at these sites, Full Tilt, PokerStars and Absolute have lost one of their biggest attractions.
It is anticipated that European players will withdraw their funds from the affected sites. British sites therefore, expect a big lift in players.
The US Department of Justice alleges that these three companies and eleven men charged in connection with this crime of circumventing gambling laws, tricked, lied and conspired with banks to transfer the proceeds of gambling.
Janice Fedarcyk, the head of the FBI’s New York office said that the defendants knew their business with customers and banks in the US was illegal. Full Tilt’s chief executive Raymond Bitar expressed surprise and disappointment by the decision to lay charges and was looking forward to being vindicated. The other companies did not comment on the situation.
The other defendants in this case include Isai Scheinberg, PokerStars 64 year old founder; Paul Tate, a PokerStars employee; Nelson Burtnick from Full Tilt Poker and Scott Tom and Brent Beckley from Absolute Poker.