One of the most high-stakes, controversial and intriguing business stories in the history of the modern gambling industry is heading toward its conclusion. PokerStars, the world’s biggest online poker company, has agreed to sell itself for $4.9 billion to Amaya Gaming, a small publicly-traded Canadian supplier of gambling equipment.
The deal is being backed by Blackstone’s credit division, GSO Capital Partners, which will buy more than $675 million in convertible preferred shares and other securities. Deutsche Bank , Barclays and Macquarie Capital will provide $2.9 billion in credit facilities and other financing.
The deal marks the end of a remarkable story that began when Isai Scheinberg, an Israeli-Canadian former IBM IBM -0.57% computer programmer, founded PYR Software in Toronto and started building PokerStars. Through Scheinberg’s daring and will, PokerStars conquered the world’s online gambling market just as the poker boom exploded. His son, Mark Scheinberg, was also a big part of the business. Like other major online poker companies, such as PartyGaming and Full Tilt Poker, PokerStars expanded rapidly with the booming U.S. online poker market, which took off after an unknown Tennessee accountant called Chris Moneymaker became a millionaire and overnight sensation by winning the World Series of Poker’s Main Event in 2003. He got his seat at the World Series of Poker by winning an online PokerStars tournament.
The only problem: the U.S. Department of Justice had taken the position that online poker violated U.S. law, particularly the Wire Act. Still, PokerStars, which moved its headquarters to the Isle of Man, continued to operate in the U.S., pointing to legal opinions it obtained from prominent U.S. lawyers and law firms that said its operations did not violate U.S. law. PokerStars took over the U.S. market, the biggest single online poker market in the world by far, in earnest after President George W. Bush signed the Unlawful Internet Gambling Enforcement Act, causing PartyGaming to shut down its U.S. operations. Scheinberg kept his company operating in the U.S. and together with Full Tilt essentially owned American online poker.
But in 2011, federal prosecutors in Manhattan launched a massive crackdown against online poker in the U.S., indicting Scheinbeg, suing PokerStars and shutting down the U.S. operations of the company for operating an illegal gambling business. The crackdown exposed financial weaknesses at Full Tilt Poker, which collapsed under the weight of what the U.S. Attorney in Manhattan called a Ponzi scheme. In 2012, PokerStars struck a $731 million settlement with federal prosecutors that also saw the company acquire the assets of Full Tilt. Scheinberg remained under indictment and has not come to the U.S. to face the charges.
With the U.S. market essentially a non-factor and its toughest competitors essentially gone, PokerStars dominated online poker in the rest of the world. The company posted revenues of $1.1 billion last year and earnings before interest, taxes, depreciation and amortization of $420 million. But the company’s effort to reenter the vital U.S. market has proved difficult. The U.S. Department of Justice has reversed its position on the Wire Act and three states, most notably New Jersey, have launched regulated online gambling. The New Jersey Division of Gaming Enforcement suspended the review of PokerStars’ application for an online gambling license for two years, citing the company’s continued association with Scheinberg. Meanwhile in California, some gambling interests want to lock out companies like PokerStars that did business in the U.S. after the UIGEA was passed, an issue that has derailed momentum for online gambling in the most important potential state market. Big casino companies like Caesars Entertainment CZR -2.33% and MGM Resorts MGM -1.85% have launched online gambling units. In the end, it started to make sense for the Scheinbergs to sell.
The Scheinbergs will not remain with PokerStars in any capacity after the deal closes. In a statement announcing the deal, which includes both PokerStars and Full Tilt, Amaya said it believes the “transaction will expedite the entry of PokerStars and Full Tilt Poker into regulated markets in which Amaya already holds a footprint, particularly the U.S.A.”
Amaya Gaming In Deal To Buy PokerStars For $4.9 Billion - Forbes
In March of last year, the New York Senate made headlines when it included the legalization of online poker in its initial version of the state budget, which many believe was inspired by New Jersey’s legalization of online gambling. Unfortunately, its inclusion in the budget did not have support in the state assembly and it subsequently disappeared.
Now, online poker is back in the New York Senate with the introduction of S 6913, a bill introduced Friday by Republican State Sen. John Bonacic. The poker-only bill seeks to “amend the racing, pari-mutuel wagering and breeding law and the penal law, in relation to allowing certain interactive poker games.”
The bill, currently with the Senate Committee on Racing, Gaming and Wagering, for which Bonacic is chair, looks to exclude poker from the state’s definition of “contest of chance.”
“Poker in many instances has been defined as a game of skill and a New York Federal Court in U.S. v. DiCristina … assessed that under federal law poker was predominantly a game of skill,” the bill explains. “New York courts have interpreted New York law to apply a more rigorous test in identifying a “contest of chance” than is applied by most states in this nation and the courts have found that where a contest pits the skill levels of the players against each other, those games are games of skill and not games of chance. Furthermore, the courts have not limited the legislature’s ability to determine that certain forms of poker should fall outside the general definition of gambling since those games are games of skill.”
The bill, which allows for the state to enter into interstate compacts, would allow for ten online poker licenses. Each license would cost $10 million and be good for ten years. Any company receiving a license would then have to pay a tax rate of 15% of gross gaming revenue.
The bill also includes a “Bad Actor” clause, which would bar any person or company that accepted wagers after the end of the year 2006, the same year the Unlawful Internet Gaming Enforcement Act (UIGEA) passed. PokerStars is currently facing “bad actor” opposition in its attempt to gain entry into California, which is largely regarded as the next state to pass iPoker legislation.
“With the passage of the Unlawful Internet Gaming Enforcement Act of 2006, issues concerning the scope and interpretation of state law, including the importance of the location of the wager, wagering activity and website, were clarified,” the bill states. “Those persons that provided goods or services related to Internet gambling involving New York citizens prior to the enactment of that statute, including, at the time, poker, which was until the adoption of this act unlawful, but exited in an expeditious fashion after its enactment should be regarded differently from those that continued to flout U.S. federal and New York law thereafter for purposes of suitability for licensing under this article.”
"The bill is a marker that New York is serious about getting into the online game and they don't want to be left behind," PocketFives has reported Poker Players Alliance Executive Director John Pappas saying. "The sponsor of the bill is the Chairman of the Senate Gaming Committee, but there is no House companion bill at this time. Getting House support will be critical and, without that, it will be a real challenge to have legislation considered this year. This is a great first step, but I think we are far from seeing this bill become law."
Online Poker Bill Introduced in New York State | PokerNews
Recently I had also heard about the licensed process, according to the bill, 10 licensed would be awarded by the state gaming commissions within a period of 180 days after the approval of the bill. At the mean time, it is meant to ensure that a competitive market is created and the licensees do not have an unfair advantages.
This licenses would last for 10 years only, and each licensees have to pay a 1-time fee of $10 million. This bills protect your gambling funds.
Although it fell under the radar for the most part, Nevada’s gaming industry had an important milestone last week. February marked the first time ever that a Silver State gaming revenue report included online poker figures. The state was keeping the numbers under wraps until a third casino firm, South Point, started offering games. Station Casinos, which debuted games in spring 2013, and Caesars Entertainment, which kicked things off in late summer, are the other two.
In other words, from now on the successes or failures of Nevada’s online gaming industry will be out in the open for the public to see, every month.
Online poker play in Nevada during the month of February generated the state’s three operators a combined $824,000 in revenue, or the amount of money collected in rake from cash games and tournaments. It is worth noting that the figure was just a tiny drop in the bucket for overall casino win, which was $926 million for the month. That figure was a big decline year-over-year.
Casino win is the amount of money casinos won from gambling games. It doesn’t include revenue from things such as hotels and food and beverage sales.
Overall poker revenue in February, live and online, was $9,268,000 — up slightly from last year. Poker revenue for the calendar year (2013) jumped for the first time since 2007.
Station Casinos’ product was the first Nevada site to the market, and since its respective launch date $8.5 million in online poker has been realized between the three companies. Overall casino win, statewide, was $10.97 billion from Mar. 1, 2013 to Feb. 28, 2014.
The $8.5 million in online gaming revenue from April 30, 2013 to Feb. 28, 2014 is less than what New Jersey saw in the month of February alone, which was $10.3 million. New Jersey does allow more than just poker, however. Online poker for the Garden State was $3.1 million for February, about 3.8 times the size of Nevada. New Jersey’s games are much younger, though, starting in late November. The latter does have more operators.
Nevada Online Poker Sites Bring In $824,000 In February, Which Is Less Than One Tenth Of One Percent Of Overall Gaming Revenue
And yes, February is marked as the first month that it regulates online broke out numbers for online poker. It has generated $840,000 in revenue during February.
Is full flush poker part of the EPN?
The total online gambling revenues came to just over $173,000 for the month of July, which is just under the $187,000 earned in June. For online poker, the state was able to exceed last month’s $25,607.60 to $31,397.57 which is a nice increase. However, this is not the numbers the state hoped to see when online poker was released.
The state does not have the population to be able to create record numbers in poker revenues and is in need of the interstate options that should be headed their way shortly. Partnering with Nevada, the state will be able to share player liquidity which will allow for players in Nevada to take part in the Delaware online poker sites and vice verse. Interstate options are expected but a date has yet to be set for the launch.
In Delaware, Delaware Park is the most popular online poker provider with the majority of the market, with Dover Downs and Harrington Raceway in the rear. When comparing Delaware to Nevada and New Jersey, one sees that there is really no comparison. For the month June, Nevada earned just over $1 million, with July revenues yet to be released.
For New Jersey, the state was able to earn just over $2 million from online poker for July. These numbers are huge compared to Delaware so it will be interesting to see if the state will be able to pull major numbers once multi-state internet gaming is available.
Delaware Online Poker Sees Slight Upswing
After being hammered out in form by the Mexican agency responsible for gambling matters, the Association of Licensees, Operators and Suppliers of Gaming and Entertainment in Mexico (AIEJA), the new initiative is set to be introduced to Mexico’s Parliament on September 9th. The initiave will first be considered by Mexico’s House of Representatives. The legislation will likely be fast-tracked and could be approved as early as September 20th, according to AIEJA’s president, Miguel Angel Ochoa Sanchez. Mexican officials have cited concerns over money laundering and various forms of illegal trafficking, from drugs to humans, as reasons for updating the country’s old gambling code. Parts of that code date back to 1947. Online gaming specifically has been overlooked in earlier updates. It is not clear whether the new initiative will contain any player-specific elements, or will instead, as most reports indicate, focus entirely on providers of gambling services within the country.
Quasi-illegal gambling shops have proliferated across Mexico in recent years, with slot machines and other gambling opportunities available in numerous outlets — such as drug stores — with little legitimate business ties to gambling. The confiscation of gaming devices found in these venues and the issuance of significant fines is one of the elements known to be included in the initiative.
Protecting the interests of traditional gambling venues is another element of what will likely pass in this Mexican gambling overhaul. Getting rid of less-desirable elements while protecting traditional outlets, such as pari-mutuel betting tracks, is part of the the measure’s intent. “Anything that involves this business [online gambling] must be certified, and the information must be transparent,” Ochoa Sanchez told Mexican news outlet El Universal. “[We are] going to regulate and reorder online play, too, [which will help the recovery] of the horse and greyhound racing industry.”
Such outlets are expected to be the first to receive the new form of Mexican gaming licenses to be issues under the new initiative, if passed. Old Mexican gambling laws allowed for the issuance of “collective licenses” that covered many outlets and gambling forms, but those were susceptible to widespread abuse. The new laws will dictate “one license, one room,” meaning that online-venues licensed in Mexico will be created and regulated specifically for that format.
Mexico’s long-standing gray market position regarding online gambling and poker will likely undergo a transition in the wake of the bill’s passage, which is expected to be the first step of a lengthy legislative track on gambling matters that will stretch well into 2015. Mexico is today known as being one of the most popular destinations for United States ex-pats looking to play online poker against international competition. Several hundred middle- and high-stakes Americans have relocated to Mexico, primarily to Baja California and resort communities on both coasts, where they participate online under an unofficial Mexican flag.
Mexican officials have promised to reconsider the prospect of live poker tournaments as well. Big-time tournament poker’s single visit to Mexico ended in disaster back in December of 2008, when local gaming officials stopped play midway through the first PokerStars-sponsored Latin American Poker Tour event in Nuevo Vallarta, Mexico.
The official statements issued in the wake of that event’s unexpected cancellation confirmed that local officials had rescinded the LAPT’s gaming license for the event, though widespread rumors regarding that unfortunate occurrence tossed blame everywhere, from the local officials allegedly seeking extra under-the-table payments, to the possibility that unauthorized cash games were also being run in addition to the approved tournament events. Securing formal licensing and protection against a repetition of that type of happening is mandatory before major poker events consider a return to Mexican territory.
In his 24-page opinion, U.S. District Judge B. Lynn Winmill stated, “Idaho’s constitution plainly prohibits all forms of gambling other than the three listed exceptions.” These exceptions are slot machines, bingo and off-track betting.
The tribe’s contention was that since poker is not a house-banked game, and is a game of skill, the tribe should be allowed to offer it on their reservation as a form of Class II gaming under the Indian Gaming Regulatory Act.
However, the Idaho constitution states that games with “any element of chance” are considered gambling, making poker tournaments a violation of state law, and moving poker into the Class III gaming column.
The ruling is interesting on several levels and could have broader implications outside of Idaho, particularly in California where the Santa Ysabel tribe is considering launching an online poker site under the auspices of their ability to offer Class II gaming under the Indian Gaming Regulatory Act (IGRA).
Complications for Santa Ysabel tribe and Private Table
The issue becomes in California has nothing to do with poker’s designation though. In California poker is considered Class II gaming, while it falls under Class III gaming in Idaho based on the different laws each state has adopted. The potential problem for the Santa Ysabel tribe in California was first brought up by poker journalist Martin Shapiro on Twitter.
Idaho Poker Ruling Could Impact California Online Poker
Just wondering who people would list as the most influential people of last year, in poker.
With this year and the next few years probably being some of the most important for what the future of poker is going to look like, be interesting to see who was last years, and most likely this years most influential people in poker.
Hi Guys
Just wondering who people would list as the most influential people of last year, in poker.
With this year and the next few years probably being some of the most important for what the future of poker is going to look like, be interesting to see who was last years, and most likely this years most influential people in poker.
1. Mike McDonald - $4,327,428
2. Phil Ivey - $3,582,753
3. Fabian Quoss - $2,405,791
4. Dominik Panka - $1,794,594
5. Yevgeniy Timoshenko - $1,791,248
6. Vanessa Selbst - $1,400,220
7. Daniel Shak - $1,266,464
Another $20,000 are up for grabs at Intertops Poker in October. Each week there will be a FPP race worth $5,000. Finish in the top 100 Frequent Player Point earners and you will win a share of the money that week.
But that's not all
26-Day Endurance Challenge
The very popular 26-Day Endurance Challenge will continue running in October! From October 1st until October 27th you can earn attractive prizes simply by reaching a set target of Frequent Player Points per day! The more days you play, the bigger your rewards will be!
And....
Deposit today and secure your ticket to the $1,000 Depositor Freeroll!
Cool UH?!
Well here's some news for you guys and gals not playing at intertops:
Another $20,000 are up for grabs at Intertops Poker in October. Each week there will be a FPP race worth $5,000. Finish in the top 100 Frequent Player Point earners and you will win a share of the money that week.
But that's not all
26-Day Endurance Challenge
The very popular 26-Day Endurance Challenge will continue running in October! From October 1st until October 27th you can earn attractive prizes simply by reaching a set target of Frequent Player Points per day! The more days you play, the bigger your rewards will be!
And....
Deposit today and secure your ticket to the $1,000 Depositor Freeroll!
Cool UH?!
Good Karma comes around,
and I dont forget
Looking for a homie who would send me some chips.
Good Karma comes around,
and I dont forget
It’s difficult to believe that Leonard used to focus on cash games before 2014 when you look at some of the amazing results that he can brag about. Each time we write our weekly article about PocketFives-com’s rankings, it seems Leonard has helped himself to another five-figure score. This week he banked two such cashes.
After finishing second in the PokerStars $320 NL Hold’em 6-Max for $5,513 and fifth in the PokerStars Bigger $75 for $5,237, Leonard helped himself to $21,225 by finishing fourth in the $109 buy-in Sunday Rebuy, also at PokerStars.
On the same night as his deep run in the Sunday Rebuy, Leonard took down the T-Rex at Full Tilt Poker for $18,075 and followed that up with a victory in the Monday Mayhem for $4,217 less than 24 hours later.
Leonard doesn’t put in as much volume as some of his rivals, but that looks to have changed in recent weeks; perhaps he is mounting another challenge for the number one spot in the worldwide rankings?
In the UK rankings, Spanish PokerStars Team Online’s Vincent Delgado attempted to close the gap on the seemingly unstoppable Leonard by coming second in the Super Tuesday for $81,715. Although that result helped push Delgado to seventh in the world, he still trails Leonard in the UK by almost 500 points, going to show how amazing Leonard’s results have been.
Patrick Leonard Returns to Top 3 of the Online Poker Rankings | PokerNews
That's very nice offer!
The new edition of the FTOPS will run from August 3-17 and will involve an impressive schedule of 31 different events that carry a total of $4,500,000 in guaranteed prize money.
Together with all the premium cash prizes that the room has set for each and every tournament on the schedule, players will also battle to put their hands on a gold FTOPS jersey and gold-jersey avatars that will be awarded to each event winner. The player who will be able to have his name written on top of the FTOPS XXVI leaderboard right at the end of the series will celebrate the remarkable achievement with a four-month Black Card Pro sponsorship contract and 100 percent cash back on all his play.
Talking about the upcoming series, Full Tilt's Black Card Pro and winner of the FTOPS XXV leaderboard "forhelviti" confessed to be looking forward to get back to the tables and play as many tournaments as possible. "I can’t wait for FTOPS XXVI," he said. "I love how this series gives me the chance to test my skills in a range of formats."
On the same page as the winner of April's MiniFTOPS XXV leaderboard, Russia's "LeBroHbKA" said, "I’ve already captured the title of MiniFTOPS XXV Black Card Pro and now I want to swap MiniFTOPS silver for FTOPS gold. You have to fight against the best to win, and I’m looking forward to doing that in as many tournaments as possible!"
Don't Miss the $1,000,000 Guaranteed Main Event on August 17
As usual, the new edition of Full Tilt's FTOPS features a great number of poker tournaments that are going to attract the attention of most poker players during the first half of the month. On Sunday, August 17, the "shuffle up and deal" of the FTOPS XXVI Main Event will take place for the most important event of the series, a no-limit hold'em tournament offering a $1,000,000 guarantee for a $635 buy-in.
On Saturday, August 16, the series will offer players the opportunity to join the tables of the Event #28, a $2,100 no-limit hold'em tournament with a $500,000 guarantee and Event #25 with a $25,000 guarantee. Event #25 was tournament chosen by the room's players through the MyFTOPS feature.
Players into less popular poker games will also have the possibility to get their share of action by playing the H.O.R.S.E event, razz event, six-card Omaha, and even a tournament with a 25-game format.
Click here to check the full FTOPS XXVI schedule to discover all the details of the 31 events included in the program or head to Full Tilt Poker to win your seat to any of the XXVI FTOPS events in one of the many satellites running daily.
The FTOPS XXVI Are Back On Sunday with $4.5 Million in Guarantees | PokerNews