Feds Enter Domain-Name Agreements With Two Online Poker Companies

As we have noted, the federal government has charged 11 defendants, including the founders of the three largest Internet poker companies doing business in the United States – PokerStars, Full Tilt Poker and Absolute Poker (the "Poker Companies") – with conspiracy to commit bank and wire fraud, money laundering and illegal gambling offenses. The federal government also filed a civil complaint against the Poker Companies, their assets and the assets of several payment processors for the Poker Companies. In addition, a restraining order was issued against multiple bank accounts utilized by the Poker Companies and their payment processors. The government did not restrain any players’ accounts. Five Internet domain names used by the Poker Companies – pokerstars.com; fulltiltpoker.com; absolutepoker.com; ultimatebet.com; and ub.com –  also were seized. As alleged in the indictment and civil complaint, the Poker Companies collectively obtained approximately $3 billion in proceeds as a result of their activities. 

Now, the government has announced that the it has entered into domain-name use agreements with Poker Stars and Full Tilt Poker that the government says will facilitate the return of money so that players can register their refund requests directly with Pokerstars and Full Tilt Poker.
 
Under the terms of the agreements with PokerStars and Full Tilt Poker, the companies agreed that they would not allow for, facilitate, or provide the ability for players located in the United States to engage in playing online poker for "real money" or any other thing of value. The agreements allow for PokerStars and Full Tilt Poker to use the pokerstars.com andfulltiltpoker.com domain names to facilitate the withdrawal of U.S. players’ funds held in account with the companies. The deposit of funds by U.S. players is expressly prohibited. In addition, the agreements do not prohibit, and, in fact, expressly allow for, PokerStars and Full Tilt Poker to provide for, and facilitate, players outside of the United States to engage in playing online poker for real money. The agreements also require the appointment of an independent monitor to verify PokerStars’ and Full Tilt Poker’s compliance with the agreements. The government says it will enter the same agreement with Absolute Poker if it so chooses.