5b. Re: XVP: 60 Minutes online poker story
Date: Wed Dec 3, 2008 12:13 pm ((PST))
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Here is another developing online poker story. Clonie Gowan was an
original member of Team Full Tilt. She is suing Full Tilt for a 1%
share in the company. In 2004 Full Tilt was a startup company and
minor player in online poker. The management, purported to be Howard
Lederer and Chris Ferguson hired several high profile pros like Gus
Hanson, John Juanda, Eric Lindgren, Phil Gordon, Eric Seidel,
Jennifer Harmon, Allen Cunningham, Mike Matusow, and Clonie to
endorse and promote Full Tilt Poker.All of the original members of team full tilt were promised 1% share
in the company. But no contracts were written. It was verbal
contracts to protect the parties from the Justice Department. There
was the real question of whether online poker was legal and they all
had to protect themselves. Until 2006 Full Tilt remained a minor
player in online poker. But when UIGEA passed and publicly traded
companies like Party Poker pulled out of the US market, companies
like Full Tilt boomed.The company is said to be worth somewhere between 2.5 and 4 billion
dollars today. Clonie wants her 1%. She says the compnay is worth 4
billion. About a year and a half ago all of the original members of
Team Full Tilt were given money distributions. All except Clonie.
She argued behind the scenes for her money but none came.On November 11th Full Tilt let her go, offering her $250,000 at
separation. She refused to take the money and put a lawsuit into
them. In the lawsuit her lawyers named Lederer, Ferguson and all the
original members of Team Full Tilt, all the way down to Mike Matusow,
as owners of the company.Now everyone at Full Tilt is in an uproar. They say they will fight
to the end. I don't think so and here is why: I think all Clonie has
to do is make it through the dismissal motions and she wins. There
will be an out of court settlement. Why? If you were part owner of
Full Tilt would you allow yourself to be deposed in a civil lawsuit,
admitting you are part owner, therefore giving the Justice
Department proof that you are operating an illegal business in the
United States? I don't think you would do that and I don't think the
owners of Full Tilt will do it either. Go Clonie!!!
I'm confused - if these companies are not based in the U.S., do U.S. courts have any jurisdiction over their business dealings? I'm sure that will be the first issue to be resolved.
Also, if the law prohibits banks from making fund transfers to online gambling sites, does that mean the online gambling business is an "illegal business"?
The legal complexities of the roundabout approach of the law that was passed will make all this very interesting. I hope they just legalize and regulate it, and don't tax it out of existence, so I can continue to play online with not much more concern than my poor play.
Which brings up the question, can they even enforce a tax on any of these businesses?
--BG
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