Amaya Gaming Buys PokerStars and Full Tilt Poker For $4.9 Billion

Dave Knott (2917251) writes Montreal-based gaming company Amaya Gaming Group Inc. has agreed to purchase privately held Oldford Group, the owner of online poker websites PokerStars and Full Tilt Poker, for $4.9 billion. The deal marks the end of a remarkable story that began when Isai Scheinberg, an Israeli-Canadian former IBM computer programmer, founded PYR Software in Toronto and started building PokerStars, which eventually became the largest online poker site in the world. 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. In 2012, PokerStars struck a $731 million settlement with federal prosecutors that also saw the company acquire the assets of Full Tilt Poker. However, reentering the vital U.S. market has proved difficult, and 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 current deal closes. In a statement announcing the deal, 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."

Comments

And since they're based in Québec

[ArcadeMan]

The OLF will force them to rename the websites "PousserDuBoutDuDoigtElleÉtoiles" and "PleinInclinéPousserDuBoutDuDoigtElle".

This ban on gambling, porn, etc

[fustakrakich]

How is this any different from Turkey or Pakistan blocking twitter? And where is the resistance against this crap?

Re:This ban on gambling, porn, etc

[rtb61]

It is never gambling when the odds are biased in one sides favour, then it is fraud and losing. Quite simply gambling laws need to change, equal odds should be enforced and both sides of the gamble should be forced to 'GAMBLE'. It would be truly humorous to see all those gambling houses being forced to actually gamble, here's betting the majority of those fraudsters would shut down long before they would be willing to actually 'GAMBLE' with their money.

Of course this is likely a share transaction, specifically designed to inflate share prices in order to allow major share holders to dump shares based upon insider bad news. That bad news likely linked to upcoming legislation. Not that it will be say 'Fair Gambling' laws that actually require that both sides share they same gamble when it comes to winning or losing or at least be forced to include substantial warnings that the odds are tilted in the favour and that the punters on average will 'LOSE' and not gamble their money.

I've got no problem with gambling where the odds are equal, where they are one sided, people should be going to jail for fraud.

Re:This ban on gambling, porn, etc

[Anonymous Coward]

Except none of that applies to poker. It's not gambling against the house with the odds in their favor.

They take a rake of the pot, essentially you're paying for the privilege of using their tables (or software). Like renting a bowling lane or a pool table. Your odds are exactly the same as all of the other players, in the long term the only difference is differences of skill. This is all assuming no cheating or collusion going on of course, and says nothing of the legality of playing poker for money.

Re:This ban on gambling, porn, etc

[SecurityGuy]

http://theppa.org/

Unfortunately (if you're a poker player), it's not an issue the general public cares much about, so not much has happened.

Personally, I think it's stupid that I can go blow $20 on a movie and popcorn, or $more drinking in the bar for a night, but if I want to put $50 on a poker site and play it for months, well, that's just gotta be stopped!

Meanwhile

[Charliemopps]

Meanwhile the government of the united states runs the largest Gambling rackets in the world via lotteries and scratch offs. I don't gable, I think it't stupid. But the fucking government shouldn't be allowed to tell me when I can and when I cannot decide to be stupid. They're not qualified to make that distinction.

Slow your vitriol. Facts just ahead.

[rmdingler]

$184 million of the money went to reimburse foreign players (non-American) who had money in the game when Black Friday brought activity on the sites to a halt.

American players were allowed reimbursement, which came out of the remaining $547 million, after filing with the Dept of Justice.

Part of the settlement money paid by PokerStars was to acquire it's former rival's assets (Full Tilt).