Manne wrote:
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
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2014/07/31
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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