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DOJ turns down Stars offer of 700M last Monday?

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  1. MarkFSU1 MarkFSU1 is offline

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    Jul 20th, 2012 (7/20/2012 12:23am)

    didnt see a thread so thought id post the story

    http://www.pokerplayernewspaper.com/...business-12300
  2. Dan Dan is offline Administrator

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    Jul 20th, 2012 (7/20/2012 12:42am) in reply to MarkFSU1

    Interesting write-up by Wendeen.

    I had heard rumors that the deal was set to be finalized on Day 1C of the Main Event, but that apparently did not happen.

    Last week, PocketFives wrote a feature article examining whether the Full Tilt deal was actually dead. Not sure if you saw this:
    http://www.pocketfives.com/articles/...r-dead-587542/

    Our sources claimed the deal wasn't dead, but as Wendeen and everyone else has pointed out, neither PokerStars nor FTP has provided any information one way or the other.
     
  3. TheVillageGrinder TheVillageGrinder is offline

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    Jul 20th, 2012 (7/20/2012 5:31pm) in reply to Dan

    Dan, or anyone else who may know, was it ever confirmed that the DOJ actually rejected the proposed offering from stars?

    Also the author makes it sound like they would pay the $700mm or whatever amount as deemed by the DoJ and then have to make an additional payment to acquire ftp? I just assumed that their payment of the fine to settle the civil issue would include/entitle them to acquire ftp's assets. Is the doj currently in control of those assets?
     
  4. oneonth3run oneonth3run is offline

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    Jul 20th, 2012 (7/20/2012 8:01pm) in reply to TheVillageGrinder

    Since the DoJ seems to be the one tanking these deals with more requests at the last minute, I'd REALLY like to know what the hell they demanded at the 11th hour to keep this from happening. It sounds very much like stars was ready to close this and were confident that it would earlier in the month. Now we have no idea what the holdup is.
  5. ACheemz ACheemz is offline

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    Jul 20th, 2012 (7/20/2012 9:12pm) in reply to oneonth3run

    pokerstars really is a great company. It's a shame that US players are unable to play there.
  6. lunarphase lunarphase is offline

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    Jul 21st, 2012 (7/21/2012 1:29am) in reply to ACheemz

    If pokerstars really offered 700 mil than wtf is wrong with the doj for not taking the deal what a bunch of greedy slobs if that is true.
     
  7. donkiman donkiman is offline

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    Jul 21st, 2012 (7/21/2012 3:03am) in reply to lunarphase

    $700m could payback all FTP and Cereus players across the world and leave $300m for our corrupt govt. Not that the US govt would use the money for this, kind of interesting though.
     
  8. Dan Dan is offline Administrator

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    Jul 21st, 2012 (7/21/2012 4:41am) in reply to TheVillageGrinder

     
    Originally Posted by TheVillageGrinder View Post

    Dan, or anyone else who may know, was it ever confirmed that the DOJ actually rejected the proposed offering from Stars?

    Also the author makes it sound like they would pay the $700mm or whatever amount as deemed by the DoJ and then have to make an additional payment to acquire ftp? I just assumed that their payment of the fine to settle the civil issue would include/entitle them to acquire ftp's assets. Is the doj currently in control of those assets?

    I haven't seen anything saying that the DOJ rejected pokerstars' proposal or that the deal itself is actually off.
     
  9. boneralert boneralert is offline

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    Jul 21st, 2012 (7/21/2012 8:20am) in reply to Dan

    I think we should be careful when assigning bad motives to the DOJ. We really don't know much about what's gone on in negotiations with various entities. But I don't think personal greed is a motivating factor. I think the DOJ is looking for a resolution that is fair (though perhaps harsh) and that serves as a disincentive to future law-breaking. We just don't know whether they've done that faithfully or gotten carried away in their demands. And we probably can't really know since none of the parties in this process are likely to be transparent about it.
     
  10. Gags30 Gags30 is offline

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    Jul 21st, 2012 (7/21/2012 5:05pm) in reply to boneralert

     
    Originally Posted by boneralert View Post

    I think we should be careful when assigning bad motives to the DOJ. We really don't know much about what's gone on in negotiations with various entities. But I don't think personal greed is a motivating factor. I think the DOJ is looking for a resolution that is fair (though perhaps harsh) and that serves as a disincentive to future law-breaking. We just don't know whether they've done that faithfully or gotten carried away in their demands. And we probably can't really know since none of the parties in this process are likely to be transparent about it.


    lololol...come on...money makes the world go 'round....it's all about that bottom $$$$
     21

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  11. Dantastic Dantastic is offline

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    Jul 21st, 2012 (7/21/2012 10:45pm) in reply to Gags30

     
    Originally Posted by Gags30 View Post

    lololol...come on...money makes the world go 'round....it's all about that bottom $$$$


    Gags has it right they probably want 900 mills and who knows what else. DOJ doesn't control the state actions is why PS will have trouble in the US if Delaware decides they don't want stars in their state then there is nothing the DOJ can do.
  12. boneralert boneralert is offline

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    Jul 22nd, 2012 (7/22/2012 12:44am) in reply to Dantastic

    But settlement money doesn't go into the personal coffers of DOJ employees. Those negotiating the settlements don't benefit directly from a higher dollar figure (if they did, one would expect a resolution by now - the difference between 0 and 700m is much greater than the difference between like 700m and 800m). At best they benefit indirectly by showing competence to their current and future employers, which improves their professional prospects. That is the incentive structure they are operating under. But showing competence includes not just the headline dollar figure but also thoroughness in the process, minimizing moral hazard, looking tough but fair, the criminal punishments meted out, etc.

    Yes there are probably some ambitious lawyers looking to make a career for themselves out of the Black Friday cases, but they won't be able to hold up a successful resolution because it doesn't satiate their own personal greed.
     
  13. Dantastic Dantastic is offline

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    Jul 23rd, 2012 (7/23/2012 12:24pm) in reply to boneralert

    obviously my 900 milli comment was a needle, but I agree with what you said. I actually believe this could help the other online poker rooms if they allow a stars comeback to the U.S. I say this only because. You're not going to be really pumped as an American to play on a Merge Based network. People are doing it now, so why will it be much different? If states allow stars back in along with their own poker rooms this will help them out for the fact that people playing stars will reg on these sites also just to grind it out. I know stars will get the majority of the volume, but in the end you will have more people coming on there who maybe wouldn't if that was the only available site. Don't get me wrong degens are gonna degen, but it'll show more profit with a bigger base of a successful poker site.. Just my opinion
  14. The Baby Bull The Baby Bull is offline

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    Jul 23rd, 2012 (7/23/2012 4:05pm) in reply to Gags30

     
    Originally Posted by Gags30 View Post

    lololol...come on...money makes the world go 'round....it's all about that bottom $$$$

    True enough, but when dealing with DOJ and the US Attorneys you also have to factor in that most of them want to do whatever makes them look best to the public at large. These people tend to be political animals who want to advance their careers more than anything else.

    Your cynicism is appropriate.
     
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