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Full Tilt’s Collection Woes Bred Alleged Ponzi Scheme

A key question in the Full Tilt case: how did the company get to the point of paying out winnings to customers when it wasn’t collecting money from them in the first place? The answer has its roots in previous government actions that crippled online poker sites’ ability to accept money from players in the U.S. Those difficulties are at the core of new allegations the government made against the company last week, part of a campaign to stop online poker in the U.S., which the government says is illegal. The online-poker industry argues that it isn’t illegal because federal gambling laws aren’t clear and because poker is a game of skill, and not chance. Read Wall Street Journal article here.

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