The Department of Justice (DoJ) has initiated an
indictment
against PokerStars.com, FullTilt.com and AbsolutePoker.com on
Friday April 15. Because of the weekend the full impact of this
action has yet to be felt. But rumblings can already be heard
and fallouts of this action have begun to appear.
Two of these online poker sites had announced partnerships with land casino operators earlier in this month. Wynn Resorts was quick off the block and has terminated its alliance with PokerStars.com. Michael Weaver, a spokesman for Wynn Resorts, said that the termination is a result of the criminal indictment. Station Casino had the arrangement with FullTilt.com. Caren Bell, a spokeswoman for Station Casino, said that their agreement was contingent on the federal legalization of online poker sites.
The sports channel operator ESPN has a lot riding on the online poker sites PokerStars.com and FullTilt.com. ESPN is very heavily into poker telecasting and has exclusive rights to WSOP. It is rumored to receive 8 figure amounts as advertising and sponsorship revenue from these poker sites. While reporting the story of the indictment ESPN did sheepishly acknowledge that PokerStars.com and FullTilt.com are sponsors of ESPN poker programs. But the questions that are now being asked is whether they will continue accepting sponsorship money now that the indictment is a reality, especially with WSOP round the corner.
It is well known that PokerStars.com and FullTilt.com are big financiers of Poker Players Alliance, which has been battling for the legalization of online poker in America. But now the news has broken that PokerStars.com has contributed $227,000 to the mid-term election campaigns of 68 Nevada candidates. The contributions ranging from $1,000 to $10,000 were made between September 23 and October 18 2010. Nevada Senator Greg Brower said that a company that has been charged with operating a criminal enterprise could play such a large role in Nevada campaigns was troubling. He added that investigations into this aspect are also warranted.
Meanwhile, former poker player and now blogger Michele Lewis has lashed out at the DoJ. She called this day Black Hole Friday and said, “Over the past seven years, some of the most beautiful minds in poker have become like my family. Today I watched their fears trickle down Twitter after the Department of Justice seized the online poker sites.”