Pocket Kings Limited, a former subsidiary of PokerStars-owned Full Tilt Poker, is in financial trouble. Since the company, which once used to operate the online poker room, owes around €3 million to various creditors, it is on the verge of being liquidated.
The Rational Group, the parent company of PokerStars, the world’s largest online poker room, recently acquired Full Tilt Poker as part of a settlement deal it signed with the US federal government. As per the terms of the deal, the federal government agreed to drop all charges against PokerStars, which did not admit to having done anything wrong. PokerStars also agreed to part with a sum of $731 million and agreed to refund Full Tilt Poker’s non-US players. The DoJ took over the responsibility of refunding Full Tilt Poker’s US players. After acquiring the Full Tilt Poker brand and assets, PokerStars got a license for Full Tilt Poker from the Isle of Man and re-launched it as a separate brand in early November last year.
Declan McDonald of the prestigious PricewaterhouseCoopers, an accountancy firm, has been put in-charge of the liquidation process. Reportedly, the company owes around €3 million to various creditors besides being involved in some inter-group debts. The former directors of Pocket Kings Limited have submitted a complete statement of the company’s current state of affairs. PricewaterhouseCoopers is now in the process of holding talks with the company’s creditors.
Full Tilt Poker was re-launched into the European market in November last year, and true to PokerStars’ promise, Full Tilt Poker’s old non US players were able to log in and either withdraw their frozen funds or continue playing real money poker at the newly re-launched site.
The online poker room no longer accepts US players and functions under a gaming license issued in the Isle of Man. Rational FT, a subsidiary of The Rational Group in Ireland, functions from Full Tilt Poker’s old Cherrywood office complex. The company began recruiting new employees in late 2012, and today has more than 200 people in its employment. The subsidiary operates the Full Tilt Poker website and deals with marketing and back-up. A spokesperson of Rational FT said that the company is doing very well.
Meanwhile, Raymond Bitar, who was the previous CEO of Full Tilt Poker, has been booked by the US government for a variety of charges, including cheating Full Tilt Poker players of over $400 million, but Bitar claims that he is innocent.