Everyone knows the saga about Full Tilt Poker suddenly closing down after Black Friday and then not having enough funds to pay back its players. Now it would seem that there is yet another poker room in danger of not having enough funds to pay back those it owes. However, unlike Full Tilt Poker, the Epic poker site is playing smart and has decided to file for bankruptcy before it is put into an even more precarious situation.
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Like Full Tilt Poker, Epic Poker also closed its doors – but this site did so only last month and not because it was seized by the FBI but rather because it declared Chapter 11 bankruptcy.
This announcement was made by Jeffrey Pollack, the Executive Chairman of the company. “Our company needs a new start. This reorganization filing is an important first step in that direction,” he said.
However, unfortunately for the Epic Poker site, its hopes were dashed when the main company behind the poker room, namely Federated Sports and Gaming, had accumulated even more debts than was deemed required. And as a result, the court refused to accept the Chapter 11 bankruptcy and reorganization plea.
Epic Poker owes over $5 million in debt to several creditors (numbering more than a 100) and has only $15k in cash when they filed for bankruptcy. Two of its biggest creditors are Pinnacle Entertainment and All In Production.
Federated Sports and Gaming, the managers of Epic Poker purchased the Heartland Poker Tour from All In Production and still have more than $2 million to pay the company. They also owe yet another $2 million to Pinnacle Entertainment from whom they borrowed money to pay All In Production.
Daniel Negreanu, noted poker player and tournament winner, also added his two cents on the matter. “The truth is, he’s (Pollack) been running a bluff on many in the poker community for a long time. He was booted from the WSOP [as commissioner] but saw a day when legalized online poker was coming and thought he could get his hand in the cookie jar at the absolute right time. He thought, throw together and create a brand and hope to hit a big score. Under this strategy, you just don’t care about having a sustainable business plan,” he said.
It all seems to be a case of robbing/borrowing from Peter to pay Paul.

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