KGC Statement about FTP

June 30, 2011 - 5:46 PM EDT
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Subject: Poker has obtained a statement from the Kahnawake Gaming Commission about Full Tilt Poker:

Yesterday morning Full Tilt Poker had its licenses suspended by the Alderney Gaming Control Commission, and its site has been down since. We reported later in the day that FTP was considering using a permit from the KGC to continue operations. We had received conflicting reports about whether FTP already had such a permit or whether they were in the process of getting one. This statement confirms that Full Tilt Poker does indeed have a permit with Kahnawake, but it is merely a Secondary Client Provider Authorization. The KGC provides such an authorization only to entities that have a valid license with another jurisdiction.1

It is not clear from this statement whether the KGC is currently preventing Full Tilt Poker from operating using its servers. Sources inside of the poker site have told Subject: Poker that they believe that Full Tilt has been able to reopen the site since yesterday afternoon. Some sources have speculated that Full Tilt management is responsible for the delay, but we have been unable to confirm this.

The KGC regulations do consider the possibility of a license suspension from the primary jurisdiction of a company with a Secondary Client Provider Authorization:

In the event the license from the primary jurisdiction is suspended, revoked or allowed to lapse, the holder of a Secondary Client Provider Authorization must, within thirty (30) days, apply for a Client Provider Authorization under these Regulations, failing which the Commission may suspend or revoke the Secondary Client Provider Authorization.2

However, the regulations do not clarify whether the company is allowed to continue to operate with the secondary authorization. Subject: Poker was also unable to determine whether the typical four to eight week application process applies in such circumstances.

The Alderney Gambling Control Commission has scheduled a hearing with Full Tilt Poker for July 26th in London, and the poker site does have the right to appeal the license suspension at any time.3 It is not clear how this situation with the KGC might affect these hearings and Full Tilt’s relationship with the AGCC. However, the AGCC’s recent press release about Full Tilt clearly says that they may not “register new customers; Accept deposits from existing customers; Allow existing customers to withdraw funds that are held in their accounts; and Permit customers to participate in any form of poker game play or gambling transaction.”

Subject: Poker is continuing to follow this story and will update our readers when appropriate.

Edited on 6/30/2011 5:59 PM EST: Corrected a minor typo: “the may not” changed to “they may not.” Thanks to Michael Ferrel for catching the error.
Edited on 6/30/2011 6:26 PM EST: Added a link to the pdf version of the statement.
Edited on 6/30/2011 6:41 PM EST: Removed an accidental doubled word (“had had”) and fixed some formatting.
Edited on 6/30/2011 8:34 PM EST: Removed the accidental words “using its site” and changed formatting.

Footnotes

  1. The KGC authorization is actually for Kolyma Corporation A.V.V. Kolyma is one of the many companies behind Full Tilt Poker, but it is not one of the four that had a license with the Alderney Gaming Control Commission.
  2. See regulation 51 and part VII of the KGC regulations. The Client Provider Authorization is the KGC’s standard permit for companies licensed only by it.
  3. Subject: Poker is working to learn whether Full Tilt has in fact appealed the suspension with the AGCC.

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2 Responses to KGC Statement about FTP

  1. IRS
    June 30, 2011 at 7:59 PM EDT

    Cool so they are gonna be licensed by the guys who have let Cereus operate freely? Sounds great…

  2. Mimbulus
    July 1, 2011 at 9:12 AM EDT

    Any remnants of respectability FTP had evaporate if they run to KGC to keep operating. It rather underlines the level of regulation that KGC provides and makes me want to avoid sites that operate under KGC jurisdiction altogether. FTP need to get their house in order with their original regulator imho.

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