The Kahnawake Gaming Commission announced Friday that it has agreed to renew Full Tilt Poker’s Secondary Client Provider Authorization.
The KGC offers Secondary CPAs to sites that already hold “a valid license to operate interactive gaming issued by a comparable jurisdiction.”1 Holders of Secondary CPAs have many of the same rights as those directly licensed by the KGC, including the ability to use Mohawk Internet Technology’s servers, which can provide necessary bandwidth to service North American customers. Full Tilt has held such an authorization since July 2010.
On June 29th, immediately after the Alderney Gambling Control Commission suspended Full Tilt’s licenses and shut down its operations, FTP began moving data from its backup servers to the MIT servers, as its executives considered restarting operations under their KGC secondary authorization. However, Full Tilt did not restart. Though it was not clear whether FTP executives or the KGC had prevented this, on June 30th the commission did release a statement explaining that they had not decided whether FTP’s secondary authorization would be continued.
This latest statement says that the Kahnawake Gaming Commission has chosen to renew Full Tilt’s secondary authorization for two more years, in spite of the fact that its primary licenses have been suspended. This decision is quite surprising considering the KGC’s own regulations:
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.
In this case, the primary jurisdiction, Alderney, has suspended the license of the holder of a Secondary Client Provider Authorization, Full Tilt. However, it appears that Full Tilt has not applied for a Client Provider Authorization (a full permit from the KGC) within thirty days as required, and the commission has still allowed FTP to keep its secondary license.
In Friday’s announcement, the KGC justified its decision by arguing that a suspended license is still valid:
To maintain a Secondary CPA, a licensee must maintain a valid licence to operate interactive gaming that has been issued by a comparable jurisdiction (the “primary jurisdiction”). Accordingly, the Commission is closely monitoring the proceedings being conducted by the Alderney Gambling Control Commission (the “AGCC”) concerning the eGambling Licences held by Filco Limited, operating as “Full Tilt Poker”. The AGCC has confirmed to the Commission that, although the eGambling Licences held by Filco Limited are presently suspended pending the outcome of a hearing, these licences are still considered to be valid.
While the KGC’s regulations are quite unclear, and they do not in fact directly say that the Secondary CPA allows Full Tilt Poker to restart its business under Kahnawake regulations. But, it is not clear what the purpose of this renewal would be if it did not grant FTP this right under Kahnawake regulations. However, Alderney regulations seem to say that FTP may not do so; Alderney’s June 29th statement announcing the suspension of FTP’s licenses said clearly that the four Full Tilt companies licensed by the AGCC must “cease to 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.”2
The AGCC suspended Full Tilt’s license on June 29th, causing the poker site to shut down. A hearing was scheduled for July 27th to discuss the suspension, but that hearing was adjourned without any other decisions and rescheduled to “commence as soon as possible and in any event not later than 15th September.”
Edited on 8/1/2011 7:11 PM EDT: Changed “In Friday’s announced” to “In Friday’s announcement.”
Edited on 8/1/2011 10:05 PM EDT: Changed “law” to “regulations”.
Edited on 8/2/2011 10:38 AM EDT: Fixed a minor grammar error.
- See the KGC’s regulations, starting at regulation 46. ↩
- The KGC’s Secondary CPA is actually in the name of Kolyma Corporation A.V.V., which is not one of the four companies licensed by Alderney. Subject: Poker does not know the exact relationship between Kolyma Corporation A.V.V and the four FTP companies licensed by Alderney, Vantage Limited, Oxalic Limited, Filco Limited, and Orinic Limited. ↩