Why Did Full Tilt Poker Close?

Full Tilt Poker closed on November 6, 2012 after failing to pay back its players for over two years. Full Tilt was once the second largest poker site in the world, but it lost its license in 2011 and has been struggling to stay afloat ever since.

The company’s demise is a cautionary tale for the online gambling industry, which is still largely unregulated in the United States.

Full Tilt was founded in 2004 by a group of professional poker players, including Howard Lederer and Chris Ferguson. The site quickly became popular with poker fans around the world, due to its innovative software and generous bonuses.

Full Tilt was also known for being one of the few online poker sites that allowed US players to gamble after the Unlawful Internet Gambling Enforcement Act was passed in 2006.

PRO TIP:Full Tilt Poker closed in 2011 due to a lack of funds. This was caused by the combination of mismanagement and owners being accused of fraud by the US Department of Justice. As a result, players were unable to withdraw their money from the site until it was purchased by PokerStars in 2012.

However, Full Tilt ran into trouble in 2011 when the US Department of Justice indicted the company’s founder, Raymond Bitar, and several other executives on charges of money laundering and bank fraud. The DOJ alleged that Full Tilt had been using player deposits to pay out dividends to its owners, instead of keeping the money segregated in a customer account like other poker sites did.

This left Full Tilt unable to pay back its players when the US government seized its assets in April 2011.

Full Tilt tried to stay afloat by selling itself to various investors, but it was unable to find a buyer who could also cover its outstanding debt to players. As a result, Full Tilt ceased operations in November 2012 and filed for bankruptcy protection in the United Kingdom.

While some players were eventually reimbursed by Full Tilt’s new owners, many others are still waiting for their money. The demise of Full Tilt is a cautionary tale for the online gambling industry, which is still largely unregulated in the United States.

Players should be aware of the risks involved in gambling online, and only play at sites that are properly licensed and insured.