CEO of PokerStars Agrees to Pay $50mm to United States Government

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Wednesday, June 12th, 2013 | Written by Shane Larson

Over two years after Black Friday rocked the online poker world to its foundation, legal developments relating to the event continue to emerge.

The latest development: PokerStars CEO Mark Scheinberg has reportedly struck a deal with American authorities.

Basics of the settlement

The agreement between Mark Scheinberg and the U.S.Department of Justice is a relatively brief document, coming in at well under 10 pages all told.

Here are the key points of the agreement:

– Scheinberg will agree to pay $50 million to the U.S. Government.
– In return, he will not have to face any civil charge related to Black Friday.
– Scheinberg will also not have to face any seizure or forfeiture of property stemming from his role at PokerStars.
– The deal has no impact on the pre-existing deal between PokerStars and the Department of Justice.

Remember, Mark Scheinberg only took the helm at PokerStars after the aforementioned deal forced his father – Isai Scheinberg – to step down from control of the company.

Scheinberg not charged with any crime

It’s very important to note that Scheinberg was never charged by the DoJ with any crime. He also did not appear in any of the civil indictments connected to Black Friday.

So why did he reach this settlement? The official statement from PokerStars on Scheinberg’s deal with the Department of Justice offered this explanation:

“This forfeiture settles potential claims against Mark’s assets based on the allegations contained in the April 15th 2011 US Government complaint against PokerStars. The agreement is not in response to any action that had been brought against Mark and contains no admission of wrongdoing”

Implications of settlement are unclear

Some have wondered if this settlement would in some way help clear the path for PokerStars to enter regulated online poker markets in New Jersey or other U.S. states.

It remains to be seen if this deal will have a positive impact on PokerStars’ chances of returning to the American online poker market; while it’s hard to imagine how the deal could have a negative impact, it’s also unclear exactly how the settlement would specifically move PokerStars substantially closer to a license in any state.

For example, it does not seem likely that this settlement will cause derailed talks between PokerStars and the Atlantic Club Casino to restart.

What is for certain is that this deal has absolutely no impact on the legal status of online poker in America.

Black Friday remains unresolved legally

Despite the numerous settlements and plea deals that have taken place so far, Black Friday remains unresolved. Outstanding criminal charges and the pressing question of how to get as much money as possible back to players continue to keep the issue open both in the courts and in the media.

How long might that state of affairs continue? It’s quite possible that some of those charged may never reach an agreement with the United States Government, meaning that the issue never reaches a full resolution. But on the more concrete side of the matter – player funds – it appears that some sort of final word on the so-called “remissions process” that will (finally) reunite American online poker players with some part of their lost bankrolls will come before the year is out.

Keep an eye on our poker news section for updates on that and all Black Friday-related happenings.