2020_8_pragmatic.gif
2020_8_pragmatic.gif
2020_8_pragmatic.gif
CLOSE
× Gambling News In-Depth iGaming Calendar Connections GI Friday Trafficology GI Magazine GGA 2020 AffiliateCon
NEWS 27 January 2020

PokerStars Co-founder taken into custody over UIGEA breach

By Aidan Williams

PokerStars Co-founder Isai Scheinberg has been taken into custody in New York City after voluntarily travelling to the US to face charges, according to a report from Forbes.

Scheinberg had been indicted on gambling, bank fraud and money laundering charges in 2011, and had spent time in Canada and the Isle of Man, arriving in the US from Switzerland.

The US Government and Scheinberg have been negotiating a deal and have made significant progress in those negotiations: “We have an agreement in principle on the basic terms,” federal prosecutor Olga Zverovich said.

PokerStars was founded in 2001 by Isai and his son Mark Scheinberg.

In 2019, the US Government had made an extradition request to Switzerland, where Scheinberg had been on a trip, and he has surrendered his passport and been released with a bail figure of $1m.

The main issues date back to 2006, when the Unlawful Internet Gaming Enforcement Act was implemented, placing a federal ban on online gambling.

PokerStars was one of the few operators to remain in the market after the law came into effect, which led to ‘Black Friday’ in 2011.

On 15 April 2011, the US Department of Justice unsealed indictments against executives of PokerStars, Full Tilt Poker and Absolute Poker, including Isai but not Mark Scheinberg.

The real issue for Scheinberg appears to be the charges that he violated UIGEA and the Illegal Gambling Business Act, as well as conspiracy to commit bank fraud and money laundering.

None of those indicted as a result of Black Friday were charged with violating the Federal Wire Act of 1961.

As part of a civil settlement with federal prosecutors that emerged following Black Friday, Isai stepped away from any management role within his company and in 2014 PokerStars was sold to Amaya Gaming by Mark Scheinberg for $4.9bn.

RELATED TAGS: Online | Poker
DISCUSS THIS ARTICLE
2020_7_iovation.gif
GI FRIDAY: WEEKLY NEWSLETTER
THE GI HUDDLE PODCAST
NEW! #006 - LISTEN NOW
Gaming Industry Conferences (22:37)
#005 - LISTEN NOW
The role of gambling media (27:11)
#004 - LISTEN NOW
What is the role of a Gambling regulator? (29:09)
#003
The Future of Gambling Sponsorship in Sport (30:50)
MUST READ
IN-DEPTH 24 February 2020
Seeing a new side to the industry
READ MORE
PREMIUM CONNECTIONS
Affiliate
1xPartners
VIEW PROFILE
PR and Marketing
ActiveWins
VIEW PROFILE
Industry Awards
Global Gaming Awards
VIEW PROFILE
Systems and Software
Efbet
VIEW PROFILE
Systems and Software
BetConstruct
VIEW PROFILE
Systems and Software
BBIN
VIEW PROFILE
Systems and Software
Newgioco Group
VIEW PROFILE
Systems and Software
NSoft
VIEW PROFILE
Legal and Jurisdictions
Digital Isle of Man
VIEW PROFILE
Payments
Zimpler
VIEW PROFILE