Amaya under Canadian Gaming Authority investigation
09 June 2015
Canadian Gaming Company was a relatively unknown company until it surprised the gambling industry after successfully acquiring PokerStars and Full Tilt Poker in June 2014. Being the biggest online poker website in the world, Pokerstars have continued to uphold this quality being under Amaya gaming management and since been very profitable in online gaming revenue returns of $4.9 billion dollars. Amaya Gaming have continually maintain strategic and operational success with numerous successful acquisitions in the past year and financial growth.
Autorité des marchés financiers (AMF) have recently announced that they have launched an investigation that would focus on Amaya Gaming’s chief executive officer and chief financial officer. Canadian authorities want to determine whether the billion dollar acquisition were followed within the legal proceedings during the initial negotiations. The Canadian Gaming Authority have confirmed that both chief executive officer David Baazov and chief financial officer Daniel Sebag are now under investigation for violating Canadian gaming law during the completion of the mentioned acquisition.
PokerStars have been forced to exit the US market during the infamous Black Friday scandal and with the on-going investigation, it has not enhanced PokerStars reputation in the Unites States. With numerous US state legislations approving online gaming, Amaya Gaming need to have a good presence, however PokerStars are currently campaigning to acquire an online gaming license in New Jersey, but it’s been somewhat challenging gaining approval.
Amaya Gaming Company has confirmed that their chief executive officer and chief financial officer is under investigation by Quebec authorities, but announced that the company has done everything as per procedure and the authorities would soon confirm the same once they complete their investigation.
The Autorité des marchés financiers (AMF) used search warrants to inspect numerous Amaya Gaming offices including the Canaccord Genuity and Manulife Financial and the gaming company’s headquarters in Montreal, Canada however failed to find anything conclusive.
Chief executive officer of Amaya Gaming, David Baazov commented saying: “I believe that any concerns that I or other Amaya officers or directors violated any Canadian securities laws are unfounded and we are confident that at the end of its investigation, the AMF will come to the same conclusion. Back in 2014, Quebec authorities targeted Amaya Gaming and investigated the period before Amaya Gaming acquired PokerStars to see if the company used inside information to manipulate the stock market.”