Canadian provider of land-based and online gaming products Amaya Gaming has again made news headlines in the world of iGaming. This time, the gambling software giant has attracted attention with the announcement of their agreement with Isai and Mark Scheinberg over the $197.7 million’s worth of deferred payments the company owes to the father and son. After a long process of deliberation, Amaya finally reached an agreement just before February this year – with the 1st of February being the set date on which all outstanding payments pending from the sale of Rational Group Ltd are due.
The Scheinberg family (Isai and Mark Scheinberg in particular) were the original founders of two highly popular online poker platforms: Full Tilt Poker and PokerStars. Both brands were registered under the Sheinberg’s’ Rational Group form, all of which were sold in 2014 to Amaya Gaming. Amaya agreed to pay $4.9 billion in total for all three of the corporate entities.
As per this agreement, the Canadian iGaming company paid over $4.5 billion to the former owners upfront, with the remaining $400 million earmarked to be paid over in full by no later than the 1st of February this year. In December 2016, Amaya made an announcement stating that they had about half of the $400 million owed available to give to the Sheinberg’s in cash. The company also mentioned that they were exploring other options in order to obtain the outstanding money. A recent press release then revealed that the outstanding debt has been agreed to be paid off from the company’s operational revenues and unrestricted funds.
The agreement that has been reached between the two parties has led to the Sheinberg’s agreeing not to enforce their legal right to instruct Amaya to pay off the full amount, which would have meant equity being issued. As reciprocation, Amaya will be paying three months’ worth of late payments upfront in early February, along with all other owed fees should they not honour this commitment. The amicable agreement is one of the more positive developments for Amaya Gaming of late. The company have had numerous challenges since former CEO David Baazov was charged with revealing insider trading secrets and forced to relinquish his post. It has been speculated that this negative publicity may have cast a shadow over the company’s successful acquisition of PokerStars and Full Tilt Poker, so this agreement may have the benefit of regaining some of Amaya’s former repute.