Full Tilt gets sued for $ 40 MILLION

Celebrity poker player sues Full Tilt parent
Breach-of-pact lawsuit seeks $40 million


For principals in the online card room Full Tilt Poker -- who include some of the world's top poker players -- luck may not be a lady.

In November, Cycalona "Clonie" Gowen -- a former beauty queen and high school athlete who became a professional poker player -- sued in U.S. District Court in Las Vegas against Tiltware LLC, the Ireland-based software company behind Full Tilt Poker. She is seeking $40 million in damages for breach of contract.

Named in the lawsuit is Howard Lederer, professional poker player and one of the company's founders, and other famous players, described as "Team Full Tilt," including Phil Ivey, Chris Ferguson, Mike Matusow, Allen Cunningham, Gus Hansen and Jennifer Harman-Traniello.



Gowen, 37, alleges in the lawsuit that Full Tilt hired her to be one of their "celebrity players," and that company officials agreed that she would be rewarded with a 1 percent share in Full Tilt -- a company with an estimated value of $4 billion.

The lawsuit has been a hot topic in Internet poker forums, chat rooms and blogs in recent weeks. Full Tilt is one of the largest and fastest-growing card rooms in cyberspace, with a celebrity poker professional roster filled with A List players.

A Hollywood screen writer couldn't come up with a more colorful plaintiff.

Gowen, a native of Florida, was born during a powerful storm, which served as the inspiration of her first name. She grew up in Kiowa, Okla., and was crowned Miss Teen McAlester, Okla., at age 15.

In high school, Gowen was a member of the state championship varsity basketball team and started on her track and field team as a high jumper, where she was ranked seventh in the state.

In 2003, Gowen earned national recognition when she won the World Poker Tour Ladies' Night event in the World Poker Tour Costa Rica Class in 2003. In recent years, Gowen has served as a guest commentator for the Ultimate Poker Challenge and The Gaming Club World Poker Championship. She also appeared several times on the NBC television program, Poker After Dark, and has won three titles.

In July, Gowen won the no-limit Texas hold 'em event at the Bellagio Cup IV, earning $437,775, and launching her into the poker world's upper echelon.

But winning a battle in a Las Vegas courtroom against an online poker room headquartered off shore could represent a daunting challenge.

Tiltware LLC, the marketing and software company for Full Tilt Poker, was founded in Los Angeles in 2004, but moved to Ireland in late 2006, only weeks after Congress passed the Unlawful Internet Gambling Enforcement Act, which effectively made it illegal for Americans to play online casino games.

Gowen's case may face problems because she acknowledges there is an oral, but not written contract between her and Full Tilt, and that most of the alleged promises took place over the phone or in meetings with Tiltware executives in Las Vegas more than four years ago.

But Jim Kohl of the Las Vegas office of law firm Howard & Howard, who is representing Gowen, said: "Assuming everything we've learned so far is true, we feel we have a good case." Kohl also said there are international treaties between Ireland and the United States "that will allow us to enforce our judgments overseas."

Gowen claims that in 2007, all members of "Team Full Tilt Poker" received distribution checks except her. She claims she asked for her "fair share" and was turned down. Not long afterward, according to the lawsuit, Lederer offered Gowen $250,000 for her past work with the company, but she turned him down.

"We are confident the allegations will be proven at trial," Kohl said. "Clonie has been wrongly denied her compensation and, after we go through the process of discovery, we feel the court will find in our favor."

Officials at Tiltware have a different point of view.

"Tiltware, LLC, has been made aware of the recent filing of a meritless lawsuit by a former Full Tilt Poker endorser, Ms. Cycalona Gowen," Tiltware said in a statement. "All claims have no merit and there are many inaccuracies improperly and unlawfully asserted by Ms. Gowen within her frivolous complaint. Tiltware LLC expects that this lawsuit will be dealt with accordingly by a competent court in due course."

Experts in online gaming note the lawsuit, if nothing else, will serve to remind online business owners and employees that whether a business is in cyberspace or in a brick-and-mortar location, elementary principles still apply.

"The situation (at Full Tilt) is no different than in any type of business," said Tony Cabot, practice group leader at the Las Vegas law office of Lewis and Roca. "There will always be lawsuits that allege questions of ownership, promises or rights, and it makes sense for every business to properly document all relationships. That way, it a dispute comes up, then you have the intent of the parties in writing."

To some professional poker players, the lawsuit couldn't have come at a worse time.

"While I really don't know any details about the Clonie Gowen case against Full Tilt, I am disappointed there is a lawsuit," said Susie Isaacs, who has twice won the World Series of Poker women's championship, and is a columnist for several poker and gaming publications.

"This is a very strategic time for poker players who want online poker to be legalized and a very bad time for any red flags in that industry," Isaacs said.