Federated Sports and Gaming, Epic Poker’s parent company , filed for bankruptcy on February 28, 2012. Although company Executive Chairman Jeffrey Pollack said via a statement that the company needs a new start and the reorganization filing was an important step for that process, court filings show massive debts which could make reorganization plans impossible.
FSG’s bankruptcy involves two entities: Federated Sports and Gaming, the company that operates the Epic Poker tour, and a subsidiary company, Federated Heartland, that operates the Heartland Poker Tour.
The young Epic Poker League ran only three poker tournaments since coming onto the poker scene last year, adding $400,000 to each prize pool and paying for TV time buys for the programming. The fourth tournament was cancelled along with a fifth, which promised a $1 million freeroll for the league’s top 27 performers in the inaugural season.
Court documents revealed that the company owed $5 million to more than 100 creditors, and that the company only had $15,000 cash at hand at the time of the bankruptcy filing. Most of the debt is owed to Las Vegas-based regional casino operator Pinnacle Entertainment and All In Production, the company that agreed to sell Federated its Heartland Poker Tour.
Heartland Poker Tour which was acquired by Federated in June 2011, hosts poker tournaments in 15 states. The company which started in 2005 recently held its 100th casino event. Its poker programming is broadcasted in syndication to more than 100 million U.S. homes each week. Now it is also at risk.
Court records show that there will be follow up hearings and motions scheduled for later this month.