A New York State political operative was charged on Monday for allegedly aiding Amaya founder and former CEO David Baazov to contribute $25,000 to Gov. Andrew Cuomo’s 2014 re-election campaign.
Details about the actual connection between Mr. Baazov and political operative G. Steve Pigeon are yet to emerge. However, it is believed the latter played a key role in the donation of $25,000 to a certain public official who ran for a second term in a 2014 statewide election.
This has not been the first time when Mr. Pigeon has been named in cases prosecuting illegal political activities. He pleaded not guilty before US Magistrate Michael Roemer on Monday. However, if his involvement in the case is proved, he may face a $250,000 fine and up to 5 years in prison.
Although Mr. Baazov’s connection to the case is yet to be located, it is believed that the former online gambling executive had tried to donate a certain amount of money to Gov. Cuomo’s campaign, but had failed to do so on several occasions.
According to different reports, Mr. Baazov had first tried to take part in the political campaign fund-raising initiative by purchasing a $25,000 ticket through his company, Amaya. However, it had turned out that that would have breached New York State laws. Mr. Baazov had then tried to buy a ticket himself, but being a Canadian national, he had not been able to do so.
A ticket was eventually secured through American citizen and then newly appointed Amaya Executive VP of Corporate Development and General Counsel Marlon Goldstein. Mr. Goldstein joined the company in January 2014. As mentioned above, prosecutors believe that Mr. Pigeon assisted the eventual completion of the donation, although neither Amaya, nor Mr. Baazov’s names have been mentioned directly in relation to the case.
Media reports also showed that the aforementioned political operative had received nearly $400,000 from Amaya for consulting the company and assisting it in its lobbying efforts for the legalization of online poker in New York.
Online poker has been a hot topic in the New York Legislature over the past several years and a particularly hot topic over the past several months. Earlier this year, both Assembly and Senate lawmakers proposed the legalization of the game as one the outcome of which was based on skill and not simply on luck. Here it is important to note that any form of gambling expansion is strictly prohibited in the state, and if online poker is perceived as gambling, it will have no chance of being brought to New York.
David Baazov found Amaya in the early 2000s. In 2014, the Canadian company purchased PokerStars and Full Tilt Poker owner Rational Group from the Scheinberg family for the amount of $4.9 billion. It was announced last year that following an investigation by the Québec securities regulator Autorité des marchés financiers, Mr. Baazov was charged with insider trading in relation to the above-mentioned transaction. The former Amaya CEO is due to stand court in November 2017.
