The iGaming Post ran a story on the 3rd September regarding the sale of previously seized domain names by the US DOJ, that are now up for sale by David Gzesh, by his company US Poker Marketing Affiliate, LLC.
The article and indeed many of our fellow press colleagues speculated that Mr Gzesh was acting as a proxy for the sale of the domains on behalf of the US DOJ. Since we ran the story we have managed to speak to Mr Gzesh and asked him directly what is the truth behind the sale.
Here are his answers to our reporters questions and we are happy to ensure our reporting is as accurate as possible:
Q: David thank you for speaking to us on the recent reports that your company is selling previously seized domain names by the US
DOJ, can you explain how your company managed to acquire them?
DG: The ten subject domain names had been seized by the US government in 2011 on what has been dubbed Blue Monday. Some of the names had been the subject of litigation in the Commonwealth of Kentucky in 2008, but were dismissed from those proceedings when Kentucky and the US government entered into an agreement in 2011. This year, US Poker Marketing Affiliate, LLC (“USPMA”) made an offer to the US Attorney’s office in Maryland that was handling the asset forfeiture, which was accepted. The Court approved the transaction this July, and the registration transferred last week to reflect USPMA’s ownership.
Each of the domain names was acquired from the United States government by USPMA. There are no special restrictions and USPMA is entitled to hold, sell or license them. . Like any other domain name, these domain names are available for lawful use within the US or the rest of the world
Q: Can you tell our readers if you are connected in any way with the US DOJ in the sale of these domain names?
DG: No, I have no connection at all with the US DOJ in the sale
Q: What is the plan on the sale, by auction or another avenue?
DG: The Domain names are available for acquisition or licensing. However, there is no set auction process in place, there is no “fire
sale” pricing or offering term sheets. (Either a sale transaction or a licensing transaction can be considered.) The actual sale
mechanism or timing had not been decided upon when the information broke publicly over the past weekend. Privately negotiated sales seem to be the market norm for assets like these.
There are various means for assessing valuation of a domain name. Often prospective buyers and sellers differ greatly on their
subjective valuations. Make your own assessment of a fair pricing for any proposal you may wish to send for each specific domain name in which you have an interest.
Interested entities are asked to forward a specific proposal, together with verifiable information as to their identity or that of
a reputable, verifiable intermediary acting on their behalf. The more information provided to USPMA, the more easily any proposal
will be considered.
Q: Would you be looking to sell the names in a bundle or separately?
DG: Separately. The specific domains vary widely in value. Our approach is always to afford the acquiror with the highest and best use in mind for each asset to pay as much as possible. Further, I personally believe that geo-location technology may allow for
different lawful use under different jurisdictions and regulatory structures, so as to maximize values in different markets. I have
approached geo-location firms about how to best structure such arrangements and found them to be both available and cost effective.
Q: Have you received much interest so far in the names?
DG: Quite a bit of interest.
Q: Can you tell us more about your company US Poker Marketing Affiliate, LLC?
DG: US Poker Marketing Affiliate, LLC (“USPMA”) barely managed to avoid the unfortunate acronym “USPAM”, by changing its name just before its creation in Nevada. USPMA is not a gaming company. It was created to offer igaming consulting services, afford interested affiliate marketing companies a Nevada nexus, and to license or transfer acquired igaming assets to interested parties, whether in the US or ROW. Besides these ten domains, it holds other intellectual property, rights to other additional igaming domains, and rights to sell proven poker network software.
Hopefully that will close the case on whom is selling the domain names.