5050 POKER FINANCIAL SITUATION IN THE OPEN
04th July, 2012 at 09:58:25Source: http://www.bluffed.net
5050 Poker players can expect no more than 15% of their account balance back
A media advisory posted on the 5050 Poker Holding AB website has addressed 5050 Poker Ltd's player payment concerns and it is not good news.
5050 Poker Ltd will be liquidated or possibly sold due to the Maltese Lotteries and Gaming Authority 's (LGA) request for guarantees at a level that exceed the assets in the company, said a company statement.
Furthermore, Patrick Sjögren, 5050 Poker Holding AB's managing director has been axed and Cem Yeter and Olle Langenius, Di rectors of 5050 Poker Holding, have been tasked with a further investigation into the fiasco with a view to saving as much of the shareholders' value as possible.
5050 Poker Holding AB's Board of Di rectors claim that Microgaming's suddenly imposed table limit and the subsequent cessation of its operations along with fines it says were dealt out by Microgaming for "having too many winning players" resulted in a run on the bank by players effectively leaving the company with insufficient funds to cover player balances.
The Board further claims that the company's financial situation went undetected as it (the Board) was provided falsified information on the player's fund, operational costs and the size of the company's assets.
An internal investigation by 5050 Poker Holding AB revealed the following:
- The operational costs of 5050 Poker Ltd has for a long time exceeded the revenues, resulting in players' funds being used in the operations of the company.
- Fines imposed by Microgaming in excess of Euro 150 000 had incorrectly been withdrawn from players' accounts.
The bad news for players is that the value of available assets will be used to pay back players on a proportional ratio. The Board said "there is no reason to believe that the ratio will be higher than 15% of the actual balance of the players' funds."
The company's unnamed auditing firms will also have some tough questions to answer as both 5050 Poker Ltd and 5050 Poker Holding AB reportedly underwent an audit for the 2011 fiscal year.
The full advisory can be accessed at http://www.5050pokerholding.se/en/press/46-information-to-the-shareholders-of-5050-poker-holding
Related News Tags: Microgaming
Poker News index »
LADBROKES iPOKER MIGRATION DATE NOW DECEMBER 21
07th December, 2013 at 00:14:01
But Microgaming casino software will remain in use until March 2014.
Full Story: Ladbrokes Ipoker Migration Date Now December 21 »
UNIBET TO MOVE TO STANDALONE POKER PRODUCT
03rd December, 2013 at 14:37:22
Unsustainable being part of a poker network says head of gaming
Full Story: Unibet To Move To Standalone Poker Product »
HERO POKER TO JOIN MICROGAMING POKER NETWORK?
27th November, 2013 at 02:01:49
Erstwhile Merge poker room looks for a new start...but it doesn't include US players.
Full Story: Hero Poker To Join Microgaming Poker Network? »
MICROGAMING POKER LAUNCHES ACHIEVEMENTS FACILITY
14th November, 2013 at 11:23:44
Makes MPN more appealing from a social aspect.
Full Story: Microgaming Poker Launches Achievements Facility »
MPN LAUNCHES NEW MAC OS ONLINE POKER CLIENT
17th September, 2013 at 04:13:22
Paf is first with new downloadable software
Full Story: Mpn Launches New Mac Os Online Poker Client »
More Poker News
On This Day