Originally Posted by
pokeraddict
The fact they were sending reload offers out to thousands of players in the past week is very suspect. They knew their days were numbered and they couldn't pay anybody that deposited so it isn't absurd to say they are guilty of fraud there even if the bankruptcy wasn't fraud itself.
This could also be SERIOUS fraud. It is a corporate crime known as "trading whilst insolvent", and company directors are the ones held responsible. Sadly, the penalties are a bit lame, even here in the UK, and there have been many cases of companies trying to trade their way out of a hole, whilst knowing full well they could no longer meet their liabilities. If they succeed, no-one ever finds out, but it is when they fail that a far larger amount of customer's money is lost than would have been the case if they ceased trading as soon as they realised they could not honour their obligations.
In many cases, the high ranking employees, directors, and owners know the end is coming, and they have an opportunity to make sure THEY never lose out when the ship finally sinks. It is lesser employees, and customers, that suffer the loss when intention to liquidate is announced
because they have NO advance notice whatsoever, and can do nothing to protect THEIR funds.
What is worrying here is that this is YET ANOTHER case of an MGS casino/poker operation going bust, and in pretty much the same way ("business as usual", MGS notified of intention to liquidate, license pulled, THEN players get told when it is too late to move funds out)
There is STILL no conclusion to the TUSK liquidation for POKER players, and here we go again, with the full expectation that players here too will get NOTHING back from MGS.
It is too early to tell what will happen to CASINO players, and in the past MGS have had a reputation that there was some "insurance fund" of last resort to ensure that a player NEVER lost out to an operator going bust. The TUSK issue blew a big hole in this idea, and if CASINO players lose out in this case, this part of the trust element of playing at an MGS casino will be sunk forever.
This will be a HUGE disaster for MGS if the industry were to suddenly pick up following a reopening of the US market, since players would know there was no such thing as this "insurance fund", and may well suspect it never existed at all, and that it was all a "lie" whose truth was fuelled by the fact that the industry was robust enough that MGS was never facing having to pay out to players, because they were always able to persuade a new operator to take on the liability of existing funds when buying the casino assets of the liquidated operator. In the case of Integrity casinos, Casino Rewards bailed MGS out by taking over the casinos. Casino Rewards AGAIN bailed out 6 MGS casino skins when TUSK went under. Casino Rewards do NOT have infinite resources, yet they seem to be the only operator interested in this particular type of salvage. If Casino Rewards is not interested in these MGS casinos, who else might be. From what I can see, groups are cutting DOWN on the number of casinos they operate, and the only value would seem to be a player base, some of whom may already have accounts at a group taking them over.
Players should hope that Casino Rewards are still interested in the salvage value of failed MGS casinos, since this route would be much faster than the liquidation process, and from the TUSK affair, it is likely that negotiations and bids are already in progress (from any number of groups, or even a completely new operator)- but in strictest confidence at present.
Empty Fruities Astern Capt'n
Back to port for unloading.
Full Sails - before we get raided ourselves.
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Eurolinx, BetOnBet, and Linx Casino gone into liquidation!!!
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