If a casino is in financial trouble

[raj]

Just a hypothetical question to consider...

If a casino hits financial problems who do you think should take priority over distributing whatver funds they have??#

1) Players.....ultimatley it is their money that kept the operation going, they are the ones who deposiited their hard earned cash to play the games and desreve to get back whatever is left available.

2) Affiliates...people who have worked tireslessly to promote the sites and introduce players, by the time a casino goes under they are likely to be due several affiliate payments based on previous months deposits.

3) Online casino employees wages......no one can work for nothing, for them this is not a recreation but a job which they need to pick up a salary from to live and feed their families.

Or should all be treated equally??

Just a thought and wondered what everyones opinions were.

Raj

 

[petro]

If the casinos can't meet their dues hand them over to the courts to sentence them like in all normal situations.

 

[brianzz]

Does this have something to do with the other topic where a casino is allegedly paying affiliates before players winnings?

 

[raj]

Does this have something to do with the other topic where a casino is allegedly paying affiliates before players winnings?

purely hypothetical

 

[chayton]

In a perfect world everyone would get paid. But I have a feeling that it would be the "squeakiest wheel" meaning whoever can make the most noise or do the most damage that would get paid off first. Or those with the meanest lawyers.

 

[KasinoKing]

Personally, the order of priority IMHO should be:
1) Players.
2) Employees.
3) Affiliates.

KK

 

[Jasminebed]

Here in Canada, employees have the right to be paid first, up to a certain max I believe. I think the thinking is if your wages are past due for too long, you should not have continued working.

After that, any taxes owed are claimed. Then all remaining creditors (which would include players, affiliates, maybe equipment or teleservices providers, landlords, etc), are all paid an equal percentage based on any funds remaining, if any.

This is with a formal bankruptcy. Many companies simply fold shop, leaving creditors hanging, but creditors can force a bankruptcy, and if certain behaviours (management bonuses, owner withdrawal of funds, etc) occurred, a schedule of payments into a bankruptcy trustee for a period of time may be ordered, and recovered funds disbursed to creditors.

I'm not a lawyer, or any kind of expert, so please feel free to correct me if I'm wrong. And I certainly have no idea what hypothetical laws in any hypothetical jurisdiction might be.

 

[dazlazz]

Raj,

If a casino is regulated by Malta for example - they have to have enough funds set aside in a bank account which is audited by the LGA to cover any potential losses they might make - generally in the region of 250K Euro.

If the casino was in trouble - the LGA should close them down, if auditing is being strict.


If not.....
1. Employees - no brainer, of course we get paid first
2. Software provider.
3. Taxes
4. Players
5. Affils


.....or
1. Employees
2. RUN!!!

Regards,

Daz

 

[Tengil]

If the company is insolvent and goes in to liquidation the player and the affiliate are both unsecured creditors and are the last ones to get anything.

Raj,

If a casino is regulated by Malta for example - they have to have enough funds set aside in a bank account which is audited by the LGA to cover any potential losses they might make - generally in the region of 250K Euro.

If the casino was in trouble - the LGA should close them down, if auditing is being strict.


If not.....
1. Employees - no brainer, of course we get paid first
2. Software provider.
3. Taxes
4. Players
5. Affils


.....or
1. Employees
2. RUN!!!

Regards,

Daz

And that has worked very well.. Betchance, Gold Victory, BetOnBet etc

 

[PlexRep]

Short of an unforeseen disaster, financial difficulties should never come as a surprise. It's not like the world is short of accountants after all.

The simple fact is gaming companies (heck, all companies) should know what they have and what they owe, and never let A fall below B. (With a big enough gap that any jackpots can hit without affecting the order of course)

If it gets to the point where management are scratching their heads saying ''oops, we can't pay everybody'', then imo they've already turned to the dark side and sadly:

1. Employees
2. RUN!!!

seems the most likely outcome.

 

[Rhyzz]

Affiliates would more than likely be classed as a business, therefore would fall under the category of creditor and be one of the last to get paid.

I'd imagine staff wages would take priority since banks could reimburse a player any deposited funds, that's the whole point of a chargeback. If they're a half decent operator though the bank that they use will ringfence any player funds and have a substantial amount in escrow to prevent this kind of thing. Banks are all too aware of how risky gambling is and the massive risk involved, so they are as much to blame as the operator if they do fail to pay anyone.

 

[zaaaaabaaaaam]

Just a hypothetical question to consider...

If a casino hits financial problems who do you think should take priority over distributing whatver funds they have??#

1) Players.....ultimatley it is their money that kept the operation going, they are the ones who deposiited their hard earned cash to play the games and desreve to get back whatever is left available.

2) Affiliates...people who have worked tireslessly to promote the sites and introduce players, by the time a casino goes under they are likely to be due several affiliate payments based on previous months deposits.

3) Online casino employees wages......no one can work for nothing, for them this is not a recreation but a job which they need to pick up a salary from to live and feed their families.

Or should all be treated equally??

Just a thought and wondered what everyones opinions were.

Raj

IMO

1) Employees (being stranded in a foreign country w/o your last 2 payslips and no job just 'cus the management couldn't keep things straight can be a bummer)

2) Players (fair and square, it's "our" money)

3) Affiliates (they know what business they are in and the risks...and they are most likely not depending on one single operator for an income either)

4) INVESTORS (they know what business they have invested in and the risks involved)

In reality they will secure as much funds possible for the investors and for sure there will not be a single penny left for anyone else...