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If a casino is in financial trouble

Discussion in 'Online Casinos' started by raj, Jan 15, 2011.

    Jan 15, 2011
  1. raj

    raj Dormant account

    Occupation:
    Bingo Product Manager and in-running trader.
    Location:
    LONDON
    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
     
  2. Jan 15, 2011
  3. petro

    petro Dormant account, per user request PABnoaccred2 PABaccred

    Occupation:
    N/A
    Location:
    Narnia
    If the casinos can't meet their dues hand them over to the courts to sentence them like in all normal situations.
     
  4. Jan 15, 2011
  5. brianzz

    brianzz Dormant account

    Occupation:
    Work
    Location:
    TN
    Does this have something to do with the other topic where a casino is allegedly paying affiliates before players winnings?
     
  6. Jan 15, 2011
  7. raj

    raj Dormant account

    Occupation:
    Bingo Product Manager and in-running trader.
    Location:
    LONDON
    purely hypothetical ;)
     
  8. Jan 15, 2011
  9. chayton

    chayton aka LooHoo CAG PABnonaccred webmeister

    Occupation:
    Freelance Designer
    Location:
    Edmonton Canada
    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.
     
  10. Jan 15, 2011
  11. KasinoKing

    KasinoKing WebMeister & Slotaholic.. CAG MM PABnonaccred webmeister

    Occupation:
    House-Husband and Casino Advisor
    Location:
    Bexhill on sea, England
    Personally, the order of priority IMHO should be:
    1) Players.
    2) Employees.
    3) Affiliates.

    KK
     
  12. Jan 15, 2011
  13. Jasminebed

    Jasminebed Closer to 100 than Birth

    Occupation:
    Not in workforce
    Location:
    Ontario
    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.
     
  14. Jan 15, 2011
  15. dazlazz

    dazlazz Experienced Member

    Occupation:
    Prophet
    Location:
    London, UK
    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:D
     
  16. Jan 16, 2011
  17. Tengil

    Tengil Senior Member

    Occupation:
    -
    Location:
    Finland
    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.



    And that has worked very well.. Betchance, Gold Victory, BetOnBet etc
     
  18. Jan 17, 2011
  19. PlexRep

    PlexRep Dormant account

    Occupation:
    Marketing
    Location:
    Malta
    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:

    seems the most likely outcome.
     
    1 person likes this.
  20. Jan 17, 2011
  21. Rhyzz

    Rhyzz Experienced Member

    Occupation:
    Online Gaming
    Location:
    United Kingdom
    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.
     
  22. Jan 19, 2011
  23. zaaaaabaaaaam

    zaaaaabaaaaam Dormant account

    Occupation:
    iGaming
    Location:
    wonderworld
    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...
     

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