Forgive my ignorance but the story doesn't make an awful lot of sense to me, I understand the basic thrust of it (players can now only play at 2 tables at a time instead of 10), but what's in it for MG to make that change, and what's a 'skin'?
And once again it is clear that the LGA was not on top of the situation regarding segregation of player funds.
I am sure Microgaming will once again claim no responsibility for another failed licensee. I know there are legit MG licensees and some of them are the most well respected in the world but this company has shown over and over again that they care zero about security of player funds. Presumably this all started because 5050 had too many winners. This means the poker room was taking money out of the ecosystem. If 5050 was pulling money out of the poker network then where is that money? It is the same as Eurolinx, MG is keeping it.
Regardless of what Microgaming thinks, this is their problem. It is too bad people still play on their poker network. They have proven there is a near zero chance that player deposits are secure. If a licensee gets in trouble MG will just clean their hands of the problem and continue on with their business as long as they get their royalties. </MG rant>
I was going to type an LGA rant but I don't have the hours needed to type it.
4th July 2012
MICROGAMING POKER NETWORK CLARIFICATION IN RESPECT OF 5050 POKER STATEMENT 3 JULY 2012
ISLE OF MAN – Microgaming Poker Network (“MPN”) has taken note of a statement by 5050 Poker, placed on its website and dated 3rd July 2012. We think it important to clarify certain points raised within the statement.
5050 Poker did not pay €150,000 in fines. From April 2010 to June 2012, a system of reallocation of funds between Operators, called “Rake Reconciliation”, was used on the Network. Rake Reconciliation corrected the imbalance that occurs in a poker network ecosystem when rake is the only valuation metric. Similar methods are in use on other networks and are industry standard. It is this system of funds reallocation that is referred to in 5050 Poker’s statement, not “fines”. It is important to note that the reallocation of funds takes place between Operators within the Clearing House bank account, which at no time holds player balances from any Operator on the Network. MPN cannot access an Operator’s player accounts.
The suggestion that MPN imposed a simultaneous table restriction on 12 June 2012 without prior warning is incorrect. On 4 May 2012, all operators on the Network, including 5050 Poker, were notified of the restriction rule, which states that the number of simultaneous tables a single player may play on an operator may be temporarily reduced for the betterment of the network ecology. The specific application of this rule to 5050 Poker was notified to them mid May, and put into effect in June. The rule was put into action with three operators, one of whom was 5050 Poker.