Serious problems at Purple Lounge

[The Don]

You do not have permission to view link Log in or register now.

This looks promising. Maybe I am just starved for communication.

 

[riva]

End of Purple Lounge ?

I just received an email from Purple Lounge Casino with the following content :

Dear,

It is with great regret that we inform you that Purple Lounge has suspended its casino and poker services.

We will be contacting individual players within the next 7 days.

Many thanks
Purple Lounge


Anyone knows more about this ? On their website, I can only find the same message.

 

[Mojack]

You may be interested in the last few pages of this thread:

https://www.casinomeister.com/forums/threads/serious-problems-at-purple-lounge.49194/

 

[Dinahnana]

I wonder does this email mean players are going to be paid. I guess it remains to be seen.

 

[jetset]

It seems that Purple Lounge is belatedly starting to talk to its players, alhough it does look like another stalling tactic and really tells them very little.

I would suggest that this thread be merged with the main one on this topic which Mojack has already flagged here.

 

[maxd]

Threads merged.

Given that this has become the main thread for the Purple Lounge crisis -- and thereby it has out-grown it's original purpose -- I have retitled it accordingly. Apologies for any inconvenience this may cause.

 

[jetset]

Thanks, Max.

This story has now made its way into most of the major online poker and gambling information/news sites so the pressure is building on Purple Lounge and its service companies to do something constructive about paying players instead of fobbing them off with unnecessary 7 day delays.

And it would be nice to see the professional and business courtesy of a CEO who responds to phone calls and emails.

 

[maxd]

And it would be nice to see the professional and business courtesy of a CEO who responds to phone calls and emails.

As soon as they believe it would be financially beneficial to do so I'm sure they'll get right on it.

 

[vinylweatherman]

Thanks, Max.

This story has now made its way into most of the major online poker and gambling information/news sites so the pressure is building on Purple Lounge and its service companies to do something constructive about paying players instead of fobbing them off with unnecessary 7 day delays.

And it would be nice to see the professional and business courtesy of a CEO who responds to phone calls and emails.

It is not even a mere 7 day delay. The thread started early in March, and was about a player that had already been waiting a month. These problems date right back to the end of January, when PL realised they had serious problems finding the money to pay players. Rather than deal with it straight away, they tried stalling in the hope that the problem would somehow fix itself, perhaps through players depositing and losing. For almost 3 months players were playing a secret game, not just those presented by the casino and poker products. This game was that more money would be lost to the company than was won, enabling payouts to be made. This strategy began to unravel pretty quickly, yet they carried on taking deposits to the bitter end, and found they didn't have enough liquidity to close down in an orderly manner, hence players are still subject to stalling tactics even now that the decision to close down has been made.

Having already had several days between making the decision to close, and actually tell players about it, they should not need an extra ONE day, let alone 7, to inform players of the procedure for withdrawing their remaining balance.

They are just buying time knowing that one week of stalling means one week closer to the merger going through, or an extra week to look under the sofa cushions for enough money to pay players.

What about the staff? They may well be suffering similar stalling tactics over their wages, in addition to seeing their jobs under threat. Once they realise they have been thrown on the scrapheap, they may begin to tell their side of the story.

 

[alfonso07]

Other than the mystery behind the operations of PL, one would also call on the mystery on how the respective authorities acted on the matter. With a little help from a close contact on the island, we found out the following:
- the last financial filed by PL where in late 2011 BUT only covered the financial year ending 2008, which reported the lliabilities towards players as the biggest item on their balance sheet;
- the director of the Malta company, and presumably also carrying the post of what they refer too as Key Official, hastily filed a resignation letter with the company registrar on the 20th April 2012 backdated to the 15th march 2012, and placing in his seat the PL service company in the UK;
- the LGA's website two weeks ago reported that PL had two active licenses under MG, now the same website reports that these licenses have been terminated;
- I asked my contact to have a look a the relevant legislation in Malta and we found out that all the above are in fact in default to the same legislation.

What strikes me most about this saga is the sheer arrogance by who-ever ran the business and even worst the regulator. As things stand a the moment, the Malta company can be placed into liquidation and the players would have to negotiate with the administrators for some form of respite, if possible. The regulator seems to have cleverly washed their hands off the matter by allowing the resignation of the director which in terms of their same legislation is liabile to all the operations of the company he/she is representing.

Me and my contact have reviewed the actual legislation in place in Malta and found the following which fit the bill:
Part IV Key official
15. (1) A licensee shall appoint at least one key official and such appointment has to be approved by the Authority and shall be a condition of the licence.
(2) A key official shall:
(a) personally supervise the operations of the licensee of which he is a key official;
(b) ensure that the licence holder shall comply with all applicable laws and regulations, the conditions of the licence and any directives issued by the Authority to the licensee.....
Provided that a key official licence cannot be surrendered without the written consent of the Authority.

Part VIII
Players’ Accounts and Payment of Winnings
37. (1) A licensee must, at the request of the registered player in whose name a player’s account is established, remit the funds standing to the credit of the account to the player by no later than five working days, if practicable, after receipt of the request.
38. A licensee shall not deal with the amount standing to the credit of a player’s account except:
(a) to debit to the account a wager made by the player or an amount the player indicates the player wants to wager in the course of an authorised game the player is playing or about to play;
(b) to remit funds standing to the credit of the account to the player, at the player’s request, in terms of regulation 37;
39. Provided that no claim shall lie against a licensee who has remitted the balance in a player’s account to the Authority.
If no transaction has been recorded on a player’s account for thirty months, the licensee shall remit the balance in that account to the player, or if the player cannot be satisfactorily located, to the Authority:
40. (1) A licensee shall keep players’ funds separately from the licensee’s own funds in a Clients’ account held with a credit institution approved by the Authority.

 

[jetset]

Excellent information, for which thanks alfonso.

All sorts of interesting little tidbits are starting to emerge from various sources despite the silence of Media Corp, and I think we're about to see more disclosures soon.

I'm trying to get an official reason for the terminiation of Purple Lounge's LGA licence at present.

 

[Redbush54]

iGaming Business has posted what they know Old / Expired Link

 

[alfonso07]

just been in contact with some friends in sweden and they have friends who are owed 15K and with the current stalemate they are not very hopeful of getting anything.

 

[vinylweatherman]

just been in contact with some friends in sweden and they have friends who are owed 15K and with the current stalemate they are not very hopeful of getting anything.

From the information released, they have £400K left in cash, plus £250K from the sale of those two domains. If players are owed more than this, and the money has not been kept separate, they will have to pay some players, but stall others.

If they had the cash, surely they would have been keen to bring this matter to a quick end, and paid players their balances in full as soon as the decision to close the operation had been made.

 

[Westland Bowl]

From the information released, they have £400K left in cash, plus £250K from the sale of those two domains. If players are owed more than this, and the money has not been kept separate, they will have to pay some players, but stall others.

If they had the cash, surely they would have been keen to bring this matter to a quick end, and paid players their balances in full as soon as the decision to close the operation had been made.

If they do pay something, I'm sure they will pay the smaller balances off first to lessen the number of people complaining before paying the larger balances if at all.

 

[GrandMaster]

I'm trying to get an official reason for the terminiation of Purple Lounge's LGA licence at present.

It could be as simple as failure to pay licence fees, that rouses into action even otherwise lethargic licensing authorities.

 

[alfonso07]

It could be as simple as failure to pay licence fees, that rouses into action even otherwise lethargic licensing authorities.

in my understanding, whenever an authority cancels/terminates a license, this would mean that the authority is no longer responsible for actions of the operator. so in this case, since the licenses have been terminated, the player has no protection from the same authority that allowed the operator to function. in other words, the authorities washed their hands very nicely!!! wouldn't it have made more sense to suspend the licenses until the players funds are resolved?

 

[jetset]

It could be as simple as failure to pay licence fees, that rouses into action even otherwise lethargic licensing authorities.

My thinking exactly, but I'm trying for an official confirmation anyway.

Regarding Media Corp's ability to pay, I've been hearing alarming (and I must caution as yet unconfirmed) whispers that the company is heavily indebted to a number of entities.

 

[The Dude]

Sorry for the delay in getting involved, but I'm been seriously on the road for two months.

Media Corp and anything they touch should be tossed into the rogue pit. This was one of the worst examples ever on how to close shop of an online casino. Firstly, flat out lie to their customers. Secondly, stall payments and put a "gag rule" on its employees. Not once has any employee or exec from Purple Lounge or Media corp been in touch with me - or anyone else here in Casinomeister.

I've noted that their casino rep has logged in as recently as 1 May.

The horses have left the barn, so it's a bit late to throw PL into the rogue pit. But I would definitely consider listing any gambling entity that Media Corp is connected to within our infamous Rogue section. As Jetset mentioned earlier, they have treated their players with contempt.

A number of members have mentioned that the only reason that they played there was the fact they were listed in Casinomeister's Accredited casino section - should I remind everyone that they had promised a little over a year ago to maintain the accredited standards specifically to treat players fairly and to be communicative?

@ Purple Lounge/Media Corp: I don't give a rat's ass if the ship is going down; you need to communicate your problems to those you have instilled trust in (to include your players). We agreed on a handshake that you would abide to our standards (Max and Martin S. were there as witnesses - ICE 2011); we had a deal - and this breach of trust and goodwill will not be forgotten.

 

[chuchu59]

Sorry for the delay in getting involved, but I'm been seriously on the road for two months.

Media Corp and anything they touch should be tossed into the rogue pit. This was one of the worst examples ever on how to close shop of an online casino. Firstly, flat out lie to their customers. Secondly, stall payments and put a "gag rule" on its employees. Not once has any employee or exec from Purple Lounge or Media corp been in touch with me - or anyone else here in Casinomeister.

I've noted that their casino rep has logged in as recently as 1 May.

The horses have left the barn, so it's a bit late to throw PL into the rogue pit. But I would definitely consider listing any gambling entity that Media Corp is connected to within our infamous Rogue section. As Jetset mentioned earlier, they have treated their players with contempt.

A number of members have mentioned that the only reason that they played there was the fact they were listed in Casinomeister's Accredited casino section - should I remind everyone that they had promised a little over a year ago to maintain the accredited standards specifically to treat players fairly and to be communicative?

@ Purple Lounge/Media Corp: I don't give a rat's ass if the ship is going down; you need to communicate your problems to those you have instilled trust in (to include your players). We agreed on a handshake that you would abide to our standards (Max and Martin S. were there as witnesses - ICE 2011); we had a deal - and this breach of trust and goodwill will not be forgotten.

Exactly. Unless I missed something they tried to avoid being tossed into the pit till the last possible moment so that deposits will continue to trickle in. It does seem the rogue pit is something of a great deterrent when it comes to players making deposits. If they were going to close shop anyway they would want to gobble up as much as possible. I fear though, it may just be a taste of things to come as many casinos are really feeling the bite. More and more casinos, even accredited ones, are now fooling around with w/d times.

 

[kingsino]

It's very sad that this has happened to Purple Lounge. It used to be a great site.

 

[whatever]

Sorry for the delay in getting involved, but I'm been seriously on the road for two months.

Media Corp and anything they touch should be tossed into the rogue pit. This was one of the worst examples ever on how to close shop of an online casino. Firstly, flat out lie to their customers. Secondly, stall payments and put a "gag rule" on its employees. Not once has any employee or exec from Purple Lounge or Media corp been in touch with me - or anyone else here in Casinomeister.

I've noted that their casino rep has logged in as recently as 1 May.

The horses have left the barn, so it's a bit late to throw PL into the rogue pit. But I would definitely consider listing any gambling entity that Media Corp is connected to within our infamous Rogue section. As Jetset mentioned earlier, they have treated their players with contempt.

A number of members have mentioned that the only reason that they played there was the fact they were listed in Casinomeister's Accredited casino section - should I remind everyone that they had promised a little over a year ago to maintain the accredited standards specifically to treat players fairly and to be communicative?

@ Purple Lounge/Media Corp: I don't give a rat's ass if the ship is going down; you need to communicate your problems to those you have instilled trust in (to include your players). We agreed on a handshake that you would abide to our standards (Max and Martin S. were there as witnesses - ICE 2011); we had a deal - and this breach of trust and goodwill will not be forgotten.

Purple Lounge were accredited here, had an active rep, had an active marketing team sending e-mails 2-3 times a week with all kinds of promos (the last marketing e-mail I got from them was 2 weeks ago).

There was a 'vip manager' assigned to my account who said they have difficulties related to the poker network migration and everything should be back to normal in 'a couple of weeks'. That was 6 weeks ago when I stopped playing and withdrew the rest of my balance.

And behind all that there was a parent company which appeared to be legit. All in all, the sting was better than most.

And then this happens... the site gets taken down, management is nowhere to be found, the licensing authority washed their hands, their eCogra seal turned out to be fake... All the seals and the supervision, accreditation, listing on the LSE... and when the shit hits the proverbial fan, all players get is a hole in their pockets and another name on the ever-growing Rogue list.

All this time and nothing has changed And nothing will, 'cause nobody really does anything and the sea is full of fish as they say.

 

[The Dude]

Purple Lounge were accredited here, had an active rep, had an active marketing team sending e-mails 2-3 times a week with all kinds of promos (the last marketing e-mail I got from them was 2 weeks ago).

There was a 'vip manager' assigned to my account who said they have difficulties related to the poker network migration and everything should be back to normal in 'a couple of weeks'. That was 6 weeks ago when I stopped playing and withdrew the rest of my balance.

And behind all that there was a parent company which appeared to be legit. All in all, the sting was better than most.

And then this happens... the site gets taken down, management is nowhere to be found, the licensing authority washed their hands, their eCogra seal turned out to be fake... All the seals and the supervision, accreditation, listing on the LSE... and when the shit hits the proverbial fan, all players get is a hole in their pockets and another name on the ever-growing Rogue list.

All this time and nothing has changed And nothing will, 'cause nobody really does anything and the sea is full of fish as they say.

I feel your frustration ten-fold. It was my hand that shook the CEO's - expecting that a person's word is as good as their handshake. And even if I had it all on paper signed in blood, it still wouldn't have meant a thing.

 

[Mousey]

This entire situation is maddening. All we (players and player advocates) here at CM can do is go by what we are told and what is happening to players. And that, unfortunately, is the 'barn' door scenario. It's already too late once the 'horses' have bolted.

There is supposed to be someone, somewhere, a regulator?, looking after player interests? Who? Where?

Meanwhile a major online casino/book has imploded and and all we see is players and the online community asking, 'WTF just happened'? in bewilderment.

 

[$97 All in.]

When is the 7 days up?

 

[specialK]

When is the 7 days up?

The message on website appeared on Monday. And they sent emails that day too.

 

[questa]

Monday is a holiday in the UK.

I very much doubt they will be contacting anyone on Monday.

 

[RockyRoulette]

Short Term Investments

I agree.

In a professional organisation, it shouldn't matter who left what and when. The business of serving customers must go on regardless. It is not the player's fault that the company made some changes, and they should not have to suffer any consequences.

Somone whispered in my ear that Online Casinos invest all subscriptions into short-term investment accounts in the hope that the player will lose his initial subscription thus allowing the casino not only to keep the subscription but also to keep the interest it has made while the player has been playing:

That may explain the late payments: The Casinos are awaiting the termination of their investments in order to pay out its winners:

 

[Westland Bowl]

Somone whispered in my ear that Online Casinos invest all subscriptions into short-term investment accounts in the hope that the player will lose his initial subscription thus allowing the casino not only to keep the subscription but also to keep the interest it has made while the player has been playing:

That may explain the late payments: The Casinos are awaiting the termination of their investments in order to pay out its winners:

This is a new one on me. Is this the real reason behind the "waiting period" of pending withdrawals nearly all casinos practice?

 

[The Don]

Wouldn't that be fraud? ...given that I never consented to my money being invested, nor had any knowledge of it.

 

[jetset]

It's clear these guys are not prepared to communicate with anyone on this mess they have left the players and their creditors holding, but the word is definitely out there now and that will hopefully make them more cautious in how they handle things going forward.

As for the deal they reported was taking shape with Gaming Media Group (Poker Channel and Poker Heaven)...if I was an executive in that company I would be stepping back and taking another and deeper look at who I was dealing with following all this publicity.

Taking over damaged goods (in a reputation as well as business sense) would have to be risky, as is doing business with people who behave in a questiolnable manner.

I share Mousey's frustration at the LGA, which has shown yet again that it is totally disinterested in the player issues associated with its licensees, and in communicating with them.

 

[The Don]

Isn't there incentive to pay the players based on the fact that ownership/directors are likely very large shareholders and failure to meet their obligations to the players/creditors would result in a massive sell off? I can't see how the stock maintains any value if the company can't meet its financial obligations.

 

[$97 All in.]

Media Corp shares are suspended already. I doubt they will ever be relisted. They are worthless.

 

[ghilase]

I was not contacted by PurpleLounge until now.

 

[jetset]

Looks as if that was just another stalling tactic, although to be fair it is a holiday in the UK today (May 7)

Let's see if they burst into life tomorrow when everyone is back at work!

 

[Silencio]

It's clear these guys are not prepared to communicate with anyone on this mess they have left the players and their creditors holding, but the word is definitely out there now and that will hopefully make them more cautious in how they handle things going forward.

As for the deal they reported was taking shape with Gaming Media Group (Poker Channel and Poker Heaven)...if I was an executive in that company I would be stepping back and taking another and deeper look at who I was dealing with following all this publicity.

Taking over damaged goods (in a reputation as well as business sense) would have to be risky, as is doing business with people who behave in a questiolnable manner.

I share Mousey's frustration at the LGA, which has shown yet again that it is totally disinterested in the player issues associated with its licensees, and in communicating with them.

Gaming Media Group eh..? Interesting.. Yeah they also own CasinoJoy, Heaven Casino and BingoJoy, as well as a scratch brand..

As an affiliate I wouldn't even be aware of the recent problems if I hadn't read about it here.. no email.. nothing.

 

[jetset]

Yeah - Media Corp pushed out a release last month touting this deal and suspending share trading:

Media Corporation Plc (MDC.L: News ) confirmed that it is in advanced discussions with Gaming Media Group Ltd. or GMG on the proposed acquisition. Were Media Corp to make the purchase of GMG it would be deemed a reverse takeover under the AIM Rules for Companies and be subject to shareholder approval.

The company has yet to begin formal due diligence on GMG and, once heads of terms are inked, would take a period of time the outcome of which may result in the acquisition not proceeding. Assuming that the final terms are agreed, a shareholder circular comprising an Admission Document under the AIM rules would be sent to shareholder convening a general meeting to approve the acquisition.

The company's existing ordinary shares would be suspended from trading on AIM from 10:15 am today. Trading in the existing ordinary shares would rebegin at the earlier of the publication of its Admission Document in respect of the acquisition or confirmation that the company is no longer proceeding with the acquisition.

But Gaming Media has said nothing, which makes me wonder whether Media Corp is not again gilding the lily for its own benefit, so to speak.

 

[$97 All in.]

Well, we're halfway into our 8th day after the announcement that PL would be in touch within 7 days.

Anybody heard anything?

Are they answering the phone?

Has anybody got anyone from management on the phone or are they still hiding?

 

[oswego]

Nope I haven't heard anything from them

 

[specialK]

Apologies for the ongoing suspension of our gaming services.

We are continuing to work towards a resolution for all Purple Lounge players and will be in contact within the next 5 business days.

Many thanks,
The Purple Lounge Team

And something new about our case: Link Removed ( Old/Invalid)

 

[jetset]

That looks a little tenuous, not to say ambiguous to me, but it would not surprise me to learn that Media Corp is trying to make a buck out of "selling" its players to Devilfish whatever without bothering to let said players know what is happening.

I would not think that would enhance their deal (if there really is a deal) with Gaming Media Group, though.

I guess it could also be interpreted as a cheeky attempt by Devilfish to gather up players from a clearly failing rival poker room.

Missing their own deadline is typical of the Media Corp crowd imo - I guess we'll have to see if they keep to their undertaking to let everyone know what the hell is happening - eventually.

BTW still no response from another unprofessional crew imo - the LGA. I'm not holding my breath there, either.

 

[questa]

They've just sent another email, asking for another week...

 

[$97 All in.]

They're getting militant on the main shareholder's thread on ADVFN -

You do not have permission to view link Log in or register now.

 

[The Dude]

They're getting militant on the main shareholder's thread on ADVFN -

You do not have permission to view link Log in or register now.

You have to be logged in to view anything there. Could you please give us a synopsis? Thank you.

 

[$97 All in.]

You have to be logged in to view anything there. Could you please give us a synopsis? Thank you.

There are hundreds of posts going back months. Best to just register, it's free. They require only an email address, the rest of the stuff you can make up -

You do not have permission to view link Log in or register now.

.

Back to the extra 5 days.

It doesn't really matter if they want 5 days, 5 weeks or 5 years, they obviously don't have the money to settle accounts & they aren't going to pay anyone. If you look at the main ADVFN thread

You do not have permission to view link Log in or register now.

you'll see Media Corp have previous form for filing accounts which misrepresented their financial strength, in effect declaring themselves to be in the black bigtime when they were losing money hand over fist. They blamed it on a departed Financial Director who vehemently denies having anything to do with it.

They are crooks.

 

[The Dude]

There are hundreds of posts going back months. Best to just register, it's free. They require only an email address, the rest of the stuff you can make up -

You do not have permission to view link Log in or register now.

.
...

It's still a closed (private) forum. It's considered bad forum etiquette to request that members here join another forum for hidden information. Whatever information is available - no matter how lengthy - should be summarized here.

But thanks for the info anyway.

 

[$97 All in.]

It's still a closed (private) forum. It's considered bad forum etiquette to request that members here join another forum for hidden information. Whatever information is available - no matter how lengthy - should be summarized here.

But thanks for the info anyway.

I believe ADVFN stands for Advanced Financial Network & as the name implies it's forums are to do with Financial matters, shares, stocks, the LSE & AIM markets. It is nothing to do with poker or casinos so I can see no conflict in recommending it or joining it.

Indeed, it seems to me the shareholders who contribute to it saw problems with Media Corp (MDC) years before anyone here had a sniff of trouble. Perhaps, instead of worrying about some arbitrary rules of forum etiquette it should be MANDATORY for players with money at stake & those reviewing sites with their credibility & reputations at stake to visit a selection of financial forums to see what is being said about & to keep a finger on the pulse of gaming companies. As I said, MDC was seen as a wrong 'un by shareholders for at least the last 5 years!

That one MDC thread I linked to on advfn contains over 9,000 posts & there are at least half a dozen older, smaller threads which make interesting reading. A summary doesn't do the management of MDC justice, but in a nuthell:

1) They are rogues, thieves & liars.
2) You've been had
3) Your money is gone.

As I say, it's best to read it yourselves & form your own judgement.

 

[whatever]

...it should be MANDATORY for players with money at stake & those reviewing sites with their credibility & reputations at stake to visit a selection of financial forums to see what is being said about & to keep a finger on the pulse of gaming companies.

I understand what you're saying but you can't be serious. People want to have fun playing online casinos, that's it. This is not stock trading. Do I need to read financial statements before trying my luck at slots? Should I look at the share price every time before I deposit? Should it affect me that they are bankrupt? I didn't buy their shares. Why was my money at risk then?

All this financial background check is within the attributes of the licensing body. This is what they should do... review, approve and assume responsibility for what their licensee does. I was thinking the other day, how many more incidents like this need to happen before this site (and others) make a stand against the LGA? Why are casinos licensed in Malta still accredited? LGA license has absolutely nothing to do with players' interest. It's been proven over and over again! Casino operators know that having them on their payroll means they can do pretty much whatever serves them best (remember Betfair?).

As I said, this site is 14 years old, so many players read it daily, and when something like this happens all we have left is the rogue pit?!? Am I the only one who thinks this is some kind of a bad joke? I mean no disrespect to Bryan, but in all these years, with all these fairs and conferences, there isn't even a PR person from the licensing body or the software provider at least trying to come up with some kind an excuse for players. That's how little they care!

 

[vinylweatherman]

I understand what you're saying but you can't be serious. People want to have fun playing online casinos, that's it. This is not stock trading. Do I need to read financial statements before trying my luck at slots? Should I look at the share price every time before I deposit? Should it affect me that they are bankrupt? I didn't buy their shares. Why was my money at risk then?

All this financial background check is within the attributes of the licensing body. This is what they should do... review, approve and assume responsibility for what their licensee does. I was thinking the other day, how many more incidents like this need to happen before this site (and others) make a stand against the LGA? Why are casinos licensed in Malta still accredited? LGA license has absolutely nothing to do with players' interest. It's been proven over and over again! Casino operators know that having them on their payroll means they can do pretty much whatever serves them best (remember Betfair?).

As I said, this site is 14 years old, so many players read it daily, and when something like this happens all we have left is the rogue pit?!? Am I the only one who thinks this is some kind of a bad joke? I mean no disrespect to Bryan, but in all these years, with all these fairs and conferences, there isn't even a PR person from the licensing body or the software provider at least trying to come up with some kind an excuse for players. This is how little they care!

I have to agree. It is the players' responsibilty to read the terms of business before depositing, and especially before claiming a bonus. It is the licensing authority who has the job of regulating the licensees, and checks on background matters such as financial stabilty and past criminal activity is what they should be doing in return for the large fees being charged.

Where this system is failing, it is the industry that needs to take a stand, if necessary by hitting the LGA where it hurts, and moving to another licensing jurisdiction. By sticking with the LGA just because it is cheaper risks them being tarred with the same brush, as the LGA now has an unenviable track record of presiding over operators that go bust and take players' funds with them.

It is no good expecting the average user to read and UNDERSTAND what is being said on financial forums, and there is a great deal of "false positives" when it comes to interpreting the information. These fora are run in the interests of shareholders, which is usually at odds with the interests of customers. In fact, a business treating customers too well, and at the expense of profits, will be getting a pretty bad press on the financial fora, yet would be the BEST place for a customer to do business.

The information is also cloaked, as no Google search brings up any of this discussion. Again this is because the fora are run in the interests of shareholders, and having such discussion thrust into public view too easily would scare off customers, which would damage the returns for shareholders.

Customers need some kind of digest of what is going on, similar to what some newspapers offer their readers. The experts read the stock market reports, and look at financial fora, and then write a report with the customer in mind, rather than the shareholders.

One common early warning sign customers can take heed of is unusual delays in payment of withdrawals, accompanied by flimsy and even bullshit excuses. This is what happened at Purple Lounge early in March when a player that had been given the runaround since early February went public. Purple Lounge then went into damage limitation mode, with the rep managing to get the most vociferous complainants paid ASAP in the hope of keeping the problem as low key as possible. Anyone who suggested that this was a sign of serious problems was asked to provide proof or quit speculating, an impossible task under such circumstances. As it turns out, they were RIGHT, and in fact the problem was MORE serious than the speculation that they were having "cashflow problems". In fact, they were BUST, and they were no longer being bailed out by the parent company to keep up appearances. Even then they tried to lie their way out of the mess, and when the LGA yanked their license they pretended it was a "technical issue", and that it was being worked on.

Earlier this year another accredited casino followed a similar path. Big Casino suffered "technical issues" that prevented any players from making deposits. The lie was delivered that it was being worked on, but again it turned out the operator had decided to cease operations, so had deliberately switched off the banking system. When this was found out, yet more bullshit followed, and we were told this was merely a "suspension", and was down to the software supplier (Viaden) undergoing major changes. This should NEVER have caused a licensee to have to shut down, as after all changes within the structure of a software supplier should not have any effect on a completely separate entity that had licensed the software from Viaden to operate their casino. The lie here is pretty obvious. Viaden ran the whole thing, there was no licensee, so when Viaden suffered problems, so did Big casino, and it had to close.

So many high profile failures, many of which have taken players' funds along with them, have happened in the past few years that there is no way for players to be able to assure themselves that their funds are safe if left in their casino or poker accounts overnight. This lack of assurance will lead to players withdrawing funds rather than leave them in place, and redepositing only a day or so later. This "churn" will increase the costs for the industry, but players will do it because the only way they can KNOW their money is safe from an operator going bust overnight is by having it in their bank or eWallet between playing sessions.
This may not be the case for US players though, where leaving money in their casino account is probably safer than having it sitting in an eWallet like Quicktender or EWX.


This is a systemic weakness with the LGA, and ANY operation licensed there can run themselves into the ground, spending players' money in the process, in trying to trade their way out of an impossible situation. A better regulator would at least prevent players' money being swallowed up in the collapse, and may shut down a failed operation in time for players' funds to be salvaged from the mess and paid out.

 

[jetset]

I don't want to detract from this important Purple Lounge and Media Corp topic, but I believe Viaden's "organisational changes" may be linked to the recent news that Playtech has bought 20 percent of the company.

Now...on with the Purple Lounge show.

If, as the rumours suggest, Media Corp owes money all over the industry, then it is difficult to see how players will be paid from existing resources, which are clearly limited.

In the absence of any sort of communication whatsoever (other than stalling for more time) Media Corp will increasingly become the subject of speculation as owed players and other interested parties try to figure out where this mess is headed.

Perhaps Drummond is trying to raise more capital, but it appears from the info regarding Gaming Media Group and Devilfish (see the earlier posts here) that his preferred course of action is making some sort of deal that releases him from resposnibility for PL.

One can only hope that whoever he manages to clinch a deal with insists that players be paid as part of the package.