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article on the historic business moves behind Cereus Network sites

Written On  5/3/11 By Recentpoker.com staff writer Jennifer Jearu :

An interesting article on the historic business moves behind Cereus Network sites
 
One of the most interesting and arguably informative articles to appear on the Cereus network online poker sites Absolute Poker and UBPoker appeared over the weekend in the St Petersburg Times.
 
Clearly the product of considerable research by three or more business journalists, the piece covers the initial founding of the enterprise between 2000-2002 by four frat brothers from the University of Montana - Scott Tom and Garin Gustafson were allegedly the poker experts; whilst Shane Blackford and Oscar Hilt Tatum IV had family money and contacts.
 
The appeal of the growing online poker phenomenon, along with the contacts available to the founders, enabled them to raise millions in initial capital for the venture.
 
The authors trace the development of the company through records and interviews with investors, most of them apparently unhappy with the lack of returns occasioned by legal difficulties and flawed business decisions that bedeviled the sites.
 
"The [Absolute Poker] site, one of the first of its kind, grew like wildfire. Soon nearly 30,000 players were logging on at once, trying their luck at games like Texas Hold'em. In just four years, annual revenues rocketed past $200 million," the authors reveal.
 
"Congress put a serious crimp in online gambling in 2006, but Absolute Poker found ways to keep dealing virtual hands. Even two cheating scandals didn't stop the cash flow."
 
The piece goes on to describe the business machinations that saw the originally Costa Rica-based sites transferred to a former chief of the Kahnawake Mohawk tribe in Canada for a million dollars and later what appeared to be a takeover by Blanca Games, as attempts were made to build ownership and interest firewalls against the threat of US enforcement actions.
 
Companies in Norway and Portugal like Madeira Fjord were opened to move finances around, and plans were actioned to develop fall back software and hosting facilities in Panama and the issue of $250 million notes bearing 12 percent per annum interest.
 
It's a fascinating tale of business manoeuvreing in a difficult and competitive environment; the impact of the UIGEA; and the recent US federal indictments that name the sites in question and at least one of the founders make the story all the more topical.
 
It's worth the read at http://www.tampabay.com/news/business/article1166818.ece

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Gambling News :

Interwetten 2016 Earnings Results - Privately-owned online sports betting operator Interwetten delivered robust full year results for the 2016 fiscal period, in which the company has almost achieved doubling its revenues over the past four years, success it attributes to its in-house developed platform

EU Online Gambling Tax Harmoney Dead - Tax expert says European Court of Justice Attorney General's opinion on UK-Gibraltar litigation signals that EU courts are happy for individual member states to impose their own laws on online gambling.

Jack Lam Facing Big Fines in the Philippines - It's going to be costly for Macau online gambling and junket tycoon Jack Lam to return to the Philippines following his rather hurried departure last year with allegations of economic sabotage, bribery and tax evasion swirling around him.

Walter Merricks Term As Gambing Commissioner Extended - The UK Government has extended Walter Merricks’ term as Commissioner of the Gambling Commission for a further year, ending December 31, 2017.

Loot’enKhamun Pays $3.8 Million Jackpot - A London-based construction worker’s year got off to a great start when he hit the Loot’enKhamun jackpot at bwin casino.

PlaySugarHouse To Carry Konami Content - Content provider Konami will provide its Gypsy Fire and Fortune Stacks slot games to Rush Street Interactive-operated PlaySugarHouse.com on an exclusive basis in the New Jersey real-money online and mobile wagering market.

ITF TERMINATES BETWAY SPONSORSHIP DEAL - The International Tennis Federation (ITF) has reportedly terminated Betway’s three-year sponsorship partnership as an extension to their anti-match fixing and sports integrity policy.

GSA To Launch European division - The expansion enables the GSA to better focus on the regional needs of its members outside of North America and underscores its recognition and commitment to growing European membership.

Paddy Power Trading Update - Company prevails despite adverse sports and US election results; Trump success cost the group GBP 5 million, whilst punter successes took another GBP 40 million in Q4-2016.

Tabcorp SunBets project - The details were revealed this week in an IT News article quoting Tabcorp's chief information officer, Kim Wenn, who described the SunBets project as Tabcorp's biggest global venture yet.

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