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Gambling: Linx Media Out Of Business
Microgaming's late Friday announcement that it has pulled the software licence of the Linx Media online gambling group on doubts regarding the company's solvency has been followed by extensive forum discussion and a company announcement on the relevant websites.
The Linx announcement reads:
“The Linx Media Group has today announced that it is seeking to put its businesses into liquidation and will cease trading with immediate effect. As yet, the Linx Media Group does not know how long this process will take, but it will provide updates on the situation as and when information becomes available and when liquidators are appointed.”
A further comment from the company said:
“It is with great regret that we make this announcement. I appreciate the concern and frustration that this will inflict on the Eurolinx, BetOnBet, and Linx Casino player community.
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"Affected account holders are those individuals who have agreed to a contractual relationship with the Linx Media Group through Eurolinx, BetOnBet and Linx Casino.
"All available player funds are held by these businesses. As soon as we have information on how to lodge claims with the liquidators, we will communicate this via eurolinx, BetOnBet and linxcasino.”
Players on the Casinomeister and 2plus2 forums resurrected the Tusk incident in which an Australian online casino and poker group went into liquidation owing what was believed to be millions of dollars worth of obligations that liquidators are still sorting out. Some players posted that they had tens of thousands of dollars in their Linx accounts, indicating that the Linx affair could be of similar gravity.
In the Tusk Investment Corporation debacle last year, six online casinos and 28 online poker rooms were involved in the business failure.
A poster at the 2plus2 forum summarised the likely sequence of events going forward, based on his Tusk experience and once liquidators are appointed: “In our case they contacted us per e-mail, it took a little over a month… then you will need to submit a claim (takes like 10 min to fill out).” From there, patience is required as liquidators sort through the financial and player accounts to arrive at a fair distribution of what monies can be realised from the remaining assets of the company.
The poker operations of the Linx group operated on the Microgaming Poker Network, around ninth in size on the Internet with an average daily count of real money ring game players of just over 1 750. Other sites on the network include 32 Red Poker, Betway, Canbet, Carlos Poker, Cool Hand Poker, Gnuf, Intertops Poker, Nordic Bet, PokerTime, PokerWize, Spin Palace, and Unibet.
Linx Media launched its latest online casino venture, Linx Casino.com only four months ago. The personalities behind the Linx Media group are at present unknown, but it has offices in Malta, indicating that it is perhaps licensed in that jurisdiction.
If this is the case, the LGA licensing authority will no doubt soon face questions on what arrangements regarding security for player funds (such as ringfencing of mandatory company deposits) are demanded as a licensing condition, and how much those deposits might bring to the liquidator's calculations.
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