Tuesday June 26, 2012 : MICROGAMING SWITCHES OFF 5050 POKER
Financial problems at the heart of contract termination
Just over ten days on from its press release announcing it had suspended activity on licensee 5050Poker, the Microgaming Poker Network has announced that it has terminated its contract with 5050 Poker Limited.
"The decision was taken after giving 5050Poker Ltd over a week to redress a material breach of their contract, being the non-payment of monies owed to cure their overdrawn network clearing account," the Microgame press release reveals.
"Although 5050Poker Limited was given the opportunity to rectify the breach so that the suspension could be lifted, they have failed to respond. As such the Microgaming Poker Network had no choice but to terminate the contract."
Observers have remarked that player funds could be secure, if the 5050Poker site "guarantee" is to be believed.
The website assures players that "5050poker guarantees all players funds and all funds are audited by a third party auditor from Deloittes."
5050 Poker Limited's website shows the owner as 5050Poker Holding AB, whose stock is available on the Nasdaq OMX First North exchange. The company was founded in March 2007, based on the concept of offering loyal players shares in the company.
Management is listed as Patrick Sjögren (CEO) and Meta Martinsson (CFO), with the operational base in Malta supervised by the regulator LGA.
5050 Poker has been a member of the Microgaming network since August 2009.