Players with funds stuck on 5050 Poker can kiss 85% of their money good-bye as a shareholders statement released by the parent company detailed how 5050 Poker’s insolvency is forcing a liquidation of assets and expects that players who didn’t already withdraw their funds will receive no more than 15 cents on the dollar.
The statement blames the Microgaming Network for imposing a cap on the number of tables that 5050 Poker players could play simultaneously from 20 to two last month, which caused many multi-tablers to abandon the poker site, withdrawing their funds and plying their trade elsewhere. In addition, 5050 Poker cites a number of fines that Microgaming slapped on the poker room “for having too many winning players” as another reason for its cash flow issues.
5050 Poker ceased online operations in the middle of June, immediately halting player withdrawals. About one week later, plans of liquidation were announced and its license was suspended by the Maltese Lotteries and Gaming Authority (LGA) soon after. Microgaming terminated its contract with the skin one week ago.
“The operational cost of 5050 Poker Ltd has for a long time exceeded the revenues, resulting in players’ funds being used in the operation of the company,” said the statement released by 5050 Poker Holding AB, the Swedish parent company of the 5050 Poker skin. “Board of Directors has been presented with false information on the size of the players’ fund, the costs of operation as well as the size of the company’s assets.”
The parent company plans to investigate “how the current situation could occur” by appointing two directors of its own to delve into the matter. The directors will also assist the LGA in its investigation, which will undoubtedly include claims by 5050 Poker that Microgaming was guilty of “unethical conduct” by discriminating against the poker skin while not imposing table caps on other skins such as Ladbrokes and StanJames.
It is not fully known how much money is still owed to 5050 Poker players. The statement did say that a “critical mass of players” saw the writing on the wall last month upon imposition of the table capping mandate and were able to withdraw their funds prior to the skin shutting down. The unfortunate players who did not will apparently lose at least 85% of their funds.