Return of Player Deposits is Doubtful
By Lou Krieger and Shari Geller
MSNBC reported last night that Absolute Poker/UB will enter bankruptcy. This action leaves players who have funds currently on deposit with Absolute and UB twisting in the wind, with no assurance they will ever have access to their money.
Madeira Fjord, a Norwegian company that represents shareholders in Blanca Gaming of Antigua, the parent company of AP/UB, told them that the company had ?no cash on hand and no prospects for any cash flow for the foreseeable future.? Blanca Gaming stated that, ?it is currently unable to make any payments toward its debt obligations.?
MSNBC reported that a source in Costa Rica?where Absolute Poker and UB have their operations center?told them that more than 300 customer support and marketing employees, approximately 95 percent of the staff, were laid off.
Absolute Poker and two of its founders?Scott Tom and Brent Beckley?were indicted by the Department of Justice last month. Although UB was not directly named in the indictment, it has common ownership with Absolute Poker through the Cereus Network, which is in turn owned by Blanca Gaming. UB was named in the separate civil complaint brought by the Justice Department seeking $500 million in damages.
Poker Stars and Full Tilt Poker each made deals with the DOJ to repay US players? deposits in return for offering assurances that their sites would remain closed to US players. Poker Stars has already begun repaying players and Full Tilt said it is making arrangements to do so. The same deal was offered to Absolute Poker and UB, but no agreement was ever reached. Indeed, those sites continued to accept US players in for-money games. Now, most close observers believe that Absolute and UB players will never receive the money they have on deposit.
Absolute?s shareholders were hoping to sell the company, but those plans came crashing down with the announcement of federal indictments.
By Lou Krieger and Shari Geller
MSNBC reported last night that Absolute Poker/UB will enter bankruptcy. This action leaves players who have funds currently on deposit with Absolute and UB twisting in the wind, with no assurance they will ever have access to their money.
Madeira Fjord, a Norwegian company that represents shareholders in Blanca Gaming of Antigua, the parent company of AP/UB, told them that the company had ?no cash on hand and no prospects for any cash flow for the foreseeable future.? Blanca Gaming stated that, ?it is currently unable to make any payments toward its debt obligations.?
MSNBC reported that a source in Costa Rica?where Absolute Poker and UB have their operations center?told them that more than 300 customer support and marketing employees, approximately 95 percent of the staff, were laid off.
Absolute Poker and two of its founders?Scott Tom and Brent Beckley?were indicted by the Department of Justice last month. Although UB was not directly named in the indictment, it has common ownership with Absolute Poker through the Cereus Network, which is in turn owned by Blanca Gaming. UB was named in the separate civil complaint brought by the Justice Department seeking $500 million in damages.
Poker Stars and Full Tilt Poker each made deals with the DOJ to repay US players? deposits in return for offering assurances that their sites would remain closed to US players. Poker Stars has already begun repaying players and Full Tilt said it is making arrangements to do so. The same deal was offered to Absolute Poker and UB, but no agreement was ever reached. Indeed, those sites continued to accept US players in for-money games. Now, most close observers believe that Absolute and UB players will never receive the money they have on deposit.
Absolute?s shareholders were hoping to sell the company, but those plans came crashing down with the announcement of federal indictments.