LGA Suspends 5050 Poker License
The Lotteries and Gaming Authority of Malta has suspended the license of Microgaming skin 5050 Poker and has set up a complaints procedure for players owed money.
Players with money on 5050 should email the LGA with the information outlined in their press release.
The Microgaming poker room first went offline exactly two weeks ago today, claiming that its network provider implemented “discriminatory measures” and forced the poker room to close. Microgaming responded by first suspending then terminating its software license, claiming “material breach of its contract.”
When the site went offline, all withdrawals on 5050 Poker were halted. It later announced that it was creating a liquidation balance sheet to determine whether it can pay its creditors. It is also exploring the possibility of legal action against Microgaming.
The last published accounts for 5050 Poker Holding AB show 1704 players who have played at least once in the last 3 months, with player balances of SEK 5.7m ($810k USD). The company’s Current Assets are listed at over SEK 7m. However, during liquidation, players rank no higher than other creditors, so if the company liquidates and the assets and liabilities do not match, then players may not get a proportion of their money back.
The LGA has been at the center of multiple controversies in the last six months, having been the primary regulator of Purple Lounge—who shut down in January, is in the process of liquidation, and its players are left out of pocket—and of Everleaf—who still continues to operate despite ongoing cashout problems for both its US and European players. Despite strict regulations, the LGA has failed to provide protection for players or aid in satisfactory dispute resolution.