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Online poker parent company lays off staff
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LAS VEGAS REVIEW-JOURNAL
Blanca Games Inc., the parent company of online poker sites AbsolutePoker.com and UB.com of the Cereus Poker Network, has laid off its entire staff but denied claims it plans to file for bankruptcy.
Blanca Games shut down all of its U.S. operations after federal indictments on April 15 targeted Absolute Poker and two of its founders -- Scott Tom and Brent Beckley -- as well as individuals and founders of PokerStars and Full Tilt Poker on charges of illegal gambling, bank fraud and money laundering.
The company, which is licensed by Canada's Kahnawake Gaming Commission, confirmed Friday it was consolidating its non-U.S. operations.
"In order to have a more efficient and successful future business, an immediate need to downsize and streamline operations significantly at both online poker rooms has been required," the company said in a statement.
The "work force has been liquidated," the company said. Blanca Games said it was rehiring approximately 20 percent of staff in "key positions."
"AbsolutePoker.com and UB.com continue to operate their non-U.S.-facing businesses," the company said. "We are confident that this restructuring will strengthen the company and its future."
The company also addressed reports that it has filed for bankruptcy.
On Wednesday, MSNBC reported that Madeira Fjord, a Norwegian company that represents shareholders in Blanca Games, told them the company has no cash on hand and was unable to make any debt payments.
In a statement, Blanca Games said there was "apparent confusion over this issue" because the company recently informed Madeira Fjord it was "terminating debt payments to, and its relationships with them."
As a result, Madeira Fjord apparently filed a notice of bankruptcy in Norway.
"The notice has no negative impact upon Blanca, the operating company or its brands," the company said.
Meanwhile, Blanca Games said its lawyers are continuing to negotiate with the U.S. Attorney's office to "facilitate the return of funds to U.S. players."
PokerStars and Full Tilt Poker, whose owners were indicted, already have agreements with the U.S. Attorney's office to allow U.S. players to cash out their balances. While Americans can no longer conduct financial transactions on these sites, Absolute Poker and UB have increased their maximum withdrawal limits for non-U.S. players to $1,000 for Visa withdrawals and $500 for all other methods.
"Players are still restricted to one transaction per week, but we are working to return non-U.S. withdrawals to normal service levels as quickly as possible," the company said.
Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893.
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why should any "players" be rewarded with some "refund" ? are junkies entitled to a refund of cash on deposit with a drug trafficker, from the proceeds confiscated in drug busts ? certainly those "players" and absolutely, positively the "professional"/tournament/"big game" players who shill for those offshore money launderers, are sharp enough to know that the entire scheme, by-passing u.s. banking regs, was a criminal enterprise from the get-go. why aren't those "professional"/plastered up with patches on hats, jackets, and shirts, not also in the docket ? don't you sue the stock broker/salesman plus his or her employer, when you are victimized ? round them all up. let the "players" with "deposited" [ill-gotten ?] get in line in back of the gubmit fines, legal fees, investigative costs, "missing" taxes, and other "unsecured" creditors.
....the whole on-line poker industry is corrupt....there is rampant cheating going on with EVERY site and there is no way to combat it. Since there is no real way to eliminate it the sites just keep it quiet. Until there is a secure way of regulating this business people will be unwittingly be victims of fraud every single day. I've even heard that people who say disparraging and offensive things in their chat boxes on these sites are programmed by site employees to fail and never win every time they play. They get away with this because there is no way to ever prove this and therein lies the inability for any regulating entity to effectively regulate and control what goes on....i've heard and it is widely believed that two people who exploit the system are Joe Bartholdi and Brandon Meyers (his brother in law)....known online as Norajean and Oncommand.
what about panama companies with ties to las vegas like cardoza publishing gambling book store is he immune to the laws?
When home games are busted everyone loses everthing, these rock stars better pray they can keep their money.
It's a good bet that when their American customers moved to other online sites (the entire poker community knows where they went), many of their European, Australian, etc. customers moved also.
About 40% of their customers were from the US.
What this is really about is a proactive bankruptcy to make sure the US government can't get at any of their cash if any civil penalties are levied in the money laundering case.
So most of the worldwide customers were in the U.S.?
Obama / Reid / Berkley can help them get some of the GOOD JOBS ??? available in the U.S. ---- McDonalds is hiring !!!