Microgaming slams 5050 claims
Software provider explains table cap - denies former network skin was fined 150,000.
Microgaming has contested claims made by 5050poker, the operator whose contract with the network was terminated last month.
Earlier this week the board of 5050poker parent company 5050 Poker Holding AB claimed that its soon-to-be-liquidated subsidiary paid 150,000 in Microgaming-imposed fines using funds from player accounts. However, Microgaming has countered this, saying the payments related to “rake reconciliation” rather than any alleged fines for having too many winning players.
“Rake Reconciliation corrected the imbalance that occurs in a poker network ecosystem when rake is the only valuation metric. Similar methods are in use on other networks and are industry standard. It is this system of funds reallocation that is referred to in 5050 Poker’s statement, not ‘fines’,” Microgaming explained in a statement.
It also states “The suggestion that MPN imposed a simultaneous table restriction on 12 June 2012 without prior warning is incorrect.” Such a restriction was cited by 5050poker in mid-June, when the operator claimed this to be part of the reason for it leaving the network voluntarily.
The voluntary exit was also denied by Microgaming, that released a statement just days later explaining its contract with 5050pokerhad been terminated following “Material breach of their contract, being the non-payment of monies owed to cure their overdrawn network clearing account.”
Microgaming added in its latest statement that “On 4 May 2012, all operators on the Network, including 5050 Poker, were notified of the restriction rule, which states that the number of simultaneous tables a single player may play on an operator may be temporarily reduced for the betterment of the network ecology.
“The specific application of this rule to 5050 Poker was notified to them mid May, and put into effect in June. The rule was put into action with three operators, one of whom was 5050 Poker,” it explained.
The operator saw its licences in Malta and Curaçao suspended last month, and earlier this week relieved Patrick Sjögren of his duties as managing director of 5050poker, noting that players were unlikely to see more than 15% of their current balances returned.
5050 Poker Holding board members Cem Yeter and Olle Langenius are currently leading an investigation into how a situation arose where there ended up being insufficient money to cover player funds.