LGA issues statement on Purple Lounge closure
Maltese egaming regulator issues statement claiming it is unable to assist players looking to make complaints against Media Corp's egaming subsidiary after licence was terminated in April.
The Maltese Lotteries and Gaming Authority (LGA) has announced that after the termination of Media Corp subsidiary Purple Lounge’s online gambling licences in April, it will be unable to assist players experiencing difficulties when dealing with the company.
Purple Lounge, the company’s egaming brand offering casino and poker, was “temporarily” shut down in April this year, with Media Corp blaming “negative press” and a five year-old legal claim for the site’s heavy losses, which led to the closure. The company had reportedly invested £0.9m in the brand, with continuing investment in the brand becoming increasingly unsustainable.
The site, which was acquired in September 2009, had its licences terminated by the LGA on 23 April after a request by Media Corp. The LGA claimed in a statement yesterday that “Before the termination process was completed, the authority made sure that there were no pending complaints and that the licensee was compliant with the remote gaming regulations.”
As a result the authority has no jurisdiction over the brand, and will be unable to assist players looking to bring complaints against Media Corp or Purple Lounge which refer to issues dating from 23 April onwards.
The Purple Lounge site carries the following statement:
“It is with great regret that we have to inform you that Purple Lounge has suspended its casino and poker services. We will be contacting individual players in due course.”
In a trading update released last week, Media Corp claimed that it planned to “restructure [Purple Lounge] with a view to reducing costs significantly (a process which is already underway) whilst maintaining the existing customer base and player balances.” However, the company has not offered any advice to players looking to withdraw their balances as a result of the shutdown.
The closure of the brand has resulted in the company’s joint venture to supply London’s Hippodrome Casino with online poker and casino products, already delayed after the reopening of the venue was pushed back, being “put on hold whilst a full review of the Group’s gaming operations is undertaken,” though Media Corp claimed “the board remains in discussions with the Hippodrome in the hope of resurrecting the venture.”
This follows the collapse of a proposed reverse-takeover of Gaming Media Group, which had seen trading on Media Corp’s shares on the Alternative Investment Market (AIM) temporarily suspended. As a result of the collapse, however, trading has resumed.
The company has recently replaced executive chairman and former CEO Justin Drummond with Phil Jackson, and interim CEO Sara Vincent with Adam Fraser Harris, also on an interim basis.
The LGA’s statement in full:
“The licenses of Purple Lounge (Malta) Limited were terminated on the 23rd April 2012 upon the request made by the licensee. Before the termination process was completed, the Authority made sure that there were no pending complaints and that the licensee was compliant with the Remote Gaming Regulations. Since the operator is no longer licensed by the Authority, the Authority cannot assist players having issues with the aforementioned operator following the date of termination of the licenses.”