Decision Made To Liquidate 5050 Poker

The Board of directors of 5050 Poker Holding AB has announced the decision to liquidate its subsidiary, 5050 Poker Ltd.. The company has stated that the Lotteries and Gaming Authority (LGA) has asked for too high a level of guaranties, therefore in order to save assets to be able to pay back players, it has decided to take this action.

A posting for shareholders and players on the site, says, “It is our belief that a liquidation of 5050 Poker Ltd will best serve the players’ interest during the current circumstances.”

It also says, “… the Board of Directors will pursue the possibility to sell the company in order to save as much share holder value as possible.”

5050 Poker blamed Microgaming for the reason why its players have not yet been paid as the poker network recently dropped the site “without warning” leading to “a critical mass of players” withdrawing their money, resulting in a negative balance. The LGA suspended the site’s operations soon after.

An investigation into this matter has so far found the following, according to the site:

• The operational costs of 5050 Poker Ltd has for a long time exceeded the revenues, resulting in players’ funds being used in the operations of the company.

• This has been enhanced by the fact that Microgaming, has been fining 5050 Poker Ltd. In excess of €150.000, that incorrectly has been withdrawn from the players’ accounts [sic].

• The reason why this has gone undetected is that the Board of Directors of 5050 Poker Holding AB has, from the management of 5050 Poker Ltd. and the auditors of the company, been presented with false information on the size of the players’ fund, the costs of operation as well as the size of the company’s assets.

The statement also says, "It has become clear that the losses in 5050 Poker Ltd has been built over a longer time, (more than one year). Due to the fact that incorrect information about the size of players’ funds and the size of the company’s assets has been presented to the Board of Directors, this situation has gone undetected.

“It is unclear how this situation has gone undetected by the appointed Auditors in Malta for 5050 Poker Ltd, nor by the auditors for 5050 Poker Holding AB, both having revised the accountings for 2011.”

The site claims that this will most likely mean that most of its available assets will be used as paybacks, but with no exact figures at this time, it estimates that the payback ratio will be no higher than 15 percent of the balance of the players’ funds.

Directors of 5050 Poker, Cem Yeter and Olle Langenius, have been assigned to investigate the situation further.

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