Purple Lounge Players Left in Dark by Media Corp
Four weeks after Purple Lounge unexpectedly closed its casino and poker room, players and affiliates alike remain without answers regarding the status of their funds as the site’s regulator absolves itself of responsibility.
Malta-based regulator, the Lotteries and Gaming Authority, which granted Media Corp its gaming license for Purple Lounge, has recently washed its hands of the situation in saying they, “cannot assist players having issues with the aforementioned operator following the date of termination of the licenses.” The Maltese regulator granted an April 23rd request by the licensee for termination. Days later, Purple Lounge was abruptly taken offline.
Now that Purple Lounge is unregulated, there is no requirement for them to maintain a separate account for player funds.
Media Corp, the publicly traded company behind the recognizable online gaming brand, has seen its share price halved since Purple Lounge went offline. The company is traded on the Alternative Investment Market on the London Stock Exchange and now has a market cap of just £2.8 million.
The company last week released its half year earnings report which reveals they have just £520,000 in cash. Media Corp had an operating loss of £1.3 million during the six month reporting period which puts them on pace to be out of cash within months barring any major restructuring.
Since the closing of Purple Lounge, Media Corp has announced the acquisition of Intabet whose senior management now sits in charge of the company. Their website lists Phil Jackson as the Executive Chairman and Adam Fraser-Harris as the CEO. Having replaced former Executive Chairman Justin Drummond and CEO Sara Vincent, new management has so far failed to offer any reassurance to Purple Lounge customers.
Former Purple Lounge affiliates are among those left wondering how to deal with the closed program as they await word on if they will be paid. There remains a pressing need for Media Corp to communicate with players and affiliates the details on how they intend to resolve this matter. Until they do, this debacle represents a black eye on the gaming community that even a publicly traded company can be capable of compromising their customers’ funds.