Purple Lounge Closes
UK-based online gambling site Purple Lounge has suspended its poker and casino services as of last week, we’ve learned.
Purple Lounge’s parent company, Media Corporation, issued a statement on Friday that the Purple Lounge services had been suspended because it was “trading materially behind the same period of the previous financial year which will result in increased losses for the division and, as a result, the Company as a whole.”
Ahead of releasing its first-half financial results, Media Corp. said, “The directors believe that Purple Lounge has suffered as a result of negative trade press (much of which the directors consider totally unfounded) particularly surrounding the litigation brought against one of the Company’s subsidiaries by CD Casino.com Limited.” Media Corp. also said it has not received dividends or cash payments from Purple Lounge during its ownership and has loaned over £900k in the last few months.
Media Corp. directors are now in the process of considering a number of options for Purple Lounge in an effort to control the losses preserve the Company’s cash and value.
Word on whether or not affiliates will get paid has yet to be disclosed. However, Purple Lounge did issue a notice to affiliates about the closure.
CAP forum member pjotter shared his with us:
“It is with great regret that we inform you that Purple Lounge has suspended its casino and poker services.
We will be announcing more information within the next week so please bare with us in the mean time.
We would like to apologise for any inconvenience caused.
Purple Lounge Affiliates”