Locus Gaming Folds Award Winning Jack Gold Casino
Jack Gold Casino, the online casino created by Locus Gaming to bring first-class real money casino games for both desktop and mobile device users, has folded and the site is no longer accessible for further gaming and betting transactions. Although the notice conveys that the cessation of its online casino and mobile operations is only temporary, it comes with an advice for customers to withdraw their available fund balance within 30 days or up to October 10, 2014.
The website notice did not provide explanation about the decision to cease operations but the email/SMS message sent to Jack Gold Casino affiliates was more elaborate, citing a failed acquisition deal as the primary reason for the site’s closure. Accordingly, the underlying events that led to the cessation decision were unexpected, but as the turn of events have it, the negotiations came to nothing at the last minute.
Apparently, “last minute” refers to the last hours of the September 16, 2014 deadline set by the UK Gambling Commission UKGC) for all offshore-licenced remote gambling operators to submit an application for a continuation licence. An approved continuation licence will enable operators to continue operating pending approval of a UK remote operating licence, and during a transition period that will last from October 01 through November 30, as the new Gambling Licencing and Advertising Act will come into full force by December 01, 2014.
In an exclusive interview with Gaming Intelligence, Locus Gaming CEO Ed Andrewes disclosed that his company was in the process of securing additional funding for Jack Gold Casino, either by selling the online casino or through additional capital investments. Accordingly, a deal was already in the offing but had collapsed at the final hour, giving rise to the cessation decision, which CEO Andrews described as a “precautionary measure” while still looking for potential buyers or interested investors.
Mauro Orru, Casino Manager for Jack Gold Casino and the Head of Customer Acquisition posted a lengthy explanation in the AskGamblers’ forum, beginning with a statement that “the owner and operator of Jack Gold Casino are no longer in the position to offer customers the ability to offer real money wagering transactions at the website.”
He asserted that as a remote gambling operator licenced by the Isle of Man, all funds maintained by players in their respective gaming account, are ring-fenced, an offshore accounting term that denotes the funds are under protection by not being counted as part of company’s usable or disposable assets. Unfortunately, any bonus money granted to players is not part of the ring-fenced assets, since players still have to meet the site’s betting requirements before a free money credit can be converted into actual cash.
Orru stated further that the company had applied for a remote operating licence with the UKGC by submitting all pertinent documents, even before the larger operators submitted theirs. However, his explanation did not state if the company’s application merited the UKGC’s approval for the issuance of a continuance licence, as this would have given them the ability to continue offering and accepting real money wagers at Jack Gold Casino by October 01. Instead, Orru stated that as soon as a new owner completes the acquisition transaction, the online casino would once again be in a better position to start transacting and receiving new players.
