Quote:
Originally Posted by Chris Costigan
Hi Folks,
I hope to offer some clarity for those who are freaking out over supposed ‘liquidity” problems at Lock Poker and whether CEO Jennifer Larson is spending everyone’s deposits on lavish affairs. This post won’t appease everyone but hopefully will offer reassurance to some that their funds are most likely safe.
I founded G911 in 2000 and have been involved with the industry since 1997. The Lock situation doesn’t have the telltale signs of an online gambling company about to go under. By that I mean these things usually come on suddenly and without any warning. Lock’s issues began a year ago when they started the Revolution Network. It looks to me like they are just way over their heads at the moment. They’re bringing on some good people now that should help.
I guess the media blackout is no longer in effect since Shane has confirmed a trip did take place, so allow me to offer a few details.
For the record, poker pros paid out of pocket for their airfare to this most recent retreat. Porto starts at $1000 round trip from the US.
As for the hotel, that would have been booked at least 9 months in advance. Renting out the entire hotel, Lock is going to get a steep discount price.
These events are just a drop in the bucket for successful operators. A few years back BetUS sponsored the NBA All Star Break and Alonzo Mourning luncheon. Their marketing budget was several million per year at the time. Likewise, Bodog would sponsor MTV Music Awards parties here in Miami Beach. Each of these sponsorship deals probably cost around the same as what Lock pays for these types of retreats.
Bodog and BetUS simply cut back on their marketing post-Black Friday. Lock has taken full advantage of the vacuum left behind. The retreats you read about are factored into their marketing budget. Lock’s online casino will probably generate enough revenue to pay for a single retreat within a month’s time as an FYI.
I’m just merely pointing out that the retreat in question won’t break the bank as I have seen suggested by a few people.
Lock I’m sure expected all the payment processing issues to be resolved when they first started planning this latest retreat.
As for the media blackout….
G911 was in attendance at the France event about a year-and-a-half ago. At the time Lock Poker was still on the Merge Network and paying faster than nearly everyone else as they had their own cashier on the casino side while other Merge skins were required to use the network processor. A media blackout was imposed on everyone at that time as well until after the trip had ended. The reasons for this are obvious. Online gambling companies hosting such parties do not need any “unwanted guests” showing up. Bodog, for example, hosted an extravagant party in Prague some years ago and this was by invitation only. We were all shuttled away in buses to some undisclosed and nondescript location. The year prior, Casino Affiliates Program was to host a poker tournament at their event in the Bahamas. Someone tipped off the Bahamian authorities and the game was raided. This placed quite a few affiliates in jeopardy.
US processing issues…
Most US-facing brands use the same handful of payment processors. Two of Lock’s competitors have complained to me in the past that Lock was “handling too much volume and pushing too many payouts all at once”. This was at a time when Lock was able to make payouts within a two-week time frame and everybody wanted to play here because they paid so fast. It might explain why Lock has limited access to payment processors these days.
Finding new reliable payment processors is no cakewalk either. Jennifer and other operators confirm more and more payment processors are starting to come out of the woodwork again, which is great news for US-based players but operators need to tread carefully. Processors were on shaky ground long before UIGEA was ever enacted. there were sites easily lose a million dollars every year with processors abruptly running off with funds.
In closing, we are getting reports of players who made WU payout requests last month receiving their funds in under three weeks. Hopefully that is a sign of good things to come. Me personally, if I were in charge, I would add a little something into the accounts of those who are still waiting going on three months or longer in some cases. A little good will goes a long way, just my two cents.
Hello Chris,
Congratulations on your biased, inaccurate journalism and showing you have no soul by shucking off the players that have gone through hell. You've single handedly created a great opportunity for other news sites to slam you as there isn't a shred of evidence to anything you've just mentioned.
Actually, I sincerely doubt you have a single shred of evidence backing up any of the drivel you just presented. SHOW US THE PROOF OF OTHER PLAYERS CASHING OUT THROUGH WU AND TAKING WEEKS. SHOW US THE PROOF THAT EVERY PRO PAID OUT OF POCKET AND DIDN'T GET CHARGED WITH PLAYER MONEY. Additionally, what 'telltale' signs might there be showing that Lock isn't going under? What experience do you have looking at the accounting history of internet companies and online sites about to go under to accurately give such a stupid pathetic statement? And since you are so knowledgeable about Lock's solvency and have access to their accounts, why don't you start answering the hard questions that plague us all?
If you spent less time abetting a criminal organization and more time helping take them down like the scoundrels they are, you might have got more foot traffic to that POS site you own. But again... queue the golf clap... good job showing how soulless you are by the statement you just made and how much of a joke you are as a human being.
Nice try with your attempt to try and fool a group of people who time and time again band together to successfully uncover the truth through a long history of scandals. When Lock is indicted, I hope you get served one too as you are blatantly trying to further conspiracy to commit fraud.
P.S. The poker players aren't as stupid as you make them out to be. Have fun with your chest slapping. I do believe you will one day be successful on your conquest to bite your own ear though.
Cheers,
and by cheers I of course mean **** you