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hmrcustoms
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Posts : 421
Join date : 2011-12-07
Location : Hinckley

interesting ring-fence section

on 2017-05-08, 20:39
Statement on PKR Administration Proceedings
I’m very sad to confirm that today, PKR informed Microgaming that it had applied for an administration order.
In this blog post, I’m going to set out to answer some of the questions that I expect players to ask.
What Has Happened?
On the evening of the 3rd May 2017, PKR informed Microgaming that it it was in the process of seeking professional independent advice due to financial difficulties and instructed Microgaming to stop deposits, withdrawals and gameplay for PKR players.
Today, the 5th May 2017, PKR informed Microgaming that it had applied to the court for an administration order. Administration is a procedure which acts as a protection mechanism for insolvent companies, the primary objective being to rescue the company as a going concern. More information can be found in the attached document.
Now that PKR is in administration, the obvious question is – what about player funds?
Player Funds
PKR has repeatedly assured us that player funds are held in a segregated client account, for the express purpose of storing such funds, in accordance with their licence obligations in the United Kingdom and Alderney. We believe this to be true.
Microgaming does not hold any player funds whatsoever. Player funds are held only by PKR and it is now the duty of PKR’s administrator to return the funds to players.
It is important to note that simply maintaining a segregated bank account for player funds does not automatically mean that player funds will be returned immediately or at all. PKR’s administrator will ultimately decide how to return money to players.
Microgaming’s Commitment
Microgaming is committed to doing everything reasonably possible to ensure that PKR returns money to players and will assist in this process however we can.
We will:

  • Provide updates at least once a fortnight on this blog, until further notice. Even if we don’t have any further information to share, we will post an update stating so. Updates will be posted at the bottom of this blog.

  • Answer questions from the public and press honestly, and as fully as we are able. It is important to note that in some cases we may not be able to disclose – for example, if by doing so we would reveal confidential information or prejudice the administration process. If this is the case we will say that we are unable to answer the question.

  • Co-operate fully with PKR, their administrator, and the legal and regulatory bodies involved.


Although we feel that Microgaming has done everything reasonable to give PKR the best chance of success, we also commit to reviewing our policies and procedures, and the details of this case, to further strengthen our position as a network and software provider.
FAQs
This section will be updated as and when new questions are received.
Q. Why can’t I play in the games?
A. As a consequence of PKR applying to enter administration, on their request we have blocked gameplay from PKR players on the poker network and in other Microgaming products such as casino games. As agreed with PKR, we have also blocked new deposits, to ensure that PKR players cannot mistakenly deposit into their account.
Q. I’m a PKR player. Who should I contact for further information on this matter?
A. You should contact PKR directly. Please do not contact myself or Microgaming with questions about your account, as Microgaming does not have access to your account information.
PKR’s email address is: support@pkr.com
PKR has created a status page for interested parties, which can be found at http://status.pkr.com/
Q. Who regulates PKR?
A. PKR is regulated in the United Kingdom, for the provision of services to UK residents. It is also regulated in Alderney, for the provision of services elsewhere in the world.
The UK Gambling Commission’s website is: http://www.gamblingcommission.gov.uk
The Alderney Gambling Control Commission’s website is: https://www.gamblingcontrol.org/
Q. I’m a PKR player. Where is my money?
A. It is held by PKR. It is the duty of PKR’s administrator to return this money to players in accordance with their licence obligations in the United Kingdom and Alderney. According to PKR management, PKR has stored all player money in a segregated client account. Ultimately, PKR’s administrator will decide how to return money to players.
Q. What is Microgaming’s relationship with PKR?
A. PKR was one of Microgaming’s customers. PKR joined the Microgaming Poker Network (MPN) in March 2016, and shared poker games with other Microgaming customers on the network. Microgaming supplied software and services to PKR, including the provision of the poker network, game integrity services, network management services, and certain other software such as back office tools and casino games.
PKR’s poker clients were owned and developed by PKR themselves, not by Microgaming.
Microgaming had no financial stake in PKR and did not operate any part of the business. Microgaming was one of a number of different suppliers that PKR used.
Q. Why doesn’t Microgaming just refund everybody?
A. It is the duty of PKR’s administrator to pay players what they are rightfully owed. It is not the responsibility of any of PKR’s suppliers to return player money. Microgaming does not hold any player money whatsoever. However, Microgaming will do our utmost to ensure that PKR returns the money that it owes to players.
Q. Why doesn’t Microgaming buy PKR and run the business?
A. Microgaming is a software supplier only, not a gaming company. Operating a gaming company requires different skills, corporate structures and licencing arrangements.
Q. Why didn’t Microgaming inform players sooner?
A. Microgaming first became aware that PKR was seeking professional independent advice on the 3rd May, at around 4:50pm UK time. At that time, the company had not yet applied to enter administration and was not subject to the protection of the court. This protection is very important to safeguarding player funds. It was crucial that Microgaming not take any action which could affect the value of PKR’s assets, since ultimately players are depending on those assets to get their money back. Microgaming has informed the public of the situation as soon as practicable after PKR confirmed that they had applied for administration.
Q. I play with another poker room (not PKR) on the MPN. Does this situation affect me?
A. Not directly. However, you will no longer be playing against PKR players. If you have any questions about this situation or about how your money is protected, please contact your poker room’s support department directly.
Q. I’m a PKR affiliate. What about me?
A. You should contact PKR directly. Microgaming has no records of PKR’s affiliate relationships and cannot advise affiliates on this matter.
Q. Will PKR ever reopen?
A. This depends entirely on how the administration of PKR proceeds, and is not something that Microgaming is able to influence.
Q. How can I learn more about how player funds are protected?
A. In August 2014 I wrote a blog about Microgaming’s stance on this subject. It can be found here: https://www.mpn.poker/blog/mpn-protect-player-funds/
Q. Can I transfer my funds from PKR to another MPN poker room? [Added 8th May]
A. Unfortunately not. Your funds are held by PKR, not MPN. Unless PKR were to enter into a direct arrangement with the other poker room, this is not something that MPN could facilitate.
Alex Scott (@AlexScott72o) is Head of Product (Network Games) at Microgaming, which operates the MPN and Indian Poker Network, and provides poker services to Adjarabet.

Any opinions contained in this blog are the personal views of the author only, and not of any other person or organisation.

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Panfried
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Re: interesting ring-fence section

on 2017-05-09, 07:31
I have been on PKR from the beginning.  I was one of the beta-testers.  Shame to see it fold.

They have got £80 of mine.  I wonder if I will see that again. 

Thankfully, I learned my lesson from being stung when some of the American sites folded a few years back, and I now rarely keep >£100 on any site.

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Ascot
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Re: interesting ring-fence section

on 2017-05-09, 11:16
I suspect that "ring-fenced" client funds is a concept designed to satisfy the gaming authorities, and whatever insolvency practitioners are involved as administrators may take a totally different view. I was always under the impression that the tax man always had first claim on any money held by a company when it folded, so the ring fenced client funds may just be treated as an asset of PKR, unless the money is held in a trust or some such, which is probably unlikely.

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hmrcustoms
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Join date : 2011-12-07
Location : Hinckley

Re: interesting ring-fence section

on 2017-05-09, 16:37
Ascot wrote: I was always under the impression that the tax man always had first claim on any money held by a company when it folded, so the ring fenced client funds may just be treated as an asset of PKR, unless the money is held in a trust or some such, which is probably unlikely.

Very interesting Ascot you mention the TAX man, the law changed and the TAX man and VAT man became unsecured creditors, normally they are last in line.
From my experience the only winners will be the administrator normally charging £600 per hour worked.

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