Update: Is There a Link between Purple Lounge Failure and Entraction Network?

Has the network conducted due diligence checks?

A lot of investigation has been ongoing after the failure of the Purple Lounge online poker room and casino, which left players unpaid, resulting in the discovery of a link to another company over the weekend.

Namely, in light of the recent Nevada licensing approval obtained by International Game Technology, it has been noted that the Purple Lounge issue had not been broached, even though it was part of the Entraction Poker Network at the time when IGT acquired the network.

In a discussion with the Nevada Gaming Control Board, IGT representatives pointed out that in case of Entraction acquisition pre-purchase due diligence checks had not uncovered its pre-UIGEA American activity, which was in any case less than one percent of the company's business. The company also added that as soon as such activity was revealed, it had been immediately halted and that it was liaising with the Department of Justice to ascertain if any penalties would be imposed.

Reportedly, this pleased the board chairman Mark Lipparelli, who commented: “The board will look favorably on anyone who follows IGT’s lead.”

However, media noted that there was apparently no mention of Media Corp's Purple Lounge, which had switched to Entraction from the MIcrogaming Poker Network in January 2012: "Unmentioned in the hearing was the recent demise of Purple Lounge, a poker room on the Entraction poker network that failed to refund its players’ deposits after “historic operational and financial failings” forced the company into liquidation.

"In January 2012, Purple Lounge moved from Microgaming Network to Entraction. Apparently no financial discrepancies were discovered as a part of this migration, yet just months later the poker room was closed [with Media Corp claiming it had 'loaned' the company over GBP 900,000- ed.] and, after a month with little communication, its owner Media Corp began liquidation proceedings.

"Like all skins on Entraction, Purple Lounge was licensed under the Malta LGA which requires players’ funds to be held in segregated accounts. Despite this, Media Corp has indicated that [the] loss of player funds is “expected,” it was concluded in the media.

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