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CAKE POKER SOLD TO POKERLISTINGS

Date March 2011
Price $5m - $6m
Asset Cake Network & Cake Poker
Buyer
Status Business as usual
Software Yes
Success

Cake Poker Network (now Revolution Gaming) sold a large part of its shares to PokerListings in March 2011. When it was announced by Cake Poker & PokerListings in a press-release it was called a strategic partnership - not a sale!

PokerListings guaranteed to send 2000 new depositing players per month. Nothing else was said really but we will describe the events that took place behind the scenes in 2009-2011.

PokerListings was a major affiliate of Cake Poker and would stand to lose a lot of money if the network would cease operations.

 

What Really Happened?

Cake Poker Network got into major liquidity problems. We know from a reliable source that Cake Poker Network was missing between $5 million to $6 million. The network had problems because DoylesRoom's player accounts was fronted by the Cake Network when DoylesRoom left Microgaming to join the Cake Network.

When DoylesRoom moved to Cake Poker all the player accounts was funded by Cake. The money was meant to be paid back in installments.

Moreover DoylesRoom was running its own cashier so when players made a deposit the money was received by DoylesRoom and its processors who approved the transaction meanwhile the money was technically funded by Cake Network as ‘real money’ in the player accounts. The money could be used as real money on the network and be distributed to other poker skins via player losses.

It is normal you settle up every month but since the point in time DoylesRoom joined the Cake Poker Network rumors has it that it did not settle up. Over two years the difference was according to Cake Poker close to $6 million while DoylesRoom claims it was “only” $1 million.

When DoylesRoom left Cake Poker in January 2011 all player accounts was migrated to Cake Poker. One can argue it was an expensive price to pay for DoylesRoom database.

DoylesRoom moved to Yatahay (now Winning Poker) and had BetChris front the player accounts once again only to see Doyle Brunson leave DoylesRoom after Black Friday 4 months later. DoylesRoom was eventually closed and the player base was finally migrated with AmericasCardroom.

 


1 pokerlistings.com 24 march 2011

2 The total amount Cake Poker Network was missing in player funds which PokerLisitings is beleived to have paid in return for shares in Cake Poker Network.