Online poker rooms and gaming sites have been shutting their virtual doors since the Unlawful Internet Gambling Enforcement Act (UIGEA) was passed in the U.S. Congress in 2006 and subsequently became law. As many sites fled the lucrative American market, they forfeited the millions-sometimes billions-of dollars in profits that kept their companies in business. Many overseas-based websites have since ceased to exist, and two more names were added to that list in recent months.
PokerRoom.com was a popular site that operated worldwide since 1999 as one of the first sites to offer online poker prior to its 2003 popularity explosion. The site was purchased by Austrian company bwin in 2006 and became part of the Ongame family, and despite a consistent European player base, bwin made the decision to close PokerRoom.com on April 14.
A note from the staff on the website began, "Well folks, after almost ten years of fun and games, it is with a heavy heart and a tear in my eye that I have to announce that this is it... PokerRoom.com will no longer be open for online poker." With that, players were encouraged to transfer funds to bwin but could also retrieve their cash via a withdrawal.
Bugsy's Club also made the decision to shut down operations. Though it was a small site with a primarily US-centered customer base, it was popular with low-stakes players not looking for a close-knit environment. Founded in 2003 and licensed in the Netherlands, the site found over time that the low-limit games simply did not allow enough profit to keep the site in business over the long run.
The message on the site read, in part, "Unfortunately, due to circumstances beyond our control with regards to banking facilities, it is with regret that we have to announce it is no longer viable for the Bugsy's Club Poker Room to continue our business operations."
Players were encouraged to transfer account balances to PokerStars, though player points were "regrettably" not transferrable. Even those who simply wished to close their accounts and cash out were asked to transfer to PokerStars first, at which time they could then begin the cash-out process if desired.
The true reasons behind the closing of PokerRoom and Bugsy's Club may never be known, but it can be assumed that the tension about the US market and pressure from the Department of Justice on companies like PartyGaming and BetOnSports may have played a role. It is also speculated that other poker sites like PokerStars and Full Tilt Poker have garnered so much of the world market that other online poker rooms struggled to compete.
However, the global financial crisis cannot be ignored. The poker industry is suffering as are numerous other industries, as evidenced by reduced buy-ins at tournaments live and online, decreased playing fields at some premier high buy-in live tournaments, and fewer players in the pricier buy-in tournaments and cash games online. While poker has a resiliency that can likely withstand an economic recession, it is not surprising that some companies within the industry are unable to survive.
Could everything change if the United States chooses to repeal the UIGEA with pro-gaming legislation that would authorize and regulate online gaming? That remains to be seen, though it is unfortunate for the online poker rooms unable to wait it out.
Jennifer Newell is a compulsive writer. In addition to Poker Player Newspaper, she writes for numerous publications and blogs at Pokerati.com as California Jen. In her little bit of spare time, she plays poker, too. Contact her at jen3351@msn.com.
