According to a press release issued by UB.com and Absolute Poker owners Blanca Games on Tuesday, the two CEREUS Network sites will be restructured going forward, with each business unit focusing on software development and servicing non-U.S. online poker markets. The U.S. Department of Justice indicted Absolute Poker’s Scott Tom and Brent Beckley on April 15th on charges that included violating the Unlawful Internet Gambling Enforcement Act and operation of an illegal gambling business. Neither has been arrested.Both CEREUS Network sites cut off new U.S. players in the wake of the indictments. PokerStars and Full Tilt Poker, the two largest rooms in the business, banned U.S. action almost immediately, while users on Absolute Poker and UB.com reported that they were able to log in and play as normal in the days following Black Friday.
On Tuesday morning, rumors of corporate downsizing at the UB.com and Absolute Poker offices in Costa Rica permeated cyberspace. An internal memo sent to company employees even popped up.On the rumors of corporate downsizing, a Blanca Games press release obtained by PocketFives.com explained, “The company is currently restructuring and will focus its remaining resources on consolidating its non-U.S., rest-of-the-world operation and software business. Unfortunately, this also means an immediate need to downsize and streamline operations significantly at both online poker rooms, with a view of becoming more efficient in the way the business is conducted.”
According to PokerScout.com, traffic on the “Big Three” U.S.-facing sites is down significantly since Black Friday struck three weeks ago. Cash game volume on PokerStars, which remains the world’s largest online poker site, has fallen 26% to a seven-day running average of 22,200 players. Meanwhile, Full Tilt Poker’s real money ring game traffic has dipped 38% to 11,800.
On the CEREUS Network, cash game traffic has declined by 76% to 600 players. The biggest beneficiary of the drops at PokerStars, Full Tilt Poker, and the CEREUS Network has been the Merge Gaming Network, which has seen its traffic grow by 69% to 1,600 cash game players on average. The Merge Gaming Network is now a top 10 network worldwide in terms of ring game volume and features Carbon Poker and Lock Poker, among other rooms.A spokesman for the CEREUS Network commented in the same press release, “We regret that we have been compelled to take these actions. We have worked tirelessly to create a truly amazing company that is filled with extraordinary people. We have always been, and still remain, fully committed to our employees and players. At the same time, we are confident that this restructuring will strengthen the company and its future.”
We’ve had members of the community ask for an update on funds they have frozen in Absolute Poker and UB.com accounts. To that end, the press release obtained by PocketFives.com on Tuesday revealed that discussions with the U.S. Department of Justice are still ongoing. No resolution appears to have been reached.
The statement read in part, “The company’s legal counsel is continuing discussions with the U.S. Attorney’s Office to formalize an agreement that would facilitate the return of funds to U.S. players. Further information and timely updates will be provided to players moving forward as our legal team works to resolve the outstanding issues.”In the week following the Black Friday indictments, PokerStars and Full Tilt Poker reached accords with the U.S. Department of Justice to regain their dot-com URLs in order to facilitate player cashouts. However, Absolute Poker officials have not announced an agreement with the U.S. Government. PokerStars began refunding players last week using a U.S.-based bank. Full Tilt officials are expected to release an update this week or next week.
We’ll keep you posted on the latest post-Black Friday fallout right here on PocketFives.com.
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