Why an Online Card Room Folds

Written by:
Thomas Somach
Published on:
Dec/19/2008
Online Card Room

Internet poker room Zosoz (www.zosoz.com), which went out of business this week just two months after going online, most likely had cash flow problems that caused it to fold.

At least that's the opinion of one industry insider.

Zosoz, operated from White Bear Lake, Minnesota, USA, by Tim Belisle, was a so-called "legal" online poker room, claiming that status because, it said, technically it didn't offer gambling, and thus didn't violate U.S. anti-online gambling laws.

Instead, the room charged players a monthly membership fee of $20 so they could play in free online tournaments where they could win actual money.

The room advertised on its website numerous big-money tourneys.

And that was probably the problem.

"If they were really running tournaments with such high prizes, I am guessing it did not last once they realized how difficult it was to get enough players to offset the prize amount," the chief executive officer of a competing U.S.-based legal online poker room told PokerHelper.com. The CEO didn't want himself or his company identified.

"I also heard about Zosoz players not getting paid, and this too suggests they were unable to get enough players to offset the cost of the prizes," the CEO said.

Zosoz on its website this week posted a notice about its demise, plus complicated instructions on how to collect any monies owed.

Thomas Somach, www.pokerhelper.com

Poker News

Kevin Hart Leaves Stars Amidst Turmoil

Kevin Hart Leaves Stars Amidst Turmoil

Following the departure of both Jaime Staples and Jeff Gross as Team PokerStars ambassadors, popular streamer Kevin Martin has announced he too will be leaving the world’s largest real money online poker company.

PokerStars Gets Rid of Player Rewards by 55% in MTT’s: Call for Boycott

PokerStars Gets Rid of Player Rewards by 55% in MTT’s: Call for Boycott

PokerStars, the world's largest real money online poker room, is no stranger to pissing off long time high roller customers through an effort to gain more traction in the recreational space, but their latest move even had their own news partner flabergasted.

Film Based on Phil Ivey Card Counting in the Works: 'The Baccarat Queen'

Film Based on Phil Ivey Card Counting in the Works: 'The Baccarat Queen'

Ivanhoe Pictures, the division of SK Global that recently produced "Crazy Rich Asians, is about to start working on its latest project, a film that will delve into the 2012 accusation by Crockford’s Casino that poker pro Phil Ivey had won £7.8 million unfairly while playing a form of baccarat called punto banco.

WSOP 2019 Events Schedule Released

WSOP 2019 Events Schedule Released

The World Series of Poker has released its 2019 schedule, marking its 50th anniversary.

Borgata to Track Down Phil Ivey

Borgata to Track Down Phil Ivey

Atlantic City's Borgata Casino has been awarded the approval to go after poker pro Phil Ivey's assets in Las Vegas. 

Syndicate