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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
