BUSINESS

Purple Lounge goes black; MarketSpreads suspension lifted; prison bookies

TAGs: MarketSpreads, media corp, Media Corporation, purple lounge

purple-lounge-marketspreadsUK-based online gambling site Purple Lounge has gone offline following a trading update by parent company Media Corporation. On Friday, Media Corp issued a statement ahead of the May 31 release of its interim H1 figures that said Purple Lounge had been “temporarily suspended” due to the fact it was “trading materially behind the same period of the previous financial year which will result in increased losses for the division and, as a result, the Company as a whole.”

Media Corp went on to say that despite loaning Purple Lounge more than £900k over the past few months, it has received neither dividends nor cash payments from Purple Lounge during its ownership. Media Corp cited “negative trade press” stemming from litigation brought by CD Casino.com Ltd. against Search Focus Ltd. (a dormant Media Corp subsidiary) as somehow having contributed to Purple Lounge’s woes. Media Corp claims to be “in the process of considering a number of options” to control the losses stemming from Purple Lounge’s difficulties, which may explain the reverse takeover deal being negotiated with Gaming Media Group.

Ireland’s Central Bank has lifted the trading suspension it imposed on spread betting firm MarketSpreads in early April on concerns over the firm’s “capital adequacy.” MarketSpreads was once the Irish appendage of UK spread-bettors WorldSpreads – which collapsed after the discovery/admission of a £13m shortfall on its books – but has been an independent entity since 2009. The Bank now claims to be satisfied with the steps MarketSpreads has taken to address “legacy financial issues.” The Independent reports that these steps included MarketSpreads shareholder/director Ray Curran agreeing to convert over €2m in loans to preference shares in the company. Other directors have also agreed to put up equity.

If/when one or more WorldSpreads execs are sent to prison for their alleged shenanigans, their betting skill set may come in handy. A month ago, three senior guards at Gartree prison in Leicestershire were suspended following allegations they were running a lucrative betting service for inmates. According to the Daily Star, cons who couldn’t pay their losses were subject to being ‘taxed’ by the guards, i.e. having their stereos, video games and other creature comforts confiscated. The Prison Service now claims an investigation revealed no chicanery and that the three guards will soon be back on duty. Here’s a thought: perhaps converting one cell per jail into a betting window might work wonders for maintaining order and preventing further allegations of unauthorized amateur bookmaking. Any takers? Stan Jails? Ladbrigs? Padlock Power? Solitary365?

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