Casino Closes Due to Poor PerformancePublished March 6, 2005 by OCR Editor
A well known online casino has been shut down and will remain non-operational due to poor performance and huge financial losses. There have been others that have closed in the past but the trend is relatively rare in the profitable business.
The gambling site, based out of the U.K. has decided to terminate their operations after posting losses of $9.3 million last year. The industry is usually quite profitable and it is rare that a site close up but Harrah's was a different type of casino with a different type of gaming structure. The players could access as many games as they wanted based on a monthly subscription. There were different packages they could sign up for and essential they could play as much as they wanted within a certain time frame. This structure is rather different and has proven to be less profitable for the owners than the standard model which is based on depositing on each game.
The online casino LuckyMe, was opened in November 2003 to British players and was closed for business in October 2004. Ultimately, it was discontinued because it was not making profits and taking heavy financial losses said a spokesman for the company. Also, in 2003, a similar case developed when MGM Mirage (the famous Las Vegas land based casino) shut down its gambling operations and online casino site due to uncertain legal stipulations in Europe. This site catered specifically to Europeans and online casino players in the UK.
When an online casino closes it has to be for a serious reason because traditionally the online gambling business has proven to be very profitable. The online gambling structure of the LuckyMe casino was somewhat unconventional and this is probably why it took such large financial losses. Others will look at this as a learning experience and will also use it to figure out ways not to go bankrupt.