ZEN Finds Peace in Bankruptcy

ZEN Finds Peace in Bankruptcy

Wednesday, 30 January 2013

It’s something forum fanatics and poker players have said for years, but with the recent demise of ZEN Entertainment it seems that free-play subscription poker sites don’t work.

Following an inability to sustain its affiliate sites, such as UFC, Jamie Gold’s FreeGoldPoker and CardPlayer Poker, ZEN Entertainment has filed for Chapter 11 bankruptcy.

Despite having a database of 750,000 players, the network never succeeded in making a profit and needed to borrow more than $16 million just to keep it afloat.

When it launched the free-play subscription network had big plans and regular offered $100,000 in guaranteed monthly prizes. However, with US regulation seeming further and further away they have been unable to harness the power of their sizable playerpool.

Filing for Chapter 11 bankruptcy will allow ZEN to do a deal with NYX Gaming in a bid to keep the company going by attracting outside investors. However, if this fails then NYX Gaming will take control of ZEN’s technology and have the right to sell it.

The network’s failure is certainly a minor blow for the US poker community as it not only removes another gaming option but further signals the tough landscape poker operators are currently facing.

Tags: Zen Entertainment