Gutshot Gaming Moves to Cake Network (Update 2)

Adds comments from Gutshot and Microgaming management

A spokesman for the online poker network operator Cake Gaming N.V. confirmed with IGamingNews that Gutshot Gaming, a licensee of Microgaming Software Systems Ltd., has moved its operation to the Cake network.

The spokesman said in an e-mail Wednesday afternoon that Gutshot had moved its operation Tuesday.

"The move by Gutshot to the Cake Poker Network is part of a growing trend of industry savvy operators who are attracted to the Cake Poker Network’s increasing liquidity and the Network philosophy of 'partnership' as a way of doing business," he said.

"This is just the first in a series of solid European gaming partners that have committed to moving to the Cake Poker Network in the coming months," he continued, "and reflects the Network’s rapid expansion into the European market by way of the addition of top quality operators who found that their current networks were simply not meeting their needs."

The circumstances of the move have been clarified by management with Gutshot, who spoke to IGN by telephone Thursday morning.

"We are always looking for the absolute best for our members -- or customers, if you want to call them," said Barry Martin, the co-founder of Gutshot. "We've been keeping a very close eye on the gaming market to see what's been going on, and Cake is someone we've taken a very big interest in over the last 12 months. They've grown exponentially month on month, and the network has got the right kind of player base for our players. With the way Cake is growing, we believe that at the moment, it's the best place to play poker.

"We're a pretty small player in the global market place, but we've got a strong global brand," he continued. "There was nothing untoward between us and Microgaming -- they're a fine set of people who've got a great product. Microgaming is a fine network, but like I said, we wanted to be sure we're providing our players with the very best platform for them to play on. It was simple move across to what we believe is a better network."

However, Microgaming said in a prepared statement Thursday: "Following breaches by Gutshot Poker room of the Microgaming Poker Network standard operating rules, Microgaming Poker Network terminated Gutshot's contract on the 30th of September 2008. Gutshot Poker room's account was suspended on 26th September."

Gutshot, a popular brand among European poker players especially, was founded in 2000 by Mr. Martin, who, according to the company's Web site, was later joined by Derek Kelly. The two men run the well-known Powerhouse Club in Clerkenwell, Central London. The company's Web operation, GutshotGaming.com, is licensed by the Kahnawake Gaming Commission.

Mr. Kelly in January 2007 was involved in a court battle, having been accused of running unlicensed poker games from his club in contravention of the Gaming Act 1968. In his defense, Mr. Kelly's attorneys argued unsuccessfully that poker was a game of skill, as under the 1968 act, hosting such games did not require a license.

Mr. Kelly was instructed by the Snaresbrook Crown Court in East London to pay £23,000 in legal fees; poker, therefore, was not ruled a game of skill. That decision was upheld by the Court of Appeal in February 2008.