This past week saw the fall of Zosoz.com, which claimed it was a legal online poker room in the United States. As of December 14th, the site officially closed its doors after opening on October 15th. No official word as to the reason for the cessation of operations was given, but refunds will be automatically issued to players.
The reasons for its closure, as stated on Zosoz.com, are vague: “We regret to inform you that due to circumstances beyond our control, ZOSOZ will cease operations at 11:59pm ET on December 14, 2008.” The poker community has now had one week to react to the news. Players, however, have not been overly burdened in the cashout process, which was scheduled to occur automatically via cashier’s check. However, players with over $600 in cash in their accounts required validation in order for the money to be returned.
In the validation process, a passport, driver’s license, government identification card, or military ID is required. A completed and signed affidavit of eligibility as well as a W-9, which is a form required by the U.S. Internal Revenue Service (IRS), must be submitted to Zosoz officials in order for larger amounts to be processed. A copy of these documents must be sent to Zosoz, a Limited Liability Company, at “1247 Gun Club Road, White Bear Lake, Minnesota, 55110.” Zosoz states that after customer information is submitted to the IRS, it will be deleted from the company’s computers as it ceases operations.
Refunds are expected up to take six weeks, which places the final date of issue around the end of January, 2009. Like ClubWPT, Zosoz was a subscription online poker room that charged $19.99 per month for membership. It emphasized the social networking aspect of its business model, which operated as a sweepstakes as opposed to an online gambling site. In a weakening economy, however, several subscription-based companies have fallen by the wayside. In October, Fleet Street Games, which was run by former PokerStars Vice President Dan Goldman, closed its doors. Duplicate Poker also shut down, citing that it was a “small victim of the global financial crisis.”
Zosoz offered an Elite Membership that featured $3.5 million in yearly cash prizes. Entries into the World Series of Poker were up for grabs. Zosoz spread Omaha, Seven Card Stud, and Texas Hold’em. For the basic membership, the site served ads during game play. The option to do away with these was available with the purchase of an Elite Membership. Guest Memberships, which were free, were also available.
The legal online poker room in the United States was not available to residents of Iowa, Louisiana, Nevada, Ohio, South Dakota, and Tennessee. Each member of the site began with 25 points, which were restocked nightly if a member’s balance fell below that threshold. The end of year $1 Million Club Championship was billed as “the biggest event in club online poker,” according to the former poker room’s website.
The loss of Zosoz leaves Pure Play and ClubWPT as the two major remaining sites in the subscription online poker room market. The former, like Zosoz, charges $19.99 per month. It offers over $150,000 in prize money. ClubWPT is owned by World Poker Tour Enterprises, the parent company of the popular tournament series. A ClubWPT tournament was recently held following the Doyle Brunson Five Diamond World Poker Classic, although it was not related to the subscription site in any way but the name. The WPT’s for profit casino, which did not accept customers from the United States, recently shut its doors and referred customers to InterPoker.
According to a press release announcing the company’s launch, Zosoz was owned by two Midwestern entrepreneurs. After it debuted, members of online poker forums revealed that checks from the company had been bouncing.
