After countless rumors over the last few weeks that Pokerlistings was buying Cake Poker they announced today through a press release on their site that Cake Poker and Pokerlistings were entering a strategic partnership. There have been a lot of rumors as to how this came about.
Some suspect that Cake Poker has gone broke and needed a cash infusion and sold equity. Some think that Pokerlistings was owed so much affiliate money that Cake Poker gave them equity to cover their debt. Others think that Pokerlistings has actually bought 100% of Cake Poker and wants to cover their transaction. Only time will tell if any or all of these are true. When I sold Rake Rebate Review to a company that turned out to be involved in some way with Pokerlistings it took months for the truth to come out there and I suspect the same time frame applies here.
Some affiliates think Pokerlistings has a conflict of interest here being so involved with an online poker room and being a major affiliate. I disagree with those statements. While this is the first time I can think of an affiliate being a part of a network flagship brand this is far from the first time a major affiliate has owned a skin other affiliates pushed. Affiliates have owned skins on Microgaming, Cake and Gold Chip.
Typically in the end though affiliates realize it is more hassle than it is worth. For example when Tusk imploded affiliates that owned sub skins like Battlefield Poker and Ace Flush Poker lost everything and ran into furious players. Gold Chip, owned by Futurebet, allegedly ran off with all of the money.
I think only good things will come from this. Let’s hope that is true. U.S. players need legitimate options and currently I don’t see Cake Poker being one of them. In a month I will reevaluate my current position that players should avoid Cake Poker. Hopefully they can turn themselves around.