Yesterday U.S. facing World Sports Exchange (WSEX) sold its betting exchange Matchbook with virtually no notice to players. Immediately Matchbook banned all U.S. players. This has caused quite a stir in the online sportsbetting community.
Even though U.S. Matchbook players were allowed to cashout by check and book to book transfers under previous ownership those options were taken away. Players are now forced to cash out either by a non AMEX credit/debit card credit if their balance is under $10,000 or a bank wire if their balance is over $10,000. If a player is set to receive a bank wire then it must be received in one transaction.
While the lack of choices is bad enough players are also being hit with a $35 fee on their forced withdrawals. This means if a player had $35 or less in their account they will not get anything. Even if a player had $100-$500, likely the most common player balance, they would be subject to a 7-35% cashout fee. This is absurd. Players with $35 or less are basically having their balances stolen and other players are forced to pay an exorbitant fee to cashout against their will, especially when a book to book transfer is not offered.
Another concern is for players in the higher range of the credit/debit card cashout bracket. Players will end up with massive credit card positive balances, something sure to raise a flag with credit card companies. Player receiving bank wires are concerned about what their bank might do if they receive a massive offshore bank wire.
Other thoughts on the subject are why would a company buy a sportsbook where around half of the players are U.S. and then ban them? The price must have been incredibly low. The other thought is with the WSEX players that are owed at least $438,000 according to Sports Book Review. Hopefully WSEX got a lot of cashout of this and can catch up on player payments.