Subscription-based free play gambling provider LiveAce has announced on its homepage that it will be suspending operation indefinitely.

LiveAce used a mixture of both free play and subscription models to provide players with a unique social gaming experience. Players were able to use their winnings to place bids on auctions to win prizes. If a player chose to take up the monthly subscription fee they were allocated an additional amount of chips.

The service was touted as the first rake-free online poker provider in the US and although there was initial interest, LiveAce was unable to gain the critical mass necessary to generate revenue to cover operational costs.

The message from “The LiveAce Team” on the homepage states that the poker room will “…continue to honor cash redemption requests until March 1, 2014 and if you have unused Club Live memberships or chip packages we will reimburse you.”

Although it is sad that an innovative new model of revenue generation in the online gambling sphere has gone belly up, the admirable manner in which the poker room is handling its shutdown gives hope to the industry as a whole.