ROYAL OAK, MICH. - GamerSaloon.com, a website that offers online video game players the chance to compete for cash prizes, was set to launch the world’s largest online cash tournament for Madden 08 on the Xbox 360 today.

This 128 person tournament - with a $40 entry fee - was slated to start on Jan. 7 and end on Jan. 21. Each round takes place over two days. The winner will collect $3,000; second place will receive $500, while the third and fourth ranked players will collect $250 each. Since then, no information could be found on it, and it has been said on the GamerSaloon.com forums that all players have been refunded and the tournament is cancelled.

GotFrag.com is still waiting the official word from Gabe Rubin, CEO/Founder of GamerSaloon.com.

UPDATE: Rubin notified GotFrag.com that the tournament has been cancelled. Stay tuned to GotFrag.com this week for a full-length feature article on the revolutionary web site, GamerSaloon.com.