The management team and Board of Directors of the online gaming software developer believe that establishing the headquarters in a “gaming-friendly environment” will provide the company a broader range of strategic options to accelerate expansion and strengthen customer support in major growth markets. With more than 60% of licensees\’ revenues derived from the UK and continental Europe, it makes sense for CryptoLogic to be nearer its customers and future prospects.
“CryptoLogic\’s business is increasingly centered in Europe, and establishing our organization in that market is the logical next step to support our international growth plans,” said Lewis Rose, CryptoLogic\’s President and CEO. “For CryptoLogic, this is about being closer to our customers, and to the world\’s most thriving Internet gaming markets. By expanding our presence in gaming-friendly jurisdictions, CryptoLogic enhances its flexibility to pursue all strategic opportunities and broaden the services offered to our customers.”
CryptoLogic announced that its software development team will remain in Canada and that the operations in Cyprus and the UK will be unaffected. The Toronto-based company said that it would also be looking for a new CEO after Chief Executive Lewis Rose announced that he would not be moving to Ireland, citing “family reasons”. CryptoLogic also proposed to adopt the Alternative Investment Market of the London Stock Exchange as its primary market.
Excluding the one-time expenses related to the reorganization and to establish an Irish headquarters, which are estimated to range from $8.0 to $8.5 million, Q3 2006 guidance remains unchanged.
Elsewhere, following an agreement signed between Manchester United and Betfred, the official Manchester United online gaming site has been launched. The site powered by Playtech offers casino and poker games themed around the Manchester United football club. Avigur Zmora, CEO of Playtech, commented: “We are very excited by the launch of the new Manchester United gaming site, which was made possible through the official betting partner agreement signed between Manchester United and Betfred. We believe that this partnership will benefit from Manchester United\’s loyal fans and from Betfred\’s extensive experience in the online gaming world.”
Dynasty Gaming announced the signing of a master licensing and reseller agreement for its Mahjong Mania software with Microgaming. Albert Barbusci, Chief Executive of Dynasty Gaming, commented: “The finalizing of our master reseller agreement with Microgaming is a major step in advancing our aggregate model business strategy. It creates the potential for Mahjong Mania to very quickly be available on many of Microgaming\’s client sites.”
Boss Media signed an agreement with St Minver for the delivery of the market\’s first open business system for the management of complete digital gaming operations: Boss Media Management System. The agreement results in an entirely new business model, which entitles Boss Media to receive income from royalties for the use of games from suppliers other than Boss Media. At the same time, the Boss Media Management System allows gaming operators to broaden their product portfolios through the offering of gaming products from different suppliers. “This system means that we strengthen our offering to our customers. We guarantee them a stable system that includes decisive tools for direct marketing. As a result, we can attract new players more rapidly, while at the same time ensuring that existing players remain with us,” commented Gary Shaw, President of St Minver. “With this new system, we can also add the best gaming products in the market, in an easier and simpler manner. This will make our various gaming networks even more attractive and thereby ensure that our customers always have access to world-class gaming venues.”
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