October 24, 2008

Speculation rises on Crypto-Party poker tie-up

CryptoLogic's deal to provide PartyGaming with its casino gaming suite is set to usher in a new strategic direction for the company founded on its casino licensing business, according to the software firm.

The company also revealed this strategic shift would involve a partnership with another major poker network, “to increase liquidity while reducing expenses substantially”. PartyGaming is thought to be the operator currently in talks with CryptoLogic.

A spokesperson for PartyGaming:: “We are keeping our options open and this may include seeing whether there is any merit in combining our two businesses.”

Yesterday’s announcement that CryptoLogic had entered into a five-year casino licensing deal with PartyGaming represented welcome news for the company and its shareholders, coming as it did on the back of an earlier announcement that it had lost the contract to provide William Hill with its poker and casino gaming platform to Playtech.

CryptoLogic said it expects the games to be launched in the first quarter of 2009, contributing significantly to next year's revenue streams. PartyGaming is CryptoLogic’s ninth new casino customer so far this year, joining brands such as 888.com, Sky Betting and Gaming and Gaming Media Group (The Poker Channel).

CryptoLogic’s chief executive Brian Hadfield said: “This is one of CryptoLogic's biggest customer wins of the year and an endorsement of the branded games element of our new strategy.” PartyGaming's chief executive Jim Ryan added: “This agreement reflects PartyGaming’s strategy to broaden our product base - and grow our player base - through innovative alliances.”

CryptoLogic announced its new strategy will also involve developing branded casino content based on top entertainment brands and expanding its business and relationships in China, Korea and Singapore.

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