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CRYPTOLOGIC COMMENTS ON SPORTECH-888 DEAL

Cryptologic was quick to address the news this week that it was to lose the Sportech poker and casino software account as a result of the online betting company's new deal with 888.com .
 
In a press release, Cryptologic CEO Brian Hadfield referred to Sportech as a "relatively small licensee" and said that the lost business would be more than compensated for by income from a minimum of five new clients this summer and fall.
 
“CryptoLogic is having a banner year in signing long-term contracts with leading gaming brands in both Europe and Asia, and that’s why we remain so bullish about our growth prospects,” said Hadfield. “CryptoLogic’s customer base has never been larger – and our customer pipeline has never been healthier.”
 
The Cryptologic statement reveals that Sportech currently licenses CryptoLogic software for its Littlewoods-branded gaming sites, representing approximately four percent of the software provider’s annual revenue.
 
And because Sportech has entered into a new relationship with 888 Holdings plc, CryptoLogic expects to continue earning at least some some revenues from Littlewoods players as a result of its cross-platform agreement with 888 to offer more than 10 of CryptoLogic’s top games to players and partners.
 
CryptoLogic also expects some Littlewoods players to migrate to its other licensees’ sites to find their favourite games that are not available on the 888 platform.
 
Sportech’s move to a new provider will have no material impact on liquidity in the poker room shared by CryptoLogic licensees, as the vast majority of Littlewoods business comes from its casino site, the statement clarifies before detailing the new Crypto licensees as Khel Galli (India), Maharajah Club (UK) and OPoker (Scandinavia). The company’s top games will be available at 888.com later this summer, and the company will launch a site for Betjacks (Ireland) this fall.
 
Other major, and as yet unannounced, online gambling brands will be generating revenues for Crypto soon and are currently in the pipeline.
 
Hadfield took the opportunity to point out that in addition to adding new customers, CryptoLogic expects to earn fresh revenues by providing localised versions of its casino games and poker software to help its licensees penetrate key markets in Europe and Asia.
 
The company is also promoting player acquisition and retention by rolling out new games and content more frequently, and by continuing to ramp up its business development and marketing activities.



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