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Las Vegas From Home in Mexican Poker Deal
Written On 5/4/11 By Recentpoker.com staff writer Frank Polliern :
LVFH IN MEXICAN POKER DEAL
Controlling interest secured
Las Vegas From Home has announced that it has reached agreement on the acquisition of Poker from Home de Mexico, S. de R.L. de C.V. through the purchase of a 99 percent equity interest in a mix of cash and equity considerations.
The deal gives LVFH the exclusive right to exploit a federal Mexican permit for the development of, and to operate, conduct and take, online bets and online casino gaming activities in Mexico.
Entretenimiento de Mexico, S.A. de C.V. ("EMEX") and Producciones Moviles S.A. de C.V. ("Producciones"), private companies, entered into separate previous agreements, resulting in Poker from Home de Mexico having been granted the sole and exclusive right to operate and conduct online gaming and betting activities, excluding lotteries, in Mexico under the commercial name of Palmasbet.com.
In addition to the Playboy Casino Cancun, EMEX also operates twenty-two brick and mortar casinos under the Palmas Group of Casinos.
The Federal Mexican Gaming Permit is valid until May 24, 2030.
LVFH has established an office in Mexico City, and Poker from Home de Mexico has already initiated a soft launch for real money wagering of online poker and tournament games, powered by LVFH's proprietary software. Real money wagering is available to Mexican residents only.
Management reports that early results of several thousand accounts being opened have been very encouraging, and that Poker from Home de Mexico is now in the process of planning a nationwide marketing campaign through mass media to introduce Mexican residents to a national gaming website where residents will be able for the first time to enjoy the ability to play all verticals of games such as online bingo, casino, poker and sports betting.
According to independent surveys, potentially, Mexico possesses all the elements to establish itself as a major gaming market; a booming population with a passion for sports; a strong gambling tradition; and an emerging middle class with increasing purchasing power.
The country is also one of the fastest-growing internet markets in the world, according to ComScore, and has the second largest internet user population in Latin America. An August 2010 ComScore report found that Mexico's internet user population grew 21 percent over the prior year and stated that Mexicans spent more than 60 percent of their time online on communication and entertainment sites. The average age of Mexico's online user population is 26.7 years, according to Digital Life.
Las Vegas From Home president and CEO Jake Kalpakian said of the deal: "Gaming is an active part of Mexican culture. We believe we will have a competitive advantage because of the scope of the licence as a result of it encompassing all the major gaming verticals, but in addition, the existing strategic relationships derived from our Mexican parties with some of Mexico's best known and widely accessible financial, social and marketing brands should greatly assist us in the development and expansion of our business."
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It was a hard fight around the bubble, culminating in the elimination of Georgios Drakakis in 46th place. He received a surprise consolation entry into the next MPNPT stop in Sunny Beach, Bulgaria (5-8 July), which softened the blow of missing out on a €900 min-cash.
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