In a press release posted on Marketwire this morning, it was revealed that the online poker clients of the CryptoLogic Network will merge with Boss Media in the beginning of the 2009 calendar year. Sites on the CryptoLogic Network include Sun Poker, Playboy Poker, Interpoker, Classic Poker, Betsafe Poker, and William Hill.
The Marketwire press release read, “The agreement [with Boss Media] is in line with CryptoLogic’s recently announced growth strategy to focus on its highly popular branded games and its Internet casino business. This migration of CryptoLogic’s poker operations and customers to the Boss Media network will help generate significant cost savings for CryptoLogic.” The savings may be as much as $15 million per year and the change will not take effect until the first quarter of 2009.
Boss Media will be charged with providing a “fully managed poker solution to CryptoLogic’s poker licensees.” Current online poker rooms on the Boss Network include Celeb Poker, Paradise Poker, Poker Heaven, Fortune Poker, King Solomon’s Poker, Canada Poker, i4 Poker, and 24h Poker. Brian Hadfield, CryptoLogic’s President and CEO, commented in the company’s press release, “This partnership provides our poker customers with access to one of the largest poker networks in the world, while helping CryptoLogic reduce costs substantially. Also, it will allow us to focus on the continued development and licensing of the Internet’s most innovative casino games, and to leverage our lead in branded content games in partnership with the world’s top entertainment brands.”
CryptoLogic has developed over 200 online casino games. Recent additions to its portfolio include Casinomeister, King Kong, DrMBrace, Little Master, European Blackjack, and Picnic Picnic. Atul Bali, an executive of Boss Media parent company GTECH, looked forward to adding a bevy of new patrons to its network: “CryptoLogic is widely recognized for its innovation, integrity and commitment to its customers. We are delighted to welcome these customers and their players to our network and significantly increase the liquidity for our new enhanced player base.”
CryptoLogic has also produced branded slots like the Fantastic Four as well as table games like roulette and craps. A variety of video poker and “carnival” games such as Let it Ride and Pai Gow Poker are also part of its menu. The company was founded in 1995 and launched InterCasino one year later. It’s traded on the NASDAQ stock exchange under the symbol “CRYP.” At the time of writing, the stock was down $0.20 on the day to $4.60. Over the past 52 weeks, CryptoLogic’s stock had traded as high as $21.97 and as low as $3.51.
Further expanding its presence in the online casino market, CryptoLogic recently signed an agreement with NextGen Gaming, which the company describes as “the world’s leading independent developer of slot games for the international gambling industry.” Three weeks ago, it also hinted of a major development regarding its poker sites: “CryptoLogic is in detailed discussions with another major poker network to increase liquidity while reducing expenses substantially.” Today, the world found out that the major poker network in question was none other than Boss Media.
The Boss Media website states that the agreement between the company and CryptoLogic will last for five years. GTECH owns 87.5% of Boss Media and purchased the majority interest in March. Because of the sale, Boss, which is managed by Rahul Parek, was removed from the OMX Nordic Stock Exchange in April.
