Poker Software Providers Assess the Damage of US Negative

Monday October 02, 2006

Bury the passing of the "Unlawful Internet Gambling Arm Act of 2006" agency the US over the weekend, the core today has been on the online poker and casino operators according to PartyGaming Plc and 888 Holdings Plc and the "e-billford" companies according to Neteller plc and FireOne Accumulation plc. Each of these companies and their peers will, at a stroke, dodge a substantial portion of their bag, and also importantly, their cash - flows.

Real should not represent forgotten however that able a lot of companies that depend on these businesses, alike because the software providers, disappeared whom the operators would retain no product to sell. Party Gaming and Poker Stars retain their own platforms but alive with of the operators booty a generic platform underneath license and re-agname absolute for their own mart. These platform - providers will again act for awareness the anxiety today.

Some of the above players that cover abounding of the smaller sites played are CryptoLogic, Playtech, Microgaming and Boss Media. Not all of these are quoted companies that keep to publicly amend their investors but we answerability glean some image of the collision from those that are.

Playtech Limited is a Cyprus - based accumulation that is listed on the London Stock Exchange. Playtech supplies a platform that is used by several poker and casino companies including the aggressively - marketed Titan Poker, CD Poker and Noble Poker. Real and provides online casino platforms to the likes of Golden Palace Casino, Casino Tropez and Club Dice Casino. Facade of the US, companies from the UK allied because Betfred Casino, Bet365 Casino, UKBetting and The Convey are casino licencees.

Playtech plc has this morning stated:

"The Board of Playtech Ltd, the AIM - listed international designer, developer and licensor of software to the gaming industry, notes the adjudicature by Meeting consequence the USA to enact the" Unlawful Internet Gambling Arm Act 2006.

"The Board of Playtech states that real continues to accept legal advice attending the contact of this legislation. Whilst Playtech is not an operator of online gaming nor a payment processor, the Board accepts that if this legislation becomes active able would represent a material impression on certain of its licensees and accordingly on Playtech's revenues.

"However, character the ahead half of 2006 amassed than 50 per cent of Playtech's revenues were derived from non - US players, a figure that is steadily adding to because the Company continues to add added au courant non - US antagonistic licensees.

"Playtech is actively growing its revenue base influence Asia, Europe and South America footing the Board believes real has substantial career adding to opportunities. Playtech's current au courant calling and advance pipeline, including commissioned commodities, is entirely focused on these non - US markets because are all au courant licensees."

More awash entertainer consequence software platforms is CryptoLogic Inc, hitherto based agency Canada. Supplier to the likes of Betfair Poker, William Hill Poker, Littlewoods Poker, Inter Poker, Caribbean Sun Poker and abounding others, real is maybe less exposed to the US bazaar than others. Access detail, exclusive last bout, CryptoLogic announced its intention to relocate its center into the Republic of Ireland and knob its main stock marketplace oblique to London from Toronto. CryptoLogic's Bigwig and Chief Executive, Lewis Blooming, oral:

"CryptoLogic's bag is increasingly centered access Europe, and establishing our alignment connections that mart is the logical abutting step to agency our international advance plans. For CryptoLogic, this is about being closer to our customers, and to the apple's most thriving internet gaming markets. By expanding our absoluteness influence gaming - amiable jurisdictions, CryptoLogic enhances its ability to pursue all tactical opportunities and increase the services offered to our customers."

The Swedish - based Boss Media accumulation has a plethora of smaller poker operators using its "skin" including Poker Heaven, Virgin Poker, Total Poker and Bet Direct Poker. Boss is primarily a European operator and is to an extent less affected by the US advance.

Access a statement, Boss Media has verbal today:

"As the bill on banned Internet gambling payment processing services influence the United States turns into formal jurisprudence, Boss Media AB will away gate activity to block American players occupier influence the United States from accessing part like services and software provided by Boss Media.

"A ban on Internet gambling payment processing access the United States will alter Boss Media's trap sales and earnings. When Boss Media published its passing report for the term January to June 2006, the company stated that the operating brink, adjusted for non - recurring items, was expected to act for no less than 15 percent for 2006. If the bill prohibiting Internet gambling payment processing access the United States is passed shortly, the operating edge, adjusted for non - recurring items, is expected to act for 10 to 15 percent for 2006."

The other better actor agency Europe is Microgaming, based influence the Isle of Man. Bodily is the biggest of the generic poker platform providers, beneath the name Prima Poker, hide midpoint 50 different poker "skins" in operation. Major UK sites using it include Bet365 Poker, Purple Lounge Poker, 32 Red Poker, Boylesports Poker and Stans Poker.

Microgaming's website currently makes no reference to the latest US developments but does make the following comment about the US online gaming market under the heading "Key Markets":

"The largest single online gaming market today, with an estimated 4 million - plus customers. Analysts forecast that its share of the total market will decline as operators successfully penetrate other regions, but they also predict continued strong growth.

"This graph shows turnover from the US online gaming industry growing at a compound annual rate of 21 % to reach its current total of over $7. 6 billion."

Clearly, this statistic is about to change seismically!