CRYPTO SAYS DUTCH VOTE WILL HAVE NO MATERIAL IMPACT (Update)

4 April 2008

Holland Casino bid for three year online monopoly dislocated


This week's 35 - 37 vote Dutch Senate defeat of an attempt to grant the state-owned Holland Casino.com an exclusive three year license for the Netherlands will have no material affect on the casino's new software provider, Cryptologic has advised.

The bill failed to pass the upper house of the Dutch parliament after being approved by the lower house in 2006. It would have given a Holland Casino revamped by Cryptologic exclusive online gambling rights in the Netherlands.

Major online gambling copmpanies based in other EU nations, such as PartyGaming, Bwin and Sportingbet could have suffered if the plans had been approved, the Reuters news agency reports. It is understood that the Dutch online gambling market could number as many as 400 000 players.

Europe is grappling with Internet betting, with 10 EU nations under the eye of the European Commission for monopolistic and protectionist online gambling policies.

In February 2008, the European Commission gave Greece and the Netherlands a final warning before court action over restrictions in their gaming markets in a push by Brussels to boost competition.

Dublin-based Cryptologic Limited said that while it had hoped to benefit from the establishment of the exclusive Holland Casino licence, the company has been fully compensated for its development work and has other revenue-generation initiatives underway in both Europe and Asia.

"While advocates of safe, secure and regulated e-gaming are disappointed with the Dutch decision, CryptoLogic never places all its bets on one table," said Brian Hadfield, CryptoLogic's President and CEO. "That's why this decision will have no material impact on our business. We recognised the challenge in Holland early and prepared our business by accelerating other revenue-generating initiatives."

CryptoLogic expects to benefit from various new initiatives this spring and summer. These include the release of non-download poker for all customers; the launch of the new World Poker Tour casino; a fresh release of casino games; and new software development for Betsafe, Sun Poker and World Poker Tour's German- and Spanish-language products. The company also has a healthy pipeline of potential new licensees.

"CryptoLogic will continue to advocate regulation as the logical solution for all Internet gaming stakeholders - including players, investors and taxpayers," Hadfield said.

Online Casino News courtesy of InfoPowa