MORE LICENSEES FOR CRYPTOLOGIC?

22 February 2008

Significant strategic change in motion


Justin Thouin, the Vice President of Product Management and Business Development at CryptoLogic Inc., made some startling revelations on new directions for the industry software development veteran this week. In an interview with eGaming Review, Thouin revealed that his company has re-aligned its business model and is actively seeking new licensees following continued difficulties as a result of the Unlawful Internet Gambling Enforcement Act.

Last year Cryptologic left its Canadian homeland and moved to Dublin in Ireland, closer to the European markets it had been assiduously cultivating for several years.

Thouin says the new strategy is a marked change prompted by the need to boost share values. “Cryptologic sees its share price as undervalued, and consequently it views an expansion strategy as vital in going forward," he told EGR. "Essentially, Cryptologic is undergoing a very big change.”

Cryptologic had hitherto been content to "stick to its existing licensees” but had suffered a “knock back” following the change in US legislation, he said. The UIGEA prohibits US financial transactions with online gambling companies, and caused a number of major companies to withdraw from the lucrative American market (see previous InfoPowa reports).

"If we want to grow, we need to change the business model," Thouin commented. "We are going to go after new licensees in a way we have not done for years. We are going to look at acquisions; we already made some acquisitions in the past year with Parbet.”

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