32red picks up Golden Lounge

[The Dude]

Just a heads up that 32Red has picked up the award winning Best Worst 2009.

If there are outstanding player issues, please submit your PAB.

 

[Pinababy69]

Just a heads up that 32Red has picked up the award winning Best Worst 2009.

If there are outstanding player issues, please submit your PAB.

Golden Lounge was award winning? I heard about nothing but player complaints, and wasn't there a warning posted here against them? Maybe you meant that 32Red is award winning?

In any event, outstanding news!! I'd heard rumours the last couple weeks about them being bought out, and thought since 32Red had acquired Nedplay...that they had plans for Golden Lounge as well. Great news for players.

EDIT: Well, aren't I the doofus?

I had forgotten that you can win awards on both sides of the spectrum, lol. Worst Casino of the Year in 2009, to the best casino group on the net. Talk about moving up in the world.

 

[vinylweatherman]

I am a little concerned that 32Red might be overstretching themselves. These are investments with POTENTIAL future returns, but this relies on the players picked up continuing to play, and perhaps increasing the level of their play because of the trusted reputation of 32Red. 32Red issued disappointing interim figures last year, although it seems things improved later on. Unless they paid a token amount for these two casinos, they will have to ensure they retain the players, many of whom may already have uninstalled the casinos because of the problems, and may not be aware of the change in ownership. They may not even become aware if they have changed their email address in the meantime, and don't get the email from 32Red.

 

[threescatters]

this is good news, i was one of the ones affected by nedplay and it was insta sorted by 32red and casinomeister when they took over. I never have had a golden lounge account but 32red are great so this can only be good news

 

[chuchu59]

I am a little concerned that 32Red might be overstretching themselves. These are investments with POTENTIAL future returns, but this relies on the players picked up continuing to play, and perhaps increasing the level of their play because of the trusted reputation of 32Red. 32Red issued disappointing interim figures last year, although it seems things improved later on. Unless they paid a token amount for these two casinos, they will have to ensure they retain the players, many of whom may already have uninstalled the casinos because of the problems, and may not be aware of the change in ownership. They may not even become aware if they have changed their email address in the meantime, and don't get the email from 32Red.

I share your concern on the overstretching though I trust their business acumen and believe that it should be profitable in the long run. What I find puzzling is 32RED not venturing beyond the MG borders to acquire casinos using the RTG or Playtech platform. I can understand them not using Rival as it is relatively new and burdened with loads of problems. However, both the RTG and Playtech software are excellent imo and can expand the player base significantly.

 

[maxd]

FWIW I think it's pretty normal for a casino group to stay within the "family" as it were, one software for all properties. I can think of the odd exception but not as a general rule.

 

[jetset]

I am a little concerned that 32Red might be overstretching themselves. These are investments with POTENTIAL future returns, but this relies on the players picked up continuing to play, and perhaps increasing the level of their play because of the trusted reputation of 32Red. 32Red issued disappointing interim figures last year, although it seems things improved later on. Unless they paid a token amount for these two casinos, they will have to ensure they retain the players, many of whom may already have uninstalled the casinos because of the problems, and may not be aware of the change in ownership. They may not even become aware if they have changed their email address in the meantime, and don't get the email from 32Red.

CHEAP ACQUISITIONS FOR 32RED

This week the cost of acquiring Nedplay and Golden Lounge online casinos was revealed

The 32Red online casino group, which recently acquired Microgaming-powered but troubled online casinos Nedplay and Golden Lounge, revealed this week that it was a good deal in terms of cost.

32Red plc acquired the assets of the two European-focused online casinos from Floryntia Play Group NV on 21 January 2010 and from Golden Lounge Limited on 12 February 2010, for a nominal consideration.

The business assets acquired in both cases comprise of the player database, software agreements, the domain names and other intellectual property. The sole liabilities assumed by 32Red are in respect of player balances and total a mere GBP115 000.

Ed Ware, CEO of 32Red, said: "Both deals were compelling and similar in many ways, and we expect to be able to integrate both casinos smoothly and quickly into our platform.

"At this stage, it is too early to assess whether the acquisitions will be earnings enhancing in 2010, but they are a good fit as both casinos have historically focused on European territories away from the UK, whereas 32Red continues to be a UK-centric brand.

"We will now apply our award-winning levels of player support, operational discipline and marketing to both brands in the coming months, ahead of evaluating the total number of brands operated by 32Red plc. The sector continues to evolve quickly and 32Red remain committed to capitalising on suitable opportunities that may present themselves.

 

[TOC]

115000. is left in the players accounts but wonder what the purchace price was? Interesting that even the worst casino's sell.

You do not have permission to view link Log in or register now.

 

[jetset]

I think the use of the word "nominal" indicates that this was probably a rescue job, with the quid pro quo being the playerbase.

 

[maxd]

Interesting that even the worst casino's sell.

As Jetset says, it's almost certainly not the casino itself that was of interest, rather the player database. Judging from what Ed said in Jet's piece I reckon 32Red is doing what they can to expand their non-US player base. Smart and/or inspired move in light of recent events in the US re: MC/Visa (see also Mastercard/Visa -- huge seizure).

 

[Tengil]

Maybe 1 pound?

Purple Lounge was sold for 0.465 million GBP last year (

You do not have permission to view link Log in or register now.

). And their player database was probably way more valuable than those of Nedplay and Golden Lounge. Altough Purple Lounge, at least their poker room, was in serious trouble.

And Casino Rewards paid a total of 815200 AUD (sale price 550k, liabilities 265200) for the casinos (6 in total) of TUSK.