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CryptoLogic bets on China

Discussion in 'Casino Industry Discussion' started by wangpoker, Jan 19, 2007.

    Jan 19, 2007
  1. wangpoker

    wangpoker Full Member PABnononaccred2 webmeister

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    January 19, 2007
    Canadian Press

    SINGAPORE – Canadian-based gambling software provider CryptoLogic Inc. (TSX: CRY) has set up a joint venture "to penetrate the high-growth, high-potential Chinese market."

    The memorandum of agreement announced Friday with the Beijing-based Brilliance software group and 568 Network Inc., a two-year-old Canadian game designer, contemplates a new company that will adapt CryptoLogic's online casino and poker offerings and develop new games aimed at players in China, Macau, Taiwan and Hong Kong.

    Brilliance Technology Co. is to establish a division delivering the games in two modes – play-for-fun subscriptions for Internet cafes and mobile devices, and play-for-money sites.

    Financial terms of the venture were not disclosed, but CryptoLogic said it will initially have a minority interest with an option to raise its stake to a controlling position.

    "This is the first major step in executing one of our cornerstone strategies: to expand in Asia, a key growth market for CryptoLogic," stated Lewis Rose, president and CEO of CryptoLogic, which is currently shifting its head office to Dublin but intends to remain operationally centred in Toronto.

    "The agreement brings to CryptoLogic substantial game development and IT skills uniquely suited to the Asian gaming market, and provides well-placed resources in China to guarantee that our first steps are successful ones," Rose said.

    Li Fu Hua, chairman of Brilliance Technology, said there is a huge Asian appetite for online gaming and the joint venture will "penetrate the market quickly, deeply and legitimately."

    Game568, headquartered in Markham, north of Toronto, already has a Shanghai subsidiary creating games for the Chinese market.

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