Instability at Cryptologic Intensifies

Written by:
C Costigan
Published on:
Aug/12/2010
Cryptologic

 

Over the past year, Gambling911.com has reported on the infighting at one of the oldest online gambling software firms, Cryptologic. 

You might recall this from Gambling911.com in April 2009:

Alleged mismanagement has resulted in the software firm losing some of its key clients including William Hill. 

Crypto's ex-CEO, Javaid Aziz, demanded the firing of one board member. CryptoLogic sent a letter to Mr. Aziz on February 22 and provided him until 5:00 pm Eastern Time on February 23 to advise the company of how he intended to address "deficiencies in his requisitions".

Now comes word that CEO Brian Hadfield has resigned with immediate effect following poor second quarter results.

Special Contributor Greg Tingle offers his take on the most recent debacle.

 

“The trend of instability in and around the gaming sector continues, exampled again in the latest press release by CryptoLogic. Just imagine how tough things are for most gaming and igaming firms if the likes of CrytoLogic, PartyGaming, Playtech and Microgaming have all seen better days.  Still, kudos to Crypto and the others who are still alive, as a number of operators went bellow up in the past 12 months.

“I think the industry sentiment is that more consolidation is one the way, and of course Gambling911 has already well covered the merging, pooling of resources and the like with PartyGaming and bwin, which will form the world's biggest igaming company. Virgin Games also remains strong than most, being able to leverage the strength of the Virgin brand, while at the same time getting new game releases formally only available at non Virgin casinos, witness the Microgaming deal, seeing Virgin get Hitman, Tomb Raider and more.

“PartyGaming interested to ramp up in the Asia Pacific - Australian region, as they will be looking at ways to move the business forward and capitalize on the bwin deal, not to get bogged down by past U.S legal situations, as documented at Gambling911. Betfair has launched an online casino in the UK, and you can bet Austraila's James Packer will be keen to see the Aussie Betfair website portal also pick up casino games, not to loose more potential business to abroad. Betfair competitor of sorts, Centrebet, is also picking up more games, as is PKR, known for its 2D and 3D casino and poker rooms.

“The rate of change will likely only make things more competitive in both the internet portal development and publishing sector, as well as the affiliate program offerings. Clearly the established igaming operators and web portals will be doing their utmost to protect their turf, but as always new operators will be looking to crack the often lucrative market. Sega, Barcrest and Genting are just a couple of brand looking to get things to the next level in the U.S, Europe, and in the Asia Pacific. Leaks say Genting is very keen to get a foothold in Australia and is exploring various ways to make it happen, including news media deals, internet portal collaboration and the like. A number of Australian land based casinos are ramping up their websites, getting ready for offer online games (play for free and play for money).

“Media Man and a number of other media companies based in Australia are seriously considering moving more business to the U.S and Europe, and much of this will be of the web hosting variety, looking for cost savings, a better service, as well as further protecting themselves from being censored by 'Big Brother' (the Australian government). Australia's Liberal Party is widely regarded as more web savvy that the Labor government. Of course the world is now aware of Australia's communications minister, Senator Stephen Conroy, also the un proud holder of the Internet Villain Of The Year Title.  Despite all of the challenges in the igaming sector, it remains one of the world's most recession resistant sectors.”

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