Crypto Sends 10 Games to Befair Arcade

27 April 2009
CryptoLogic Ltd., the Dublin software supplier, on Monday agreed to provide Betfair's online gaming site, Betfair Arcade, with 10 of its branded and non-branded games.

The games will be made accessible to Betfair through Orbis Technology Ltd.'s Fixed Odds Games platform.

In December 2008, CryptoLogic did a deal with Orbis to have its casino games made available to Orbis' clients, which include Paddy Power and Rank Group's battered interactive arm, Blue Square.

Five games are scheduled to go live by the end of the second quarter, with the remaining games to follow in the third and fourth quarters.

Financial details were not disclosed, but analysts with Roth Capital Partners in California believe the agreement will see CryptoLogic receive between 10 and 15 percent of the revenue generated by the games it licensed.

CryptoLogic has added a number of software licensees since losing Sportech and William Hill to 888 Holdings and Playtech Ltd., respectively, last year.

Revenue from those new licensees is expected to ramp up in the back half of the year after several launch dates scheduled for the first half -- including those for PartyGaming and GigaMedia Ltd. -- were delayed.

Crypto has said it expects to generate approximately $8 million in revenue from new licensees in 2009, but Roth has lowered its forecast to $6 million.

Betfair is a former licensee of CryptoLogic's defunct poker network.

Betfair left that network in October 2006 to start its own. At the time, the betting exchange operator was thought to account for between 5 and 10 percent of CryptoLogic's poker revenue.




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