CryptoLogic and Orbis Pair Up for New Distribution Channel

15 December 2008

On Monday, CryptoLogic Ltd. announced a strategic partnership with Orbis Technology Ltd. to make its top-performing games available to the to Orbis’ portfolio of operators.

According to a prepared statement by the company, CryptoLogic will gain access to another distribution channel and plans to launch games for Skybet through Orbis’ fixed odds games platform during the first quarter of 2009. The Dublin-based software company said it expects Orbis' other clients to follow suit. In addition to Skybet, some of Orbis' clients include Betfair, Paddy Power and Blue Square Ltd.

“The global Internet gaming market continues to grow rapidly, and that is why CryptoLogic’s strategy includes opening up new channels to market through the world’s leading operators,” said Brian H. Hadfield, CryptoLogic’s president and chief executive, in a prepared statement. “CryptoLogic’s new partnership with Orbis Technology enhances both our position and our optimism as we revitalize our business for growth in 2009 and beyond.”

Although financial details were not released, Todd Eilers, senior research analyst with Roth Capital Partners, wrote in a note that he suspects Crypto will share revenue with Orbis for access to its games.

“Despite signing multiple distribution deals and shares trading for cash, we remain cautious on the name as we continue to look for a couple more challenging quarters as CryptoLogic transitions its business model to focus on casino games,” he added.