|Aspinalls Online is to outsource the operations of its’ Caribbean Cyber Casino (C3i) and Aspinalls.com to Golden Palace Limited in exchange for a revenue-share agreement, this according to reports from rgtonline.com and the Durlacher AIM Bulletin. The deal represents a step back for Aspinalls, coming as it does less than 10 months after it acquired Gaming Ventures International for £33.6 million ($46.58 million). Its total investment of £38.1 million ($52.6 million) will be written off.|
The revenue share will be derived from all players accessing the Aspinalls.com casino website, which is currently operated by Aspinall’s subsidiaries.
The outsourcing agreement follows a board review of Aspinalls financing and strategic options. The agreements are expected to be signed by April 5 this year, and are expected to cover an initial 30 months period.
Under the deal, Golden Palace gets exclusive rights to promote the Aspinalls name within the online gaming environment. Golden Palace operates the Internet casino Golden Palace.com under license from the government of Antigua and the Mohawk Territory of Kahnawake in Quebec, Canada.
Aspinalls losses from its online ventures are believed to be substantial – not unusual for a first foray online. And as is also common in the business world outside of the Internet, the directors believe that outsourcing is the way forward to protecting its investment. Aspinalls see the agreement as a way of with the '…securing future value in its investment in on-line gaming'.