Online gaming software developer CryptoLogic is currently in talks with poker network provider PartyGaming on a deal that could see both pool certain aspects of their businesses in order to save money.
According to a piece in The Financial Times this week, following William Hill’s decision to abandon CryptoLogic as its software provider in favour of rival Playtech, the Dublin-based firm has sought to soften the blow by announcing a review of its strategy. As part of this, it recently announced that it had entered into a five-year licensing agreement with PartyGaming for the provision of casino games on its platforms including Marvel’s The Fantastic Four, Hulk and Spider-Man.
However, the Financial Times quoted sources at CrytoLogic as stating that the firm would also enter into a poker partnership with a large poker network ‘to increase liquidity while reducing expenses substantially’.
PartyGaming has seen its market share of online poker fall from 40 percent to about 8.5 percent in the last two years after leaving the lucrative American market following the passage of the Unlawful Internet gambling Enforcement Act (UIGEA) and is seen as the likely candidate, according to the newspaper.
CryptoLogic was quoted as stating that it would like to reduce its annual operating expenses by at least twelve million dollars and would build any new strategy around casino licensing, which is its most profitable business, and offer its games to other operators while also developing branded content. It revealed that it would also continue nuturing its recent investments in China, South Korea and Singapore for long-term growth.