Playwise shares suspended: An unwize investment
Today pretty much marks the end of Playwise and its 3D poker software. After transforming the company from one that made computer games (badly) to one the made a decent poker package (but could not market it) this final nail in the coffin was just a matter of time.
This suspension has been inevitable for many months and I suspect any investor with any sense has already seen the writing on the wall.
As any reporter would do I tested the software and even learnt my early poker on Pokerwise and it was excellent. I soon realised however that I was often the only player on the network using the 3D software which defeated the object (especially when compared to PKR). The affiliate scheme was also a total shambles to the extent that I pulled any advertising off this site.
It will be interesting to see where Foo pops up next. Some individuals have lost vast sums on this company and for that we are sorry.
Playwize shares suspended on AIM pending clarification of financial position [ADVFN]
LONDON (Thomson Financial) - Playwize Plc., a developer of software for the
entertainment industry, said its shares have been suspended on AIM at its
request, pending clarification of the company's current financial position.
Here is a copy of a post I wrote in December last year:
Playwise interim results 21/12/2007: DIRE [Netbetblog]
Playwize (PLW) (the 3D poker specialist) limp from one crisis to another. A dreadful set of results top off a dreadful year. It is hard to believe the management can get so many things so wrong. The Ladbrokes deal enabled them to raise another million pounds or so but with creditors owed so much they need to start signing licensing deals fast (and lots of them).
It is not clear from the results how much they will get from LAD or what the up front payment was. They appear not to be recorded but with revenues of £15,000 you can bet that (1) not many people are playing poker and (2) that not many people have bought the computer game.
In my opinion this share is not long for this world. Another AIM stock bites the dust.
Playwize Interim Results
Highlights:
* Turnover: £15,000 (2006: £46,000);
* Pre-tax losses: £657,000 (2006: £915,000);
* Net funds: £67,000 (2006 £342,000);
* Signing of agreement with Ladbrokes for licensing of technology.
Post Balance Sheet Update
* Ladbrokes launches Ladbrokes 3D Poker using Playwize technology.
* Placing raises £1.15 million for future development.
The board however still believe:
I would like to take this opportunity to thank our staff and shareholders for
their continued support during a difficult time for the Group in the past year
or so. The Board believes that the long-term business outlook remains positive.
Farewell PLW. If they come back from here I will be astonished.
Ladbrokes interim statement 16/5/08: 13% rise
Ladbrokes (LAD) released an interim management statement. As the premier bricks and mortar operations LAD is the classic "sector bellwether".
One slight oddity about LAD is that they have a single high roller who is responsible for a very large chunk of their profits.
The bookmaker said profit from high rollers was 40 million pounds over the period but noted activity has recently fallen to de minimis levels.
This single individual has his own team (not surprisingly). This means they are susceptible to (1) him winning big, (2) him leaving. If the highroller is reading this I would highly recommend him clicking on one of my Sportingbet links for Horse Racing
If he has left this would be a cause for concern. One is question is why LADs deemed it necessary to use Latin in their results. Why not just say that the highroller revenues have fallen to mimimal levels.
De minimis is a Latin expression meaning about minimal things, which is used mostly as part of de minimis non curat praetor or de minimis non curat lex, to say that the law is not interested in trivial matters. De minimis, in a more formal legal sense, means something which is unworthy of the law's attention. In risk assessment, de minimis refers to a level of risk which is too small to be concerned with. Some refer to this as a "virtually safe" level.
There are lessons for others from this statement.
Interim Management Statement [ADVFN]
The Group has continued to make good progress during the period with profits* (excluding profits* from High Rollers) increasing by 13%. Gross win increased by 16% (34% including High Rollers).
The E-gaming division is of most interest:
EGAMING
eGaming has enjoyed net revenue growth of 24% during the period with customer sign ups growing 27% and unique active customers increasing 18%. We have seen particularly strong activity in the Sportsbook, Casino and Games whilst Poker net revenue fell 2% in what remains a highly competitive market. As previously indicated at the Preliminary Results, the business is intent on accelerating growth
through increased marketing and initial results from Bingo and Casino TV advertising have been encouraging. We continue to expect full year profitability in 2008 to be in line with 2007.
Note that once again Poker revenues are down DESPITE their introduction of 3D poker from Playwize (PLW) another stock we follow that I suspect has not long to go as a quoted company. Dire straits would be an understatement. The fact 3D was not mentioned suggests that this experiment has failed for LADs which is not surprising.
The Spanish and Italian expansion is also relevant for those with ambitions in these countries such as Leisure and Gaming (LNG) in Italy and William Hill in Spain.
Ladbrokes Results 28/02/2008 - profits up 60%
Good final year results posted by Ladbrokes (LAD) today. With profits up 60%
Ladbrokes are in a strong position.
Here are the highlights:
Financial Highlights
* Operating profit(1) from continuing operations increased by 60.2% to £420.0
million (2006: £262.2 million).
* Operating profit(1) from continuing operations, excluding High Rollers,
decreased by 4.4% to £241.0 million (2006: £252.0 million).
* Total gross win increased by 29.9% to £1,286.4 million (2006: £990.3
million). Total gross win from continuing operations, excluding High
Rollers, grew by 6.0% to £1,036.8 million (2006: £978.1 million).
* Net debt of £917.0 million with cash generated by operations of £421.1
million.
* Effective tax rate(2) of 15.6%.
* Final dividend of 9.05 pence per share (up 5.2%).
* During 2007, 19.9 million shares were purchased through Ladbrokes' share buy
back programme. The buy back programme has continued in 2008, with a further
10.3 million shares purchased.
* Profit on disposal of Vernons of £46.0 million.
Ladbrokes Chief Executive, Christopher Bell, commented:
"Ladbrokes has achieved record profitability(3) of £420.0 million, benefiting
from a buoyant performance from Telephone Betting. Following a strong finish to
2007, we have made a positive start to the year. We will continue to develop the
business through new products and channels, both in the UK and overseas and will
promote our brand and products through TV advertising, whilst remaining vigilant
on costs."
Items of interest for the other companies that we follow on this blog:
First, Leisure and Gaming (LNG) in Italy. Ladbrokes already has 26 shops open. Why then are LNG so slow in opening when they have permission for 58? The website will clearly add to the competition in the online market. However, the price that Ladbrokes paid for 17 shops allows us to give some valuation to LNG. If each shop is worth a million it puts LNG's low rating in perspective.
European Retail - Italy
* The newly re-regulated Italian betting market presents a good opportunity
for Ladbrokes. During 2007, 13 existing betting shops were acquired for a
cost of £16.7 million, giving a total of 17 acquired shops by the year end.
These shops traded in line with our expectations during 2007. Ladbrokes is
now represented in the major cities of Rome, Milan, Turin, Naples and Genoa
and since the year end has completed the acquisition of a further eight
shops around Turin and Vicenza.
* The rollout programme for the 142 new Bersani licences continues, following
the licence award in March 2007, with the first shop and corners opened in
December 2007. Whilst finding premises for new licences remains challenging,
they are scheduled to be opened throughout 2008.
* Our local language internet site, Ladbrokes.it, was launched in November.
Our odds service provider, Pianetta Scommesse increased its customer numbers
during the year.
* We have established a head office in Milan which is focused on the expansion
of the Italian business.
* Gross win for the year was £6.5 million, with operational and administration
costs of £7.3 million and duty of £0.8 million, resulting in a start-up loss
of £1.6 million for the year.
On the subject of egaming in general shedding some light on the Poker sector:
eGaming showed good profit growth for the seventh consecutive year, driven by
growth in Sportsbook, Games and Casino products, with Sportsbook in particular
delivering a buoyant performance. The competitive landscape remains tough for
Poker with high customer acquisition costs and margins squeezed by rakeback and
other promotional offers. Unique active players across our range of products
increased 9.4% to 601,000. The acquisition of Sponsio, our Nordic marketing
partner in January 2007 helped us to increase our profit conversion from 33.0%
of net gaming revenue in 2006 to 38.3% in 2007.
Our objective for eGaming remains the achievement of continued profit growth
through product innovation and market development, whilst respecting
jurisdictional barriers. Moving forward, we intend to increase our investment
levels in customer acquisition which will maintain profitability levels in the
short term but drive profit growth in future years.
More specifically on Poker and of interest to Playwize (PLW) investors comes news of the 3D product offering. This is suggestive of good news for PLW.
Poker net revenue declined by 11.4% to £31.0 million, impacted by increased competition in our key European markets. Unique active players for the year were down 1.9% at 151,000 and yield per unique active player was down 9.7% to £205. Net revenue for the second half declined year on year by 7.8% to £15.3 million. In the second half our customer loyalty programme was enhanced and 3D poker was soft launched in November. The popular Ladbrokes Poker Cruise took place early in 2008 and the coming year will see further developments to the site including multi-currency tables and a full launch of the new 3D application, complemented by a more aggressive affiliates programme.
The link below is an example of the type of 3D Poker advert we can expect. Of course all new signs ups most welcome. It is a great product.
Playwise interim results 21/12/2007: DIRE
Playwize (PLW) (the 3D poker specialist) limp from one crisis to another. A dreadful set of results top off a dreadful year. It is hard to believe the management can get so many things so wrong. The Ladbrokes deal enabled them to raise another million pounds or so but with creditors owed so much they need to start signing licensing deals fast (and lots of them).
It is not clear from the results how much they will get from LAD or what the up front payment was. They appear not to be recorded but with revenues of £15,000 you can bet that (1) not many people are playing poker and (2) that not many people have bought the computer game.
In my opinion this share is not long for this world. Another AIM stock bites the dust.
Playwize Interim Results
Highlights:
* Turnover: £15,000 (2006: £46,000);
* Pre-tax losses: £657,000 (2006: £915,000);
* Net funds: £67,000 (2006 £342,000);
* Signing of agreement with Ladbrokes for licensing of technology.
Post Balance Sheet Update
* Ladbrokes launches Ladbrokes 3D Poker using Playwize technology.
* Placing raises £1.15 million for future development.
The board however still believe:
I would like to take this opportunity to thank our staff and shareholders for
their continued support during a difficult time for the Group in the past year
or so. The Board believes that the long-term business outlook remains positive.
Click below to check out PLW's Poker offering. As it is networked there are always plenty of players.
Evening Standard Editorial: Demise of online poker?
Interesting article that provides an overview of the online poker market and how the lack of US players and increasing competition is leading to less lucrative times for the current players in the market.
I return to the same conclusion that I always bang on about in this blog. There are currently too many companies fighting for a slice of the action. Only the large will survive. Eat, be eaten or die a lonely death are the only options and things may move fast. Expect any sub-£30million company to be taken over or to go bust by the end of 2008.
One interesting observation is how the use of competing technologies can act to slow consolidation in the sector. Likewise, the credit crunch may make finding the cash for a takeover harder to come by. The mention of video gaming and Ladbrokes 3D adventure (using PLW's technology) might help the poorly performing PLW shares.
I think the worry is overdone. Sportingbet are a bad example regarding poker as they had a terrible time with the US ban and Paradise Poker (see advert in the sidebar). A lack of liquidity hit them hard.
The article also gives a little regulation update.
Online poker no longer holds aces [This is money]
Is the lucrative craze for online poker now a busted flush? That is the question the City is asking after another downbeat assessment from one of the internet gambing firms, Sportingbet.
'There had been a lot of hype in internet poker and that has now come off a bit,' said Andy McIver, chief executive of Sportingbet, announcing this week that revenues from his Paradise Poker site had almost halved to £4.6m in the last three months compared with a year ago.
../
Since then what is interesting is that demand for other forms of online gambling such as casino games and sports betting has been growing quickly in Europe, the biggest market outside the US. Sportingbet, for example, was able to report total losses of just £1.1m for the last three months, down from £11.5m a year ago.
So why is poker struggling? The American clampdown was plainly a factor. Poker is far more popular in the US. The knock-on effect, say experts, is that online poker has suffered because the market depends on liquidity. Successful players, known as big fish, only keep coming back to a site if they have plenty of little fish to feed off. That means bringing in lots of new players willing to lose. After the US ban, there has been a small pool of players and an illiquid market.
The other reason why poker has become less attractive for gambling firms is paradoxically because there is now so much competition. Established names such as Ladbrokes, William Hill and Coral have muscled in to grab a slice of the online market.
But competition also means innovation. Firms have responded by diversifying. PartyGaming is relying less on poker and is keener on casino games, which have performed better - albeit from a low base. Meanwhile, rival Sportingbet, as the name suggests, is focusing on sports-betting. Only 40% of its business relies on poker and casino; 40% and rising now comes from European football, with Euro 2008 to come.
Some analysts argue sports-betting, in particular, offers better revenue opportunities with more-creative bets. That is in contrast to casino games such as blackjack and roulette or slot-machines and bingo which involve fixed odds.
When it comes to marketing and persuading poker customers to play different games, the online gaming firms have a powerful marketing tool - an existing database of customers' email addresses. The buzz phrase is 'crossselling' and some estimates suggest that up to 30% of subscribers have transferred to other casino games or sports betting.
It is also worth emphasising that despite the less-than-stellar growth in poker, it remains a good revenue source. Matthew Gerrard at Investec expects Ladbroke's e-gaming division, which includes poker, to bring in an operating profit of £55.9m for this year. And analysts are pencilling in PartyGaming to post full-year profits of around $105m (£51.4m) although that could change after the firm gives a trading update to the City tomorrow. Yesterday bingo giant Rank warned it is seeing signs of a consumer slowdown.
As well as firms introducing new games - such as 'betting in running' during the middle of a horse race or football match - the obvious way to expand is internationally. However, as America has proved, it is fraught with legal problems. 'The majority of countries in Europe have made it difficult for companies to do online gambling,' says Ivor Jones of Evolution Securities.
France has made a series of arrests in its efforts to maintain state control of gambling. Germany and some Scandinavian countries have not been welcoming either. In contrast, Italy and Spain have relaxed regulations and analysts say eastern Europe has potential.
But Asia, where gambling is so popular, is still regarded as tricky. Latin America, highlighted as another growth area, is also difficult because credit cards are not widely used.
So the future looks hazy. Analysts do not expect much consolidation in the short-term because of the credit crunch. Takeovers are not easy, in any case, because of problems when two sites use different technology.
Experts suggest the most interesting area to watch may involve computer games. That market, worth $12bn (£5.9bn) globally, is booming with record sales of Nintendo's Wii. The gambling industry is now looking to attract video-gamers. For example, Ladbrokes has launched a 3-D poker site that allows more interaction.
As Jones of Evolution points out, if a diehard gambler were asked to choose the colour of his shirt for an online poker game, he would dismiss it as a stunt. But a teenager, graduating from a video game such as World of Warcraft, might love it. All of which suggests that while poker may no longer hold all the aces in the world of online gambling, it is not out of the game.
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Playwize raise £1.15m by issuing 115m shares
Playwize, the beleaguered 3D poker software developer, has managed somehow to issue 115 million shares to raise a poultry £1.15m.
Playwize Issue of Equity[ADVFN]
Playwize has today placed 115,000,000 new ordinary shares of 1p each ('Placing
Shares') with new and existing investors and Directors at a price of 1p per
ordinary share (the 'Placing'). The gross proceeds of the Placing are #1.15
million and the proceeds will be used by the Company to provide additional funds
for the continued growth of the Company's existing operations.
I hope they have a good plan for the money. Note that the placing was got away at a large discount to the current price - 50% less indeed. Moreover, the placing is 65% of the Company's enlarged issued share capital. Current holders (including the directors) have seen a huge dilution of their holdings. However, given the alternative was potential closure shareholders should be thanking Foo and his friends for his new purchases.
A little bit of something is better than a lot of nothing.
To check out the Pokerwize 3D product click below. You can then judge for yourselves whether you believe that many other poker rooms will licence PLW's software offering. If you think they will then PLW may be a good long term buy.
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Pokerwize (PLW) product launch - share price up 130%
In a remarkable day for microcap Pokerwise (PLW) their share price rocketed up 130% (at time of writing) on news that Ladbrokes has launched its 3D product.
Given we know nothing of revenues (although it is an upfront fee and revenue sharing deal) such enthusiasm is frankly astonishing. LAD is only a small player in the competitive online poker market and while this will help differentiate their product offering it is unlikelty to mean a step change in the fortunes of either PLW or LAD.
What PLW need is additional sales to other microgaming poker rooms given that their stand alone offering brings in such small revenues and no where enough sufficient to cover costs.
It will be interesting to see where the share price is in two weeks time. If it is higher that todays's peak I will be mightly surprised.
To check out the PLW 3D offering click on the banner in the sidebar of click here:
Opinions welcome.
Playwize Product Launch[RNS]
LADBROKES 3-D POKER LAUNCHES WITH PLAYWIZE TECHNOLOGY
The Board of Playwize, the AIM quoted developer of software for the
entertainment industry, is pleased to announce that Ladbrokes International Ltd.
("Ladbrokes") launches Ladbrokes 3-D Poker this week, which features Playwize's
innovative video gaming technology for the most realistic and immersive poker
experience on the internet. Ladbrokes is a wholly owned subsidiary of Ladbrokes
plc, a world-leading provider of interactive betting and gaming services, and
the biggest retail bookmaker in the UK and Ireland.
Ladbrokes 3-D Poker incorporates Playwize's exclusive technology, including
real-time statistical calculators, interactive tutorial and live voice chat.
Pursuant to a Development and Licensing Agreement, Playwize has licensed its
technology for two-years in exchange for an up-front payment to the Company and
as well as ongoing licensing fees in the form of a revenue sharing arrangement
with Ladbrokes.
Foo Katan, Chief Executive of Playwize said: "The launch of Ladbrokes 3-D Poker
represents another milestone in the Company's strategy of developing and
licensing its online 3-D poker technology to third-party poker rooms. The
Company anticipates announcing other such licensing agreements with some of the
many poker room clients on the Microgaming Network in due course."
Ladbrokes eGaming Managing Director, John O'Reilly commented: "This is a major
step in the convergence of video gaming technology and online gaming and we're
pleased to be the first leading poker site to go 'virtual'"
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PKR videos: Bonus Codes, Rakeback, and Game Play
To liven up a Friday night here is a chance to see a PKR promotion video and some in game action. Anyone still playing 2D should check them out.
A full set of bonus codes are included at the bottom of this post with bonuses to suit all tastes. Note the added bonus of 5% rakeback on all sign ups at the current time.
And a second PKR promotion video.
The PKR video below shows some great in game action - it is called "ALL THE ACES".
Netbetblog has strict rules on affiliate promotions. PKR is our only recommended poker room although we have a few links to companies whose stock we cover to enable us to get a feel for the product and how they treat their affiliates (a good indicator of management and long term prospects).
We have therefore managed to negotiate the following bonus codes on behalf of our readers.
PKR BONUS CODES:
Bonus Details..........................Rakeback...........Enter Code at Deposit
$2000 100% Match Bonus.........5%....................netbetblog2000
$600 100% Match Bonus..........5%......................netbetblog600
$250 50% Match Bonus............5%......................netbetblog250
$5o Fixed Bonus.........................5%......................netbetblog50
Download here:
US players are not allowed to play for real money but can still play for free.
For a detailed breakdown of the conditions for bonus payouts see an earlier post:
"Netbetblog PKR promotion"
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Playwize final results September 2007 - how much longer before it folds for good?
Playwize (PLW) released a dreadful set of results late on Friday (surly not an attempt to hide bad news).
PLW shares were down 25% by the end of the day.
Future fund raising will be a the biggest problem. The general credit crunch among mainstream lenders may leave future cash hard to obtain. Given current revenues of £71,000 and losses of close to £2 million it is difficult to see how things can possibly be turned around. Whilst the new licencing model may bring in some cash and development help it is hard to see PLW becoming profitable for some considerable time. Blaming the US regulation issue for a company that did not even launch its product until after the US regulations were introduced seems a little odd.
Why are administration costs so high and rising?
Why are revenues so low - what are customer numbers?
Why is there so little use of affiliates?
What is the revenue breakdown between game sales and poker revenues?
Playwize Final Results
("Playwize" or the "Company")
PRELIMINARY RESULTS
FOR THE TWELVE MONTHS TO 31 MARCH 2007
The Board of Playwize plc, the AIM quoted developer of software for the
entertainment industry, today announces its results for the twelve months to 31
March 2007.
Today's statement follows the Group's (being the Company and its subsidiaries)
trading update in March 2007.
Highlights:
* Loss before tax #1,962,000 (2006: Loss #1,841,000);
* Turnover #71,000 (2006: #78,000);
* Passing of Unites States Legislation, banning Internet gambling, had a
negative impact on the online gaming sector;
* Lack of significant marketing funds to promote the Groups online poker
game; and
* Implementation of the Groups new commercial strategy to pursue licensing
arrangements with online poker rooms.
Post Balance Sheet Update
* Signing of a development and licensing agreement with Ladbrokes
International, a wholly owned subsidiary of Ladbrokes Plc; and
* The commencement of fund raising, anticipated to be completed in October
2007.
John Corre, Chairman of Playwize, commented: "Playwize is vigorously pursuing a
number of opportunities available to licence our online poker game to other
online poker rooms, whilst continuing to develop games for niche markets through
joint ventures or under work for hire contracts.
"The Board believes that the refocusing of the Group's core business coupled
with its attendant reduction in overheads will ensure an early return to
profitability, which will be beneficial to shareholders in the long term."
Playwize and Ladbrokes do a 3D deal
Playwize plc (PLW) have long been considered a basket case of a share to own.
Late to the 3D Poker market and beaten into a poor second by PKR (see top banner) they recently announced via an RNS that they have signed to 2 year development deal with Ladbrokes to licence and develop their 3D poker software.
The share price was up 100% on the day of the deal with the share price reaching over 4p (from 1.25p the day before). It has now fallen back to around 2.5p (18%). This was still a good return by anyone's measure. The reason for the jump - PLW was pretty much priced to go bust and this deal appears to have given them a lifeline.
To commemorate this achievement I have placed a PokerWise advert banner in one of the sidebars. Click on this or below to get the full 3D poker experience.
In marketing terms alone, there is simply no comparison between the PokerWise and PKR advertising material. Result - PKR get more affiliates and hence more punters.
Still, with Ladbrokes backing, things may be beginning to turn. Even so, PLW appear to have no money to spend on advertising, limited bonus offerings and apparently no marketing budget. It will be interesting to see how the share price performs in the run up to and immediately after the next set of results due soon.
A last chance for tired bulls to exit?
We will be running a 3D head to head death match review on this blog in the near future. Does Pokerwize3DPoker hold up to scrutiny? Is this Foo Katan's (CEO) last throw of the dice?
Playwize Re Agreement
("Playwize" or the "Company")
DEVELOPMENT AND LICENCE AGREEMENT
WITH LADBROKES INTERNATIONAL
The Board of Playwize, the AIM quoted developer of software for the
entertainment industry, is pleased to announce that it has signed a development
and licence agreement with Ladbrokes International Ltd. ("Ladbrokes"), a wholly
owned subsidiary of Ladbrokes plc, a world-leading provider of interactive
betting and gaming services.
Pursuant to this agreement, Playwize will develop and licence to Ladbrokes an
exclusive version of its innovative online 3-D poker for use by players on the
Ladbrokes poker network. The two-year agreement provides for a contribution
towards development costs in the form of a development fee and ongoing licensing
fees under a revenue sharing arrangement with Ladbrokes.
Foo Katan, Chief Executive of Playwize said: "We are very excited about creating
a poker room for Ladbrokes that incorporates advanced 3-D technology with our
exclusive features including real-time statistical calculators, interactive
tutorial and live voice chat. The agreement represents the first step in the
Company's new strategy to develop and license its online 3-D poker technology to
third-party poker rooms; the Company anticipates that more similar agreements
will follow."
Colin Cole-Johnson, Director of Gaming at Ladbrokes, said: "The Playwize 3-D
software has an impressive interface that is supported by unique interactive
player development content, so we firmly believe this will broaden the appeal of
online poker. Importantly, the new 3-D platform is fully integrated with our
existing software so this will help us build liquidity".
888.com lining up new deals
From the results comes news that 888 remains on the acquisition trail.
This quote comes from a Thomson Financial interview today:
"The company made its first acquisition in May, buying Globalcom Ltd's bingo
unit for 43 mln usd. Chief executive Gigi Levy told Thomson Financial News that
that particular business has since performed 'phenomenally well',
leaving the company hungry to complete more deals."
Also from Reuters:
UK's 888.com lining up deals, U.S. talks continue
On talk about US negotiations we have the following which has implications for PartyGaming.
The company, whose Web sites include Pacific Poker and Casino on Net, also said on Monday talks were continuing with U.S. authorities over a deal to end the threat of retrospective prosecution for taking bets in the United States before an effective ban was enforced last year.
Chief executive Gigi Levy told Reuters it was too early to tell the outcome of the talks but any deal would probably be brokered after U.S. authorities had dealt with larger rival PartyGaming Plc (PRTY.L: Quote, Profile , Research).
"PartyGaming were so much bigger than us in the United States so I'm sure on ... the Department of Justice's list we are just a small fish.
"We don't have any rush to close negotiations, we want to reach something that will be a good deal, not just a deal."
When one considers that it is costing Neteller millions of US dollars to simply avoid future prosecution (details to follow in a profile post on Neteller NLR) PRTY and 888 have so far got away with it. PRTY's continued share price weakness (falling again today to 26.5p at close) may reflect this uncertainly. More importantly, both companies in addition to the threat of fines, face the prospect of long drawn out negotiations. The City does not like uncertainly.
On the South American deal 888.com state:
888 said it had signed a deal to provide software and technology to Latin American poker site Tower Torneos as it looks to get footholds in new, fast growing markets.
Levy said the firm expected to do around another 20 tie ups. "We are in talks about something that will give us stronger presence in Asia Pacific and we are in talks about presence in eastern Europe ... I think that before the end of the year you'll hear of at least another significant deal."
The fact 888 is on the acquisition trail again reinforces that the online gaming sector will continue to consolidate. My prediction is that we will eventually be left with a handful of global giants. It is a matter of picking the winners now while the smaller companies such as Playwize (PLW) are likely to fall by the wayside.
