Inside Asian Gaming

November 2008 | INSIDE ASIAN GAMING 47 Briefs countries and is a highly popular game in Las Vegas and Atlantic City, says ATRONIC. In addition to an extensive library of popular games,the ATRONIC portfolio includes dynamic casino management and linked gaming solutions. Cantor Gaming is quickly becoming a major player in the online gaming industry thanks to a comprehensive range of popular launches.The two companies said in a statement that the deal makes CantorCasino.com a “one-stop shop” for gaming enthusiasts. Cantor Gaming is an affiliate of the global financial services company Cantor Fitzgerald. Its games portfolio includes exclusive products such as Statjack™, the new card counting blackjack game, as well as XtraOdds Baccarat™, Cantor Financial Odds™ and Bonus Roulette™. Taiwan Games for Europe International Games System(IGS),a developer of arcade hardware and software and an operator of online games in Taiwan, will begin shipments of arcade gaming machines in small volumes to clients in eastern Europe this month, the company said in a statement. IGS added in a market analysis note that eastern Europe, including the Czech Republic, Poland and Romania, has an estimated 200,000 to 300,000 arcade gaming machines, mainly AWP (amusement with prize) models, and an annual replacement rate estimated at 50,000 to 100,000 units. IGS expects its total arcade gaming machine shipment volumes in 2009 to grow by 20-30% compared to 2008. Most of the growth will be as a result of its eastern European exports. Operation of online games will account for 38% of IGS’s 2008 revenues, the company indicated. IGS says it has expanded its research and development team and plans to offer online games developed in house in the fourth quarter of 2009. Investors Focus on IGT Cost-Cutting IGT’s earnings in the third quarter of 2008 were US$52 million, down almost 50% from the $123million reported in the same quarter a year ago. A large part of the lower earnings were attributable to write-downs on investments, with revenues only down 4.7% to $632 million in the third quarter. For the 12 months of fiscal 2008, IGT reported revenues of US$2.5 billion, a 3.5% decline from 2007. The company reported profits of $342.5 million for the period, compared with $508.2 million the previous year. Investors had expected lower earnings, and were more focused on cost-cutting measures being carried out at the Reno-based company. During a conference call with analysts and investors,IGTChairman and Chief Executive Officer TJ Matthews said the year had been one of the most difficult in the company’s history.The company is focused on cost reductions, including previously announced job reductions, that could result in $100 million in annual savings. “We’re trying to be as gentle as possible with our employees,” Matthews said. The company has offered a voluntary job separation program, which will be followed by involuntary layoffs. He hopes the total number of job reductions from the company’s 5,400-person work force will be determined by mid-November. IGT has been exploring other areas for cutbacks. William Hill Joins Forces With Playtech The Guardian newspaper reports that UK-basedWilliamHill hasbolstereditsunderperforming internet operations by joining forces with online gaming software giant Playtech. Playtech will take a 29% stake in a new online gaming and sports betting operation, William Hill Online, in return for folding in US$250m worth of newly acquired affiliate businesses with a strong supply of customers as well as ‘marketing and customer retention expertise’. William Hill, which will put its existing online assets into the joint venture, will own the rest of William Hill Online and have full operational control of it, retaining an option to buy out Playtech’s share in four or six years’ time. It has also agreed to use Playtech’s software for poker and casino games for at least five years. CryptoLogic Teams Up With PartyGaming CryptoLogic,a software developer to the global Internet gaming market, signed a five-year licensing agreement with PartyGaming Plc, one of the world’s largest online gaming operators. CryptoLogic will initially provide PartyGaming with a suite of its popular branded casino games from the first quarter of 2009. PartyGaming has declined to comment on reports that it may team up with CryptoLogic as a software partner for its successful PartyPoker platform. However, CryptoLogic has made no secret of its desire to increase its poker player liquidity and to mitigate its development costs by doing a new deal with an operator of scale. Last month, it was announced William Hill was ending its nine- year gaming software partnership with CryptoLogic in favour of a deal with London-listed Playtech. CryptoLogic points out though that PartyGaming is its ninth new sign up this year. Under the deal, PartyGaming has the option to offer further CryptoLogic-poweredcasinogames to its customers.Theagreement was made through WagerLogic Ltd, a wholly owned subsidiary of CryptoLogic that licenses CryptoLogic software and services to leading gaming and entertainment brands. “We are delighted to welcome PartyGaming as our latest partner. This is one of CryptoLogic’s biggest customer wins of the year and an endorsement of the branded games element of our new strategy.It proves that when you combine great innovation and excellent execution, you get expansion,” said Brian Hadfield, CryptoLogic’s President and CEO. C r y p t o L o g i c ’ s customer list includes 888.com , Sky Betting and Gaming, Gaming Media Group (The Poker Channel), Maharajah Club, OPoker, Kurastica, Betjacks and Khel Galli.