TORONTO — Gaming software producer CryptoLogic Inc. said Thursday its fourth-quarter profit dropped 70.6 per cent to $1.7-million (U.S.) in its first report reflecting financial performance since the U.S. government declared a ban on online gambling. The quarter was hit by $1-million in reorganization costs for the shift of its headquarters to Ireland.
However, CryptoLogic posted a record annual profit of $24.8-million and revenues of $104-million.

CryptoLogic said the short-term impact on revenue and earnings was “heightened” by the new law, adding that the fourth quarter is consider its strongest of the year. But the company added that since its major focus was on Europe, even before laws changed, the impact was “less serious” than for some competitors.

“While 2006 was a challenging year for the industry, it was another record year for CryptoLogic — and we enter 2007 with both focus and momentum,” said Lewis Rose, CryptoLogic’s president and CEO. “We’ve launched five new customer sites since December, and have three more in the queue — including two for Holland Casino, CryptoLogic’s first government-owned customer.” (canadian press)

CryptoLogic has signed a three-year licensing agreement with Holland Casino to provide the Dutch operator with poker and casino software. The new site is to be run by Holland Casino for the Dutch government, and will launch in June 2007 serving only players in the Netherlands.

Lewis Rose, CryptoLogic president and chief executive, said in a company statement that the addition of a government-controlled casino was significant for the company and its reputation. He said: “We have an excellent template for other governments interested in realising the benefits of safe, secure and regulated internet gaming.”

Holland Casino will join other top gaming sites using CryptoLogic-developed software. These include William Hill, InterCasino, Interpoker, Playboy Gaming, ukbetting, Littlewoods Gaming, DTD Poker, Betsafe, Parbet Poker and Extreme Poker.

CryptoLogic has agreed to purchase Scandinavian poker room Parbet’s brand and assets for E9m. According to its statement, CryptoLogic will “license the Parbet assets, poker software, payment processing services, multi-lingual customer support and services to a private Maltese online gaming company that will operate “Parbet”.

For sale: the world’s smallest country with its own flag, stamps, currency and passports. Built in World War Two as an anti-aircraft base against German bombers, the derelict platform was taken over 40 years ago by retired army major Paddy Roy Bates who went to live there with his family. Apply to Prince Michael of Sealand if you want to run your own storm-tossed nation. (reuters)

City AM this morning analyses Ladbrokes’ “Spanish slot machine venture” with Cirsa. The piece says that several regions are looking to follow Madrid’s lead in offering betting licences.

The BBC’s European press round up reported over the weekend that “according to the bill on combating indecent broadcasting and online gambling”, the Turkish “Information Technology Security Agency will have the authority” to stop its citizens form accessing online gambling sites and “will work like a ‘huge eye’” in monitoring online activities for the Turkish market.

CryptoLogic has renewed its contract with William Hill for a further three years. The partnership is “on financial terms that are materially the same as those in their former agreement,” CryptoLogic said. A Spanish language poker site has also been introduced by the companies. “We are very excited about the prospect of continuing our partnership with William Hill-an icon in the UK betting market and one of CryptoLogic’s most important relationships,” said Lewis Rose, CryptoLogic’s President and CEO.

The biggest event set to be held in Goa over the next year will, officially, be the inaugural Asian Poker Classic from March 1-5, 2007. The Asian Poker Classic (APC) is the first professional poker tournament to be held in India. It will be sponsored by gaming site MaharajahClub.com and offer one of Asia’s richest ever poker prize pool - a guaranteed $1 million.

Sportsbook.com posts odds on Rocky Balboa’s opening weekend gross. For the sixth Installment of the greatest underdog story of our time, Sportsbook.com has posted odds on the opening weekend gross for the Italian Stallion’s latest bout, setting over/under odds on the film generating $26 million in its first weekend.

Totesport, one of Britain’s most respected bookmakers, has purchased the Orbis OpenBet™ integrated gaming solution for the relaunch of its web portal. Orbis Technology Ltd, the world’s leading provider of interactive gaming and betting solutions, announces the launch of the recently revamped totesport.com web portal utilising the OpenBet integrated gaming solution.

Cryptologic has launched re-designed and improved online poker software developed by subsidiary Wagerlogic, with improved navigation, new choices and more information.

“From fast action to hot competition the new software delivers what today’s sophisticated players demand,” said Andy Goetsch, CryptoLogic’s Vice President of Poker Software Development. “It all stems from the core principle that drives CryptoLogic’s poker strategy: knowing the heart of the online player.”

“This is an exciting day for CryptoLogic, because we’re taking our award-winning poker software to a new level that offers players more simplicity, selection and statistics!” said Lewis Rose, CryptoLogic’s President and CEO. “CryptoLogic’s redesigned poker software demonstrates our continued commitment to provide the best entertainment experience available on the Internet - to benefit our customers, their players and our business.”

The appealing new design includes enhancements to the main lobby, game tables and tournament lobby - players can launch a game of blackjack or - for the first time in the industry - any casino game directly from a poker table or lobby without missing a moment of the action.

Four new online gambling sites have received regulatory approval from ECOGRA. The newly approved sites are www.pacificpoker.com, www.colosseumpoker.com, http://poker.wildjack.com and www.bigdollar.com - taking the total to 111.

French newspaper Le Monde said that legal sources were adamant that operators holding an EU licence came under the regulation of European treaties guaranteeing freedom of competition and movement across the EU. However, it also said France would likely wait to be condemned by the European Commission before changing its laws.

CryptoLogic and DTDPoker.com have announced a three year contract.The site, with Cryptologic’s poker software, was launched today.

China is tightening controls on its booming online game industry, requiring distributors to closely monitor game contents after some were found that included forbidden religious or political material, a state news agency said Tuesday.

Market: 32Red saw its share price drop 33% to 36.5p as a result of its trading statement, while Rank and PartyGaming were up 7p to 239.75p and 1.25p to 28p respectively in early trading.

CryptoLogic is negotiating the renewal of its contract for casino games with William Hill. The companies have entered into a non-binding term sheet which reflects the agreement in principle.

“We have an excellent relationship with William Hill and look forward to even more success both through a new contract later this year and the new business opportunities that this exciting suite of non-downloadable games represent,” said Lewis Rose, CryptoLogic’s President and CEO.

Harrah’s Entertainment is in negotiations with a second buyout group including casino and racetrack owner Penn National Gaming. Last month two private equity firms bid US$15.5bn for Harrah’s.

Neteller are in the market to buy Moneybookers, a UK-based payment provider with 2.3 million account holders, valued at £100m.

online gambling operator Bowmans.com has announced that it will no longer service USA customers and that their USA based customers will receive will receive their online gambling services from US facing giant Bodog.com

On OnlineGamblingBox we do not usually give investment ideas but this one off is due to Cryptologic. Over the years, the company’s Internet casino software has received numerous accolades from the likes of Gambling Online and Casino Player magazines. Most recently, CryptoLogic was named the iGaming Software Provider of the Year at this year’s UK Gambling Awards.

The Canada-based (but soon to be Ireland-based) e-gaming software developer, is Motley Fool’s favorite for the best international stock for 2007.

CryptoLogic regularly sports operating and free cash flow margins of approximately 20% and 30%, respectively. Add CryptoLogic’s small-cap size of $300 million — allowing plenty of room for growth — and you’ve got a solid foundation on which to build some booming returns. CryptoLogic provides one of the most trusted Internet gambling infrastructures available in a thriving international industry.

According to Global Betting and Gaming Consultants, the Internet gaming market is expected to grow from $12 billion in 2006 to $19.6 billion in 2010. To be fair, the new U.S. law banning Internet gambling will surely put a dent in those estimates, and only time will tell just how big the damage is. Either way, the data clearly shows that a worldwide demand to gamble online exists and that CryptoLogic will play a major role in meeting it — with or without the United States.

Cryptologic showed huge increases in quarter three results, however, all gains are assumed to be made before the US passing of the UIGEA.

They lost infact many US facing vendors when the law passed, however, they have been prepping for the ban since the turn of the century investing on alternative markets such as Europe and Asia. Also they expect big gains when Playboy begins serving the world with their brand of the Cryptologic software.

Cryptologic said it will ‘continue to invest aggressively in the growth of its business’, so investors and share holders need not worry. “Our company’s diversification, strong balance sheet, thriving European customers and potential new business in emerging markets enable us to face the future with confidence.” says CEO Lews Rose.

The Sands Casino online has been in the news a good deal over the past few days for the huge Cryptologic jackpots that they are giving out, the latest was worth almost a half of a million dollars.

The Rags to Riches progressive slot was won at The Sands yesterday and it paid out a wopping $404,273, just ten thousand dollars less than their previous payout record of $414,119.

Karen from Virginia won the jackpot at Rags to Riches, but the bigger news may be the massively growing jackpot at The Sands’ Millionaire’s Club progressive slot game. Yesterday we reported that jackpot had reached a world record $4 million dollars, today it is standing strong at nearly $4.2 Million.

The Sands Casino online is one of the very few online casinos that uses the Cryptologic software. InterCasino is another casino that uses Cryptologic which features incredible lobby graphics, the most amazing Marvel Comic slots in the world and a payout rate of 97.5%.

CasinoGamblingWeb.com