Online gaming software provider Amaya Gaming has posted a loss of CA$7.4 million (around $US7.11 million) in the three months to the end of May.
Despite the loss, Amaya’s CEO David Baazov remained upbeat about the company’s future prospects, saying that Amaya was well positioned to capitalise on the evolving state of affairs with online gaming in the US. Such affairs include the regulation of online gaming in Nevada, New Jersey and Delaware, and the introduction of online gaming regulation bills in Pennsylvania and California.
“We are well positioned to capitalize on this evolving regulatory framework due to our technology, regulatory status and strategic partnerships,” Mr Baazov said. “Gaming jurisdictions are moving towards regulatory frameworks that are evolving to adapt to the convergence of both interactive and land-based gaming operations.”
The fact that year-on-year revenues for Amaya Gaming increased by an amazing 496 per cent to $38.1 million is likely to be another reason Mr Baazov is not getting too down about the $7.11 quarterly loss. While the year-on-year figure was inflated by the purchases of land-based slots business Cadillac Jack and online poker network Ongame, costs associated with their purchase were also partly to blame for the three month loss.
Besides the Ongame purchase, Amaya Gaming has also taken numerous major steps to expand its reach in the online poker realm. The company hired former Tokwiro Enterprises Chief Operating Officer Paul Leggett to be the head of its online operations, which was one of the first of a series of moves by Amaya related to online poker.
It also signed a deal with Aristocrat earlier this month to integrate Ongame’s software into Aristocrat’s online gaming platform, which would potentially open Amaya to the US market. Amaya’s Ongame platform also inked a deal with Italian gaming giant Cogetech to power its new online power network, Izipoker.it.
The company also expanded its operations in Europe by agreeing to a deal with German company mybet to provide its software to mybet’s online poker service, which was described by Mr Baazov as “a strategic relationship for both parties.”
Given the establishment of legal online poker services in Nevada, and the potential establishment of services in other US states, it is no surprise that Mr Baazov remains optimistic. The fact mybet’s poker operations increased by 39 per cent in the first quarter also provides further consolation that Amaya Gaming’s online poker operations will likely strengthen in the near future.