Cryptologic, an online casino software provider, has released all information on how they did in 2009. Not surprisingly, there was a loss in revenue; $39.8 million from $61.5 million from 2008 to 2009, a net loss of $35.5 million. This is attributed to players wagering smaller amounts and less often than before the economic recession.
With the costs of running an online casino in the millions of dollars annually, there is not much left for profit. While online casinos only pay a minimal number of staff members, there are yearly licensing costs and other things that can add up. In 2009, Cryptologic had to do some restructuring in order to allow for the decreased revenue.
In an effort to find a solution for the decreased revenue, Cryptologic made several deals with other online casinos including some takeovers and new game ideas. They merged their poker network with GTECH Corporation which eliminated the costs of running a stand-alone business. Also, there was an increase in the number of licensed online casinos using Cryptologic software, making a big difference in income. Finally, they signed deals with DC Comics, part of Warner Bros., to include games based on Batman, Superman and Wonder Woman, as well as deals with Paramount that allowed many other games to be based on blockbuster hits.
Despite a few financial drawbacks, Cryptologic continues to be a contender in the online casino software industry and is more than likely to overcome any difficulties caused by the recession. Online gambling continues to be a favoured pastime and is growing steadily while Cryptologic’s reputation will keep them from any financial disasters until things pick up again. 2010 is expected to be a comeback year for the industry.
