Friday, July 24, 2009

PartyGaming Likely to Buy Cashcade

July 20, 2009 (CAP Newswire) -- News sources across the media spectrum have been speculating for weeks about the likely purchase of U.K.-based online gaming marketing firm Cashcade by a larger online gambling company. The two most likely contenders to purchase the site have been rivals PartyGaming and 888.

Now, it looks as though PartyGaming has outbid 888 and is close to sealing the deal. 888 is reportedly dismissing the development as of little importance, although it is more closely allied with Cashcade. (888 currently provides the software for Foxy Bingo, the parent company of Cashcade.)

Both companies’ stock prices rose today on the news, with 888’s jumping even more than PartyGaming, despite the fact that it will likely lose out on the bidding war. Click here to read more at Forbes.com. (Credit: CAP Newswire)

Greg Tingle comment...

The PartyGaming purchase deal of Cashcade happened and is history now. PartyGaming paid GBP71.9 million for the London-based bingo and casino operator Cashcade, and will pay up to a further GBP24 million subject to Cashcade's future profit performance, according to number news media reports. I believe that PartyGaming has now firmly cemented itself as the market leader. Out of Europe Euro Partners (Casino Tropez, Europa Casino etc) isn't staying still, with a push into the Asia Pacific region via the web, and Belle Rock Entertainment (JackpotCity, Lucky Nugget and more) are pushing ahead via the web and talk of Belle Rock to make a traditional media push. Aspinalls Online Casino and Aspinalls Online Poker are ramping up online, with their Vegas Partners Lounge connection. In Australia PokerStars still have strong footing and branding, as does 888's Pacific Poker. It will be interesting to see what's next for PartyGaming's traditional bingo brand, PartyBingo, given the latest bingo acquisitions. In Australia the PartyGaming deal with Cryptologic re Marvel themed slot games has proved a big winner, at least from our data here at Media Man Australia, and the Party connection and deal with Paramount Pictures for a number of Hollywood themed slot games is working a treat. Mission: Impossible and Top Gun's Tom Cruise has recently been in Australia, and he has history with Australia's James Packer (Crown Casino and City Of Dreams), so you can just imagine the increased interest in PartyCasino themed slot games. Mr Packer and his family also have some positive history and dealings with Aspers Damain Aspinall, and his father, the late great, John Aspinall. That connection could prove to be an ace up the sleeve for Aspinalls, as part of the PartyCasino - Paramount Pictures blockbuster slots - Cruise - Packer tie ins, with Media Man in the thick of the action. Oh, not to be left out Virgin Entertainment Limited's Sir Richard Branson has done public meeting with Packer in Australia a few months ago, and Virgin Games are rumoured to be soon releasing another slot game or two, quite likely a Hollywood themed slot, following the PartyCasino slot strategy and Transformers path. Marvel have started production on a Thor movie and the Iron Man II (movie) is on the way. If you were to bet CrytoLogic, NextGen Gaming and PartyGaming will have something to do with their igaming adaptions and promotion. A high level person at PartyGaming / PartyPoker is rumoured to be assisting the Asian Poker Tour, which isn't that far north of Australia, with both regions being part of the Asia Pacific (just ask Australian prime minster, Kevin Rudd), who is very proficient at speaking in a number of Oriental languages. Mr Rudd is not such a big fan of igaming however. PartyGaming of course have things sorted with the US DOJ, so that can only serve Party well with their ramping up in the Asia Pacific region. I wouldn't be surprised to even see their brand pop up in the upcoming poker themed movie out of Asia, Poker King. So, overall, PartyGaming is looking in a very strong position. The have parted with some cash and and further cemented their leading market position, and other igaming and gaming operators are doing their utmost to stay in the race with new campaigns, new games and the like. Whatever side of the industry your in its hard to argue that its not exciting times in the gaming industry, as the business does its best to be a good corporate citizen and to do the right thing by regulators and players. PartyGaming certainly looks to be playing their cards right.
Greg Tingle
Media Man Australia
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