Sportingbet announce online poker deal
Online gambling company, Sportingbet PLC, has signed a new three year deal with Sweden’s Boss Media to migrate its online poker site Paradise Poker onto the Swedish company’s software platform. However, the move is expected to see a £55 million software write-off.
“The redundancy of the group's Paradise Poker software will result in a further exceptional cost of approximately £55 million representing the write-off of the remaining carrying value of this asset and associated costs,” Sportingbet said in a statement.
However, since Sportingbet previously held approximately 6,500 players on the Boss Media platform and a further 6,500 on Paradise Poker, the merge of players will result in cost savings and will improve Sportingbet’s returns from its Paradise Poker customers. Sportingbet will also retain the Paradise Poker brand.
Since the US’s crackdown on online gambling, Sportingbet has recovered remarkably well after selling it’s US facing operations for $1 and reported a 72 per cent rise in second quarter pre-tax profits last year.
Sportingbet’s shares have risen slightly by 1.41 per cent to 36p, valuing the company at £159 million.
Editor, Jackpot.co.uk - 2007-02-09 11:30:03