Cryptologic gears up for major move on Asia.
gambling software developer and turnkey provider Cryptologic
is about to team up Brilliance Technology Company and 568
Network Inc in a significant project to adapt and license
its online casino, poker and other skill-based games for the
Company officials this week signed memoranda of
understanding with the two companies, which both have strong
links to the software and gaming industries in China.
The agreement involves establishing a new and jointly owned
factory in the region with the goal of penetrating the
high-growth, high-potential Chinese market, including China
, Macau , Taiwan and Hong Kong . Financial details of the
deal were not disclosed.
Brilliance will establish a division to deliver the games in
two modes: "play-for-fun" subscriptions for users in
internet cafes and on mobile devices, and "play-for-money"
through sites licensed by China Welfare Lottery, the
nation's gaming licensing authority.
Cryptologic's investment will be a minority at first, but
with an option to lift its investment to a controlling
position. It has the right to appoint all board members to
the new company.
President and chief executive Lewis Rose said the agreement
was the first major step in what is one part of
CryptoLogic's strategy to expand in Asia , which it sees as
a growth market.
"This is the first major step in executing one of our
cornerstone strategies: to expand in Asia - a key growth
market for CryptoLogic," said Rose. "The agreement brings to
CryptoLogic substantial game development and IT skills
uniquely suited to the Asian gaming market, and provides
well-placed resources in China to guarantee that our first
steps are successful ones."
Brilliance is a software developer and systems integrator in
China , with products that have been awarded various levels
of certification by Chinese state agencies. Brilliance also
has a proprietary payment processing system which every year
facilitates billions of dollars in transactions for the four
largest banks in China . Brilliance will enter into an
exclusive licensing agreement with respect to the new
company's online gaming software and service offering, and
will apply for all required gaming licenses.
"There is a huge appetite for online gaming throughout Asia
and this is the right group to penetrate the market quickly,
deeply and legitimately," said Li Fu Hua, Chairman of
Brilliance Technology Co. "CryptoLogic's award-winning
online game offering will nicely complement our company's
banking, payment processing and networking solutions that
are already widely used throughout China."
Asia is quickly becoming the next major geographic area for
online gaming. Industry experts expect Asia to be the
fastest growing and ultimately the largest online gaming
market in the world. China alone has over 135 million
Internet users, the world's second largest user group after
the United States .
In addition, China has the world's largest mobile phone
market with more than 400 million subscribers, many of whom
are expected to switch to the high-speed 3G networks over
the next few years, creating the opportunity for explosive
growth for game and content developers.
Brilliance intends to use its relationships with the major
service providers to license the new company's casual game
content to their subscribers.
Game568, headquartered in Markham , Ontario , Canada , is a
game developer, publisher and operator with a Chinese
subsidiary already creating games for that market, including
card games such as "Fight Landlord" and "Za Jin Hua", and
skill-based casual games such as "Lian Lian Kaan" and
"Dragon Ball". Game 568 has a license from China Welfare
Lottery, and has a database with more than one million
registered players in the portals that it owns and those it
operates for other developers.
"Our software engineering expertise in Shanghai and our
existing Asian game roster, combined with Brilliance's IT
leadership position in China and CryptoLogic's unmatched
casino and poker game suite will give this partnership a
decisive leadership edge in Asia," said William Cheng,
Vice-President-China Operations for Game 568.
Back to articles