Listed online gaming and entertainment company 2UP Gaming PLC (2GM:GR) has entered into an agreement to purchase an online pokies/slots affiliate business that is part of a global USD$6.7 billion industry.
London, UK, June 26, 2011 - The agreement, subject to due-diligence, is for the WebPokies.com and OnlinePokies.com.au domains that provide links to internet gaming services for a worldwide audience.
2UP managing director Peter Bentley says the purchase is an excellent strategic fit for the company providing immediate cash flow.
"A report released earlier this year noted online poker and casino operations account for almost half of the USD$13.49 billion international internet gambling market," Mr Bentley says.
"Entering the affiliate business forms part of 2UP’s long-term plans to become a major international online gaming and entertainment company.
"This purchase is for a long-established business with solid earnings, however we believe the revenues can be significantly increased through 2UP’s distribution network in Asia, India and around the world."
Affiliate sites act as portals to enable visitors to locate and access online slot machines or pokies by redirecting them to casinos who pay for either traffic or a sale of their product. Many online casinos have affiliate programs driving traffic to their chosen domain.
OnlinePokies.com.au commenced in 2006 and acquired WebPokies.com in 2010. Both domains have demonstrated cumulative growth in players, revenues and earnings.
Mr Bentley says online gaming is currently experiencing exponential growth with signs for the sector to increase dramatically over the next few years.
"The growth of online gaming is particularly relevant in Europe, where governments are seeking to capture tax revenues by regulating the market," Mr Bentley says.
"A recent report by KPMG states cash-strapped governments around the world may consider relaxing current online gaming rules and restrictions in order to provide a much needed boost to tax revenues.
"If promoted properly, affiliate businesses can be extremely profitable, especially if they have standout URL’s such as these."
2UP, with offices in the UK and Australia, listed on the Frankfurt Stock Exchange in early May and has already seen a solid growth in its share price.
It recently finalised a partnership deal with one of Asia’s largest pool betting companies ToteDaddy.
The deal will see 2UP’s range of popular gaming and wagering products made available to ToteDaddy’s substantial global membership base providing 2UP with immediate high-traffic exposure to the Asian online gaming market.
The company has an online gaming license granted until 2025 to capitalise on its market positioning.
The first game to be released from 2UP is its live streaming and animated versions of the classic Australian coin-tossing game.
This will be underpinned by other unique and established gaming and wagering options to be released as part of its growth plans.
For more information visit www.2UP.com or email investor-relations@wedgewoodcommunications.com
Contact:
Bruce Nelson
2UP
Office 11
10 Great Russel Street
London, WC1B 3BQ
+61 (0)423 403 449
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