WilliamHillPoker Moves to iPoker To Help Boost Offering

British bookmaker William Hill today announced it had purchased a variety of online gaming businesses, marketing assets and contracts from software developer Playtech for up to $250 million in cash. The company will control 71 percent of William Hill Online as the new company will be known, with Playtech, owner of the iPoker network, taking the remaining stake.

The move will see WilliamHillPoker leave the Cryptologic network and move to iPoker for a minimum of five years. The move is a further blow to software develpoer Cryptologic which learned last week that World Poker Tour Enterprises had terminated its agreement with WagerWorks, the company's wholly-owned gaming subsidiary effective as of Nov. 14

Hill’s share could rise to 32 percent depending on conditions being met and the company has the option to buy Playtech out between four and six years from now.

The new enterprise is expected to generate net revenues of £190 million  (pro forma) with net revenues expected to grow by over 50 percent between 2008 and 2010.

Ralph Topping, CEO of William Hill Plc, said, "This transaction is a transformational step for William Hill consistent with our stated strategy to increase online gaming and international earnings. William Hill Online will be the leading European online gaming and sports betting business and the clear online leader amongst UK land based gaming and betting operators. The transaction generates significant shareholder value and enhanced growth prospects for William Hill."

The company, like others publicly-quoted gaming companies in the sector, has seen its poker product stagnate. An interim report also released today said, "In a challenging competitive environment poker has suffered from weak player liquidity. The performance of both poker and casino have been impacted by William Hill Interactive being a predominantly UK focussed business built on sports betting with limited online gaming expertise."

Hill's share price was up 25 pence to £1.915 today at midday.

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