Cryptologic and the Cryptologic Poker Network

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Cryptologic and its wholly-owned subsidiaries operates a poker network, provide casino games and offer e-cash services for its customers. Cryptologic is listed on the Nasdaq under the ticker CRYP; on the TSE (Toronto Stock Exchange) under the ticker CRY; and on the LSE (London Stock Exchange) under the ticker CRP

CryptoLogic Limited Q1 2009 Earnings Call Transcript

The first quarter of 2009 was an important one for CryptoLogic as we laid the final foundations for CryptoLogic's return to profitability and cash generation this year. We continued the transition to our new business model, which leverages CryptoLogic's world-class reputation as a developer and licensor of Internet casino and branded gaming software.

 

Cryptologic Quick Clicks for latest news

 

• AmericanBulls, • knobias, • SmartMoney, • Squeeze Ranking™, • Yahoo!Finance Message Board

Key words Google News search clicks for companies and themes related to CRPY:
• Cryptologic, • DTDPoker, • EU Internet gambling, • G4Box, • Holland Casino, • InterCasino, • Malta Online, • Mikoishi Studios, • Playboy Poker, • Silverbirch Studios, • WagerLogic, • WilliamHill Poker, • WPT Enterprises, • 568 Network Inc.

Google News search on Institutions holding $5M+in CRYP (rl August 10th Nasdaq Institutional holdings summary):
• Pabrai Mohnish, • Royce & Associates, • Kingdon Capital, •Renaissance Technology, • National City Corp, • D.E. Shaw & Co., • Marxe Austin, • Morgan Stanley

 

Cryptologic Notes

 

Cryptologic operates online gaming sites for its customers that may feature a poker room and casino games utilizing Cryptologic's proprietary software. Cryptologic earns a percentage of the revenue generated from the sites it operates.

Holland Casino, the only government licenced gaming site in The Netherlands, is expected to launch online poker and casino sites with Cryptologic in 2007. In a late May 2007 Cryptologic conference call, the launch date was expected to be September 2007 dependent on Holland Casino acquiring the necessary online license. A June 2007 story, Games of chance: A policy change in The Netherlands? discusses gaming policy in The Netherlands and its relation to wider EU considerations. For more background information on the EU visit our LegalAtPokerPulse EU blog.

InterPoker is one of the original sites on the Cryptologic Poker Network.

Partnerships for Asia Market (new as of 2007)

 
 
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Cryptologic Fees (share of customer revenues collected by Cryptologic)

 

WPTE is a publicly traded company and its FORM 10-Q for the quarterly period ended April 1, 2007 disclosed the following details regarding Cryptologic fees and poker/casino revenue sharing.

Online gaming software and support agreement. On April 23, 2007, the Company entered into a three year software
supply and support agreement (the “Agreement”) with CryptoLogic Inc., and its wholly-owned subsidiary WagerLogic Limited,
(collectively referred to as “CryptoLogic”). Pursuant to the Agreement, CryptoLogic will operate an online gaming site for the
Company featuring a poker room and casino games utilizing its proprietary software, in exchange for a percentage of the
revenue generated from the site. The Company will be entitled to approximately 80% of net gaming revenues, from the
operation of the site. Under the Agreement, the Company will also be a member in a centralized online gaming network (the
“Network”) with several other licensees of CryptoLogic pursuant to which players will be able to play on the Company’s
branded gaming site on the Network.

The Agreement provides for the poker room to be operational and accessible by players by June 14, 2007, and by
September 30, 2007, CryptoLogic is required to have five casino games available . The Company also has an option,
exercisable at any time prior to July 1, 2008, to require CryptoLogic to provide the Company’s customers with access to a full
suite of casino games within three months of such notice.


There is a one-time fee of $50,000 payable by the Company for the initial preparation and launch of the site, and the
Company is required to pay a monthly fee of $7,500 for the management of tournaments, collusion detection, customer support
and overall management of the poker room. In addition, the Company is obligated to contribute 4% of poker room revenue for
certain marketing initiatives.

...

We are entitled to the following percentages of net gaming revenue: (a) Seventy-eight percent (78%) of the first $150,000
per month, (b) Seventy-nine percent (79%) of revenue in excess of $150,000 but less than $500,000 per month; and (c) Eighty
percent (80%) of the revenue in excess of $500,000 per month. CryptoLogic is entitled to earn the following annual minimum
guaranteed revenues associated with our online casino: $500,000 for the Initial Casino and $2,500,000 for the full suite of casino
games. There is a one-time fee of $50,000 payable by us for the initial preparation and launch of the site, and we are required to
pay a monthly fee of $7,500 for the management of tournaments, collusion detection, customer support and overall management
of the poker room. In addition, we are obligated to contribute 4% of poker room revenue for certain marketing initiatives.

If, at any time after the nine (9) month anniversary of the go-live date, monthly gaming revenues fall below $500,000 for
three (3) consecutive months, CryptoLogic has the right to terminate the Agreement on ninety (90) days written notice.
However, we may prevent any such termination through payment of the shortfall of CryptoLogic’s percentage of such gaming
revenue within thirty (30) days of receipt of CryptoLogic’s notice of termination. If at any time during the term of the
Agreement the average daily gross revenue, over a ninety (90) day period, derived by CryptoLogic through the Network falls
below $125,000, we have the right to terminate the Agreement.

 

 

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NOTE: Real money play at Cryptologic sites is closed to residents of the U.S.