Betsson and iGame prepare for IGT Poker shutdown
Betsson chief executive satisfied with diversity of poker offering, which will remain split between three networks after Nevada licensee closes underperforming network.
Swedish operator Betsson is confident that the impending closure of the IGT Poker network will not hit it too hard, with chief executive Magnus Silfverberg explaining “It doesn’t actually fit too badly with our plans.”
The company currently has a secondary poker offering on the network – formerly known as Entraction – along with its primary Ongame offering, but has recently opened rooms on the Microgaming network for the Betsafe brand and for B2B partner Realm Gaming.
Realm, which entered into a B2B partnership with Betsson Business Solutions in December 2010, primarily targets the Turkish market from which IGT withdrew in September last year.
Earlier this week eGaming Review revealed that licensees on the network – acquired by IGT for approximately £70m in 2011 – have been informed that they will need to move their poker offering to a new network by 11 December, when IGT Poker will cease operations.
The land-based, online and social gaming supplier was among the first wave of licensees in Nevada and is permitted to act as a service provider to online poker operators in the Silver State.
However it revealed last week that it was pulling back from poker investment and “Consolidating our product development, allowing us to combine a number of locations and focus on the most attractive opportunities,” in the light of “Change and uncertainty in European market conditions had diminished the expected returns in certain real money wagering products.”
Yesterday, Pokerfuse reported the company had closed Entraction’s Swedish offices, while confirming that one skin on the network – MuchosPoker – has removed IGT Poker from the range of networks which it offers to players.
Silfverberg told eGR that Betsson’s room on the IGT network “Has not been as popular a network for us as Ongame,” while pointing out that the launch of Microgaming rooms, as well as the operator’s position on the Relax Gaming network for its Fast Poker offering, meant Betsson currently sits on four networks – more than most other poker operators.
“We just got an email a couple of days ago detailing what was going to happen – there were no other discussions with IGT before that to warn us,” Silfverberg revealed, adding that “It was pretty surprising, but doesn’t really matter to us as only a small percentage of our poker revenues came from our Entraction room.”
A number of other operators on the IGT Poker network are believed to be weighing up their options in terms of their future destination, with iGame – believed to be the largest skin on the network once its iGame, Pokerihuone and 24hPoker liquidity is consolidated – issuing a statement in which it revealed it was “Finalising a services agreement with one of the world´s leading poker networks.”
iGame, which will retain its Fast Poker offering on the Relax Gaming network, like Betsson, described the decision as being “In continuation to the recent move from IGT poker networks´ turnkey solution to operate under our own gaming license.” The operator is currently licensed in both Malta and Denmark.
At the time of writing, IGT Poker ranks 24th for worldwide poker liquidity according to Pokerscout, between the International Poker Network (IPN) and standalone site PKR. The poker tracking site reveals that network liquidity has halved in the last six months as the number of countries served by IGT Poker has reduced.