Playtech, an Israeli run, UK listed online gambling software provider, has announced that they will be aggressively buying out European companies who can no longer afford to stay afloat. Their ultimate goal is to dominate the industry so that there are virtually no other online gaming options for players to choose from.

“We think that this is the right time to prepare the company to be almost the only alternative out there,” Playtech’s Vice Chairman, Avigur Zmora, told Reuters on Friday.

Playtech was one of the few software providers that completely exited the US market once the states passed the Unlawful Internet Gambling Enforcement Act in October of 2006.

Many in the industry questioned their reasoning for bailing out of such a lucrative industry so quickly, and the answer to those questions is starting to surface.

“They want to dominate the European market which means they can have no blemishes on their record,” said Gordon Price, our in house Internet gambling analyst. “And they probably would like to dominate the US market if it ever opens up again, too,” Price cited as another reason why Playtech forced their casinos to leave the US market last year.

“We haven’t yet concluded what should be the right opportunity or who should be the first target for us,” Zmora said, but he added that he is eager to purchase companies as their stocks decline around the world.

He also said Friday that Playtech would be looking to move into offering sports betting to their software platfrom in order that they can truly monopolize the industry.

Zmora plans on offering software that covers all the needs for those in the gambling world so that when the regulations in the UK, and eventually in the US, set in key name brand companies will look to Playtech to be their software provider.

Playtech currently is competing with software providers Cryptologic, which powers casinos such as InterCasino and Playboy Casino, and Microgaming, which powers casinos such as All Slots and All Jackpots. The three software providers together, Playtech, Cryptologic, and Microgaming are considered the most advanced and secure in the industry while all others are far inferior.

August 11, 2007

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