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CryptoLogic Shares Fall 25%

Shares of CryptoLogic Inc. fell about 25 per cent Tuesday after the gambling software developer revealed it may lose a key customer, a move that could lead to a "material" drop in profits next year.

CryptoLogic shares (TSX:CRY) dropped $7.23 to $21.77 in early trading, rebounding slightly to $22.30 by midday, with more than 413,000 shares changing hands.

Just before stock markets opened, the Toronto company announced that Betfair, a British gambling website that uses CryptoLogic’s poker software, is considering developing its own software.

Poker software has been a major revenue driver for CryptoLogic as the popularity of online poker has boomed. The industry has grown from about $100 million three years ago to $3 billion today, chief executive Lewis Rose said in an interview Tuesday.

Rose pointed out that discussions with Betfair are continuing and no final decision has been made yet on that company’s Internet poker site.

CryptoLogic has nine licensees that connect online poker players around the world to its central online poker room.

Read the entire article at: CBC News 

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