Online Gambling Giant Amaya Growing Pains

Published Tuesday, November 10, 2015 - Online-Casinos.com
Online Gambling Giant Amaya Growing Pains

Building an online gambling empire takes time and there are always issues to overcome during the process. The Canadian online gambling giant Amaya Gaming is an example of a mega gambling empire in the process of maturing with expectations of growing even larger and more profitable.

Amaya’s acquisition of the Oldford Group, the parent company of the Rational Group Ltd., owners of the Full Tilt and PokerStars was the largest on record for an online gambling firm at $4.9 billion. The acquisition included the globally popular brands with more than 85 million registered players on desktop and mobile devices. David Baazov, founder, chairman and CEO of Amaya said in a news release back in 2014 "This is a transformative acquisition for Amaya, strengthening our core B2B operations with a consumer online powerhouse that creates a scalable global platform for growth"

Now after a few trials by fire including an investigation into possible insider trading during purchase of the Oldford Group by Amaya.  Another glitch surfaced when the firm applied for a license to operate in the USA’s newest legal online gambling jurisdiction New Jersey. New Jersey’s Division of Gaming Enforcement ordered Amaya Gaming to fire four senior executives connected with PokerStars and Full Tilt as a condition of receiving a license to operate online gambling in the state. Complying with the DGE of New Jersey requirements including the licensing process cost the company $2m, while the dismissal of the four Oldford employees added $3m to the firm’s expenses.

Amaya has announced because of currency issues and other unexpected delays, added taxes and costs, changes in regulatory platforms and technical problems it would delay the rollout of “significant aspects” of its new sportsbook operations in order to “enhance the consumer product experience and complete the product offering.” Amaya keeps on plugging away at expanding its range and offerings in Quebec, Russia and the USA among other jurisdictions. Slow but sure the empire rises and gets bigger and stronger.

 

             

 

Related news

Return to Latest News