IGT's Entraction Online Poker Network Leaves European Market

Published Thursday, December 13, 2012 - Online-Casinos.com

The recent announcement by IGT Interactive that it would be discontinuing its offering of internet poker in the European jurisdiction has a few investors wondering why the move to exit the jurisdiction. Just last year in 2011 International Game Technology interactive acquired the Swedish company Entraction Holding AB, to provide online poker in Europe. When IGT purchased the firm for $115 million USD, Entraction operated one of the world’s largest, legal online poker networks. The purpose behind the acquisition of Entraction was to enhance IGT’s potential to, “grow its position within the rapidly growing Interactive gaming space” and expand its connection to other gambling operators in the global market.

Since the crackdown on online poker in the USA firms that once were named as dot com are now dot country which has fundamentally changed the direction and liquidity of the poker marketplace. Regulatory changes have reduced the profitability for IGT and as a result and problems escalating IGT has pulled out of the European poker market. IGT isn’t leaving the interactive gambling market in Europe all together and plans to continue other gaming offerings in Europe. Those offerings include slot games as well as sports betting, and bingo.

In a statement issued by the IGT management it said that the exiting from the poker market was, “purely focused on our European dotcom business and does not impact future decisions regarding entry into new markets.” Growth in other offerings has prompted IGT rethink its operations in the European jurisdiction. A spokesperson for IGT said, “Change and uncertainty in European market conditions have diminished the expected returns in certain real money wagering products,” the statement continued to explain, “As a result, we are consolidating our product development, allowing us to combine a number of locations and focus on the most attractive opportunities.” “As part of our regular business process, we have been evaluating our resources, products and markets from a commercial and compliance perspective. “

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