Casino growth slower than poker in 2005, according to Cryptologic

Casino sector suffering from slowdown in 2005

Growth in the online casino sector continues to be eclipsed by poker, according to the latest results from software firm CryptoLogic.

Huge growth in poker has pushed Q1 earnings up by 27% to US$4.8m compared to the same period in 2004 for the Canadian software provider.

Poker now comprises 25% of total revenues at CryptoLogic, up from 12% at the same time last year.

But the leap in poker revenues came against a backdrop of a less inspiring 6% rise over Q1 2004 in casino revenues.

Publicly listed casino firm Gaming VC saw their revenues climb by 11% for Q1 2005 compared to the same period in 2004.

But a great deal of anecdotal evidence from the online casino sector points to low growth rates over the past 12 months.

And it is in marked contrast to the spiralling growth of the poker sector, which continues to drive expansion at most of the biggest egaming firms.

Total revenues at CryptoLogic for the period were up 33% to US$20.3m, thanks in part to 200% growth in its poker division.

CryptoLogic powers the poker rooms for Intercasino, William Hill and Betfair, among others.

And Lewis Rose, CryptoLogic's chief executive, said the results confirmed the firm's position as "the blue-chip egaming software company".

The firm also continued its expansion beyond the US market, with earnings generated from non-US players now accounting for over 60% of total revenues.