Sunday, April 01, 2007

The online gambling industry has experienced troubles in the American market
since the passing of the Unlawful Internet gambling Enforcement Act, which
has spurred investment firm, Citadel, to focus on gaming markets outside of
the US. ESI Entertainment Systems Inc. (ESI), parent company of online
gambling payment processor, Citadel Commerce, which is based in Canada, and
its subsidiary, Payline, plans to expand its UK operations by moving related
intellectual property to Malta. Since the gambling act was signed into law
in October, Citadel stopped processing US customers' money. Company shares
lost almost 90 percent of their value, and have not recovered. The industry
is finally beginning to look positive as many businesses have the advantage
of mobility: their market remains online, whether from the US or Europe,
where Citadel predicts a huge growth. Citadel's primary data centre will
also relocate, and Tony Greening will be taking over Mark Bains role as CFO.
The call centre, in Costa Rica has already been enhanced for increased
operational duties and local accounting capability. Parent company ESI is
not known for huge investment in dead runners, and shares on the Toronto
Stock Exchange look cheap.