Gambling software firm may expand in Republic

Gambling software firm CryptoLogic, which recently relocated its headquarters from Toronto to Dublin, is considering establishing two new centres in the Republic. This could create up to 100 jobs.

CryptoLogic moved its executive headquarters to Dublin in June as part of a major reorganisation prompted by the prohibition of internet gaming in the US last October.

Chief executive Javaid Aziz said yesterday that although staff numbers at the Dublin headquarters are unlikely to exceed 20, the company is considering investing further in the Republic.

"The two areas that we would potentially invest in would be software development capability, and secondly, call centre/contact centre capability," Mr Aziz said.

He stressed that such plans were "for the future", but if the investments go ahead, Mr Aziz estimates that between 50 and 100 jobs would be created over a two- to three-year period.

Due to the high costs of employing staff in Dublin, the new centres would be based outside the capital, he added.

CryptoLogic views the Republic as an attractive investment location because of its proximity to its European customer base, he explained, and also because of the country's favourable tax regime.

"We feel that the population generally is very amenable to working in the software business and the contact centre business," he said. "And you have great language and language support skills."

CryptoLogic, which develops and licenses online casino betting games for brands including William Hill and World Poker Tours, also said yesterday that it sustained an after-tax loss of $2.6 million (€1.9 million) in the second quarter.

This was due mainly to reorganisation costs of $4 million relating to the establishment of its Dublin headquarters. "The United States-oriented business dropped away overnight in October last year," Mr Aziz added.

"In the first quarter of this year we had a fairly unsteady environment because we were still reeling from the shock.

"CryptoLogic took major steps this quarter towards a return to growth and profitability - with an increase in operating revenue, and a decrease in operating costs."

The company recorded revenue of $16.2 million in the second quarter and anticipates revenue of $16-$17 million in the third quarter, with an operating profit of $1.5-$2.5 million.