CasinoCafe: New Gambling Concept

Net Entertainment AB is a Swedish company that develops state-of-the-art software for Internet based lotteries, competitions and gaming. The company was founded in 1996 and has its head office in Stockholm, and additional offices in Malta and Costa Rica. It has recently been in the news for developing casino games for WAP enabled mobile phones. CasinoCafe is one of the latest online casino concepts developed by Net Entertainment. It combines the feel of both land gambling and Internet gambling. Net Entertainment has been demonstrating this concept in exhibitions over the last two years. It has now come to an understanding with two clients. The clients are Delta Invest Ltd of Russia and PCP Electronics Ltd of Cyprus. The agreements have been signed and CasinoCafe will hit the markets in Russia and Cyprus in the second quarter of 2009. The agreement involves Delta Invest and PCP Electronics paying a royalty to Net Entertainment on the basis of the revenue generated by them.

CasinoCafe operates in a manner similar to Internet cafes. A local casino operation is set up using online casino games on standard personal computers that are found in Internet cafes. This eliminates the need for costly land casino equipment or highly paid casino personnel. Yet it gives the live casino feel because everyone around is gambling. Net Entertainment will provide a wide range of online casino games to the CasinoCafe operator with the necessary administration tools that can handle the financial transactions. The system will cater to serious gamblers who would play regularly as well as one time players who want to play a few rounds to pass some time.

Both Delta Invest and PCP Electronics have experience of land gambling operations and are looking to tap that segment of the market that cannot afford live casino gambling. Delta Invest is planning on a network of 500 CasinoCafe outlets in Russia. PCP Electronics is less ambitious and will open 20 outlets in Cyprus. Marketing for the product has begun in earnest and the feedback seems positive.

The Chief Executive Officer of Net Entertainment, Johan Ohman, explained that the concept of CasinoCafe is viable because “it combines the cost efficiency of electronically distributed gaming with the business volumes of land based casino operations.” According to him over 90% of all gambling is conducted in physical environments and therefore the CasinoCafe concept will thrive. Vjaceslavs Volkovs who is the Director at Delta Invest has also expressed his pleasure with the deal. He said that that CasinoCafe will enable their customers to “experience and access top class gambling content by the click of a button.

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