from Cryptologic – CryptoLogic Inc., a leading software supplier to the Internet gaming and e-commerce industries, today announced that it has commenced the certification process in the Isle of Man and Alderney – major new markets the British government recently opened up for regulated Internet gaming that have attracted some of the most recognized names in the gaming industry.
As part of its ongoing commitment to regulatory compliance for safe and secure online gaming, the company also advised that it has swiftly resolved a recent system intrusion with minimal impact.
“At CryptoLogic, we’re excited by the growth of responsible and regulated online gaming around the world,” said Jean Noelting, CryptoLogic’s president and CEO. “We’ve made no secret of our commitment to high standards in security and our belief in regulating the industry for the benefit of everyone.”
CryptoLogic is in the final stages of certification in Australia — widely seen as the world’s strictest regulatory model. The company has now commenced the compliance process in the Isle of Man and Alderney, which are both highly regulated environments for online gaming.
Given the significant investments in Australia, CryptoLogic believes it is well positioned to meet the requirements in these two jurisdictions in a shorter timeframe and expects that software certification in the Isle of Man will be completed by year-end.
Thanks to CryptoLogic’s comprehensive security system and compliance processes, the company promptly detected and resolved a recent system intrusion that caused higher win rates in certain games. There was no compromise of player information, no disruption of service and players were paid out in the normal course.
The company’s effective detection systems and response procedures minimized exposure to the organization and its customers to a net impact of US$600,000, after an expected insurance claim of US$1.3 million. CryptoLogic’s solid performance earlier in the quarter and strong current momentum are expected to offset the impact resulting from this incident.
Management anticipates Online Casino Singapore financial results will remain on target with its guidance for the third quarter – i.e. projected revenue of US$9.7-$10.2 million and net income of between US$4.2-$4.6 million well ahead of the 2000 third quarter of US$8.1 million in revenue and US$2.6 million in net income.
CryptoLogic has followed self-regulation practices since its early days including annual IT system reviews as well as ongoing probity performed through KPMG. The company’s commitment to regulatory compliance raises the bar by subjecting CryptoLogic to rigorous, external monitoring and audits by government regulators.
“Among our clients, CryptoLogic is one of the most conscientious with regards to probity of its licensees and employees,” said Norman Inkster, global managing partner of KPMG’s Forensic and Litigation Unit. “They have always emphasized the importance of strong external and internal security practices and take seriously our recommendations that further enhance their operation and software.”