Two of the best-known online gambling companies, Microgaming and PokerStars, owned by Amaya, have signed an important deal. The goal of this deal is for PokerStars to diversify the offer in its recently launched online casino.
One-year Deal to Test the Waters
Two companies have signed a one-year deal for the time being. PokerStars, as the name suggests, is best-known for its online poker offering. However, after the site has been taken over by Amaya, they’ve started to introduce online casino games.
Although Amaya is an online casino games supplier as well, the company felt that addition of Microgaming (Quickfire) games would contribute to the popularity of the online casino segment. Quickfire has a number of well-known titles that enjoy great popularity with players around the world.
This one-year deal will serve as a testing ground of sorts. Microgaming games should appear on the PokerStars global casino site around the middle of 2017. After a year, both companies will reevaluate, although the odds are this deal will be extended indefinitely.
Online Poker No Longer Cuts It?
For years, PokerStars has been exclusively devoted to online poker. This approach helped the site grow and become an undisputed leader in the online poker niche. However, expansion to include other online casino games seems like a very logical move.
According to experts, online poker isn’t very likely to grow significantly in the near future. Over the past several years, there have been no significant positive developments regarding online poker in regulated jurisdictions. All this indicates that diversifying their offer is the best way for the companies to move forward.
As a company that’s been around for a while, Amaya understands this all too well. After introducing online casino games to their offer, the partnership with Microgaming seems a logical next step. By partnering up with one of the online gambling leaders, PokerStars will ensure the inclusion of games certain to go over well with their players.
Online Casino & Sports Betting Showing Positive Trends
Even though some, especially poker players, have their doubts about the path PokerStars has been taking, numbers speak for themselves. In the third quarter of 2015, income from the newly added online casino and sports betting offering contributed 15% to the groups’ overall income. The third quarter of 2016 saw that number swell to 24%, showing clear and indisputable growth.
The biggest issue PokerStars has to deal with is the possible alienation of their poker-playing base. For many, PokerStars used to stand for online poker as it should be, and recent changes have distorted that image quite significantly.
However, like with all businesses, it’s all about the bottom line.
If Amaya feels the addition of casino games and expansions like this one will bring in more new revenue than they potentially stand to lose, it’s an easy decision. Being a publically traded company, Amaya has a responsibility to its shareholders and must act in their best interest.
And the best interest in the corporate world usually equates to most profit.